Dept. For Aging Warns Seniors On Predatory Lending

In a campaign to alert senior citizens about fraud and other improprieties against them, the New York City Deparetment For The Aging and the Department of Consumer Affairs recently issued a warning concerning predatory lending and other crimes.

Predatory lending is a particularly vicious crime that can result in you losing your home. It is a term used to describe a range of misleading financial practices that deceive people into taking out high-cost home equity or refinance loans they cannot afford. A home equity loan is a transaction in which a lender agrees to lend you money with the promise that if you do not meet the terms of repayment, you agree to give up your home. Elderly homeowners who often have the most equity built up in their homes but live on limited, fixed incomes, are particularly vulnerable targets for predatory practices.

Predatory lending practices can range from misrepresentation of loan details and high-pressure sales tactics to out-and-out fraud. Some examples include:

•Adding hidden costs and expensive extras onto loans •Charging inflated interest rates and fees

that are not justified by risk

•Repeatedly refinancing the loan

•Falsifying borrower’s income

•Forged signatures on loan document

Before you consider taking out a high-cost loan through any source other than a major bank, it is

worth your time to see if you can qualify for a conventional loan.

Here are some tips to protect yourself from predatory lenders:

•Beware of monthly payments that seem too high for your income.

•Beware of costs and terms of the loan that you do not understand..