How to Avoid Mortgage Fraud

Monday, September 21st, 2009

Hi there!

I found this article on another blog, and I think it is important for loans in Bulgaria, just as it is for loans in the USA (the basis for the article). The bottom line is, read everything and understand it. Don’t lie about anything, and don’t sign anything with blank spaces in it.

Top 10 Ways to Avoid Loan Fraud: by David E. Brumbaugh

Every year, misinformed homebuyers, often first-time purchasers or seniors, become victims of predatory lending or loan fraud. Below you’ll find the top ten ways to avoid becoming a victim yourself.

  1. Take your time and shop around. You should be able to compare prices and houses. If a lender or broker tells you they are your only chance to get a loan or owning a home, don’t do business with them.
  2. Do not sign a sales contract or loan documents that are blank or that contain information which is not true.
  3. Be certain that the costs and loan terms at closing are what you originally agreed to.
  4. Do not be talked into lying about or lie about your income, expenses, or cash available for down payments in order to get a loan.
  5. Watch out for higher-risk loans such as balloon loans, interest-only payments, and steep pre-payment penalties.
  6. Be careful about disclosing things like your need of cash due to medical, unemployment or debt problems. You are very vulnerable in these cases.
  7. Don’t strip your home’s equity by refinancing again and again when there is no benefit to you.
  8. Beware of false appraisals.
  9. Do not let anyone convince you to borrow more money than you know you can afford to repay. If you get behind on your payments, you risk losing your house and all of the money you put into your property.
  10. Get several quotes from multiple brokers or lenders so you know you’re being charged a fair interest rate based on your credit history, not your race or national origin.

David Brumbaugh is the owner and operator of EZandFree.com. EZandFree.com provides consumers with online tools for easily obtaining free competitive Mortgage and Loan Quotes. It also serves as a mechanism by which Mortgage Brokers can obtain legitimate qualified leads from people who need their services.

Copyright 2004 David E. Brumbaugh. All rights reserved. This article may be published in your newsletter or web site.

Did you understand what was being said here? The idea is to be sure you look out for yourself, because nobody else will do it for you.

Ciao for now

Craig

How to Avoid Mortgage Fraud

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Now Is The Hour!

Wednesday, June 24th, 2009

Hi there!

I don’t expect that you remember the US radio program called “Now is the Hour”, and it’s not important that you do. What is important is that you read this and take note – it can be very important for you!

As you probably know, I’m in Bulgaria with Elena now, and we have discovered the following. The real estate market for the Bulgarian central Black Sea resort area is bottoming out. What does that mean for you? Well, here’s the way we see it.

Now is the time to start looking very seriously for the property you want to buy in our area – Nessebar-Sunny Beach-Sveti Vlas. Why? Because there are other people already looking – yes, looking for bargains, but also looking to find that one property that is exactly what they want at the best price they are likely to get – ever!

If you wait much longer, the desirable properties will be sold, and there won’t be any more for some time. And at today’s prices, maybe never! When the best existing properties are off the market, there will still be the ones that are not so great, and these will tend to put price pressure (= limits or brakes) on new construction. These effects will keep prices from rising rapidly again, but will also result (as we have said before) in the poorer properties potentially being torn down, rather than sold “at any price.”

The difficult part for the moment is the mortgage situation, if you need assistance with your financing. Bulgarian mortgage lenders have put the stops on the business with limits as to how much they will lend (typically 40% of the buying price, maximum), and also with really restrictive interest rates – 12-15% plus the Interbank rate plus signing fees, depending on the type and life of the mortgage. These practices are at odds with many other European countries, and are doing a good job of killing the new construction business here.

Bottom line? If you have the cash, wherever it comes from, now is the time to get your pick of the best properties at the best prices in our area. If you wait, the cream of the crop will be gone.

Ciao for now,

Craig
for
Bulgaria Realtor

Jimmy Craig Websites

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