to bogus/phantom creditors, failure to make timely payments to creditors even where the lender makes timely payments to the financing company, and default on the loan. Following are a few tips for consumers to prevent becoming a victim of one of these schemes:
Beware of lenders that require a fee in advance of obtaining a loan; advance-fee loans are unlawful in Vermont.
Beware of lenders who claim that they are the only hope for a loan or ask borrowers to sign a contract/loan agreement with missing information.
Beware when lenders say refinancing your home can solve all of your credit or money problems.
Always interview several lenders, and check with friends or family for recommendations.
Research lenders with the Attorney General’s Office Consumer Assistance Program –
www.uvm.edu/consumer or 800-649-2424. Check their complaint history with the Better Business Bureau:
www.vermont.bbb.org. Lenders must generally be licensed with the Vermont Department of Financial Regulation; licensure status can be searched online at
http://www.dfr.vermont.gov/banking/verify-license or by phone at 802-828-3301.
Never make false statements on a loan application. Any lender who allows this is fraudulent.
Talk to the local NeighborWorks homeownership center about your options. The centers offer foreclosure counseling and may be able to refer you to low interest financing options. See:
http://www.vthomeownership.org/.
If you suspect a violation of any HUD rule or regulations, report it to the local HUD office: 802-951-6290 (tel.); 802-951-6298 (fax);
vt_webmanager@hud.gov (e-mail).
Foreclosure Consultant / Equity Purchaser Scams Some financial predators prey on persons during the foreclosure process. They
claim to be foreclosure experts who offer to assist homeowners after they receive a notice of default. In Vermont, once the finance company files a formal lien with the Town Clerk, the homeowner is deluged by these foreclosure consultants.
Typically, foreclosure consultants are nothing more than financial thieves who
further encumber the property with liens for fees and extravagant charges. They try to obtain title through a power of attorney or by direct transfer. They take advantage of the homeowner’s distress and offer to purchase the home for below market value through misrepresentations on the value of the home and on encumbrances. They represent to the homeowners that they may stay in the property for the rest of their lives. In fact, after they obtain the property, they sell it and the new owner serves the tenants with eviction papers. Clients should be warned of such scams.
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