Mortgage loan and scams

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.

Economic Recession effects on Mortgage Repayment

Economic recession has affected a lot of people and few of them who are most effected by this recession are home owners who are suffering from higher interest rates and change in inflation rates. Government is trying hard to ease the effect of economic recession from those people who are home owners but at one point in time, even they are helpless. Those people who are in job even after heavy job cuts, they are finding it very difficult in mortgage repayment because of no increase in salary.

Those home owners can still smile a bit who have a fixed and comparatively low rate mortgage as mortgage repayment will remain the same even after increase in interest rates. Those home owners who have flexible interest rate on mortgage can lead them to high debt because of increase in interest rates and mortgage repayments and no increase in salaries.

Precautions need to be taken at the time of buying home because we cannot predict anything about the future economy. In recession time, another good idea is to take out some cover on your mortgage repayment. For a monthly repayment, you can protect yourself for a period of time against loss in job or failing in health which allows for the mortgage on your home to be paid after getting a new job or after recovering from any disease. I’ll also suggest you to go for fixed rate mortgage plan rather than flexible interest rate. You can also change your interest plan from flexible rate to fixed rate mortgage plan.

Five Points to remember when Buying Home in Recession

I’ve met many people in last few weeks who want to buy a new home and the only reason to buy is “RECESSION”. As a financial advisor I gave them few suggestions before buying anew home and I want to share the same suggestions with you all in case if you also planning to buy a new home.

• Buying a home in recession time is a great advantage but only in that case if you are 100% prepared for that. Don’t buy a home if you are not 100% sure about your finance because that may affect your and your family future.
• It is true that because of recession, there is decrease in price of homes but it not true in all cases. There are chances that prices of homes of your area didn’t fall. So please compare the prices of homes before recession period and after recession period.
• Recession became a big problem for those builders who were building home in the recession period because they could not stop building. So now they are building such homes which are more appealing to consumers. As well as they are giving heavy discounts. So find out such homes in your area. May be you’ll be able to buy your dream home at a very cheap price.
• Don’t buy a home just because it is cheap in price but is not suitable according to your needs. Always remember that buying home is a long investment plan, so invest it in proper manner and in right place.
• Find out the downfall in prices of homes in other cities too. May be you are getting less discount than others. You can give the information to seller of home and can ask for more discounts.

We all work hard to make our dream home. So keep this point in mind, make this recession period an advantage for you and buy a sweet dream home for yourself and your family.