Who do predatory lenders target?
Predatory lenders target elderly and low-income homebuyers, minorities and women, people with less-than-perfect credit, and people who know very little about home loans and mortgages. These lenders usually tell you that you can get loans with very low monthly payments, refinance your existing mortgage, or take out a loan or second mortgage to help pay for expenses like medical costs and home-improvement work. There are legitimate loans that can help with these things but be sure to research your lender and ask questions. A reputable lender will not mind answering all your questions. If in doubt, go over the loan with a trusted advisor before signing anything. How can you spot a predatory lender? Predatory lenders usually offer loans with high interest rates; broker fees, unnecessary costs like pre-paid credit life insurance, and unaffordable repayment terms. Be suspicious of anyone who offers you “bargain loans,” whether they mail or email you an offer, call you on the phone, or come t
