After the recent countrywide real estate market crisis, increasing numbers of consumers are falling prey to mortgage loan scams or predatory lending practices. This is quite appalling.
Predatory lending practices take place when an organization or any other entity like a mortgage broker, real estate broker, bank or lender or appraiser deliberately misguides or swindles a consumer into signing up for a wrong loan product for making undue gains. Predatory lending practices are not only unlawful but also they can create severe financial losses or difficulties for a borrower. These can frequently lead to bankruptcy, foreclosure and irreversible harm to the credit score of a consumer.
Given below are some examples of predatory lending practices or mortgage loan scams:
- Advising borrowers to keep the signature lines in the agreement empty
- Motivating loan aspirants to incorporate fake details and/or misrepresent regarding their expenses, income or amount of down payment for securing a loan. In this manner, they are offering more than the borrowers can manage to pay back
- Persuading a borrower to refinance mortgage loans again and again, every time raising monthly payments or amount outstanding. By this means, they’re stripping you of any equity that you have accumulated in your home.
- Not providing Special Information Booklet, Good Faith Estimate, HUD-1 Settlement statements and Truth in Lending disclosure.
- Uncompromisingly forcing borrowers to assume high-risk mortgage loans such as balloon mortgage loans, unreasonable prepayment penalties and interest-only payments.
- Asking for unjustified charges related to loan terms and/or products and services that don’t actually exist. These might include putting in hidden clauses into agreements where a borrower will inadvertently assure to pay a lender or broker to get a loan irrespective of whether the loan is closed or not.
- Home loan brokers selling houses at a higher value than their actual market value with the help of fake appraisals.
- Directing borrowers to cash-out refinance deals while borrowers are understandably in need of money because of job loss, severe illnesses or financial hardships.
Purchasing or refinancing a home is perhaps one of the most significant and financially complicated decisions that you make in your entire life. Various eligible appraisers, lenders and real estate experts are prepared and available to assist you to get a decent home by obtaining an outstanding loan. Nevertheless, every year a number of consumers, typically first-time homebuyers or seniors fall prey to predatory lending activities that might lead to shocking financial losses. At a time when mortgage lending activities take place within legitimate yet ambiguous limits, a default in agreement can lead to a prospective borrower facing a lawsuit.
If you feel you or anyone you are acquainted with has fallen prey to a home loan scam, you should immediately talk to a qualified and committed Lead Counsel predatory lending attorney or mortgage scam lawyer. They can talk to you regarding your claims, make sure that your rights are safeguarded and recommend you on the most effective strategy you should initiate.
You shouldn’t fall prey to home loan scams or predatory lending practices and put your financial future at risk. You should rather talk to an experienced attorney right away.