 |
Avoiding the Traps of Predatory Lending
The FDIC openly acknowledges the prevalence of predatory lending in the mortgage market and encourages borrowers to take precautionary steps to protect themselves against this growing threat. The following items outline the bare minimum of points that a consumer must consider when contemplating acquiring a real estate loan. For more detailed information, and an excellent overview of how we all can protect ourselves and our clients from predatory lenders, visit the Federal Deposit Insurance Corporation.
• Ask yourself: Do I really need this loan? Consumers must realize if they are having money problems they must consider all other options before putting their home at risk as collateral for a loan.
• Deal with a reputable lender: Check references and credentials and don’t allow yourself to be pressured into making a quick decision.
• Shop around: contact several reputable lenders and educate yourself as to what is available in the market. Obtaining a minimum of three quotes is imperative.
• Know what you are signing: Only sign a document after you fully understand all the terms of the loan. Realize you have the right to request and understand key information. Look in the fine print for overcharges.
• Speak up if you think you have been treated improperly: Don’t hesitate to seek help from state or federal government agencies if you cannot resolve any problems with the lender. And always remember, you do not need to face a loan problem alone.
|
|