[?] Subscribe To This Site

XML RSS
follow us in feedly
Add to My Yahoo!
Add to My MSN
Subscribe with Bloglines

 

Picture of Foreclosure Survival Guide ebook

Email

Name

Then

Don't worry -- your e-mail address is totally secure.
I promise to use it only to send you Stopping Your Foreclosure Newsletter.

JustAnswer.com

What Is A Predatory Loan? Foreclosure Help Please?

by Mike T.
(Fort Collins, CO)

Hi, sometime ago I heard about predatory loans, but now that we are possibly facing foreclosure, I'm wondering what this is exactly and if this is something we should think of using?

Response from Stopping Foreclosure Team:

Hi Mike,

I am so happy that you asked about this.

Predatory loans are not anything to write home about. They are not something that you want. In fact, they are usually a type of loan that you get stuck with, without even know that this was the situation you were finding yourself in.

These are not loans that actually help you with foreclosures as they are generally the loans that cause a lot of foreclosure situations.

Basically a predatory loan is a loan that is given with unfair or fraudulent practices of some kind. The terms of the loan are generally deemed "abusive" and there are laws out there that will protect borrowers against many of these unfair practices.

If you are currently in foreclosure due to what you may feel are unfair loan terms, you might want to consult with an attorney to see if you are a victim of a predatory loan.

Now, there is also predatory mortgage servicing, which is when deceptive and fraudulent practices are done through the act of the lender or the company servicing the loan.

Some of the key factors of predatory loans would be inadequate disclosure of risks and costs. The packaging of hidden fees, loan flipping and the offering of a single premium credit form of life insurance.

These however, are only the beginning as you will find that there are a lot of unfair practices taking place. The sad thing is, many times, the borrowers are going to be given a talk to from the lender or loan originator, to convince them that these practices are perfectly normal and completely legal.

We hope this helps you stay away from such type of scams and subsequent problems.

Wishing you all the best,

Michael
S.F. Team

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Do You Have a Question about Foreclosure?.