Too often individuals purchase a home without sufficient consideration or understanding of their loan agreements and mortgage responsibilities.

Therefore we are expanding our efforts to educate the public on the dangers of predatory lending, the importance of maintaining a household budget, and the alternatives to foreclosure.

Gov. Schwarzenegger, U.S. Treasury Secretary Paulson, Community Leaders Hold Town Hall in Stockton to Discuss Help for Homeowners Facing Foreclosure.

Watch the video here

Dec 7. President Bush's plan

for sub prime lenders

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Treasury Secretary Henry Paulson explains a plan to resolve the crisis brought on by rising rates on mortgages.

Watch the video                 

"Fixing foreclosures"

Steps to help avoid foreclosure from

Department of Housing and Urban Development

What is Foreclosure?

A legal Process by which the lender or the seller of a property forces the sale of a mortgaged property because the borrower has not made payments or met the terms of the mortgage. A foreclosure can also be defined as a repossession of the property by the lender.

Tips to help avoid foreclosure

or shop for a home mortgage

from the FDIC

(Federal Deposit Insurance Corporation)

Click here to read more...

Avoid foreclosure;

What is Predatory Lending?

A predatory loan can be any kind of loan that does not take adequate consideration in determining the borrowers future ability to repay the loan. These loans can manipulate the buyer through aggressive sales tactics and may include such things as excessive fees, high and/or variable interest rates, and a lack of explanation to the buyer in regards to their rights and obligations.

What is Subprime Lending?

Subprime lenders cater to individuals who have less than perfect credit or who are in the process of rebuilding their credit. Subprime loans typically offset the risk of lending money to lower credit individuals by offering higher interest rates and additional fees. Such loans are intended to be short-term (2 to 4 years), giving the borrower a chance to rebuild credit and refinance at a later date. Although this may sound like a great way to purchase a home, remember that refinancing and rebuilding credit are not always a possibility.

Helpful Tips on Purchasing or Selling a Home

• When shopping for a mortgage loan, it is important to get quotes from different lenders on the same day at the same time.
• Never allow yourself to be pressured into signing a loan that you do not fully understand. A respectable lender will help you feel comfortable and answer any questions.
• Although you acquired your loan through your bank. Your bank has the ability to sell your loan to another mortgage company at their discretion.
• Foreclosure does have a negative effect on your credit and can hinder your opportunities to purchase another home or obtain credit for up to seven years!
• How much home can I afford? Find out here! 

• When selling your home, removing personal items and staging it to attract potential buyers can help sell the home quicker.

• Do I need Homeowner's Insurance?

  Absolutely! Proof of a paid homeowner's insurance policy is required at the time of closing. It is best to involve the insurance agent early in the home buying process and inquire about how to keep your insurance premiums low in the future.

• Your broker may not know exactly where your loan is going. But they should have a pretty good idea. Don't be afraid to ask and when you do, expect an honest answer. Never work with someone you don't trust, or who does not trust you! 

• Is there such a thing as a 'No-Closing Cost' Loan?

  Not really. A "No-closing cost" loan would mean that the lender will be paying all of your closing cost and not raising your interest rate as a result. Always ask your lender what exactly you will be paying for at closing!

• Be careful when entering into a "Zero-down" loan. Often lenders will offset the cost of a no down payment loan by increasing the amount of interest placed on the loan. These loans can be packaged as "80/20" loans, which mean there are two mortgages on the same property.

• Thinking about buying a foreclosure?

  Many properties being sold at auction are not available for inspection prior to sale. Try to find out as much as you can about the interior condition of the home before you buy!

• Declaring bankruptcy does not necessarily mean that you can not obtain a mortgage.

  There are loans for those with good credit and loans for those with not so good credit. In any case, always try for a conventional (fixed-rate) or government loan first.