What are the danger signs of a predatory loan?
• High bank fees (call competitors and comparison shop) • Balloon payment (a lump sum due at the end of the term of the loan); • A loan is based on your home equity rather than your income; • Credit life insurance added to the loan Don’t gamble with your biggest asset. Call 311 and get good advice. How can I avoid deed scams? Homeowners facing foreclosure do have options, and must be careful to avoid foreclosure scams. So called “bailout specialists” tell you that, for a fee, you can deed your home to the bailout specialist and then rent it back. The bailout specialist takes the money, does not arrange for the short sale, and does not make any payments on the mortgage. The end result is that your home loan payments are not made and the mortgage goes into foreclosure, without you being aware of any fraud. Before you sign anything, call 311 and learn the facts and your options. How can I avoid home repair contractor scams? Many homeowners – especially seniors- are targeted by scam artist
