Bad Credit Mortgage Lenders - The 3 Most Common Subprime Lending Scams
Below is a MRR and PLR article in category Finance -> subcategory Mortgage.
Bad Credit Mortgage Lenders: Avoid These 3 Common Subprime Scams
Summary:
While legitimate subprime lenders offer crucial services for individuals with poor credit, predatory lenders exploit these situations. They might charge excessive fees, force foreclosures, or demand titles. To safeguard your financial future, be aware of these common mortgage scams.1. Excessive Interest Rates and Fees
Predatory lenders often impose high upfront costs or exorbitant fees. Some state laws limit these charges, ensuring consumers are protected. If you have bad credit, your interest rate should be no more than 8% above conventional loan rates. Be wary of closing costs exceeding five points.2. Forcing Foreclosures
This scam targets borrowers with loans structured for failure, featuring unaffordably high monthly payments. These lenders lure you with promises of guaranteed approval or easy cash-out options while charging high interest rates. Always ensure you can manage the monthly payments before signing any loan agreement.3. Demanding Title
One growing scam involves refinancing your mortgage under false pretenses, where scammers pocket your cash and take your title. Often targeting those with property liens or foreclosure notices, they promise to resolve your financial issues in exchange for your title and an upfront fee. They may even file for bankruptcy in your name, which, although dismissed, still impacts your credit report. Ultimately, you could lose your home.Protect Yourself
To avoid falling victim to these scams, be an informed shopper. Request quotes from multiple lenders and ask questions. Reputable lenders will gladly explain the lending process and clarify any doubts you have.When you choose a lender, carefully read all documents before signing. According to federal law, you have three days to cancel your mortgage after settlement, with a refund of most fees, excluding the application fee. Stay vigilant and protect your financial wellbeing.
You can find the original non-AI version of this article here: Bad Credit Mortgage Lenders - The 3 Most Common Subprime Lending Scams.
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.