Detroit Refinance Deals Can Turn Sweet or Sour

By Joe Taylor Jr.
Local Lender Columnist
May 17, 2006
Some of Detroit's largest employers, like Northwest Airlines and Delphi, face strike threats over wages, pensions, and benefits. Meanwhile, the names of some of Detroit's best-known mortgage lenders, including a major bank and a beloved credit union, are disappearing into corporate mergers. For Detroit residents counting on a home refinance to keep the bills at bay, this can be a confusing time.

New Mortgage Lenders Mean New Opportunities

Many Detroit residents have already stated receiving mortgage bills with new corporate names and return addresses on them. For homeowners that maintained loyalty to a specific brand over the course of their mortgage, a change in ownership often means a time to think about business relationships. As new banks and credit unions enter the Detroit area, expect to see heavier competition, especially for homeowners who want to refinance.

Avoid Mortgage Fraud

At the same time, criminals hope to take advantage of the upheaval in the mortgage market by preying on nervous homeowners. Slick salesmen might show up at the door of a resident who has fallen behind on his or her mortgage payments. They offer a compelling refinance opportunity, especially to homeowners that want to set aside savings for unexpected work stoppages. Instead, these citizens unwittingly sign away their mortgages for pennies on the dollar.

Research Mortgage Lenders Carefully

Detroit officials advise residents to check out potential lenders carefully with the Better Business Bureau. If a mortgage broker uses high-pressure sales tactics to push a refinance deal, chances are that they're part of a scam operation. Even if you face foreclosure, legitimate mortgage lenders can help you refinance your home and get back on your feet.

Sources:
Detroit Free Press: "Stealing Homes"
Detroit Free Press: "Union Courting NWA Mechanics"
Oakland Press

About the Author
Joe Taylor Jr. has covered business and finance news for Financial Times Television and CNBC. He coaches beginning mortgage brokers to provide better customer service and to understand creative financing opportunities.