Article: Bad Credit Mortgage Lenders - The 3 Most Common Subprime Lending Scams

Bad Credit Mortgage Lenders - The 3 Most Common Subprime Lending Scams

Legitimate sub-prime lenders provide a needed service to many wishing to buy a home. By offering financing to those with adverse credit, sub-prime lenders offer a valuable financing options. However, predatory lenders take advantage of people with poor credit by charging excessive fees, forcing foreclosures, or demanding titles. To protect yourself in your home loan search, avoid these common mortgage scams.



Excessive Interest Rates And Fees



Predatory loans require a borrower to pay excessive upfront costs or high fees. Some state laws protect consumers by putting caps on interest rates or fees. If you have bad credit, you should be paying no more than 8% higher than a conventional loan. Limits on closing costs vary, but anything more than five points should b...
 

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Bad Credit Mortgage Lenders - The 3 Most Common Subprime Lending Scams

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