Bankruptcy INK

Anyone who has been reading Bankruptcy INK or is following the news, understands that times are tough for homeowners in southeastern Michigan and beyond as the economy has dried up and record number of home foreclosures are being recorded.

If you are one of the people who signed up for adjustable home mortgage rates that you can no longer afford, it may seem like desperate times where there are not many options left. It may be possible for you to refinance your home again, but beware that some of those lenders do not have your best interests in option and our probably eyeing your home.

In an ABCnews.com recently published article, they reported: “Predatory lending typically occurs in refinancing deals. Unscrupulous lenders cause people to lose their homes and neighborhoods to lose their luster. Aggressive mortgage brokers target the poor, the elderly, minorities and women, but it can happen to anyone.”

According to ABCnews.com, there are signs that serve as red flags you should investigate when your new loan is not as it appears. They report: “You need to do your homework.”

• “Don't borrow money from a company that slips a flier under your door or blares at you in a TV commercial. Find your own mortgage company.” Indeed it is paramount for you to do your own research. Ask family members. Ask your friends whom they use. Check reputable resources online.

• “Once you narrow down your list, check out the mortgage brokers or lenders by contacting the Better Business Bureau (BBB) and your county and state consumer protection agencies. (Bankruptcy INK will work on creating a new blog that details resources to check and double-check mortgage companies, bankruptcy attorneys, etc.)

• “When a mortgage broker or lender gives you an estimate, get it in writing and make sure you have your own copy.” As in all business deals, a legal contract should be done in writing so there is no disputing the terms in a court of law.

• “Never sign any paperwork that contains blanks.” When there are white spaces on a contract, predatory lenders could fill in new information after you sign, give your credit information, etc.

• “Never follow advice to stop paying on your old mortgage loan. This could affect your credit record and trap you into accepting a predatory loan.” This is one of those areas where it is beneficial to have an attorney, bankruptcy or otherwise. A highly skilled, experienced attorney will be able to advise you best of how you should handle your existing (and future) home and business situations.

• “Demand a copy of your closing paperwork a couple days before the closing. Review it to see if the terms are different from what you were initially offered.” The devil is in the details, and in the case of home mortgages that is your paperwork/contract.

• “When you refinance with a different lender, you have the right to back out of the loan within three days of your closing. If you detect problems at your closing, immediately ask an attorney for an opinion, so you can take advantage of that window.” Different states may also have other provisions, so it is important to find a localized attorney familiar with municipal, county and state laws.