Recognizing Predatory Lenders

Unfortunately, not all mortgage lenders or credit repair companies have your best interest in mind. Beware of predatory lending traps.

Here are some examples:

• High-Risk 2nd Mortgages:  These may seem like a good options, but exercise caution since they could further complicate the issue
• Unsolicited “Loan Approvals“:  Predatory lenders often send homeowners information stating that they are pre-approved for a loan.  Talk to your lender, not a stranger
• Refinancing to Access Equity:  By stripping your home of equity, you could be actually be going further into debt and decrease your chances of keeping your home.
• Equity Skimming:  A buyer may offer to pay off your mortgage or sell your property if you sign over the deed and leave your house – Don’t do it!
• Phony Consulting:  Reputable counseling is available – often free of charge.
• Don’t sign what you don’t understand:  Some predatory lenders can be aggressive in trying to get you to sign paperwork.  If you are unsure, don’t sign.  Take the paperwork to a trusted advisor or review it with the lender.