rovide mortgage penalties if payments to any other lender are late, even if the mortgage loan is paid up to date.

Avoid Mandatory Arbitration clauses. They usually remove your legal recourse.

Avoid Prepayment Penalty Clauses. These charges accrue if you pay off the loan early and can prevent an owner from selling if faced with default.

Avoid Penalty Interest Rates. These are exorbitant increases in interest rates if a payment is late

Avoid Balloon Payment loans. These provide for a large payment in a number of years. If you cannot make the payment when due the loan defaults.

Avoid high LTV (Loan To Value). This means that the debt is larger than the value of the property. An owner with such a loan often cannot afford to sell especially in a declining market. Nor can they refinance with a reputable lender

Avoid "Foreclosure Rescue Loans" They aren't.

Here are two excellent source of consumer credit fair lending practices: Americans For Fairness in Lending http://www.affil.org/

National Fair House Alliance: http://www.nation

What You Need to Know About the Sub-Prime Situation

Short answer: nothing. Nor is every Sub-Prime lender guilty of predatory lending practices. Most mortgage brokers and lenders can still provide quality mortgage financing for the marginal buyer without recourse to dangerous loan practices.

Let your Realtor or real estate attorney watch your back. They are deeply involved in the mortgage process and make it their business to know where the traps lie long before they come to the attention of the Nation, as in the present scandal.

However, if you or someone you know is already in a bad sub-prime loan situation there may be something that can still be done. Here a Realtor cannot be of much help except to point out the areas of the current mortgage that are "fishy" Here a get a good real estate lawyer is essential. On your own the best course is to lodge a complaint with your state's consumer affairs department (see the link below for contact information by state).

A good resource to help deal with mortgage fraud is: http://www.mortgagenewsdaily.com/mortgage_fraud/report_New_York.asp

Meanwhile, the Democrats in Washington lead by Senator Charles Schumer have launched an investigation into predatory lending practices with the intent of drafting legislation to protect consumers. The Supreme Court too has weighed in with a new ruling allowing lenders to offer new terms to borrowers without sanctions from the court. Something most definitely is being done.

In New York State Realtors have a new law that makes it more difficult for a person to lose their home to someone who will never live in it but rather flip the home for a tidy profit, essentially stealing the delinquent owner's built up equity.

However, as a potential homeowner, or a homeowner interested in refinancing, a caution is definitely in order. The good news is that predatory lending is on the way out. And it's about time.

Here are the lenders in question as of April 2007:

New Century Financial Corp., Ownit, Mortgage Lender's Network, People's Choice Home Loans, and ResMAE Corp.

We in the real estate industry have been warning our clients about these shaky loan practices since they started. Americans are being seriously harmed by these technically legal but immoral practices.

I saw this presented in dramatic fashion in the documentary on ABC's Nightline last month (March). My first thought was how anyone could sleep at night and write a loan that could easily cost this retired woman her home. Of course, not every loan officer is a crook. But the guy who sold her that equity loan was obviously a blatant liar and a thief. First he promised that she would have no payments for five years then pressured her by saying she only had until 5:00 PM to sign. Soon she was getting mortgage payment bills for $2,300 a month on a $1,000 social security income. Foreclosure was a foregone conclusion.

They are always out there: the thieves, the swindlers, those that steal far more with a pen or computer than any thug with a gun. They wear suits and ties and act caring and sincere. And they belong in jail. Or at the very least barred from any business where people's lives, health, or homes are at stake.

As mentioned above, your first line of defense in the purchase of real estate is a good Realtor and a good lawyer familiar with the mortgage lender industry. I assure you that we know who the predators are in your area and will make sure you avoid them.

Personally, I just had a situation where the buyers applied for their loan before they started looking for a home. While this makes good sense, it does leave open the possibility that the lender chosen might not be all they appear to be. We started having problems from the first. And when the loan officer continually failed to return phone calls from their client, myself or the attorney regarding suspicious non-standard verbiage in the loan documents I urged them to start over elsewhere. In the end, this not only gave them a much better loan but saved them money. Many borrowers actually qualify for better loans but many lenders prefer to write high profit sub-prime loans that often destroy a homeowner's credit and cost them their home.

Here's what to do to avoid being cheated by predatory lenders:

As mentioned, engage a qualified attorney and Realtor. Obviously, I can't stress this enough. My neither my company, Real Estate New York, nor myself has ever been involved in a home sale that involved predatory lending.

• Avoid loans that do not consider your ability to repay.
• Avoid adjustable rate ARMS and interest only loans unless you are sure you understand the possible consequences of these loans.
• Avoid Universal Default Clauses. These provide mortgage penalties if payments to any other lender are late, even if the mortgage loan is paid up to date.
• Avoid Mandatory Arbitration clauses. They usually remove your legal recourse.
• Avoid Prepayment Penalty Clauses. These charges accrue if you pay off the loan early and can prevent an owner from selling if faced with default.
• Avoid Penalty Interest Rates. These are exorbitant increases in interest rates if a payment is late
• Avoid Balloon Payment loans. These provide for a large payment in a number of years. If you cannot make the payment when due the loan defaults.
• Avoid high LTV (Loan To Value). This means that the debt is larger than the value of the property. An owner with such a loan often cannot afford to sell especially in a declining market. Nor can they refinance with a reputable lender
• Avoid "Foreclosure Rescue Loans" They aren't.

