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Keith McCord reporting As the nation continues to descend into a major housing crisis, one group is hoping to help Utahns keep their heads above water. The plan is: "Don't borrow trouble."
Trouble is what Salt Lake County Mayor Peter Corroon is hoping to help residents avoid, so they don't wind up in bad housing deals.
"We've gotten into the position now where we've lost our home," fraud victim Sean Anderson said.
Like many Americans across the country, Anderson is the victim of real estate fraud. He and his wife built a home in St. George. But after all was said and done, they ended up upside down.
Anderson says it was a bad deal, with everyone from the mortgage broker to the bank taking their cut. "Because of all this I've lost just about everything. We're in legal battles now. I'm getting sued by everybody and their dog. So, at the end of this, hopefully it won't cost me more than a couple hundred thousand, and I don't make anywhere near that," Anderson said.
People like Anderson are who Mayor Corroon and a coalition led by the federal housing authority Freddie Mac are trying to warn about real estate fraud. "There are many lenders out there preying on innocent people and good, hardworking people. A lot of times it's the elderly, a lot of times it's the low-income, and it's generally always those who can least afford to be preyed upon," Corroon said.
That's why they've started the "Don't Borrow Trouble" hot line. It's a public education campaign offering free information and assistance to those thinking about buying a home, refinancing or taking out mortgage or home-equity loans.
"It's important, especially in this day and age where we have quite a few folks suffering from sub-prime loans, that we educate folks before they get to that point," explained Sergio Barajas, expanding markets manager for Freddie Mac.
That hot line is staffed by trained professionals. It's one of more than 40 nationwide. The number is 1-866-217-1718.
Tips to avoid borrowing trouble2. Say NO to "easy money."
- Shop around.
- Understand the loan terms.
- Find out about prepayment penalties.
- Make sure documents are correct.
- Make sure documents are complete.
- Ask about additional fees.
- Understand the total package.
- Work with credit counselors.
- Protect home equity.
- Get advice first
