Consumer assistance

Homebuyer education

NeighborWorks® HomeOwnership Centers of Vermont offers:

• Orientation sessions, workshops, and individual counseling to help future homebuyers
• Assistance with the purchase of homes
• Continuing support for new homeowners

For a limited time, VHFA is offering a special 4.75% fixed-rate for eligible first-time buyers. Contact a NeighborWorks® HomeOwnership Center office for details.

The centers are a collaborative effort among VHFA, Neighborhood Reinvestment Corp., local lenders, real estate companies and the following nonprofit housing organizations:

• Champlain Housing Trust Inc.
• Lake Champlain Housing Development Corp.
• Central Vermont Community Land Trust
• Gilman Housing Trust
• Rockingham Area Community Land Trust
• NeighborWorks of Western Vermont

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Avoiding foreclosure

If you're having difficulties making mortgage payments for your property, visit the U.S. Dept. of Housing and Urban Development (HUD) for information on how avoid foreclosure.

Learn more at this HUD foreclosure resource.

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Predatory lending

If it sounds too good to be true, chances are, it is. Despite this oft-repeated adage, Vermonters occasionally fall prey to loan deals they think will be helpful, but which end up getting them into financial trouble.

Most Vermont lending institutions are trustworthy. But you still need to get all the facts before you sign your name to a home loan.

What are some of the tactics to watch for when getting a home loan?

Steering
Pressuring you into a higher-interest loan when a less expensive option is available.

Hidden balloon payments
Failing to disclose a big payment due at the end of the loan.

Flipping
Convincing you to refinance when it's not to your advantage, resulting in additional fees and costs.

Credit insurance
Pressuring you to buy credit insurance, which may be expensive and may offer little or no protection.

Undisclosed prepayment penalties
Failing to tell you about a penalty you'll pay if you pay off your loan before it's due.

How can I protect myself?

• Be honest with yourself about what you can really afford to pay.
• Know exactly what you're agreeing to — including all costs and fees — before you sign your loan papers.
• Always shop around and compare interest rates and terms. Get advice from a housing counselor, a bank, a credit union, a licensed mortgage lender or someone you know and trust.
• Be suspicious of high-pressure tactics. Walk away if you're being pushed.
• Get copies of your loan documents before you close, and don't sign anything you haven't read.
• If you don't understand something about your loan, ask a trusted friend or an attorney. Don't wait until your closing.
• And if it sounds too good to be true, it probably is to good to be true

Who can I call for help and advice?

Vermont Housing Finance Agency is one of a dozen member organizations of the Vermont Responsible Lending Initiative, a group devoted to promoting responsible lending and consumer education.

The initiative suggests consumers with predatory lending questions and complaints call:

• Vermont Consumer Assistance Program
  Vermont Attorney General's Office
  1-800-649-2424

You can also contact:

• Vermont Dept. of Banking, Insurance, Securities and Health Care Administration
  (802) 828-3307
• Consumer Credit Counseling Service of New Hampshire and Vermont
  1-800-327-6778
• NeighborWorks® HomeOwnership Centers of Vermont
  Burlington: (802) 660-0642
  St. Albans: (802) 527-2361
  Central Vermont: (802) 476-4493 x211
  Lyndonville: (802) 626-1175
  Newport: (802) 334-1541
  Springfield: (802) 885-1856
  West Rutland: (802) 438-2303
  Brattleboro: (802) 254-4604

What are some other online resources for predatory lending?

HUD offers predatory lending resources on the Web. The American Association of Retired Persons (AARP) also has information on its Web site.

Learn more at this HUD predatory lending resource.

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