In the shadow of the infamous subprime mortgage lending crisis, it is easy for New Jersey home buyers and refinancers to believe that they are safe from unethical lending practices. However, we know that predatory lenders are still out there, and believing that you are safe from their practices is the first step to falling victim to scams.
It is very easy for first-time homebuyers that are unaware of all the intricacies of a mortgage loan document to miss critical elements intentionally buried in the fine print by a devious lender. Undisclosed fees and rates might skirt your awareness until you are so deep in the process that it is too heart-wrenching to back out. Furthermore, practices like unmanageable balloon payments or under-qualifying eligibility can increase your chances of defaulting or simply paying much more in interest than you should.
Some predatory lenders have adapted to the increase in buyer awareness, and their efforts are even more subtle and difficult to detect. Instead of relying on elaborate schemes like over-appraising or price-fixing, lenders pose as personal financial advisors and take advantage of the shrewdest customers.
The New York Times reported instances of predatory real estate advertisements taking the form of radio shows featuring “financial advisors” who offer strategies like securing reverse mortgages and ditching retirement investments in favor of real estate investments. While their information may not be wholly untrue, it is probably advisable to only a small percentage of the intended audience. If the “advisors'” pure intention is to drive your business to a lending or other financial enterprise, then it is likely not in your best interest and could be ethically questionable.
If you face foreclosure and believe that you may have fallen victim to unethical lending practices, it is crucial to find out if these practices give you a defense that will allow you to keep your home. Visit our webpage for more information on foreclosure litigation today.