1 post tagged “mortgages”
Some of the characteristics of predatory loans are making unaffordable loans based on the assets of the borrower rather than on the borrower’s ability to repay an obligation; inducing a borrower to refinance a loan repeatedly in order to charge high points and fees each time the loan is refinanced (“loan flipping”); or engaging in fraud or deception to conceal the true nature of the loan obligation, or ancillary products, from an unsuspecting or unsophisticated borrower –FDIC.
Above anything else, if the deal sounds too good to be true chances are it is. Ask questions. If you feel that you’re being deceived have an attorney review the documents. If you’re an inexperienced borrower, get help from a housing counselor. Taking a few precautionary steps will ensure that your piece of the American Dream is yours to keep.
Darish K. Still