http://news.cassienet.com/source-114.htm Latest headlines from Mortgage Fit Discussions Author: Jessica Subject: Predatory lending - How it affects the mortgage industryPosted: Fri Dec 02, 2005 12:36 am (GMT -8) Topic Replies: 2 Lenders and brokers in the mortgage industry often consider your best interest while offering various loan programs. But there are lenders who also keep in mind their own benefits only. They are none other than predatory lenders who take undue advantage of borrowers through abusive lending practices. Whether you take a purchase loan, a refinance mortgage or any home equity loan, you may come across several predatory lenders in the mortgage market. The primary concern of such lenders is to make money by charging huge interest and higher payments and they may even take your home. Predatory lending implies huge profits for the lender and never-ending debt payments for the borrower. Predatory lenders target homeowners who require cash and may have credit problems. They are often on the look out for individuals who want to take home equity loans. These lenders target people failing to pay their bills. Then there are the individuals who need funds for medical expenses, purchase of cars or for conducting home repairs. Seniors and homeowners belonging to the minority section as well as low wage earners are often the prime targets of predatory lenders. You can identify a predatory lender under the following conditions. High interest rate, points, and loan fees: Predatory lending requires you to pay much higher rates compared to other mortgages. Besides, you need to pay higher points and huge prepayment penalties in case you refinance your loan or sell the property before the loan period ends. The lender may also charge high closing costs such as document preparation fees or appraisal fees. Often these are included in your loan amount which then requires a high interest rate on your mortgage. Changing the loan terms and conditions: The lender may intend to change the terms and conditions provided on your loan document after the loan closing is over. Including credit insurance in your loan amount: Predatory lenders may ask you to pay for credit life insurance or disability insurance premiums stating that such premiums are required along with your mortgage. These premiums are quite costly and if they are included in your loan amount, then you may end up making higher interest payments on a monthly basis. Home equity lending: Predatory lenders often approve home equity loans although your income may not support the loan payments. They may give you the impression that you can pay off the mortgage and also offer you a higher loan amount due to higher equity in your home. This is often done because these lenders intend to take away your home on account of foreclosure due to non-repayment of the mortgage. Multiple refinancing or flipping: The predatory lender may ask you to refinance your mortgage loan again and again. This requires you to pay higher fees and prepayment penalties each time you refinance. Thus, your debt increases and in case you fail to make all payments, you may lose your home. Charging balloon payments: Lenders often require you to pay the mortgage dues through balloon payments, that is, huge mortgage payments at the end of the loan term. In case you fail to make such payments or refinance to pay it off, the lender may conduct a foreclosure and you may lose your home. Improper loan servicing: The lender may not provide you with all the receipts of monthly mortgage payments and the account statements. This often creates problems, as you don't know how much you have paid and how much you still require paying. Home improvement loans: There are contractors who may place offers of home improvement loans through the lenders they know. You may not have the financial strength to support the entire loan but even then, you are allowed to sign the legal papers. But later on, you discover that it is a home equity loan with higher interest rates, points and loan fees. Signing for a new loan: There are lenders who agree to provide a new loan so that you can pay down the existing mortgage dues and avoid foreclosure. You may sign over the deed to the new lender before he provides you with the loan amount. The lender never comes up with the loan but has the deed to your home. Thus, you may lose your home.Predatory lending is quite common these days in the mortgage industry especially in the subprime mortgage industry, that provide loan programs to people with high credit risk. Therefore, as a borrower, you should be cautious while dealing with such lenders. The conditions given above will help you to detect predatory lending practices and thus help you to keep away from such lenders.... http://news.cassienet.com/item-325980.htm Sat, 03 Dec 2005 13:23 Author: Anonymous Subject: Two Step MortgagePosted: Fri Dec 02, 2005 1:27 am (GMT -8) Topic Replies: 2 I want take a mortgage, my credit score is not too good it is in mid 500. I have consulted lot of experts. But today when I was coming back from my work place a read about Two Step Mortgage. Can I qualify for this loan with low credit