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How to Recognize Predatory Mortgage Lenders

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									How to Recognize Predatory Mortgage
Lenders
From Elizabeth Weintraub,
Your Guide to Home Buying / Selling.


Don't Be a Victim of Mortgage Fraud
The bulk of mortgage lenders in the marketplace are consumer oriented and comply with
state / federal laws. These lenders operate within the scope of real estate law and
ethically. However, there are lenders who prey on the naive and uniformed. They
take advantage of people who don't know how to tell the honest mortgage lenders from
the predatory types.

However, like with any profession that involves huge sums of money, complicated
products and unsophisticated consumers, there is a potential for fraud. How can you tell if
a lender is a scammer? Here are a few warning signs:

      The representative comes off as a fast-talker and smooth operator
       You might get the impression that the discussion is more of a spiel that has been
       repeated so many times it's now rote and not a conversation.
      The rates and fees appear to be unusually high
       Ask to have your FICO score explained to you and compare rates among other
       lenders.
      The lender is using high pressure tactics with you, urging you to sign NOW
       If you are refinancing; you have three days to change your mind. If you are
       buying a home and obtaining a purchase loan, ask what happens if you do not
       immediately "lock" your loan rate.
      You are told that "bad credit is no problem"
       Credit is always an issue. Good credit with high FICO scores means you will get
       favorable terms on your loan. Bad credit might prevent you from getting any loan.
       Lenders who specialize in making loans to buyers with bad credit are known as
       sub-prime lenders and may not offer attractive rates.
      The lender encourages you to lie on your loan application and claims "it is
       done all the time"
       Do not sign blank documents and do not make false statements on your loan
       application. It is against the law to defraud a lender.
      You are pressured to accept a risky sounding loan you do not understand nor
       want
       Most folks have some kind of idea how much they feel comfortable paying per
       month on a mortgage. Do not agree to make higher payments than you can afford
       to pay.
       The lender pretends to care about you but you have a funny feeling about the
        pretense
        Listen to your intuition. It is asking you to pay attention to this nagging feeling
        that something is not right. Trust yourself.
       You receive assurances that the loan being offered to you will solve all your
        financial troubles
        Nothing will solve all your financial woes until you stop spending money. There
        is nothing magical about a mortgage, and nobody is doing you any favors in this
        business..
       At the closing table, all your fees and charges are different than what you
        initially agreed to pay
        If this happens to you, pull out your Good Faith Estimate and ask for an
        explanation. Continue to ask questions until you are satisfied with the answers.

Report predatory lenders to the Federal Trade Commission and / or your state attorney
general.

…

Brought to you by US Loans

Contact us for more information. . . (877) 655-6250

www.CaliforniaMortgageOptions.com

								
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