How to Protect Yourself When Looking for a Mortgage in the Southern Ocean County Real Estate Market
Southern Ocean County Real Estate
There are many laws that have been enacted to protect buyers in the local real estate markets from illegal lending practices. When buying a home in the Southern Ocean County real estate market it is important to understand your rights and the laws designed to protect you so that you can avoid the unfortunate practices that can exist in this or any market. If you have any specific questions or feel you have been mislead by an lender, it is best to speak with an attorney to understand the current law.
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Homeowners Security Act
Among the many laws in the state of New Jersey designed to protect borrowers, one of the most widely referenced is the New Jersey Homeowners Security Act. This law prohibits lenders from:
- Financing credit insurance premiums or debt cancellations
- Recommending default on any existing loan
- Charging an excessive late payment fee (over 5%)
- Charging a fee for payoff information
In addition lenders are prohibited from some actions on high cost loans (which are somewhat common in the LBI real estate market and in other areas of the Southern Ocean County real estate market). For example, lenders cannot charge balloon payments on most loans, they cannot negatively amortize a loan and they cannot raise the interest rate after default. For more specific information about How to Protect Yourself When Looking for a Mortgage in the Southern Ocean County Real Estate Market you can visit the New Jersey state website.
Predatory Lending
Predatory lending is an abusive form of lending that is designed to harm a consumer at the benefit of the lending institution. Predatory lending became a common term with the economic meltdown and the sub-prime lending which took place early on in the 21st century. A few examples of what to look for with predatory lending and How to Protect Yourself When Looking for a Mortgage in the Southern Ocean County Real Estate Market are:
- Unaffordable loans that are based on assets rather than income
- Flipping loans by encouraging frequent refinances (thus earning the lender more money on each flip)
- Representing a lower interest rate or favorable terms only to sell the loan and then showing a higher rate at the closing table
As is the case with any major purchase, you must not be afraid to ask questions and seek guidance from other sources. As is often the case, if something doesn’t feel right there is probably something wrong! Above all else, read carefully before you sign on the dotted line!
Buying in the Southern Ocean County Real Estate Market
The Southern Ocean County real estate market is a great place to live and to invest in a home. With the wonderful communities of Stafford, Barnegat, Waretown, Little Egg Harbor and Long Beach Island, there are homes available in all price ranges and locations. However before investing in the Southern Ocean County real estate market is is important to understand not only the real estate market but also mortgages and How to Protect Yourself When Looking for a Mortgage in the Southern Ocean County Real Estate Market.
The Beach Haven West Real Estate Group and Southern Ocean County Real Estate Specialists
Farrah Pileggi 201-952-4131| Kim Pileggi 732-887-4853 | Nathan Colmer 609-290-4293