Your Mortgage Questions Answered (page 2 of 2)

• Aggressive and deceptive marketing
  
• Making loans without ample consideration to the borrower's ability to pay
  
• Financing excessive fees into loans
  
• Charging higher interest rates than a borrower's credit allows
  
• Home improvement scams

Your best defense to avoid a predatory trap is a good offense. Learn all you can about the housing market. Know your credit rating. Never sign documents that a trusted attorney has not reviewed. Never send your mortgage payment to anyone other than your lender.

If you think you've been scammed, report it to the Federal Trade Commission, the Better Business Bureau, your state Attorney General, or file a Housing Discrimination Complaint form through HUD.

Q: I'm facing foreclosure. I know I probably shouldn’t have ignored the notices from my bank. Is there anything I can do now?

A: Yes. Here are the steps and resources:

Step One: Get an expert’s advice. A housing counselor approved by HUD can inform you of your rights and options. Visit expert advice or call 800-569-4287.

Step Two: Collect all the notices from your bank, pay stubs, medical bills, and any other papers that document income or lack of income. Make copies.

Step Three: Call your lender's loss mitigation department. Ask the lender to waive prepayment penalties for refinancing.

Step Four: Don’t sign anything that may be referred to as a "quitclaim deed." This will forego your ownership of the home.

Step Five: Continue to consult with your HUD counselor with questions or concerns.

Other Resources:

Foreclosure Risk Assessment. The National Foundation for Credit (NFCC) has created a housing website which enables consumers to take a short quiz to determine their risk of foreclosure. To use the tool offered by the NFCC.

Go Local. Don't count out state and local groups. They can often be very helpful. Most cities have a nonprofit housing advocacy organization, which typically offers troubled homeowners advice and hope. As a caveat: Make sure these local groups are HUD Certified. If the HUD seal of approval isn’t stamped on the organization, it’s probably a scam. See the list of legitimate local groups.

Links to Helpful Articles:

• The Office of Policy Development and Research (PD&R) and HUD USER has and online guide to assist those facing foreclosure.


• Learn more about the foreclosure process.
  


• An accredited Better Business Bureau site, Avoiding Mortgage Foreclosure, is another resource.


• MSN Money’s resource guide to foreclosure can be found here.

From Reader's Digest - February 2009

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• • Frugal Shopping

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• Not sure how you'll survive the current economic crisis? Stick to these 29 money basics and you'll thrive anytime.
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• How to Avoid A Scam
• When times get tough, the cons get cagier. The latest scams, shams, and devious flimflams to avoid.
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• 13 Things Your Bank Won't Tell You
• Get smarter about banking with tips from the financial services industry.
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