Beware of Predatory Lending Scams

Most mortgage lenders are reputable. They provide a service by allowing families to own a home without saving the thousands of dollars necessary to buy it outright. However, a few, unscrupulous lenders, who make high risk second mortgages are engage in predatory lending practices. This increases the likelihood that a borrower will lose his or her home to foreclosure.

These abusive practices include:

Borrowers facing unemployment and/or foreclosure are frequent targets of predatory lenders, because they are dire to find any "solution" to their default.

Homeowners receive refinance offers in the mail telling them that they have been "pre-approved" for credit based on the equity in their home. When you are wondering how you are going to pay your mortgage and other bills, it may appear very attractive to borrow against your house. But consider this, if you cannot make your current payments, increasing your debt, will make it harder to keep your home.

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