If a deal to buy, repair or refinance a house sounds
too good to be true, it usually is!
Protect Yourself from
Buying or refinancing your
home may be one of the
most important and
decisions you’ll ever make.
Many lenders, appraisers
and real estate
professionals stand ready
to help you get a nice
home and a great loan.
However, you need to
understand the home-
buying process to be a
smart consumer. Every
homebuyers, often first-
time purchasers or seniors,
become victims of
predatory lending or
Don’t let this
happen to you!
Don’t Be A Victim
of Loan Fraud
U.S. Department of Housing and Urban DevelopmentOffice of Single Family Housing451 Seventh Street, SWWashington D.C. 20410-3000HUD-2003-01-HWHAT TACTICS DO
z A lender or investor tells you that they are your
only chance of getting a loan or owning a
home. You should be able to take your time to
shop around and compare prices and houses.
z The house you are buying costs a lot more than
other homes in the neighborhood, but isn’t any
bigger or better.
z You are asked to sign a sales contract or loan
documents that are blank or contain
information that is not true.
z You are told that the Federal Housing
Administration insurance protects you against
property defects or loan fraud — it does not.
z The costs or loan terms at closing are not what
you agreed to.
z You are told that refinancing can solve your
credit or money problems.
z You are told that you can only get a good deal
on a home improvement if you finance it with a
Housing counselors with a
HUD-approved agency can help
you be a smart consumer. To
find a counselor near you, call
1-800-569-4287 or go to
HUD’s web site www.hud.gov.
WHAT IS PREDATORY
In communities across America, people are losing
their homes and their investments because of
predatory lenders, appraisers, mortgage brokers and
home improvement contractors who:
z Sell properties for much more than they are