Identifying Predatory Lenders
Buying or refinancing a home is one of the most important financial decisions you will ever make, so it’s important not to fall prey to a predatory lender or bad home loan.
Who are Predatory Lenders?
In communities across America, people are losing their homes and investments because of predatory lenders, appraisers, mortgage brokers and home contractors who use tactics such as:
1)Encouraging borrowers to lie about their income, expenses, or cash available for down-payments in order to get a loan.
2)Knowingly lending more money than a borrower can afford to repay.
3)Using false appraisals to sell properties for much more than they are worth
4)Charging higher interest rates to borrowers based on race or national origin and not on their credit history.
5)Pressuring borrowers to accept higher-risk loans such as balloon loans, interest only payment loans, and steep pre-payment penalties.
6)Encouraging homeowners to refinance again and again when there is no benefit to the borrower.
7)Using high pressure sales tactics in order sell home improvements and then finance them at high interest rates.
Prospective borrowers are encouraged to find more loan fraud information at http://www.pueblo.gsa.gov/cic_text/housing/loanfraud/loanfraud.htm