Local Mortgage Broker Helps Borrowers Avoid Predatory Lending
Woodstock, GA, January 02, 2008 --(PR.com)-- Preferred Funding Group, Inc., a local mortgage firm, helps borrowers avoid high cost loans when refinancing their Adjustable Rate Mortgages. “We can help avoid the pitfalls that most people make when they get a mortgage over the internet or from a telemarketer,” says Pat Meazell, Broker at Preferred Funding Group. “Many times, unsuspecting homeowners will be put in a loan program that they shouldn’t be in, paying high interest rates and fees.”
“Horror stories about victims of predatory lending are everywhere in the media these days, “ continues Meazell, “Abusive or “predatory” lenders target consumers who have equity in their homes, but do not have much available cash. The types of loans offered usually have low introductory or teaser interest rates, that skyrocket after a year or two causing the borrowers to lose their home and credit rating.”
Predatory lending is a set of lending practices that takes unfair advantage of consumers. Consumers end up taking out loans they cannot afford, that have deceptive or unclear terms in them, or that cost more than necessary and may ultimately lead to the loss of one’s home. Most predatory loans occur in the sub-prime market, but not all sub-prime lending is predatory.
“We are a family-owned mortgage broker that helps people that may be in difficult or unique situations,” adds Meazell. “We assist them in getting a mortgage that is affordable over the term of the loan, not just the introductory period. We do not engage in predatory lending.”
Consumers need to be aware of predatory leading practices when searching for a loan. Meazell urges consumers to be aware of the variety of predatory lending practices that are occurring with some lenders in the industry:
Equity stripping occurs when a loan is made based on the equity in a property rather than on a borrower’s ability to repay the loan. These loans usually result in the lender acquiring the borrower’s home and any equity the borrower had in the home.
Flipping occurs when a lender induces a borrower to repeatedly refinance a loan, often within a short time frame, charging high points and fees each time.
Traps are terms within the loan that will likely force the borrower to refinance or enter into foreclosure. Traps include balloon payments, negative amortization and prepayment penalties
How can you tell if a lender is a scammer? Preferred Funding Group offers the following “Dos” and “Don'ts” to help you protect yourself and your home:
Don't...
Do business with lenders that you haven’t checked out.
Be rushed into signing a loan because it is a “Limited Time” offer. A lender in a hurry to get the loan should serve as a warning sign to take extra care to make sure that the loan is being properly structured.
Sign documents with blank lines. Be sure that every space is filled in on the loan application before you sign it.
Lie on your loan application. When you apply for a mortgage loan, every piece of information that you submit must be accurate and complete. Lying on a mortgage application is fraud and may result in criminal penalties.
Pay upfront fees without an explanation. Do not pay sizeable upfront fees. Reputable brokers like Preferred Funding Group do not charge any upfront fees.
Do...
Do business with a local mortgage company. Get everything in writing, the Good Faith Estimate must be sent to you within 3 days of your application.
Check out the reliability of the company with the BBB (www.bbb.org).
Shop around for the best loan for your situation.
Borrow only the amount you need and can afford to pay back.
Review all documents or have someone you trust review them for you.
Know that you generally have three days to cancel refinance loans signed on your home.
File a complaint with the BBB (www.bbb.org), your state’s attorney general office or your local Department of Consumers Affairs, if you think you are the victim of a predatory loan.
For more information about refinancing without getting a predatory loan, contact Pat Meazell at 770-516-5144 or email at info@preferred-funding.com
Preferred Funding Group, Inc. is a Georgia Licensed Mortgage Broker #21534
###
“Horror stories about victims of predatory lending are everywhere in the media these days, “ continues Meazell, “Abusive or “predatory” lenders target consumers who have equity in their homes, but do not have much available cash. The types of loans offered usually have low introductory or teaser interest rates, that skyrocket after a year or two causing the borrowers to lose their home and credit rating.”
Predatory lending is a set of lending practices that takes unfair advantage of consumers. Consumers end up taking out loans they cannot afford, that have deceptive or unclear terms in them, or that cost more than necessary and may ultimately lead to the loss of one’s home. Most predatory loans occur in the sub-prime market, but not all sub-prime lending is predatory.
“We are a family-owned mortgage broker that helps people that may be in difficult or unique situations,” adds Meazell. “We assist them in getting a mortgage that is affordable over the term of the loan, not just the introductory period. We do not engage in predatory lending.”
Consumers need to be aware of predatory leading practices when searching for a loan. Meazell urges consumers to be aware of the variety of predatory lending practices that are occurring with some lenders in the industry:
Equity stripping occurs when a loan is made based on the equity in a property rather than on a borrower’s ability to repay the loan. These loans usually result in the lender acquiring the borrower’s home and any equity the borrower had in the home.
Flipping occurs when a lender induces a borrower to repeatedly refinance a loan, often within a short time frame, charging high points and fees each time.
Traps are terms within the loan that will likely force the borrower to refinance or enter into foreclosure. Traps include balloon payments, negative amortization and prepayment penalties
How can you tell if a lender is a scammer? Preferred Funding Group offers the following “Dos” and “Don'ts” to help you protect yourself and your home:
Don't...
Do business with lenders that you haven’t checked out.
Be rushed into signing a loan because it is a “Limited Time” offer. A lender in a hurry to get the loan should serve as a warning sign to take extra care to make sure that the loan is being properly structured.
Sign documents with blank lines. Be sure that every space is filled in on the loan application before you sign it.
Lie on your loan application. When you apply for a mortgage loan, every piece of information that you submit must be accurate and complete. Lying on a mortgage application is fraud and may result in criminal penalties.
Pay upfront fees without an explanation. Do not pay sizeable upfront fees. Reputable brokers like Preferred Funding Group do not charge any upfront fees.
Do...
Do business with a local mortgage company. Get everything in writing, the Good Faith Estimate must be sent to you within 3 days of your application.
Check out the reliability of the company with the BBB (www.bbb.org).
Shop around for the best loan for your situation.
Borrow only the amount you need and can afford to pay back.
Review all documents or have someone you trust review them for you.
Know that you generally have three days to cancel refinance loans signed on your home.
File a complaint with the BBB (www.bbb.org), your state’s attorney general office or your local Department of Consumers Affairs, if you think you are the victim of a predatory loan.
For more information about refinancing without getting a predatory loan, contact Pat Meazell at 770-516-5144 or email at info@preferred-funding.com
Preferred Funding Group, Inc. is a Georgia Licensed Mortgage Broker #21534
###
Contact
Preferred Funding Group, Inc
Pat Meazell
770-516-5144
www.preferred-funding.com
Pat Meazell
770-516-5144
www.preferred-funding.com
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