If you are in the process of refinancing your home mortgage you want the new loan to be the best mortgage possible. Many homeowners that take out bad mortgages dont even know they are being taken advantage of. How do you protect yourself from advantageous, predatory mortgage lenders? Do your homework and research mortgage lenders before signing on the dotted line; here are tips to help you avoid being taken on your new mortgage. The mortgage industry is a highly competitive business. To stay profitable some mortgage lenders resort to underhanded tactics that take advantage of homeowners, especially those with poor credit. Mortgage lender scams can cost you thousands of dollars; dirty lenders can even take your home. Here are examples of mortgage scams you need to avoid. Beware Home Buyer and Mortgage Seminars You see ads in the paper from time to time about home buyer seminars promising to secure mortgages for anyone, regardless of credit. If youre thinking about going to one of these seminars make sure you read all of the fine print and find out what it is costing you. If you are required to pay a large up-front fee, chances are this is a scam. You may want to consult the Better Business Bureau before attending one of these home buyer seminars. Paperwork Confusion Some mortgage lenders try to confuse borrowers with their paperwork. This allows them to slip terms and fees into the contract that people would not agree to had they understood what was in the paperwork. Make sure your mortgage lender provides you with a legitimate Good Faith Estimate as required by law and you fully understand everything on this document and in your loan contract. Beware Reconveyance Foreclosure Scams Another common scam for homeowners that fall behind on their mortgage are the avoid foreclosure" scams. A person or company purchases your home and agrees to sell it back to you when you can afford the mortgage payments. This is called Reconveyance, and there are organizations that do this as an honest service. Reconveyance scammers make it nearly impossible to buy back your home and can take your equity in the process. Reverse Mortgages: Scams to Rip off Seniors If you are senior considering a reverse mortgage to supplement your income you can protect yourself by using a HUD approved lender. Make sure you compare reverse mortgage offers from at least three different mortgage lenders and that you fully understand all of the terms in the loan contract. You can learn more ways to protect yourself by registering for a free mortgage guidebook: Five Things You Need to Know About Your Mortgage. |
