ALBANY, N.Y. -- Even though Patrick O'Brien has cerebral palsy, he mows lawns to help pay his mortgage he recently refinanced. And that "refi" was the problem.
"It went from $1,100 to $1,500 overnight," said O'Brien.
The private broker - who we couldn't reach - allegedly turned his 5.6 percent fixed loan into an adjustable rate that jumped several points. No taxes are escrowed, and there's a balloon payment in the end.
"Do you think you were taken advantage of because you have cerebral palsy?" I asked O'Brien. "Oh yeah," he said.
We've all heard plenty about the foreclosure mess and even predatory lending. Well, earlier this year we told you about one local man with cerebral palsy who tried to refinance but ended up with a loan he didn't want - one that could cost him his house. Now, half a year later, our Steve Ference reports on his hope that he can keep it.
"I first heard about this case on Capital News 9," said attorney Warren Redlich.
He was appalled when he heard what had happened and he took O'Brien's case for free. He quickly realized there were a number of red flags.
"As we understand what happened, the mortgage broker stated that Pat and his wife had $8,000 in monthly income, which is grossly overstating their income. It's nowhere near what they have. Because you don't have to provide proof of it, you submit that to the bank and poof you have a loan you can't pay."
Redlich argued the mortgage is unconscionable - that the broker lied by saying it was a fixed rate, and that O'Brien would get $10,000 cash which he says he never received. An Albany Supreme Court Justice agreed that could be a problem, deciding more details need to be found in the case to prove fraud.
"All we want is to reform the mortgage so Pat and Kathleen can pay a fair amount rather than getting ripped off," Redlich said.
But in this situation, it's not just O'Brien who got caught up in the scheme. The banks pass the mortgage on to others.
"They repackage and sell the loan to a group of investors and we have no idea how many. It's a structured asset mortgage security trust - we have no idea how many - and those investors got sold a bum deal too," Redlich explained.
He argues there has to be legislation to protect people from being put through the mortgage ringer.
"The banks have lobbyists in Washington," he said. "Patrick O'Brien doesn't have a lobbyist in Washington."
Now O'Brien waits for the end ruling that could decide whether he keeps his house he's worked so hard for - or not.
"This is America," O'Brien said. "And to own a home in America is everyone's dream."
According to RealtyTrac, one in every 418 houses in Albany County was in foreclosure or a similar situation in May. And while there is good news nationally, foreclosure rates have dropped 3 percent since May. June foreclosures are still up 53 percent from a year ago.