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Princeton, NJ 08543
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SUBJECT : Predatory Lending Practices are Back

According to a survey be the House of Urban Development and Treasure departments predatory mortgage lending practices are again on the increase.

Most victims of theses crimes are those who can least afford it, minorities and the elderly.

In the typical situation predatory mortgage lenders approach people in special circumstances, impaired credit, or lack of sophistication. They use high pressure methods or fraudulent sales tactics to lend sums of money to people who are obviously lack the knowledge or the means to repay the loans


According to a recent joint report of the Treasury Department and the Housing and Urban Development Department a four course action program must be developed to:

There are certain RED FLAGS (for consumers):

1. Stay away from a lender who instructs you to falsify your loan application

2. Pressures you into applying for more money than you need

3. Assures you to one set of terms when you apply and another set of terms when you close.

4: Tells you to sign blank forms

5: Can't give you copies of the document that you have signed

Before yo make a major decision about a loan seek professional advice. Talk to a lawyer, financial advisor, counseling agency, or someone else you trust.

1. Approach a variety of lenders, shop around for a loan, including banks, savings and loans, credit unions and mortgage companies. Inquire about the best loans available to you, and get estimates in writing. Compare the annual percentage rate (APR), the points and fees, the terms of each loan and the monthly payment.

2. Figure out the costs. Make sure you can comfortably afford the monthly loan payment along with your other bills.

3. Don't be timid about negotiating. Once you choose a lender, ask for a lower APR or for the removal of any loan terms or charges you don't want.

4. Keep copies of all signed documents, billing statements and canceled checks. Review everything carefully, and dispute any charges you thing are wrong.

The Truth in Lending Act gives most home equity borrowers three business days to cancel the deal, and in some instances you may have up to three years. In either case, you must notify the creditor in writing about your intention to rescind. You may need to consult a lawyer for advice.

If you want to file a complaint. To complain or get information on how to rescind, contact the Federal Trade Commission at (877) FTC-HELP (382-4357) or your local Community Affairs Agency

Contact : Tel- 609.409.4490

The Norton Group
P.O. Box 2400
Princeton, NJ 08543

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