Predatory Lending

According to Fannie Mae, mortgage fraud has increased five-fold in the past 10 years. Unsuspecting home buyers who aren’t familiar with an area’s property values can be victimized by scam artists who have bought a property at a bargain-basement price and have made minor cosmetic changes to sell the home for much more than it’s worth. People with blemished credit can also fall prey to unscrupulous individuals who pose as real estate agents or mortgage brokers, offering promises of a new home and mortgage qualification. These buyers end up assuming a loan they can’t afford, and the lender forecloses.

Here are some lending resources compiled by the National Association of REALTORS:

• "Shopping for a Mortgage? Do Your Homework First: How To Avoid Predatory Lending" from the National Association of REALTORS
• "Shopping for a Mortgage? Do Your Homework First: Specialty Mortgages: What are the Risks and Advantages?" by the National Association of REALTORS
• "Shopping for a Mortgage? Do Your Homework First: Traditional Mortgages: Understanding Your Options" from the National Association of REALTORS
• "Shopping for a Mortgage? Do Your Homework First: How to Avoid Foreclosures" from the National Association of REALTORS
• "Looking for the Best Mortgage" is a brochure on how to shop, compare, and negotiate the best deal on a home loan. www.federalreserve.gov/pubs/mortgage/mortb_1.htm
• “Don’t Be a Victim of Loan Fraud” is a HUD brochure on how to avoid predatory lending. www.hud.gov/offices/hsg/sfh/pred/predlend.cfm
• "The Fair Credit Reporting Act and Your Credit History" with frequently asked questions about credit reports and credit scores from NAR in conjunction with the FTC. www.realtor.org/gapublic.nsf/files/FCRABroch.pdf/$FILE/FCRABroch.pdf 
• Free homebuying guides: “Knowing and Understanding Your Credit,” “Opening the Door to a Home of Your Own,” and “Choosing the Mortgage that’s Right for You” from Fannie Mae Foundation www.homebuyingguide.com
• “Home Equity Scams: Buyer’s Beware” Federal Trade Commission predatory lending pamphlet:  www.ftc.gov/bcp/online/pubs/homes/eqscams.htm.