Fair Lending Rights
Unfair mortgage lending practices are still common. Many unfair lending practices have become known as "predatory lending."
Predatory lending is a lending practice in which a lender gets much more out of the loan than the borrower does. Mortgage loans are considered to be predatory when the terms and conditions of the loan are unsuitable for the borrower's circumstances.
You may be in a predatory loan and not know it until it is too late. A predatory loan can ruin your credit and lead to foreclosure. Some predatory lenders target the elderly, people of color, and those with low incomes or damaged credit.
Predatory lenders may make it easier to get a home purchase loan, a home equity loan, or a loan to refinance your existing mortgage, but exercise caution. The cost of these loans could be the loss of your home.
Predatory loans often include:
High interest rates and/or high fees
Predatory loans may also include:
Foreclosure Rescue ScamsSome homeowners facing foreclosure turn to people who promise to provide assistance, but these people frequently do not deliver on that promise, despite charging hefty fees. The scam artists use messages like: "We guarantee we can save your home," "Free consultation," or "We have special relationships within many banks that can speed up case approvals." Once they have your attention, scam artists use a variety of tactics to get your money. If you're looking for foreclosure prevention help, avoid any business that: •Collects a fee before providing you with any services. It is illegal to do this.
•Guarantees to stop the foreclosure process - no matter what your circumstances.
•Instructs you to not contact your lender, lawyer, or credit or housing counselor.
•Tells you to make your mortgage payments directly to it, rather than your lender.
•Accepts payment only by cashier's check or wire transfer.
•Encourages you to lease your home so you can buy it back over time.
•Offers to buy your house, or tells you to transfer your property deed or title to it.
•Offers to fill out paperwork for you.
•Pressures you to sign paperwork you haven't had a chance to read thoroughly or that you don't understand.
Instead, if you suspect that you have been approached by a foreclosure rescue scammer, call the Fair Housing Council, a nonprofit agency that can help you - for free!
Call (414) 278-1240, or from outside of Milwaukee County, call toll-free: (877) 647-3247.
You have a choice
Remember that you, the borrower, are in control. You have the power to turn down any loan offer until you get all the facts. Beware of promises of fast approvals. Shop around. A little extra time invested up front could save your home, and your credit. Ask lots of questions about terms and don't sign any blank document the lender promises to fill out later. Watch out for high interest rates, high fees and high closing costs. If you have any doubt that the loan you are being offered is right for your circumstances, call us at (414) 278-1240 for a free, confidential evaluation.
We are here to help!
Call the Metropolitan Milwaukee Fair Housing Council if you:•are seeking help with a predatory loan, a mortgage rescue scam, or another type of fair lending complaint,
•would like to schedule a presentation on avoiding unfair and deceptive loans, mortgage rescue scams, and foreclosure, or
•need information about fair, responsible banking and the federal Community Reinvestment Act.
Call the Fair Housing Council at (414) 278-1240, or from outside of Milwaukee County, toll-free: (877) 647-3247.