Stop Blaming Yourself - You've Been Victimized

[JacMac]

So you've been swindled. Don't be alarmed.

You're not stupid.

You were targetted by savvy professionals who've been in the game for a long time. There's a science to their corruption and they've victimized many, many people before you and WILL DO SO AGAIN IF THEY ARE NOT REPORTED AND STOPPED IN THEIR TRACKS.

This is where you come in. What can you do?

FIRST OF ALL: STOP BLAMING YOURSELF. You've been victimized. You want to know what has happened to you:

It's called "Predatory Lending".

"Predatory lending takes place when a lender or broker knowingly markets or provides a loan to a borrower that is unfair, abusive or illegal. Predatory mortgage lending can involve foreclosure rescue specialists, mortgage counselors, mortgage brokers, mortgage bankers, real estate brokers, appraisers, home inspectors, lawyers and even notaries public.


Anyone Can fall VICTIM to a predatory lender!! But those most likely to be targeted are:

• Homeowners that are in, or near, foreclosure
  
  
• Homeowners who are “house rich” but “cash poor”
  
  
• Elderly homeowners
  
  
• Minorities
  
  
• Military families
  
  
• Inexperienced or first-time home buyers who don’t shop around or DO NOT KNOW they may qualify for better rates
  
  
• People with low income or a poor credit history who do not qualify for prime loan rates"

DIFFERENT FORMS OR LOAN ORIGINATION FRAUDS

Does any of this sound familiar?

BUILDER/APPRAISERS AND LAWYERS, ALL IN BED TOGETHER:

A contractor or home builder steers a homeowner toward an unscrupulous lender.
An appraiser or home inspector falsely inflates the value of a home or purposely overlooks defects in the property, leaving the buyer with a loan amount that is greater than the value of the home (negative
equity).
A lawyer allows or encourages a borrower to sign false documents or documents that do not make clear the terms of the loan.

OH, SURE, YOU CAN AFFORD IT:

"Abusive lending may involve a lender or broker providing a loan to a borrower that is inappropriate for that borrower, with knowledge that the borrower
will have trouble repaying in the future."

Method of operation:

• A lender includes unnecessary or undisclosed charges or products in the loan agreement.
  
• A lender or broker provides a loan with a very low introductory or “teaser” rate, promising that once the initial period ends, if the new rate is unaffordable,they will be able to refinance the loan.
  
• A lender or broker provides an interest-only or balloon payment loan to a borrower without making clear that, even with timely payments, the
• loan will not be fully repaid. Instead, a large payment will be required to pay
• off the loan, possibly in a lump sum.
  
• A lender or broker steers a borrower that qualifies for a conventional loan into a more expensive sub-prime loan.
  
• A lender or broker includes a long pre-payment penalty period in a loan agreement that traps the buyer into the loan and keeps the borrower from refinancing earlier.
  
• A lender “flips” or refinances a loan, sometimes repeatedly, to generate fees with no benefit to the borrower.
  
• A lender or broker lies, or encourages a borrower to lie about income, debt or expenses on a loan application.
  
• A broker receives a fee or “yield spread premium” from a lender for steering a borrower to a higher cost loan and does not pass the savings on to the borrower.

BUT IT DOESN'T STOP WITH THE LOAN ORIGINATION; IF YOU'RE FACING FORECLOSURE, WATCH OUT FOR THESE SCAMS AS WELL:

"One of the most common types of predatory mortgage lending is foreclosure rescue fraud. Scam artists search public records for foreclosure notices and attempt to take advantage of vulnerable homeowners. In addition to calling
or sending a letter via the mail, they may target hard-hit or vulnerable
areas by going door-to-door, posting fliers or placing ads in local papers."

In my neighborhood I get the WE BUY HOMES FOR CASH and also the REFI FOR INSTANT CASH fliers ALL THE TIME!!!

Some of the more common types of foreclosure rescue scams are:

• Phantom Help: First the “rescuer” charges high fees for negotiations, phone calls, paperwork or referrals that they never do or do poorly. Then the "rescuer" purposely allows time to go by, the homeowner gets even further in debt and even closer to losing their home. Then the “rescuer” convinces thehomeowner to surrender title to the home (sometimes to a “trust“ or a third party) and rent or buy back the house over time. (lease/buyback). The terms and fees of these deals are usually so abusive that buyback is impossible. The former homeowner falls behind in rent, is evicted and, in some cases, is left still holding the original mortgage.
  
• Deed Theft: The homeowner is tricked through forgery or fraud into signing over ownership of the home.

Predator (prěd’ -t r, -tôr’) n. - One that victimizes, plunders, or destroys, especially for one’s own gain.

Feel better now? I thought you would. Most of this information came from a pamphlet printed by the New York State Banking Department To learn more about predatory lending, how to improve your credit report or credit score, how to shop for a mortgage or to file a complaint against a lender, a broker or a state regulated bank call the Banking Department at (877) BANK-NYS or visit them on the Web at www.banking.state.ny.us

Not in NY? Google "(your state's name) mortgage broker governing authority" and you should be able to find out who regulates the mortgage brokers in your state.

[Moe Bedard]

Great post Jac Mac. Keep them coming. Great information and I appreciate and I am sure many other will also. Give it time and I am sure we will get other who make their claims from the courage they have gained through you.