Identifying Predatory Lenders
Predatory lenders seek out individuals who are in dire need of money and who are unaware of the irrevocable harm certain types of loans can cause. These lenders then force these individuals into contracts with outrageous or abusive terms through lies, coercion, or exploitation.
Because of the serious repercussions of accepting a predatory lender’s offer, it is incredibly important for borrowers to be aware of the common types of deals these shameless lenders typically advertise. When shopping for lenders, be wary of businesses that offer payday loans, tax refund anticipation loans, or home mortgages.
Common Practices of Predatory Lenders
The consequences of accepting the terms of a predatory loan can be dire and last for years. When you are in need of a loan for whatever reason, you should pay close attention to the lender’s behavior during your interactions. If he or she exhibits any of the following behaviors, you may want to reconsider entering into a contract with them:
- Misrepresentation of information
- Risk-based pricing
- Inflating common charges
- Packing additional charges into the initial loan
- Attempting to talk you into unnecessarily refinancing your mortgage
- Including terms that prohibit you from taking legal action against them
As this is not an inclusive list of common predatory practices, it will be vital that you educate yourself before entering into any contracts with suspicious lenders. It is in your best interest to secure the representation of an experienced real estate attorney any time you are dealing with lenders or contracts.
Contact a Dallas Real Estate Attorney
If you are in the process of seeking a loan for your home, the Dallas real estate attorneys at Gagnon, Peacock & Vereeke, P.C., can help ensure that you get a fair deal with acceptable terms that will not leave you in financial ruin. To learn more about the services we offer, call our office in Dallas at (214) 824-1414 today.