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Inflated appraisals
The lender partners with an appraiser
to overstate the value of the home. By doing this the lender can
loan you more money, charge you more fees, and make sure that no
other lender can refinance you. In short, you are trapped with the
predatory lender because there is negative equity in the home.
Bait & switch
A lender offers you one set of loan
terms when you apply, but pressures you to accept worse terms at
the closing when you feel you have no other options.
Home improvement scam
A home improvement contractor arranges
the mortgage loan for your repairs, receives the payment directly
from the mortgage lender and provides you with incomplete or shoddy
work.
Packing
The lender secretly includes overpriced
insurance such as credit life, disability, and unemployment insurance
in your loan. The insurance is paid upfront out of the loan principal.
Flipping
Lenders encourage frequent and unnecessary
refinancing of a loan with no benefit to you.
High Fees
Iowa Citizens for Community Improvement
has seen fees as high as 20% of the loan amount.
To learn more and get involved, contact
Danny at 515-255-0800 or danny@iowacci.org. |