Here are two excellent source of consumer credit fair lending practices: Americans For Fairness in Lending http://www.affil.org/

National Fair House Alliance: http://www.nationa

, the Democrats in Washington lead by Senator Charles Schumer have launched an investigation into predatory lending practices with the intent of drafting legislation to protect consumers. The Supreme Court too has weighed in with a new ruling allowing lenders to offer new terms to borrowers without sanctions from the court. Something most definitely is being done.

In New York State Realtors have a new law that makes it more difficult for a person to lose their home to someone who will never live in it but rather flip the home for a tidy profit, essentially stealing the delinquent owner's built up equity.

However, as a potential homeowner, or a homeowner interested in refinancing, a caution is definitely in order. The good news is that predatory lending is on the way out. And it's about time.

Here are the lenders in question as of April 2007:

New Century Financial Corp., Ownit, Mortgage Lender's Network, People's Choice Home Loans, and ResMAE Corp.

We in the real estate industry have been warning our clients about these shaky loan practices since they started. Americans are being seriously harmed by these technically legal but immoral practices.

I saw this presented in dramatic fashion in the documentary on ABC's Nightline last month (March). My first thought was how anyone could sleep at night and write a loan that could easily cost this retired woman her home. Of course, not every loan officer is a crook. But the guy who sold her that equity loan was obviously a blatant liar and a thief. First he promised that she would have no payments for five years then pressured her by saying she only had until 5:00 PM to sign. Soon she was getting mortgage payment bills for $2,300 a month on a $1,000 social security income. Foreclosure was a foregone conclusion.

They are always out there: the thieves, the swindlers, those that steal far more with a pen or computer than any thug with a gun. They wear suits and ties and act caring and sincere. And they belong in jail. Or at the very least barred from any business where people's lives, health, or homes are at stake.

As mentioned above, your first line of defense in the purchase of real estate is a good Realtor and a good lawyer familiar with the mortgage lender industry. I assure you that we know who the predators are in your area and will make sure you avoid them.

Personally, I just had a situation where the buyers applied for their loan before they started looking for a home. While this makes good sense, it does leave open the possibility that the lender chosen might not be all they appear to be. We started having problems from the first. And when the loan officer continually failed to return phone calls from their client, myself or the attorney regarding suspicious non-standard verbiage in the loan documents I urged them to start over elsewhere. In the end, this not only gave them a much better loan but saved them money. Many borrowers actually qualify for better loans but many lenders prefer to write high profit sub-prime loans that often destroy a homeowner's credit and cost them their home.

Here's what to do to avoid being cheated by predatory lenders:

As mentioned, engage a qualified attorney and Realtor. Obviously, I can't stress this enough. My neither my company, Real Estate New York, nor myself has ever been involved in a home sale that involved predatory lending.

• Avoid loans that do not consider your ability to repay.
• Avoid adjustable rate ARMS and interest only loans unless you are sure you understand the possible consequences of these loans.
• Avoid Universal Default Clauses. These provide mortgage penalties if payments to any other lender are late, even if the mortgage loan is paid up to date.
• Avoid Mandatory Arbitration clauses. They usually remove your legal recourse.
• Avoid Prepayment Penalty Clauses. These charges accrue if you pay off the loan early and can prevent an owner from selling if faced with default.
• Avoid Penalty Interest Rates. These are exorbitant increases in interest rates if a payment is late
• Avoid Balloon Payment loans. These provide for a large payment in a number of years. If you cannot make the payment when due the loan defaults.
• Avoid high LTV (Loan To Value). This means that the debt is larger than the value of the property. An owner with such a loan often cannot afford to sell especially in a declining market. Nor can they refinance with a reputable lender
• Avoid "Foreclosure Rescue Loans" They aren't.

Here are two excellent source of consumer credit fair lending practices: Americans For Fairness in Lending http://www.affil.org/

National Fair House Alliance: http://www.nation

shion in the documentary on ABC's Nightline last month (March). My first thought was how anyone could sleep at night and write a loan that could easily cost this retired woman her home. Of course, not every loan officer is a crook. But the guy who sold her that equity loan was obviously a blatant liar and a thief. First he promised that she would have no payments for five years then pressured her by saying she only had until 5:00 PM to sign. Soon she was getting mortgage payment bills for $2,300 a month on a $1,000 social security income. Foreclosure was a foregone conclusion.

They are always out there: the thieves, the swindlers, those that steal far more with a pen or computer than any thug with a gun. They wear suits and ties and act caring and sincere. And they belong in jail. Or at the very least barred from any business where people's lives, health, or homes are at stake.

