Foreclosure
12 September 2007
Foreclosure doesn't just happen to people who don't make their mortgage payments. Your homeowner's association (HOA) can take your house or condo if you're not careful. In one case, a disabled California man lost his home in a foreclosure sale because he was $123 behind on his homeowner's dues. The house was worth $280,000. Unfair? Abusive? You bet!
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12 September 2007
Foreclosure doesn't just happen to people who don't make their mortgage payments. Your homeowner's association (HOA) can take your house or condo if you're not careful. In one case, a disabled California man lost his home in a foreclosure sale because he was $123 behind on his homeowner's dues. The house was worth $280,000. Unfair? Abusive? You bet!Read More »
Avoid Taking Home Loans from Predatory Lenders
By Sarah ClarkNFNS Columnist
Predatory lending is a real concern among home buyers. Don't let questionable mortgage practices hurt you--the most effective weapon you have is being an informed consumer of home loans.Most mortgage companies conduct their business with integrity and high ethical standards, but a few bad apples could do you harm by offering home loans that may lead to financial headaches and worse, foreclosures. Know how to sniff out predatory lenders through these tips offered by the National Association of Realtors.
Warning Signs of Bad Mortgage Lenders
First, beware of mortgage companies that handle paperwork sloppily. If they ask you to sign and backdate a paper, be concerned. And if they skim through reams of paperwork without giving you time to examine the fine print, proceed with extra caution.A predatory lender may not ask you about your credit history and income--that may seem like a good thing if your credit score is low, but it's really not in your interest over the long term. A sound broker will help you find a mortgage rate and terms that you can afford by closely examining your financial resources.
What's most important is that you seek out mortgage companies that offer mortgage rates with payment terms that are right for you. Avoid the worry of finding out your payments will increase to an amount that exceeds your monthly budget for housing. You don't want to feel the pressure that comes from living beyond your means and, perhaps, worrying that you might lose your beloved home.
Finding the Right Home Loan for You
With these tips from the NAR, you can become a smarter consumer and are more likely to work with lenders that have your interest in mind. Reputable lenders can also help you decide which loan makes the most sense for you and your family.Source
The National Association of Realtors
About the Author
Sarah Clark is a freelance writer specializing in a variety of consumer topics.
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