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Don't be the target of a high-cost loan!

Predatory lending is a lending practice in which the lender gets much more out of the loan than you do. You may be in a predatory loan and not know it until it is too late. Through false promises and outrageous fees, predatory lending can ruin your credit and lead to foreclosure.

Predatory lenders target the elderly, people of color, and those with low income or damaged credit - these people should be extremely careful when choosing their loans. There are more opportunities to get first mortgages, home equity or refinancing loans for your home than ever before. But the cost of many of these loans is the loss of your home.

What are the problems connected

 to predatory lending?

High interest/fees Predatory lenders will often charge extremely high interest rates and fees that are hidden by financing them into the loan. This increases lenders' profit unfairly and makes your loan needlessly expensive.

Broken promises Many borrowers are offered lower monthly payments, a good interest rate and a loan that meets all of their needs, only to find that everything has changed once they get to closing. They are then pressured to sign the paperwork, even when they feel uncomfortable about going forward.

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. Call our free hotline at 414-278-9190 if you have any questions.

We are here to help!

The Metropolitan Milwaukee Fair Housing Council operates a Strategies To Overcome Predatory Practices (STOPP) hotline. If you have any questions about mortgages, refinancing, debt consolidation or home repair loans, we may be able to assist you directly and, where appropriate, to refer you to other local agencies, programs or attorneys that can also help you. The Fair Housing Council and its 50 partner agencies involved in STOPP are committed to helping homeowners keep their homes.

Call the Fair Housing Council at 414-278-9190 to learn about all of your options.