The economic climate is churning out loan sharks in record numbers. Knowing how to spot them a distance away, the same way you would when someone’s got the “Pox” could mean the difference in saving homes in Gainesville, Fl and condos in Gainesville Fl where loan sharks are on the increase. How do you tell when a lender does not have your best interest at heart? Or that the lender is a shyster, giving you wrongful advice about your repayments options?
You’ll know once you’ve learned these seven telltale signs. But first, in an updated bulletin, the Federal Trade Commission warned that low-income earners have become targets by unscrupulous lenders. They make false promises to homeowners assuring them that “their loan will be based on the equity of the homes, rather than the homeowners’ ability to repay it.”
Run from a lender, who:
1. Insists on monthly payment contracts above what you can afford. If you spend more than you’re able to earn, you’ll soon find your way by the road-side.
2. Tells you how to “beat the system.” False claims on a document with your signature on it will quickly land you behind bars. Run!
3. Reassures you that you don’t need to read the “fine print.” By law you are entitled to full disclosure and be provided with an annual percentage rate as well as closing costs within three days.
4. Uses “bait and switch;” for example investors looking for Gainesville Fl condos may find themselves saddled with homes in Gainesville, Fl that they didn’t sign up for. This represents a change in terms. Demand an explanation, and be prepared to run!
5. Says you don’t need copies of your signed agreement. Run!
6. Tells you he/she will fill in the blanks later, on your behalf. Once your signature is on it, it’s NEVER OK to have blank documents. Unfortunately, that’s how some people get swindled out of their Gainesville, Fl condos and homes in Gainesville, Fl, by unsanctioned changes in closing terms.
7. Tries to persuade you into borrowing more money than you NEED. Usually, this is only to increase his/her gains on commission.