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Title: Beware of Scam Artist Category: Other Blog Entry: Beware of Scam Artists Predatory lenders often target people in financial distress. They try to panic you into high cost mortgages, making financial problems worse and increasing your risk of losing your home. Predatory lenders usually offer loans with * High interest rates * Broker fees * Unnecessary costs like pre-paid life insurance * Unaffordable repayment terms Here are some tips to protect you from predatory lenders: * Be suspicious of anyone who offers you "bargain loans," whether they mail, fax or e-mail an offer to you, call you on the phone, or come to your door. * Beware of promises of "No Credit? Bad Credit? No Problem!" and offers that are only "good for a very short time". * Avoid lenders who encourage you to borrow more than you need or more than the value of your home. * Beware of terms that change at the last minute or offer next-day approval based on prepayments or up-front fees. * Do not sign anything you do not understand. It is your right and duty to ask questions. * Beware of phony credit counseling agencies charging high fees for financial counseling services you can get for little or no charge through non-profit agencies. You can find a list of HUD-approved agencies by visiting their web site. http://www.foreclosurefreeinfo.com |
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