In an effort to educate the average American on how to avoid foreclosure, the Northeast Atlanta Metro Association of REALTORS® (NAMAR) has launched www.unnecessaryforclosures.com. The website uses infomative videos, fact sheets and clear, easy-to-understand language to explain topics such as short sales, predatory lending, mortgage options and how to communicate with lenders.
Examples can be found on a predatory lending fact sheet, which provides potential homebuyers with several signs of predatory lending, including:
• 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 you to sign a blank document.
The thought of potentially losing you home or being conned into a predatory loan can be both stressful and scary for any homeowner. The best way to avoid these situations is to stay informed on the issues. That is why Unnecessary Foreclosures was launched, as a tool to help the average homeowner know his or her options and stay in their home. So do your research and know your options, there's no time like the present to become informed.
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