As mentioned above, your first line of defense in the purchase of real estate is a good Realtor and a good lawyer familiar with the mortgage lender industry. I assure you that we know who the predators are in your area and will make sure you avoid them.

Personally, I just had a situation where the buyers applied for their loan before they started looking for a home. While this makes good sense, it does leave open the possibility that the lender chosen might not be all they appear to be. We started having problems from the first. And when the loan officer continually failed to return phone calls from their client, myself or the attorney regarding suspicious non-standard verbiage in the loan documents I urged them to start over elsewhere. In the end, this not only gave them a much better loan but saved them money. Many borrowers actually qualify for better loans but many lenders prefer to write high profit sub-prime loans that often destroy a homeowner's credit and cost them their home.

Here's what to do to avoid being cheated by predatory lenders:

As mentioned, engage a qualified attorney and Realtor. Obviously, I can't stress this enough. My neither my company, Real Estate New York, nor myself has ever been involved in a home sale that involved predatory lending.

• Avoid loans that do not consider your ability to repay.
• Avoid adjustable rate ARMS and interest only loans unless you are sure you understand the possible consequences of these loans.
• Avoid Universal Default Clauses. These provide mortgage penalties if payments to any other lender are late, even if the mortgage loan is paid up to date.
• Avoid Mandatory Arbitration clauses. They usually remove your legal recourse.
• Avoid Prepayment Penalty Clauses. These charges accrue if you pay off the loan early and can prevent an owner from selling if faced with default.
• Avoid Penalty Interest Rates. These are exorbitant increases in interest rates if a payment is late
• Avoid Balloon Payment loans. These provide for a large payment in a number of years. If you cannot make the payment when due the loan defaults.
• Avoid high LTV (Loan To Value). This means that the debt is larger than the value of the property. An owner with such a loan often cannot afford to sell especially in a declining market. Nor can they refinance with a reputable lender
• Avoid "Foreclosure Rescue Loans" They aren't.

Here are two excellent source of consumer credit fair lending practices: Americans For Fairness in Lending http://www.affil.org/

National Fair House Alliance: http://www.nation

r their loan before they started looking for a home. While this makes good sense, it does leave open the possibility that the lender chosen might not be all they appear to be. We started having problems from the first. And when the loan officer continually failed to return phone calls from their client, myself or the attorney regarding suspicious non-standard verbiage in the loan documents I urged them to start over elsewhere. In the end, this not only gave them a much better loan but saved them money. Many borrowers actually qualify for better loans but many lenders prefer to write high profit sub-prime loans that often destroy a homeowner's credit and cost them their home.

Here's what to do to avoid being cheated by predatory lenders:

As mentioned, engage a qualified attorney and Realtor. Obviously, I can't stress this enough. My neither my company, Real Estate New York, nor myself has ever been involved in a home sale that involved predatory lending.

• Avoid loans that do not consider your ability to repay.
• Avoid adjustable rate ARMS and interest only loans unless you are sure you understand the possible consequences of these loans.
• Avoid Universal Default Clauses. These provide mortgage penalties if payments to any other lender are late, even if the mortgage loan is paid up to date.
• Avoid Mandatory Arbitration clauses. They usually remove your legal recourse.
• Avoid Prepayment Penalty Clauses. These charges accrue if you pay off the loan early and can prevent an owner from selling if faced with default.
• Avoid Penalty Interest Rates. These are exorbitant increases in interest rates if a payment is late
• Avoid Balloon Payment loans. These provide for a large payment in a number of years. If you cannot make the payment when due the loan defaults.
• Avoid high LTV (Loan To Value). This means that the debt is larger than the value of the property. An owner with such a loan often cannot afford to sell especially in a declining market. Nor can they refinance with a reputable lender
• Avoid "Foreclosure Rescue Loans" They aren't.

Here are two excellent source of consumer credit fair lending practices: Americans For Fairness in Lending http://www.affil.org/

National Fair House Alliance: http://www.nation

rovide mortgage penalties if payments to any other lender are late, even if the mortgage loan is paid up to date.

Avoid Mandatory Arbitration clauses. They usually remove your legal recourse.

Avoid Prepayment Penalty Clauses. These charges accrue if you pay off the loan early and can prevent an owner from selling if faced with default.

Avoid Penalty Interest Rates. These are exorbitant increases in interest rates if a payment is late

Avoid Balloon Payment loans. These provide for a large payment in a number of years. If you cannot make the payment when due the loan defaults.

Avoid high LTV (Loan To Value). This means that the debt is larger than the value of the property. An owner with such a loan often cannot afford to sell especially in a declining market. Nor can they refinance with a reputable lender

Avoid "Foreclosure Rescue Loans" They aren't.

Here are two excellent source of consumer credit fair lending practices: Americans For Fairness in Lending http://www.affil.org/

National Fair House Alliance: http://www.nationalfairhousing.org/index.php