27 Mar Predatory Lending Issues
As we are going through these unprecedented times, we’ve been seeing a lot of references to predatory lending. Many wonder what this term refers to in the world of mortgages.
Essentially, predatory lending is the practice whereby a lender deceptively persuades a borrower to agree to abusive mortgage terms. The lender forces unfair, illegal, or unreasonable loan terms upon their borrowers. These practices are everywhere and can affect all consumers, no matter who you are or what your financial situation is. As the term indicates, this type of lender preys upon anyone and everyone who is looking for a mortgage, especially those in difficult financial situations – such as in desperate need of immediate money, have little financial knowledge about mortgages, or low-income people. They only think of themselves and how they can profit from any situation.
It is very important you keep yourself informed about your rights as a borrower and what these people do and represent. Some of these practices include unsolicited mortgage offers, a promise of a guaranteed approval, very high fees, eager (almost pushy) mortgage agents, and documents with blank spaces.
Your financial situation should dictate the decisions you make. If you feel like you won’t be able to afford payments or if a situation leaves you feeling worried, but still feel pressured by the person you are dealing with, chances are you’re being the target of predatory lending. Our agents can assist you in analyzing your financial situation, and further explain the predatory lending.