10 Warning Signs of Predatory Lending in Bradenton, Florida
Mortgage Fraud Series #8
Yesterday I received a call from another mortgage fraud victim in Bradenton, Florida where I work. She was scammed into allowing someone else use her good credit to buy two homes in Manatee County. Fraudulent appraisals were used to buy the two properties and the “Russian businessmen-investors” apparently skimmed the equity. Now they have left her high and dry with mortgage balances far exceeding the value of the homes. She will soon be facing foreclosure.
Today I wanted to share the warning signs that may accompany predatory lending.
The following questions may help you know if someone is misleading you about a loan and its true costs to you. Just because you answer “yes” to some of these questions doesn’t mean you have been victimized. However, if you answer “yes” to some you may want to contact the appropriate state agency for help.
1. Did someone encourage you to include false information on your loan application?
2. Were you encouraged to leave some lines blank on any forms? Were you asked to leave the signature line blank? Did the lender or broker change or add to any information you entered on your loan application?
3. Did you receive the following disclosures as required by law?
- Good Faith Estimate
- Special Information Booklet
- Truth in Lending
- HUD-1 Settlement
4. Have you been encouraged to refinance your loan several times, and in each instance increased either your monthly payment and/or the total amount you owe?
5. Do your documents say that your interest rate calculation will change to require you to pay “daily interest” whenever your payments are late?
6. Is the loan amount on your loan higher than the value of your home?
7. Were there unexpected costs at closing that were not explained to you prior to the settlement? Were there any surprises?
8. After closing, were you surprised to find that your mortgage payments were higher than you anticipated based on the initial disclosures?
9. If you have a balloon loan (one in which after a series of low payments the entire loan balance is due in a large lump sum), will you need to obtain another loan to finance that final lump-sum amount?
10. Were you REQUIRED to buy credit insurance to repay the debt if you die or become disabled? (Note: Credit insurance is optional and will not affect your loan decision if you decline to buy it. It can, however, add considerable cost to the loan transaction.)
If you answered yes to any of these questions you may want to go to StopMortgageFraud.com to file a report.
(Copyright © 2007 By Dan Forbes, All Rights Reserved.)
Please contact me, Dan Forbes, or call with questions about our Bradenton, Florida real estate market at 941-746-0505; toll free 877-646-8326. Visit BradentonFloridaRealEstate.Com
