Saved From a Predatory Lender

This image is for illustrative purposes only and does not depict an actual borrower.

When Joe—a small retail business owner relying on seasonal tourism—first reached out, he was juggling multiple short-term, high-interest loans with looming balloon payments. He’d nearly signed yet another predatory consolidation loan when a referral led him to explore better options. Time was critical: in addition to rising debt, two back-to-back hurricanes put everything on hold for lenders and insurers, creating what felt like the “perfect storm.”

After reviewing various scenarios, including a commercial loan, we identified an FHA refinance on Joe’s home as the most efficient way to consolidate his debt. We structured the loan to include cash-back at closing, ensuring he could settle outstanding balances without taking on more predatory terms. Because of the recent hurricanes, we fast-tracked the process and ordered two post-storm appraisals to confirm the property remained sound.

While the delays added an extra month of payments and fees, the overall outcome was a game-changer. Joe reduced his monthly debt by about 50%—saving $10,000 a month—and avoided $30,000 in unjustified fees. By rolling three four-year loans into one 30-year fixed mortgage and walking away with an additional $20,000 at closing, he significantly lowered his stress level and preserved his business.

From this experience, I’ve reinforced the importance of closely examining lenders’ fees and rates. It’s vital to look beyond interest rates alone and understand every cost in a loan package. If you’re exploring financing, consider obtaining at least two quotes and never hesitate to ask questions. A transparent, well-structured loan can genuinely be the difference between sinking further into debt and regaining the stability you need to thrive.