Lenders prey on Queens residents

Predatory lending has become a widespread issue for many Southeast Queens residents who have fallen victim to the unscrupulous scams of certain financial establishments. These practices seem to be especially prevalent in New York City neighborhoods with predominantly minority residents and lower income families.
“None of the responsible government agencies or local officials who should be protecting people in this community are helping,” said Peggy Morris, Executive Director of Jamaica Housing Improvement Program, an agency founded for the purpose of preventing housing abandonment, improving living conditions, and enhancing investment in residential properties in the Jamaica area. “These scams are a violation of civil and criminal laws and the preventative laws are not being carried out.”
There are three types of predatory lending swindles that have become widespread in the city, targeting homeowners as well as people seeking to buy a home for the first time. Refinancing dodges target seniors and other homeowners who have built up equity in their homes over the years. “Foreclosure rescue” or “deed theft” frauds target homeowners in foreclosure, and “property flipping” swindles tend to affect first-time homebuyers.
Warning signs of foreclosure and refinance swindles include advertisements claiming “No Credit? Bad credit? No problem!, unusually high interest rates and fees, monthly payments that are unaffordable for your income when the loan was made, persistent offers to consolidate debt or refinance a mortgage, offers to save you from foreclosure if you transfer your property deed to a third party, and companies that promise to take care of every aspect of buying a home and pressure you into signing documents without consulting an attorney.
Homeowners who are facing foreclosure or believe they have undertaken a predatory loan should call New York City’s 311 hotline for assistance and speak to a lawyer or trusted community group.