This editorial will appear in tomorrow’s print edition.
Exhibit A: Lender extends $17,000 loan to unemployed mechanic who’d fallen behind on his property taxes, dupes mechanic into signing a note for $170,000 and a quitclaim deed that allows immediate seizure of house after a single missed payment.
Effective interest rate: 45 percent. Lender claims house.
Exhibit B: Lender loans $5,000 to single mother of two; she misses payment; he seizes her house in Graham and $70,000 in equity.
Exhibit C: Lender extends loan to Lakewood hairdresser facing foreclosure. Origination fees: $26,400. She believes she’s getting $240,000 at 14 percent. Effective interest rate is nearly 90 percent, with payment in full due in 90 days.
She says she didn’t understand paperwork but lender assured her the forms were standard. She goes to hospital, returns to find foreclosure notice on her door.
Such – according to The Seattle Times – is the modus operandi of hard-money lender Emiel Kandi, a University Place man already known in these parts for opening a casino and an illegal marijuana shop in Tacoma. Kandi may not be the most unscrupulous operator out there, but he may be the most brazen.
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