Warning signs of scams and unfavorable loan terms

Dated: April 5 2021

Views: 82

Warning signs of scams and unfavorable loan terms

The impact of COVID-19 has led to financial struggles for homeowners across the nation. In fact, a recent study conducted by OnePoll in conjunction with the National Association of REALTORS® discovered that more than 8 out of 10 American homeowners – 81% – the COVID-19 pandemic has caused them unexpected financial distress.

The effects of COVID-19 have led to some homeowners taking desperate measures to ensure they can protect their investments. Scamming activity increases during times like these, so homeowners must remain vigilant and be cautious of offers that sound too good to be true.

Here are some warning signs of scams and unfavorable loan terms:

 

·        Sounds too easy. “Guaranteed approval” or “no income verification” regardless of borrower’s current employment, credit history, and assets.

·        Large future costs. High-risk adjustable rate mortgages where payment rises significantly after the “teaser rate” period is seldom appropriate for families who already have had problems repaying other loans.

·        Barriers to refinancing. Prepayment penalties that make it hard for a borrower to refinance in order to pay off a high-cost loan by taking advantage of a low-cost loan.

·        No down payment loans. These loans may be split into two mortgages, with one having a much higher cost. Homebuyers should be sure they can afford the payments.

·       Unethical document management. Ethical lenders and brokers will never ask you to sign a blank document or a document dated before the date you sign.

 

If you are a homeowner who is struggling or unable to meet your loan obligations, work with housing experts and your lender to find a solution, today. Don’t wait until you fall behind to seek help. Acting quickly may help you keep your home and the money you have already invested into it.

 

As REALTORSÒ we are in the business of helping people become homeowners and want to do everything they can to make sure you can afford to stay in your home and remain cautious of potential scams. If your current lender isn’t willing or in position to help, you may be able to refinance your current mortgage with another lender. As REALTORSÒ we may also be able to help you find responsible lenders that offer fair and affordable loans.

Contact Jake Blickenstaff or visit www.JakeBlickenstaff.com to speak with a member of the Jake Blickenstaff & Associates team to learn more.

Blog author image

Jake Blickenstaff

I'm a US Navy Veteran, previously stationed in Pearl Harbor, HI on the USS Reuben James FFG-57. After a successful Navy enlistment as a Gas Turbine Electrician, I stepped into the Power Generation ind....

Latest Blog Posts

Why You Don’t Want to Wait to Sell Your House

We’re in the ultimate sellers’ market right now. If you’re a homeowner thinking about selling, you have a huge advantage in today’s housing market. High buyer demand paired

Read More

Learn How Hope Is on the Horizon for Today’s Housing Shortage

The major challenge in today’s housing market is that there are more buyers looking to purchase than there are homes available to buy. Simply put, supply can’t keep up with demand. A

Read More

Indeed, the Right Expert Will Guide You Through This Unprecedented Market

In a normal market, it’s good to have an experienced guide coaching you through the process of buying or selling a home. That person can advise you on important things like pricing 

Read More

Thinking About Selling? Have Your Day in the Sun by Moving Up This Summer !

Some HighlightsLonger days and sunny weather mean summer is upon us, and what better conditions than right now to upgrade to the home of your dreams?If your needs have changed,&

Read More