Real Estate Insights

With all the buzzwords like “creative financing” and sub-prime lending” floating around the internet and news media these days you may start to feel like you could have been taken advantage of by your last loan originator. As long as you received your mortgage from a reputable company or from a trusted or referred source, chances are you were treated fairly and respectfully. However, if you were sold by a telemarketer or found your last loan on the internet, you may have paid too much for your loan and may be in a loan that could become unaffordable quite soon.

To figure out whether or not you may have a case figure out if any of the following happened on your last home financing experience:

• Your loan originator falsified your income;

• Your loan originator hid his or her fees;

• You weren't immediately given a copy of the good-faith estimate and weren't given an accurate HUD-1 statement breaking down all fees at closing;

• After signing the all the closing documents to refinance your mortgage, you don't walk out with a "notice of rescission" that explains your rights to cancel the refinance within three business days;

• You were led into a sub-prime loan although your credit would have qualified you for a better loan; or

• In short, you fell you were lied to or deceived.

If you feel that you may have been a victim of an unscrupulous lender then I would recommend that you start by contacting your local mortgage broker, one who you have dealt with in the past and that you feel will give you “honest advice”. Mortgage brokers can take a look at your closing documents, assuming you were given a copy (consumers are required by law to receive copies of their closing documents) and tell you exactly how much you were charged, what type of loan you have, the terms of the loan, and whether or not you should stay in that loan or apply for another mortgage. They can also give you their opinion if you were taken advantage of.

Mortgage brokers really are a good resource to learn about consumer protection practices. Many brokers offer free consultations and may even host special learning seminars that they may put on once a month. Remember, it is the broker’s ultimate goal to earn your business but it is also the broker’s goal to spread knowledge, because brokers feel that the more savvy a borrower is the more likely they will seek the guidance of a mortgage broker for their home financing needs.

If you do not trust any brokers or have not dealt with nay in the past that you would feel confident in talking to then I would suggest that you a consumer-advocacy attorney, or turn to one of the following resources for additional help:

• At the Web site for Americans for Fairness in Lending you can plug in your ZIP code to find a financial counseling resource near you.

• In early April, the Neighborhood Assistance Corporation of America, an 18-year-old housing advocacy group, pledged $1 billion to refinance the loans of lower-income people who are at risk of losing their homes.

• The National Community Reinvestment Coalition has information on how to keep your home and has a Consumer Rescue Fund that works with victims of predatory lenders to make their mortgage payment more affordable.

• As the subprime lending crisis deepens, some lenders -- who in the past were somewhat reluctant to work with borrowers -- are becoming even more accommodating, to the point that they may even be willing to modify the loan terms to keep people in their homes. Call your lender when you realize you're having problems. For more information try: (877) 362-6631.