Watch Your Mailbox, Predators are Lurking

Great article in last Thursday’s The Columbus Dispatch that highlights how predatory lenders are going after residents living in Habitat for Humanity homes.

But this is not an issue exclusively tied to those that have Habitat homes.

I received a recent e-mail from Libby that said:

“If you think nobody cares if you’re alive, try pooping on the carpeting.”

And you can cross that over to the people-world as well. We all know about the ambulance-chasing attornies, well these lenders are the equivilant. They get your name anyway possible — a notice of foreclosure, divorce precedings, etc. — and will use it to give you a “great deal” if you refinance your home.

Delaware’s Habitat for Humanity coordinator Jackie Kuhns (a former co-worker of Toby’s at Ohio Wesleyan) is quoted in the article:

“Some families find themselves in need of money, but because they are feeling desperate or have a lack of understanding of how these loans work, they are being taken advantage of. It’s unconscionable and unimaginable that people get targeted that way.”

We — and any other “good” mortgage or real estate professional will as well — agree with Jackie 100 percent.

So here are some tips for those that are feeling the pinch this time of year and considering refinancing.

• Use an Attorney. This one seems a little odd. Spending $300 of the proceeds probably is not something that you are willing to do right now. However, it is going to give you the best option.
• Talk to Your Lender. This is a tough time for everyone involved in the banking industries, banks don’t want to have your home. Talk to them and honestly explain your situation with them. They may be willing to rework your mortgage – especially if it is a “short-term” issue. They don’t want to forclose on your home, as it cost them an average of $50,000 to do so. 
• Read the Fine Print. This is a no-brainer. But how often do we listen to someone tell us what this means, and then go from there. However, you are allowing them to “control” your knowledge. Stop and read the page and walk-away if something doesn’t feel right.
• Say No to High Pressure. Don’t get me wrong, there is always a level of pressure when working with mortgage rates, but if they don’t want you to have the time to review documents and are “pushing” you into a decision. Then give them the “no” right up front and move on.
• Too Good to be True? Then remember it probably is.

Hopefully this will help you as you look at those advertisements. Ohio law requries that they give you the details in the fine print for any interest-rate claim in advertising. So read that fine print and you’ll probably find the scariest part of the deal.

So good luck, and keep your head on straight, especially when things seem the worst — for that’s usually when the worst in our fellow humans seems to come out.

Photo by Steve Woods and used courtesy of Stock.xchng license.

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