Avoid Mortgage Madness & Fraud

Have you ever found it to be the least bit confusing when shopping for a mortgage, or determining which mortgage broker you should work with? How do you know which mortgage broker you can trust to disclose all the information to you?

In order to avoid becoming a victim of mortgage fraud and abuse, you need to do your homework! Be aware of laws such as the Truth in Lending Act, and know your rights. The Truth in Lending Act is a federal law that was enacted as part of the Consumer Protection Act. This law requires lenders to reveal all information to the borrower and detail all costs associated with the transaction. If the lender is not willing to provide full disclosure to you then walk away from the loan offered.

For example, if you were to sign documents for an equity loan today that would balloon in five years, do you fully understand the potential ramifications of that agreement you are entering into? A good mortgage broker will be willing to explain the details to you as they know they are required to provide you with full disclosure.

If anything less than full disclosure is provided you need to consider asking some tough questions or to walk away from the offer, otherwise you may be subjecting yourself to lender abuse.

© October 2006 Author: Tammara Nelson
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