Watch out for lending scams, or you could lose your home.
This public service message is made possible by support from the Massachusetts Division of Banks, the Massachusetts Community and Banking Council and the Federal Reserve Bank of Boston.
Be careful what you sign
Have you received a pre-approved home loan in the mail? Have you seen TV ads for loans that will lower your bills? If you think these schemes will get collection agencies off your back, be careful. There are companies who may seem like they want to help you, but they may only make things worse.
Scam lenders are out to trick you
In their ads, some lenders may promise low rates as bait to get you to sign on. Then at closing, or maybe six months later, they may switch you to a higher rate without telling you. They may also hide extra costs in the wording of their loans. Costs you may not be aware of, and may not be able to pay back.
Don't put yourself deeper in debt
These same lenders will tell you that lower monthly payments can save you money. What they donít tell you is that theyíre combining all your debt into a long-term loan. So you end up paying out more money over a longer period of time.
Don't put your home at risk
Many people donít realize that these loans are mortgages which use their house as collateral. If you canít pay, the lender can take your house from you as payment. That's one reason why the number of people losing their homes to foreclosure in the U.S. has grown 200% since 1980. Donít let this happen to you.
Let us show you your options
There are other ways to get out of debt. We can put you in touch with people who will tell you about the different choices you have and who will explain all your options. Options that won't put everything you've worked for at risk.
Our help is free
If you have questions about what you're signing, call us for advice. We can warn you about possible lending scams and help figure out if the terms of your loan are unfair. We'll also help you understand the options open to you and direct you to other sources of information and assistance.
Call (800) 495-2265 for more details about home loan scams -- your one-stop source for home lending information and referrals.
Do you have questions about refinancing or foreclosure prevention? We can refer you to agencies in your area that can help. Call us to learn all about your options.