Home Buying Info
home buying

Predatory lending strips borrowers of home equity and threatens families with foreclosure. Often borrowers are deceived into accepting unfair loan terms, usually through aggressive sales tactics. Often they are taken advantage of because of their lack of understanding of terms and involvement in complicated transactions. Even more informed consumers are occasionally fooled. Anecdotal information suggests predatory lending is concentrated in poor and minority communities, where better loans are not readily available. Signals of predatory lending practices include:

Aggressive and deceptive marketing
Making loans without ample consideration to the borrower's ability to pay
Financing excessive fees into loans
Charging higher interest rates than a borrower's credit allows
Home improvement scams