The Predator

There are some stories that you stumble upon, and you just read and mentally file, then there are some you must simply share.  You need to know the difference between legitimate lenders, and predatory “loan sharks”.  Ya, the deal may sound great, but you know the saying, if it sounds to good to be true, than it probably is.  Northern Virginia Association of Realtors (NAVR) has some pointers to help you weed out the junk mail. 

Know the Basics
Before we look at abusive lending practices, a quick review of lending fundamentals is in order. All kinds of loans, including home mortgages, work pretty much the same way: the lender offers the borrower financing terms based on the amount of risk the lender believes that borrower poses. Using employment history and debt repayment records, lenders assign each borrower a rating or score designed to reflect the likelihood that the lender will receive repayment in full.