Predatory Lending

What is the definition of what exactly ... What can you do if you feel you are a victim?

predatory lending is the practice of a lender deceptively convincing borrowers to agree to terms unfair and abusive lending, or systematically violating those terms in order to make it difficult for the borrower to defend against. Although predatory lenders are most likely to target the less educated, racial minorities and the elderly, victims of predatory lending are represented in all demographic categories.

Predatory lending often occurs on loans secured by a guarantee of sorts, like a car or a house, so that if the borrower fails to pay, or if it does not default, the lender can repossess or foreclosure and profit by selling the repossessed or seized property. Other types of loans, sometimes called predatory include payday loans, credit cards or other forms of consumer debt, and overdraft loans, when interest rates are considered too high.

If you think you have been a victim of predatory lending you should visit the website below.

http://www.hud.gov/offices/hsg/sfh/pred/ ...

There is no precise definition, it can vary depending on many factors. But generally, it falls into a few categories:

1. The high rates and fees charged (more than 5% -8% or more of fresh% / points, comparable rates 5-10 on U.S. Treasury bonds). Definitions of "high cost" loans vary by county, state, federal levels.

2. Refinancing repeatedly with the amount of loans increasing, with little or no benefit to the borrower's tangible.

3. Loans with little hope or confirmation by documentation that the borrower has a realistic chance of repaying the loan.

4. Financing of life insurance or credit disability requiring, in particular when the financing of a large initial amount within the loan.

5. Some types of loans, especially in connection with "high cost" loans are more likely to increase the damage to borrowers, such as negative amortization (the loan balance increases each month), balloon payments (large quantities or Loan amounts payable in full at maturity in a few years), and many other specific items.

If you feel you might be a victim, there are several places you can get help. Your state agency housing finance. State Attorney General. State Department of real estate or business, one that regulates mortgage lenders. ACORN. HUD.