Important Tips

Don't

• Sign any documents with any blank lines.
• Sign anything with false or inaccurate information.
• Be rushed into signing a loan because it is a "Limited Time" offer.
• Pay up-front fees without adequate explanation.
• Do business with lenders that you haven't checked out.
• Assume that you can't go to a major or neighborhood bank - check out your options.

Do

• Be very cautious about lenders or contractors who come to your door.
• Get all fees and terms explained.
• Know what your loan will cost you each month and in total.
• Ask questions - get full and thorough explanations.
• Review all documents or have someone you trust review them for you.
• Know that you have three days to cancel loans signed at home.
• Know that you generally have three days to cancel home improvement contracts.
• Make sure you are comfortable with the loan terms if you have applied for a "balloon" loan.

If you think that you have an inflated or predatory loan, there are a number of steps that you can take.

What to do if you think you have a predatory loan

1. Housing counseling services - There are a number of neighborhood agencies that assist consumers with problem loans or who are in danger of foreclosure. You can find a local agency by contacting HUD, your local legal services organization or Legal Aid Society. See the resource page at the back of this brochure for additional contacts.
   
   
2. Report the problem to agencies such as HUD, your Attorney General's office, or the Federal Trade Commission.
   
   
3. If your problem loan involves a home improvement contractor, report the contractor to the local Department of Consumer Affairs and the Better Business Bureau.