California Department Of Consumer Affairs

sizcache = "0" sizset = "56">

What you need to know about sub-prime condition

The short answer: nothing. Nor is any sub-prime lender guilty of predatory lending practices. Most mortgage brokers and lenders may still provide the quality of mortgage financing for the marginal buyer, without resorting to dangerous loan practices.

Make sure your realtor or real estate attorney to look back. They are deeply involved in the mortgage process and make it their business to know where the pitfalls lie long before they came to the attention of the nation, as in this scandal.

However, if you or someone you know is already in a bad subprime loan situation there May be something that can still be done. This realtor can not help much, except to emphasize areas of current mortgages that are "suspicious" This is a good real estate lawyer is essential. At its best way is to lodge a complaint with the state Consumer Affairs Department (see link below for contact information by state ).

a good source to deal with mortgage fraud:

Meanwhile, Democrats in Washington led by Senator Charles Schumer launched an investigation into predatory lending practices with the intention of making laws to protect potrošača.Vrhovni Court also weighed in with the new solution enables lenders to offer new terms to borrowers without the sanction of the Court . Something definitely is.

in New York Realtors have a new law that makes it more difficult for a person to lose your home to someone who will never live in it, but flip the house tidy profit, essentially stealing delinquent owners built up equity.

However, as a prospective homeowner or a homeowner interested in refinancing, caution is definitely in redu.Dobra news is that predatory lending is on the way out. And it's about time.

Here are the lenders in question in April 2007:

New Century Financial Corp., Ownit, mortgage lender network, People's choice home loans, and ResMAE Corp.

We in the real estate industry are warning our clients about these shaky loan practices since they started. Americans are seriously damaged, and technically legal, but unethical practices.

I saw it presented in dramatic fashion in the documentary on ABC- Nightline is the last month (March). My first thought was that anyone could sleep at night and write the loans that easily could have cost this woman her retirement home. Of course, not every loan officer is a thief. But the man who sold the equity loan is obviously a blatant liar and a thief. First he promised to have a deposit of five years then pressured her by saying she had only to 17:00 to sign up. Soon she was getting the mortgage payments account for $ 2,300 to $ 1,000 monthly Social Security income. Foreclosure is a foregone conclusion.

They are always there: the thieves, swindlers, who steal more with a pencil or a computer than any thug with a gun. They wear suits and ties and act caring and honest. They belong in jail. Or at least forbid any job where people's lives, health, or homes are concerned.

As mentioned above, your first line of defense in buying real estate a good realtor and a good lawyer familiar with the industry of mortgage lenders. I assure you that we know who the predators are in your area and will take care to avoid them.

Personally, I just had a situation in which customers apply for a loan before they start looking for a home. Although this makes sense, it leaves open the possibility that the lender can not be elected, all they appear to be. We started having problems at first. When a loan officer repeatedly failed to return phone calls from his client, myself, or attorney regarding suspected non-standard verbiage in the loan documents, I called them to start over somewhere else. In the end, this not only are they much better loan, but it saved them money. Many borrowers actually qualify for better loans, but many lenders prefer to write a high profit sub-prime loans, which often destroy the homeowner's credit and the price of their home.

Here's what you do to avoid predatory lenders deceived:

As mentioned above, hire a qualified lawyer and realtor. Obviously, I can not stress this enough. My not my company, Real Estate New York City, nor have I ever been involved in selling houses that are involved predatory lending.

Avoid loans that do not consider your ability to repay. Avoid adjustable rate arms and interest only loans unless you are sure you understand the possible consequences of these loans. Avoid Universal Default Clause. They provide mortgage payment penalties, if any other creditor late, even if the mortgage is paid up to date. Avoid mandatory arbitration clauses. They usually remove the legal remedy. Avoid prepayment penalty clause. These fees accrue if you pay off the loan early can prevent the owner from selling if faced with default. Avoid the default interest rate. These are exorbitant increases in interest rates if payment is late Avoid loan balloon payment. They provide a large payment in a few years. If you can not make payment when due to loan defaults. to avoid high LTV (loan to value). This means that the debt is greater than the value imovine.Vlasnik with such loans often can not afford to sell especially in declining markets. Nor can refinance with a reputable lender Avoid 'Foreclosure Rescue Loans "They are not.

Here are two excellent sources of consumer credit, fair lending practices:
Americans For Fairness in Lending

National Fair House Alliance: [http://www.nationalfairhousing.org/index.php]