Avoid Foreclosure by Avoiding Unscrupulous Mortgage Brokers

by on cities, Stop Foreclosures

In Fernandina Beach, Florida, 83 year old Willie Mae Johnson was surprised that the home she has lived in since 1949 was now up on the foreclosure block. Because she did not know why she ended up in this situation, she immediately consulted a lawyer.

As the lawyer checked her documents, it was discovered that Johnson was a victim of unscrupulous lending practices. The mortgage broker handling the application form falsified information and made it appear that Johnson could afford an $83,000 loan amount. Aside from this, the mortgage broker also changed her mortgage rate to $778 from $450 and increased the value of her home from $76,000 to $225,000.

It was also found out that Johnson was convinced to re-mortgage her home in order to receive $5000, money that will be used for the burial of her daughter. Sadly, she never received the money and ended up with a monthly mortgage due that is much more than she was receiving from Social Security.

Such case is not isolated. When trouble in the housing industry was brewing, many Americans came to realize that they too were victims of aggressive lending practices. Most of them took out loans they could not afford and some were even cajoled to take out hybrid loans that were not fully explained to them. As a result, millions of homes entered foreclosure in the last couple of years and many more are expected in the coming years.

Today, it is very important that you understand what you are getting into before you make the decision to sign a document. You can always ask a friend or a relative to help you look over mortgage application forms before signing it. As always, prevention is better than cure. And in this case, it will be terribly inconvenient for you.