Foreclosure
Step 1. 10 Tip To Be A Smart Consumer
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- Before you buy a home, attend a homeownership education course offered by the U.S. Department of Housing and Urban Development (HUD)-approved, non-profit counseling agencies.
- Interview several real estate professionals (agents), and ask for and check references before you select one to help you buy or sell a home.
- Get information about the prices of other homes in the neighborhood. Don't be fooled into paying too much.
- Hire a properly qualified and licensed home inspector to carefully inspect the property before you are obligated to buy. Determine who is going to be responsible for paying for the repairs. Is it you or the seller? If you have to pay for the repairs, determine whether it is within your means before proceeding with the loan.
- Shop around for a lender and compare costs. Be suspicious if anyone tries to steer you to just one lender.
- Remember that lying on a mortgage application is fraud and may result in criminal penalties.Do NOT let anyone persuade you to make a false statement on your loan application. Do Not engage in overstating your income, the source of your down-payment, failing to disclose the nature and amount of your debts, or even how long you have been employed. It is important that every piece of information that you submit must be accurate and complete when you apply for a mortgage loan.
- Do NOT let anyone convince you to borrow more money than you know you can afford to repay. You should not risk losing your home due to unscrupulous brokers or agents that are only concerned about their commission and not your ability to keep up with your mortgage.
- Never sign a blank document or a document containing blanks. If information is inserted by someone else after you have signed, you may still be bound to the terms of the contract. Insert "N/A" (i.e., not applicable) or cross through any blanks.
- Read everything carefully and ask questions. Do not sign anything that you don't understand. Before signing, have your contract and loan agreement reviewed by an attorney skilled in real estate law, consult with a trusted real estate professional or ask for help from a housing counselor with a HUD-approved agency. If you cannot afford an attorney, take your documents to the HUD-approved housing counseling agency (hyperlink) near you to find out if they will review the documents or can refer you to an attorney who will help you for free or at low cost.
- Be suspicious when the cost of a home improvement goes up if you don't accept the contractor's financing.
Two More Points….
- Be honest about your intention to occupy the house. Stating that you plan to live there when, in fact, you are not (because you intend to rent the house to someone else or fix it up and resell it) violates federal law and is a crime.
Remember:
If a deal to buy, repair or refinance a house sounds too good to be true, it usually is! - Housing counselors working at HUD-approved agencies can help you be a smart consumer. To find a counselor near you, call (800) 569-4287 or go to HUD's housing counselors list online.
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Foreclosure - Content
1. 10 Tip To Be A Smart Consumer
2. What Can Home Owners do to protect themselves from foreclosures?
3. Beware of Predatory Lendings
4. Protect Yourself From Predatory Lenders
5. Other Tactics Predatory Lenders Use That You Should Know
6. What Happens When You Miss A Mortgage Payment?
7. What Should You Do If You Find Yourself Unable To Make Mortgage Payment?
8. What Are My Options?
9. How Do I Know If I Qualify AND Should I be Aware of Anything Else?
10. Are There Any Precautions I Can Take?
11. Introduction
12. Top 10 Foreclosure Myths
1. 10 Tip To Be A Smart Consumer
2. What Can Home Owners do to protect themselves from foreclosures?
3. Beware of Predatory Lendings
4. Protect Yourself From Predatory Lenders
5. Other Tactics Predatory Lenders Use That You Should Know
6. What Happens When You Miss A Mortgage Payment?
7. What Should You Do If You Find Yourself Unable To Make Mortgage Payment?
8. What Are My Options?
9. How Do I Know If I Qualify AND Should I be Aware of Anything Else?
10. Are There Any Precautions I Can Take?
11. Introduction
12. Top 10 Foreclosure Myths
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