Question:

How to avoid becoming victims of predatory lending?

Answer:

Predatory lending will certainly exist for a long time yet to come and it may be a good idea to simply never become victims of predatory lending.

Tips on How Never to Become Victims of Predatory Lending

  • Attend homeownership education course prior to applying for a mortgage.
  • Before you agree to work with a real estate agent, make sure you check their credentials.
  • Make it clear if you want to buy the property to live there, or will rent it.
  • Victims of predatory lending often sign documents they do not understand. Do not do that! If you don't understand all the terms in the disclosure statements, seek legal help before proceeding. If you can't afford to pay for it, take your mortgage documents to a HUD-approved counselor for a free consultation. Avoid prepayment penalty provisions.
  • Signing mortgage documents with blanks does expose you to great risk of becoming a predatory lending victim.
  • Do not lie on your mortgage application and do not borrow more money than you need, or are able to pay off.
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