Do your homework before taking out a mortgage by Groshan Fabiola
If you have taken out a mortgage recently or are thinking about it you have probably come to the conclusion that not all mortgage companies and brokers have the best of intentions.
When we look at the mortgage industry lately, we see a lot of news coming out about shady lenders who have tricked people to get into loans that were not a good fit and instances of plain old fraud all together.
That is why it is more important than ever to research the lender you are considering doing business with and also do your homework on mortgages and the different types of products available.
Reading some information on the industry and becoming an educated borrower could save you a lot of time, stress and money in the long run.
A January 4, 2007 article by Amy Hoak of MarketWatch and published in The Wall Street Journal, “Shady switcheroos and scams: Mortgage trickery to avoid,” discusses some common scams that bad mortgage companies engage in and how to avoid them.
“Brian Diez, a former military man, entered the mortgage business after a career as a stockbroker, in part figuring he would like the opportunity to help families buy their first homes. He learned quickly, however, that not all mortgage brokers have their clients’ best interests at heart.”
“‘What became clear to me is every company was really interested in selling as many loans as they can, and not really helping clients,’ says Mr. Diez, sales manager for First Class Equities in Oceanside, N.Y. His quest to inform consumers prompted him to create a blog on the topic, http://briandiez.blogspot.com.”
The best defense that consumers have against fraudsters is to arm themselves with as much knowledge and research as possible.
That way, if they know the industry and how loans work, they will be able to know if the loan is too good to be true or if the broker or lender is trying to pull a fast one on them.
“You may never find that altruistic mortgage lender: It’s rare when commission-earning individuals — whether selling mortgages, stocks or automobiles — can completely divorce their self interests from a sale, says Joseph Badal, senior executive vice president at Santa Fe, N.M.-based Thornburg Mortgage.”
Always be on the look out for prepayment penalties or any other charges that may crop up down the line.
Most importantly, be sure that you read your loan documents thoroughly, and be sure that you understand everything completely.
“Kate Crawford, chairwoman for the consumer protection committee of the National Association of Mortgage Brokers recommends following common-sense measures: Don’t ever sign a blank form, and get a copy of every paper that is signed. Don’t give out a Social Security number before it’s time to actually apply. For paperwork bank statements and paycheck stubs that a lender might require, make a copy and always keep the original.”
“And while at your lender’s office, take a glance around to see how paperwork is handled — it may be one indication of how careful a company is with sensitive information, Ms. Crawford says.”
About the Author
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Rochelle on Thornburg Lawsuit and Lehman Plan: BLAW
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LAWSUIT ARISES OUT ; OF THORNBURG MORTGAGE COLLAPSE.(Main): An article from: The Santa Fe New Mexican (Santa Fe, NM) $9.95 This digital document is an article from The Santa Fe New Mexican (Santa Fe, NM), published by The Santa Fe New Mexican on March 4, 2010. The length of the article is 567 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: LAWSUIT ARIS… |
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THORNBURG MORTGAGE: LENDING FIRM CUTS 29 JOBS, HALF IN SANTA FE.(Main): An article from: The Santa Fe New Mexican (Santa Fe, NM) $9.95 This digital document is an article from The Santa Fe New Mexican (Santa Fe, NM), published by The Santa Fe New Mexican on October 1, 2008. The length of the article is 407 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: THORNBURG … |
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Thornburg Mortgage Asset Corp. : International Competitive Benchmarks and Financial Gap Analysis $204.75 No Synopsis Available |
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