Educate Yourself about Predatory Lending

The Northeast Atlanta Metro Association of REALTORS® (NAMAR) is determined to help homeowners avoid foreclosure and stay in their homes. To educate homeowners on what they need to know during these tough economic times, NAMAR has launched www.unnecessaryforeclosure.com. By avoiding legal jargon and real estate speak, the website provides homeowners with a clear and comprehensive guide to what they need to know about foreclosures and short sales.

The website is full of useful tips and tricks on short sales, predatory lending, mortgage options and how to communicate with lenders. The list of the signs of predatory lending should prove helpful for both new homebuyers and those who might be considering refinancing their homes.

Some of the signs that NAMAR tells buyers to look for include:

• Sounds Too Easy – If a lender has guaranteed approval or doesn’t need to verify income or assets, then the lender probably doesn’t care about whether the you can afford to make payments in the future

• Excessive Fees – Lender and/or mortgage broker fees are higher then what is typical for the market. These fees are easy to disguise or downplay as they can be financed as part of the loan. It’s common for buyers to pay only one percent of the loan amount on prime loans. Predatory loans often cost five percent or more.

• Over-Valued Property – These inflated appraisals allow excessive fees to be included in the loan and result in the borrower owing more to the bank then a home is worth.

• Unethical Document Management – Ethical lenders and brokers always require the homebuyer to sign key loan papers and never ask for a document dated before the date the you sign it or for a you to sign a blank document.

For more signs of a predatory lending,  short sales or foreclosures, visit www.unnecessaryforclosures.com.

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