If you feel like you have become the victim of predatory lending, please contact one of our staff members to set up an appointment at 801-691-5260. Our one-on-one counseling is free to the public and is here to help you.
What is Predatory Lending?
In communities across America, people are losing their homes and their investments because of predatory lenders, appraisers, mortgage brokers and home improvement contractors who:
- Sell properties for much more than they are worth using false appraisals.
- Encourage borrowers to lie about their income, expenses, or cash available for down payments in order to get a loan.
- Knowingly lend more money than a borrower can afford to repay.
- Charge high interest rates to borrowers based on their race or national origin and not on their credit history.
- Charge fees for unnecessary or nonexistent products and services.
- Pressure borrowers to accept higher-risk loans such as balloon loans, interest only payments, and steep pre-payment penalties.
- Target vulnerable borrowers to cash-out refinances offers when they know borrowers are in need of cash due to medical, unemployment or debt problems.
- “Strip” homeowners’ equity from their homes by convincing them to refinance again and again when there is no benefit to the borrower.
- Use high pressure sales tactics to sell home improvements and then finance them at high interest rates.
Remember: If a deal to buy, repair or refinance a house sounds too good to be true, it usually is!
Visit a HUD approved counseling agency (list available on www.HUD.gov) for more information and advice on predatory lending. Call 801-373-8200 ext. 235 if you live in Utah, Wasatch or Summit County. Community Action Services and Food Bank is a HUD approved Housing Counseling agency and has expertise in dealing with predatory lenders.
For counseling session:
Please call 801-691-5260
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Predatory Practices in Mortgage Lending
More information on Predatory Lending