If home buyers are presented with false information, then yes – there’s nothing they could do about it. If they failed to read the documents, and seek outside help, then things get murky pretty fast. But a read o this article makes it sound like information put in front of the buyers was simply made up.

A predatory lending scheme in New London is the “poster child” for a diseased lending industry, Attorney General Richard Blumenthal said Thursday. “It is sort of a case history about what can go wrong in the predatory lending area,” said Blumenthal, speaking at the 29th Annual Fair Housing Conference.Blumenthal said buyers in this and other schemes did not read their loan documents but rather trusted the professionals who told them that they were working in their interest.

“The buyers were not the ones at fault here,” Blumenthal told housing experts from all aspects of the industry.

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