Predatory Lending Resources for Consumers
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Predatory Lending Resources for Consumers
Consumers, New Jersey Association of REALTORS®

Predatory Lending Resources for Consumers

Abusive and predatory lending practices have led to families losing their homes and savings, higher foreclosure rates, and increased vacancy rates in some neighborhoods. The most important step for anyone buying a home or refinancing a mortgage is to educate themselves on their mortgage options and the true cost of any mortgage loan. REALTORS® believe that financial education is an important defense against abusive lending practices.

View a new video from the NATIONAL ASSOCIATION OF REALTORS® and the Center for Responsible Lending entitled "Families in Crisis."

Contact a REALTOR® for more information on mortgage options and take advantage of the consumer education brochures from the NATIONAL ASSOCIATION OF REALTORS® entitled Shopping for a Mortgage? Do Your Homework First. They are designed to help a home buyer make smart financing choices.
 

Learn How to Avoid Foreclosure and Keep Your Home BrochureLearn How to Avoid Foreclosure and Keep Your Home explains the types of mortgages that are placing families at risk, provides suggestions for getting help, and urges borrowers to work with experts and their lender as soon as possible.

How to Avoid Predatory Lending BrochureHow to Avoid Predatory Lending helps consumers learn the warning signs of predatory loans that can lead to foreclosure and bankruptcy.

Traditional Mortgages: Understanding Your Options BrochureTraditional Mortgages: Understanding Your Options provides information about traditional mortgages to help consumers make an informed decision about the kind of home financing that is best for them.

Specialty Mortgages: What are the Risks and Advantages Brochure

Specialty Mortgages: What are the Risks and Advantages? educates consumers who may not want a traditional mortgage about the risks and advantages of interest-only, negative amortization, payment option ARM, and 40-year mortgages.

FHA Improvements Benefit You; FHA Insured Mortgages offers information about FHA-insured mortgages and other resources available from FHA and HUD, such as more generous debt and payment to income ratios, low down payment requirements, no prepayment penalties, and liberal treatment of credit history.

  

President Bush's administration introduced initiatives to aid homeowners reaching delinquency status on their mortgages. Introduced on February 12, 2008, "Project Lifeline" will allow a 30-day suspension on the foreclosure process to provide an opportunity for homeowners to explore more affordable loan terms. Six major lenders have signed on to take part in the plan.

The private-sector HOPE NOW Alliance, which was created in late 2007, includes aid from lenders, investors and nonprofit groups. It develops resources to help at-risk homeowners in the subprime mortgage market. Click here for more information on both initiatives.

Download the predatory lending brochure from the U.S. Department of Housing and Urban Development, which offers tips on being a smart consumer!

The New Jersey Department of Banking and Insurance also offers resources on subprime lending for homeowners facing foreclosure.

Visit the New Jersey Home Ownership Preservation Effort website.

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