SubPrime borrowers are at especially high risk for predatory lending practices
San Ramon, CA (PRWEB) April 4, 2007
MortgageSanity.com, a website dedicated to providing explanations about mortgage processes, has declared that, "One of the best defenses borrowers have to protect themselves against predatory lending practices in the mortgage industry is education".
MortgageSanity.com has established itself as a provider of explanations in the mortgage industry.
MortgageSanity.com has been founded on the idea that lenders and brokers, by way of having more knowledge about the ins and outs of the mortgage industry, have the upper hand in most mortgage transactions. Therefore, the best way for borrowers to protect themselves financially, is to thoroughly research their mortgage options themselves.
MortgageSanity.com points out that some of the major red flags today that suggest possible predatory lending practices are brokers or lenders that:
- Push advantages of "Option ARM Mortgages"
- Encourage fasifying loan application information
- Don't Provide Required Disclosures
- Require borrowers to sign a contract for payment whether or not loan closes
- Use High Pressure Sales Tactics
Whether a borrower is planning to refinance, obtain a home equity loan, heloc or new home purchase loan, mortgagesanity.com suggests that borrowers research their mortgage options and become familiar with basic mortgage terms.
Mortgage Sanity also points out that "SubPrime borrowers are at especially high risk for predatory lending practices". MortgageSanity.com goes on to state that borrowers with credit problems or other factors that may lead them to be in the "subprime" category, should be educating themselves about loan options and possible predatory lending practices.
Mortgage Sanity now provides educational resources for people who are trying to get a mortgage after bankruptcy. People who have filed bankruptcy are at high risk of being taken advantage of by mortgage brokers with unethical lending practices.
People with past bankruptcies in their credit need to be researching all of their mortgage options and researching the ways that their past bankruptcy will affect their ability to get approved for a mortgage loan. Taking on a mortgage loan with a high interest rate, pre-payment penalty and unfavorable terms and fees is a can be very risky.