Signs That Your Mortgage Lender Is Setting You Up For Failure

During the pandemic, some programmers designed a bot that could imitate the writing style of texts input into it.  The New Yorker showed an original passage from Kafka’s Metamorphosis, followed by a passage the bot created using Kafka’s prose as an example, and heck if the bot’s take on the sufferings of a man inexplicably transformed into an insect wasn’t scarier and more disturbing than Kafka’s.  The mortgage loan industry looks a lot like something a bot would dream up based on Kafka’s inspiration, where aspiring homeowners unwittingly get caught up in a maze of trying harder and harder to qualify for loans while also trying harder and harder to keep up with payments on the debts they already owe.  These are some red flags of shady mortgage lenders that become apparent during the mortgage loan application process.  If you see these warning signs, you should walk away before borrowing the mortgage from that lender.  If it is too late for that, contact a Plantation foreclosure defense lawyer.

If Something Sounds Too Good to Be True, It Probably Is

Beware of lenders that try to push you into taking out mortgage loans where the payments are so high that, given your current income, it is almost impossible to make the minimum payment month after month.  You should be especially suspicious if the lender has a reputation for bending the rules for underwriting mortgages, and especially if they tell you flat out that they will pull some strings to make sure that you qualify.  Borrowing money that you are sure you will not be able to pay back unless you get an unexpected windfall is a recipe for financial insecurity.

Constantly Making You Jump Through Hoops

Mortgage lenders almost always ask you to submit more than one round of documentation before they agree to lend you the mortgage, but if you get the feeling that they are making you jump through more and more hoops just to toy with you, that is a red flag.  Do they really need to see the past three years of your parents’ tax returns just because a few thousand dollars in your savings account were a birthday gift from your parents?

Lousy Customer Service

Professionalism should be the very least that you expect from a mortgage lender, but you would be surprised how disorganized and how slow to respond some lenders can be.  You should walk away before taking out the mortgage loan if the lender keeps asking you to resubmit information you already sent them, or if they are slow to respond to your phone calls and emails.  Likewise, the mortgage loan company should make it easy to access information about your loan or loan application through a user-friendly online portal.

A Foreclosure Defense Lawyer Can Help You Avoid Disaster-Prone Mortgage Loans

Sometimes the best way to avoid mortgage foreclosure is not to take out the mortgage in the first place, and a foreclosure defense lawyer can help you identify the mortgage loans that are duds.  Contact Nowack & Olson, PLLC in Plantation, Florida to discuss your case.