Foreclosure Article
Predatory Lending Schemes and Scams
Beware Of Predatory Lending Schemes
Most mortgage lenders are reputable and provide a valuable service by allowing families to own a home without saving the thousands or hundreds of thousands of dollars necessary to buy it outright. However, a few, unscrupulous lenders, especially those who make high risk second mortgages, engage in predatory lending practices that can increase the likelihood that a borrower will lose his or her home to foreclosure. These abusive practices include making a mortgage loan to an individual who does not have the income to repay it, charging excessive interest, points and fees or repeatedly refinancing a loan without providing any real value to the borrower.
Borrowers facing unemployment and/or foreclosure are frequent targets of predatory lenders because they are desperate to find any "solution" to their default.
Homeowners frequently receive refinance offers in the mail telling them that they have been "pre-approved" for credit based on the equity in their home. When you are wondering how you are going to pay your mortgage and other bills, it may appear very attractive to borrow against your house. But consider this, if you cannot make your current payments, increasing your debt, even if you get some temporary cash, will make it harder to keep your home.
Beware of Scams:
- Equity skimming: a buyer offers to repay the mortgage or sell the property if you sign over the deed and move out.
- Phony counseling agencies. Some groups calling themselves "counseling agencies" may approach you and offer to perform certain services for a fee. These could well be services you could do for yourself for free, such as negotiating a new payment plan with your lender, or pursuing a pre-foreclosure sale. If you have any doubt about paying for such services, call a HUD-approved housing counseling agency at (800) 569-4287 or TDD (800) 877-8339. Do this before you pay anyone or sign anything. Don't sign any papers you don't fully understand.
- Make sure you get all "promises" in writing.
- Beware of any contract of sale of loan assumption where you are not formally released from liability for your mortgage debt.
- Check with a lawyer or your mortgage company before entering into any deal involving your home.
- If you're selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer. You can contact the Arizona Office of the Attorney General Consumer Fraud Unit for this type of information.
- Do not sign anything you do not understand. It is your right and duty to ask questions.
- Information is your best defense against becoming a victim of predatory lending especially for a desperate homeowner!
Where to Report Suspected Predatory Lending – homeowners can contact the Arizona Office of the Attorney General, or call 1(800) 352-8431 to get information on what steps to take to file a complaint. You may also want to look at Predatory Lending Brochure from the Office of the Attorney General.
For more information about Predatory Lending go to:
HUD's Predatory Lending Web SiteAttached Document
Predatory Lending Schemes and Scams
Comments:
QUESTIONS
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my home was auctioned in a forclosue on 02/28/14....I am now being evicted by monday.....where is the 70000 equity in my home ?
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What are home owners liabilities during foreclosure
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My proprty is seduced to be sold today at a Trustee's auction. I had a new loan approved for past two weeks that would pay the existing note in full, the trustee deliberately withheld the final payoff statement until 4:59 p.m. on the day prior to the foreclosure, making it impossible to fund on the new loan in time to stop the sale. Is there anything we can do to stop the sale and buy ourselves a few days to get the new loan closed?
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I have lived here for 12 years. My name on warranty deed and signed into a trust. New company is servicing my account and will not recognize me as the owner. Foreclosure sale is Jan 14th. Have tried for several months to communicate but they will not. My name is not on the loan. Can you help me. I have a buyer for the property. They will not talk to me about it.
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my loan servicer is part of the independent foreclosure review and im confirmed for compensation can I take legal action for things such as lost wages and early retirement withdraw fees and tax penalties I have detailed documentation foreclosure happened in 2010.
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I was in the midst of a loan modification review and was told they granted me a 30 day extension on my foreclosure. I have now come to find out they never did the 30day extension and my house was sold. Do I have any legal recourse?
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In July I went to SALA to see about filing bankruptcy. I am behind on everything due to unemployment and medical bills for my son. The lawyer I saw said not to at this point because I make too little to garnish,and sent me home with some pamphlets. Now my HOA has sued and won and is putting a lein on my house.I will never be able to make the payment they are asking for. My house is free and clear. Can the HOA still take my home and leave my kids and I homeless? Or are they bound by the homestead law? Thank you.
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We own a unit in a condo complex that is being foreclosed upon as a whole. We need to know if we have any recourse for the loss of our investment and how this will affect our credit rating.
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I put my Fathers name on the Deed to my house in hopes of refinance. This fell through for many reasons. I am now pending a foreclosure. Will he be affected in any way with his name on the deed??
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Bankruptcy was done 6/2010.My mortgage was included and at same time GMAC mortgage was going thru bankruptcy and Ocwen took over my payments which I continued to make. I was not aware that I was to reassume my loan nor advised by Ocwen or lawyer on this. Ocwen took payments and stopped reporting to credit bureau's.Tried Harp but was unable due to no show of a morgage.Struggling to pay 1400mo now.If let go can they report it with lack of show of mortgage.Can they be forced to report back paymt's.what options do I have before I'm forced out of home.Reach me at [email protected]
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