score???? Please tell me about its advantages and disadvantages also._________________Help and earn with the mortgage community. Join our mentor club today.... http://news.cassienet.com/item-325979.htm Sat, 03 Dec 2005 13:23 Author: Samantha Subject: RE:Posted: Fri Dec 02, 2005 2:44 am (GMT -8) Topic Replies: 2 Hi Lee, Welcome to MortgageFit Forums. These are mortgages which have features of both fixed and adjustable rate mortgage. Interest rate charged on the initial period of the loan is fixed but in the second part of the loan the interest rate is adjustable. The names of such kind of loans are bit confusing. Like 2/28, 5/25, 7/23. Advantage:- It gives an opportunity to borrowers with poor credit score to buy a home and re-establish their credit score. Disadvantage:- If you are not able to improve your credit score you could get stuck with higher interest rate for a much longer period of time then expected. Types of loans available to borrowers with low credit scores. For more information on this, please visit our section on mortgage with low credit score. God Bless You. Thanks, Samantha_________________I see it, see through it, and see beyond it... http://news.cassienet.com/item-325978.htm Sat, 03 Dec 2005 13:22 Author: Samantha Subject: Do's and don'ts to keep away from predatory lendersPosted: Fri Dec 02, 2005 3:28 am (GMT -8) Topic Replies: 2 Some do's and don'ts to prevent yourself from being misled by a predatory lender: Even if the lender has approved your loan, check out with other lenders whether you actually qualify for the loan. Do not sign loan documents and forms having blank lines or spaces. See that the lender has signed all relevant documents along with the proper dates. Watch out for the fees that you are being charged along with the rate and points. Enquire about the fees if you cannot make out why you are paying such fees. Check out for prepayment penalty charged by lenders in case you refinance your first mortgage or sell off your home prior to the termination of the loan period. Have a clear understanding of mortgage concepts and terminology. Consult the lender or anyone acquainted with those terms._________________I see it, see through it, and see beyond it... http://news.cassienet.com/item-325976.htm Sat, 03 Dec 2005 13:22 Author: Anonymous Posted: Fri Dec 02, 2005 8:26 am (GMT -8) Topic Replies: 2 Owner financed deals are not widely available but can be a good deal for the buyers who has some problems in qualifying for a mortgage. Also it becomes helpful when there is shortage of money for a part of the payment to buy the house. James Hogg_________________Help and earn with the mortgage community. Join our mentor club today.... http://news.cassienet.com/item-325974.htm Sat, 03 Dec 2005 13:22 Author: Anonymous Subject: Real Estate with quit claimPosted: Fri Dec 02, 2005 10:15 am (GMT -8) Topic Replies: 3 My dad quit claimed his 50% to me. I own the other 50%. Recently, he filed a quit claim which adds him back on to the deed and also includes his wife. I recently received a notice from his attorney stating his wants me to give him back his 50% and that I would become the beneficiary of the 50% once he passes. What will secure me that I will become 100% owner once he passes? What are my options for full recovery of the property if I decide to give him back his 50%? What should I doe besides getting a lawyer?_________________Help and earn with the mortgage community. Join our mentor club today.... http://news.cassienet.com/item-325972.htm Sat, 03 Dec 2005 13:21 Author: Samantha Posted: Fri Dec 02, 2005 11:14 am (GMT -8) Topic Replies: 3 Hi Janet, You can refer this section for some reference on quit claim deed. This may help you to understand why I am advising you negative in signing the deed. God bless you. For MortgageFit, Samantha_________________I see it, see through it, and see beyond it... http://news.cassienet.com/item-325970.htm Sat, 03 Dec 2005 13:21 Author: Anonymous Subject: partition action to sell my housePosted: Fri Dec 02, 2005 1:01 pm (GMT -8) Topic Replies: 2 Due to some negotiation problem with my ex-wife I am unable to sell my home. I want to seel it now through Partition action and divide the proceeds equally. I want to have some idea on the matter._________________Help and earn with the mortgage community. Join our mentor club today.... http://news.cassienet.com/item-325968.htm Sat, 03 Dec 2005 13:20 Author: Anonymous Posted: Fri Dec 02, 2005 2:11 pm (GMT -8) Topic Replies: 2 Hi Samantha, This information will help me. Actually I was not sure about the system where I am going to apply. Thanks for the information. George_________________Help and earn with the mortgage community. Join our mentor club today.... http://news.cassienet.com/item-325967.htm Sat, 03 Dec 2005 13:20 Author: Anonymous Posted: Tue Nov 29, 2005 11:59 am (GMT -8) Topic Replies: 3 Hi, Yes I have got my answer. I shall compare the rates before taking any decision. I appreciate the way both of you explained it to me. Thanks spice_________________Help and earn with the mortgage community. Join our mentor club today.... http://news.cassienet.com/item-321723.htm Wed, 30 Nov 2005 22:43