What do Predatory Lenders Do?
1. Flip your loans, so that you are refinancing your home without any real benefit to you; 2. Charge excessive fees, lender kickbacks to the mortgage broker, high interest rates, adjustable interest rates, and high prepayment penalties. The result is that the equity in your home goes to the mortgage broker or lender. 3. Trap you and take your equity and savings, so that you lose you home because you cannot make the payments. 4. Make sure that you have to refinance your home again, because your monthly payment keeps going up where you can no longer pay it. Essentially all Adjustable Rate Mortgage (ARM) loans require that you refinance the loan within 1 to 5 years in order to keep your home. Because the interest rate and monthly payment keeping increasing to the point where you cannot make your monthly payments. The loans usually also include very high mortgage broker fees, lender kickbacks to mortgage brokers, junk fees, closing costs, prepayment penalties, and mandatory arbitration req
