Don't risk your home. Watch out for predatory lending.
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predatory lending? how can you tell?
example of predatory mortgage contract
what is predatory lending?
how big is the problem here?
responsible lending principles
why is predatory lending a fair housing issue?
how can we stop predatory lending?
what is a mortgage broker?
what questions should I ask a loan officer or mortgage broker?
what can you do about predatory lending?

 

What is predatory lending?

Predatory lending is actually a variety of harmful practices that are designed to take advantage of a consumer's inexperience or lack of sophistication to manipulate a borrower into paying more for their loan than they need to. We are most concerned with residential real-estate transactions.

In the real-estate world, predatory lending is terrible lending practice designed to take away your home equity. If you agree to a loan based on the equity you have in your home, you could easily be putting your home at risk. Through false promises and outrageous fees, predatory lending can ruin your credit and lead to foreclosure. Homeowners-especially the elderly, minorities, those with low income or damaged credit-should be extra careful when choosing their loans. These borrowers are often targeted with abusive and exploitative practices. Home financing is a complicated world of tough language and difficult-to-understand practices. Don't risk your home-be careful.