General Housing Information Article
Predatory Lending Schemes and Scams
Beware Of Predatory Lending Schemes
Most mortgage lenders are reputable and provide a valuable service by allowing families to own a home without saving the thousands or hundreds of thousands of dollars necessary to buy it outright. However, a few, unscrupulous lenders, especially those who make high risk second mortgages, engage in predatory lending practices that can increase the likelihood that a borrower will lose his or her home to foreclosure. These abusive practices include making a mortgage loan to an individual who does not have the income to repay it, charging excessive interest, points and fees or repeatedly refinancing a loan without providing any real value to the borrower.
Borrowers facing unemployment and/or foreclosure are frequent targets of predatory lenders because they are desperate to find any "solution" to their default.
Homeowners frequently receive refinance offers in the mail telling them that they have been "pre-approved" for credit based on the equity in their home. When you are wondering how you are going to pay your mortgage and other bills, it may appear very attractive to borrow against your house. But consider this, if you cannot make your current payments, increasing your debt, even if you get some temporary cash, will make it harder to keep your home.
Beware of Scams:
- Equity skimming: a buyer offers to repay the mortgage or sell the property if you sign over the deed and move out.
- Phony counseling agencies. Some groups calling themselves "counseling agencies" may approach you and offer to perform certain services for a fee. These could well be services you could do for yourself for free, such as negotiating a new payment plan with your lender, or pursuing a pre-foreclosure sale. If you have any doubt about paying for such services, call a HUD-approved housing counseling agency at (800) 569-4287 or TDD (800) 877-8339. Do this before you pay anyone or sign anything. Don't sign any papers you don't fully understand.
- Make sure you get all "promises" in writing.
- Beware of any contract of sale of loan assumption where you are not formally released from liability for your mortgage debt.
- Check with a lawyer or your mortgage company before entering into any deal involving your home.
- If you're selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer. You can contact the Arizona Office of the Attorney General Consumer Fraud Unit for this type of information.
- Do not sign anything you do not understand. It is your right and duty to ask questions.
- Information is your best defense against becoming a victim of predatory lending especially for a desperate homeowner!
Where to Report Suspected Predatory Lending – homeowners can contact the Arizona Office of the Attorney General, or call 1(800) 352-8431 to get information on what steps to take to file a complaint. You may also want to look at Predatory Lending Brochure from the Office of the Attorney General.
For more information about Predatory Lending go to:
HUD's Predatory Lending Web SiteAttached Document
Predatory Lending Schemes and Scams
Comments:
QUESTIONS
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Can an HOA stop or fine a person for using a motorcycle stating that we are creating noise pollution? The motorcycle is my main form of transportation to work. I didn't see anything about use of a motorcycle during certain hours.
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I have been living with this man for the last month and now we are broke up and he is withholding my mail could i get arrested for entering the home through the window? because he won't let me in .and he will not give me my mail.
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we are currently listed as owner's to a mortgage but signed transfer of property- deed papers to an investor of whom we have been making monthly payments to. We have been informed by the mortgage that our payments have not been submitted and that we will soon be in foreclosure. What can we do? This investor promised to assume the mortage as well as the property but really only filed tranfer of property and continues to collect our money, of which has been steady each month.
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I had a friend staying with me to help pay the rent. They left (without paying debt) and left several of their things at my house. I want the things out. How long do I have to store their belongings until I can get rid of them. I have informed them several times and they will not collect their things.
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We own a ground floor condo. The condo above us is rented to some very noisy people, including loud repetitious boom-boom "music". Police have been here 4 times. What can we do? What proof is required to avoid the "he said, she said" problem? The boom-boom from morning to late night is making our home uninhabitable.
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we are getting conflicting answers we need to know specifically : Is the ladlord responsible for paying trash service? we know they have to provide cans
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If the house I purchased at Maricopa County auction was stripped of air conditioning, cabinets, fixtures and wiring and I know there are excess proceeds, how do I place a lien against the excess proceeds to recover the costs of replacing the items? What type of filing is necessary to recover the loss of these items?
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I moved into an apartment 4 years ago with carpet flooring. I have always been allergic to carpet. Now I want the complex to change the carpet to vinyl flooring planks. Are they required do to ADA and pay for it? They say if I want new flooring, I must pay for it.
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I've been renting from this lady for about two years and she's been telling me she wants to self. but when she sells that she would put me on a lease. so I would not lose my place to live. an then all the sudden yesterday she brings me a letter of termination. Then told me I need to move out in 2 months. I'm a single father I barely making the bills. an we're in the middle of a pandemic right now? I'm afraid that I may not be able to find a place that I can afford and will accommodate my needs. and does she have to pay a relocation fee to have me move in the middle of a pandemic.
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My HOA billed me for fence painting that was done before I owned my house. Am I liable for paying for work done before I owned the property?
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