Thank you for revisiting you can still subscribe to my RSS feed. As Always Thank You for visiting!
Powered by Max Banner Ads
Recently, I attended a closing where the owner felt that the lender was performing predatory lending. I agreed, as a matter of a fact, I pointed it out. One of the signs of predatory lending in his deal was that the terms of the loan was not what the owner agreed to.
The owner immediately called the lender. From his demeanor, the lender was trying to convince him that the deal was the best the lender could do for his situation. This statement was met with the owner informing the lender that the owner’s present lender was offering a no closing cost deal, as well. After several more exchanges, the owner agreed to allow the lender time to meet the terms of the orginial agreement.
The lesson here is to read the documents you are signing. Do not take anyone’s word on what the documents state. When viewing documents look for the interest rate, term and cost for acquiring the loan. Question all items that you do not agree with.
The above scenario is one of many signs of predatory lending.
Other signs of predatory lending are:
- The lender tells the client that the product or loan the lender is offering is the only chance that the client has to get a loan or refinance. Remember if a lender does not give you a choice they are not the right lender for you.
- The lender states the home cost more than others in the area. Remember, the home can not be sold to you for more than what it appraises for. Futhermore, the appraisal is an opinion of value based on homes of similar, size, age, etc. as the property you are purchasing. Still yet, your Realtor can provide a comparative market analysis to let you know the value of the home.
- The lender ask you to sign a blank document. Never sign a blank document.
Lastly, if it seems to good to be true it often is. Read all documents that you sign and get second opinions by having your Realtor, attorney, and/or accountant review the rate, term, and contract before you sign to ensure your rights are protected.
Originally posted 2009-01-18 02:18:45. Republished by Blog Post Promoter
Taylor-Brown's Related Post s' Related Posts -
Mr. President, I Have a Solution The crisis that this country is enduring has created many scars. Many that can be patched by offering a solution to the financial burden that is burning a hole in the average American's dream of homeownership. There are many offering there verison of solution. Well, I too, feel that it is my...... -
What is a Land Trust? Changes to Fannie Mae's Financing Criteria Affect Investors Recent changes to Fannie Mae’s financing criteria have created a need for investors to reconsider how they take ownership of their new investor property. Those changes are affecting investors who finance the property in their portfolio and have those properties under the......
-
Loans and the Credit Crunch The credit crunch is a hot button issue right now, raising red flags in the eyes of consumers not only... -
Stocks vs. Real Estate May's Money Magazine tries to answer the Stocks vs. Real Estate question (see page 94). I had thought that real...












Hola, mi nombre es Sabrina y estube buscando por internet, fue entonces que encontre tu blog, el cual me gusto mucho, el cual es bastante agradable para leer. Regreso la proxima semana para leerte de nuevo. Saludos Sabrina
Thank’s 4 A Good Article! I’ve found My Free Credit Report is a great website to get my credit report & see my score 4 nothing. Has Someone else tried it?
I kind a love this article, we think its uplifting to our audience. so many things to learn and i hope you always write great stuff on this website. thank you
Great info! I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often. http://www.finance-insurance-loans.com/ w9
I was just talking with my friend about this yesterday at lunch . Don’t know how in the world we landed on the subject actually , they brought it up. I do remember eating a excellent chicken salad with ranch on it. I digress…
your information are very interesting, so maybe you can share your infirmation sources ? I am asking because I began to looking for the latest and most interesting news on the web only a few days ago and I only have a few useful websites. Thank you in advance