Beyond Housing warns of predatory lending “tricks”

Beyond Housing, a St. Louis nonprofit that works on affordable housing issues, is encouraging consumers to beware of tricks by predatory lenders that can make it harder to hang onto their homes.

“Predatory lending describes the abusive practices used by some lenders to lure borrowers into loans that charge excessive interest rates and fees and saddle borrowers with such unmanageable financial burdens that they are likely to end up losing their homes,” said Chris Krehmeyer, president.

“Consumers need to develop razor-sharp decision-making skills, especially before purchasing a home,” he added.

Among the practices the agency warns against:

• Lending more than a borrower can afford to repay.
• Charging fees for unnecessary or nonexistent products and services.
• Pressuring borrowers to accept higher-risk loans such as balloon loans, interest-only payments and steep pre-payment penalties.
• Encouraging borrowers to lie about their income, expenses or cash available for a down payment.
• Targeting borrowers in need of cash due to medical, unemployment or debt problems.

More tips are available at from the Neighborworks Network, an organization that helps with neighborhood revitalization.

Beyond Housing offers a three-level homebuyer education course called, “Catch the Dream - Keep the Dream.” The first level class, which is free, will be Tuesday, Nov. 6., from 6 to 9 p.m. at 4156 Manchester Avenue. Registration can be completed by calling 314-533-0600 or online at www.beyondhousing.org.

The second- and third-level classes cost $50 per person and include information on budgeting and saving for a down payment, establishing good credit, working with a real estate agent and shopping for a loan, among other topics.

Classes also are available in St. Charles and Jefferson Counties. Information is available by calling 314-533-0600.