Tuesday, April 7, 2009

Don't Become A Victim of Predatory Lending

MySecretAgent.com has become aware of a trend that takes advantage of many first time homeowners and senior citizens called predatory lending. Take a moment to educate yourself so you will not become a victim.

Predatory lending is the practice of lenders, mortgage brokers and/or appraisers who use misleading appraisals to make the value of a home seem higher then it really is. There are many strategies lenders may use such as:

  • Promote buyers to lie about their income to get a loan
  • Lenders purposely giving out more money then a borrower can afford
  • Steering- charge high intrest rates based on their race, color or national origin and not on their credit history
  • Charge fees for unnecessary products or services
  • Influence borrowers to accept high risk loans
  • Convince homeowners to refinance over and over when there is no benefit to the borrower
Buying or refinancing a home may be one of the most crucial financial decisions you'll ever make. Unfortunately many unaware homebuyers become victims of predatory lending or loan fraud. Become aware of the tactics predators use so this will not happen to you! For more information visit HUD.gov. They have many free and low cost recourses you may take advantage of.

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