NID-HCA has been working for more than 15 years to protect and inform
clients of the dangers of bad loans.
What is a bad loan?
| • | Lender or representative tells you to falsify information on the loan application. For example, the lender tells you to say that your loan is for business purposes when it is not. |
| • | Lender or representative pressures you into applying for a loan or for more money than you need. |
| • | Lender or representative pressures you into accepting monthly payments you can't make. |
| • | Lender or representative tells you it is not important to read all the fine print in the loan papers. |
| • | Lender or representative misrepresents the kind of credit you are getting. For example, calling a one-time loan a line of credit. |
| • | Lender or representative promises one set of terms when you apply, but gives you another set of terms to sign, with no legitimate explanation. |
| • | Lender or representative tells you to sign a blank forms - the lender says they will fill them in later. |
| • | Lender or representative says you can't have copies of documents that you have signed. |
How can I avoid these practices?
| 1. | Speak to a housing counselor. Housing counseling agencies can help you evaluate your loan documents, refer you to a lender, shop for interest rates, order and review your credit report. |
| 2. | Avoid solicitations that sound too good to be true (They probably are NOT true!) including home visit offers. Before you sign anything or give out your social security number, take the time to have an expert -- a housing counselor or lawyer -- look over any purchase agreement, offer, or any other document. |
| 3. | Shop around. Compare interest rates and loan products. A housing counselor can help you identify the most cost effective loan for you and your family. |
| 4. | Know what you are signing. Don't let the lender rush you, even if you're told "that's the way it's done." Look over everything you sign to make sure all your information is correct, including your income, debts and credits. Do not sign blank loan documents or forms with blank spaces to be filled out later. |
| 5. | It's your decision. If anything is different at closing, don't sign it. While you may be threatened with losing the loan, it's better than losing your house from a predatory loan. You have three days after closing to change your mind for any reason, or for no reason at all. |
What are my options?
Before you sign the loan documents
Have a housing counselor or legal representative review all your loan documents before you sign them.
Shop around and compare interest rates and loan products before visiting the lender.
Attend First Time Homebuyer workshops.
If you think you have a predatory loanCall our client service line toll free at 1-886-647-6431 for free consultation on your housing situation.
| Don't Be A Victim Of Loan Fraud - Hud site |
| Predatory Lending Resource Center - Mortgage Bankers |
| National Consumer Law Center, Inc. |
| How do you file a complaint and with what agency? Federal Trade Commision - File A Complaint |
| Department Of Corporations Real Estate Or Mortgage Lending Regulatory Agencies |