Feb. 10, 2009 - Don't Borrow Trouble®

A Reliable Source of Information

Freddie Mac offers great advice and information to home buyers and refinancing homeowners on how to avoid the pitfalls of predatory lenders.  Freddie Mac's "Don't Borrow Trouble®" campaign exposes eleven common borrowing mistakes. Below are the top five tips.  To learn more, click here

• Say NO to "easy money." If a solicitation is really interesting, get it in writing!
• Shop around. Borrowers should talk to several lenders to find the best loan for which they qualify.
• Understand the loan terms. Borrowers should compare loan terms from different lenders.
• Find out about prepayment penalties. Borrowers should know if the loan offered to them has a prepayment penalty. 
• Make sure documents are correct. Borrowers should never falsify information or sign documents that they know to be false.

Years ago, the State of New Jersey enacted an anti-predatory law,  known as the New Jersey Homeowners Security Act  to protect consumers.    For more of what New Jersey consumers should know about predatory lending go to the Department of Banking and Finance.

Feb. 13, 2009 - RE: Don't Borrow Trouble®

Matthew,

Thank you for sharing this information with consumers!  New Jersey has some good protections in place for consumers ... people need to go into these matters with their eyes open ... enough people have been burned. It's time to celebrate good decisions and a healthy market.

Nice blog, BTW!

Feb. 13, 2009 - RE: Don't Borrow Trouble®

Thanks for the kind comments, Fran.  Too bad the Freddie Mac prorgram is not truely nation-wide.  But you are correct, New Jersey took steps back in 2002 to pass consumer protections.

Too bad for me I missed your Trulia v Zillow smackdown last night.  I was late to the party and it was "sold out".  I suspect that Truila came out on top ;D.

BTW- Matthew is my loan officer. I'm Michael. But that's OK, I've been called worse!