General Housing Information Article
Loans and Your Home: Know the Danger Signs
Getting a mortgage, refinancing a mortgage or taking out a home equity loan shouldn’t be scary - but the wrong agreement can cost you unnecessary interest charges and fees, and may even cost you ownership of your home. This information can help you protect yourself from risky loan agreements.
Possible warning signs of a risky loan agreement
Although many mortgage lenders are reputable, there are some lenders who may take advantage of a homebuyer. Here are some possible warning signs of a risky loan agreement. These are things that you want to look for if you are purchasing a home. One effective way to protect yourself is to learn about the lending process and about the mortgage lender specifically before meeting with a lender.
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The lender contacts you in person, at home, by mail or telephoneYou are told you’ll be approved, regardless of your creditYou’re told you must lie about your income to get the loanYou’re told to stop making payments on your current loan or to other creditorsYou’re told to send payments for your current loan directly to the person or company offering you the new loanThe interest rate may increase over the course of the loan - an Adjustable Rate Mortgage (ARM)The loan includes a prepayment penaltyThere is a large payment at the end of the loan - sometimes called a ‘Balloon’ paymentThe lender pressures you to sign the papers ‘NOW’ if you want the dealYou’re told not to worry about the ‘fine print’ - sometimes the lender will pretend to explain it to you rather than to give you time to read it - don’t feel pressured – make sure to take the time to read the fine print.You’re asked to sign, or ‘deed,’ your home over to the lender.The loan is suggested to you by someone offering you home improvement repairsYou’re asked to sign documents with blanks or in a language you don’t understandIf Something Sounds Too Good to Be True - it usually isHOW CAN I PROTECT MYSELF?If you are not already familiar with basic real estate terms, it can be helpful to familiarize yourself on commonly used real estate terms before signing documents. Here are some commonly used terms:
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Refinance: replacing an existing loan with one with different termsTerms: refers to interest rates, repayment period, type of interestHome Equity Loan: loan in which your home is used as collateralBalloon Payment: a lump sum payment paid at the end of the loan termFixed Rate Mortgage: a loan where the interest rate does not changeAdjustable Rate Mortgage (ARM):a loan where the interest rate may increase during the life of the loanPrepayment Penalty: a charge to pay off the loan early, usually when the loan is refinancedNegative Amortization or Interest Only Loan: your loan balance INCREASES as you make your paymentsIf you are concerned with the terms of your loan agreement, consider talking to an attorney or housing agency before you sign it. If you have already signed the loan agreement and are concerned that you may have a legal issue, you may want to contact an attorney. If you believe that you have been the victim of consumer fraud, file a complaint with the Arizona Attorney General’s Office.
Comments:QUESTIONS
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Hello... I live in an apartment, last week my car was stolen and so were my license plates. The following day, the manager called and had my vehicle towed, I called the office and explained my situation and asked if there was any way they could help me as I am a single mother and live on ssd, they said there is nothing we can do, you are going to have to pay to get your car out, also adding it is in my lease that vehicles cannot be parked with no tags and I should have called them and told them my tags were stolen. Can I force them to pay the fees if I have police report?
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I let my cousin and her daughter leave some of their belongings in my back house. It was only supposed to be for a few weeks it has now been over three years. I have talked to my cousin and have repeatedly told her to pick up her stuff. She says she'll be here a certine day and never comes. Her daughter I can never get a hold of what can I do with all their stuff now?
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I live on private property owned by family, there exists on the property one home and one occupied 5th wheel "home". Someone reported us and are facing possible eviction within two weeks and this would result in three of us becoming homeless, is there anything we can do?
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I have lived with a lady for 16 years as man and wife but we are not married. I have took care of her farm and repairs ,and now she wants me to move ,legally do I have to move or do I have any legal rights to live on her farm?
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How can I reduce my mortgage payment and/or principal? Is it possible to sue the bank and/or lender in order to eliminate and/or cancel my mortgage for fraud and/or TILA, RESPA violations? Do securitization audits and/or other mortgage audits work to accomplish these goals? What is quiet title and should I file for one? Thank you.
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If I pay off my house how does it affect the other two people on the deed?
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Who owns a fence on the property line? If the fence is rotting away who has to fix or replace the fence? Is it a share fence and who has to keep it in good order. I am in Mohave County
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Re: an increase in monthly maintenance fees in a housing CO-OP (not apt, not condo). QUESTION: Is there a percentage maximum that the monthly fees may be raised? Our by-laws say it is 20% without resident/member/owner approval, but some owner-members say it is only 5% by AZ law. (That sounds like tenant/landlord law which shouldn't apply.) Thanks for the help.
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I recently rented a room for my wife and I from a couple in Phoenix. I paid a deposit and three months rent in advance totaling $1625. I received signed receipts. Before moving in the landlord changed our original agreement and asked for a separate fee for utilities. We had agreed on a monthly rent charge that would include utilities.I informed the landlord that if he could not adhere to our agreement I would remove my property and wanted a refund. After considerable difficulty I was allowed to do so but a refund has been refused. A lease was also refused. I never stayed in the home even once.
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I listed my granddaughter as 18 month old. No fence or gate was around the pool from back doors of home, as required by permit under AZ Law. The lessor had a real estate agent as did we. The lease was broken, accepted by the lessor. The lessor does not want to refund $3,900.00 security deposit. The exterior fence from driveway also was not self closing either and we have pictures of both. Did the lessor break the AZ law by entering into a legal contract and not have a Permitted, Inspected fence and self closing gate around the pool, Knowing an 18 month old be occupying the leased home?
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