Times are tough. The foreclosure rate is up and many people are trying to refinance their homes before the lender that owns the mortgage can foreclose.

In your haste to refinance, be aware of the increasingly abusive practices of predatory lenders in the mortgage industry.

This is a prime time for predatory lenders to seek out new customers. You don’t have to become one of them.

Predatory lending is the general term used to describe a loan which is based on collateral, such as a house or car, where the lender uses predatory or unfair lending practices. These abusive lending practices may include; taking advantage of uneducated borrowers by inaccurate or nondisclosure of terms and conditions, pressure to buy higher priced credit insurance, inclusion of unexplained settlement cost, risk based pricing and a total loan amount for more than the value of the home.

You should also be wary of lenders that ask you to leave signature lines unsigned. They can easily change the terms and conditions of your mortgage. Before you sign the final papers, make sure you check to see that nothing has been altered or changed. Some predatory lenders have been known to even go so far as to ask you to tell a “little white lie” on your application. Do not trust this type of lender under any circumstance.

The Federal and State governments have many laws to help prevent predatory lending. Twenty-five states have enacted anti-predatory lending laws - including New York. The Home Ownership and Equity Protection Act of 1994 is committed to identifying and protecting the consumer from possible predatory mortgage loans.

If you are in the process of financing or refinancing your home, you may want to seek professional help before you sign the final papers. An experienced lawyer can advise you of your rights and explain the terminology of the loan so that you understand what you are signing for.

Your home is perhaps the largest expenditure you will make in your lifetime. Buying a home is an emotional and stressful time; don’t let unscrupulous predatory lenders ruin it for you and your family.

When fighting foreclosure, the last thing you need are scam artists taking away the very home you’ve been struggling to keep. That’s exactly what happened to Gerthy and Lesly Alexandre when they dealt with AFG Financial Group in Garden City, L.I. As the couple was trying to stop foreclosure of their West Brighton Home, AFG presented them with an attractive option: refinance the mortgage and put someone else’s name on the deed. This was supposed to be a temporary measure until the couple could get their financial status in order. Little did they know they had just signed away their own home to another. Read more