About the Campaign
CAMPAIGN GOALS AND OBJECTIVESThe overall goal of Don't Borrow Trouble Westchester is to promote stability and success among families and individual homeowners targeted by predatory lenders or faced with the prospect of foreclosure.
Don't Borrow Trouble was pioneered in Boston by Mayor Thomas M. Menino and the Massachusetts Community Banking Council and is being expanded nationally by Freddie Mac to over 30 cities nationwide. Click here to learn more about the national Don't Borrow Trouble effort. www.dontborrowtrouble.com
Consumers are encouraged to call the Don't Borrow Trouble helpline at 1-877-WRO-4YOU for free advice while purchasing a home, refinancing, consolidating debt, taking out a home equity loan, or in need of mortgage foreclosure prevention. Callers will either be directly assisted through the helpline, or referred to a similar housing counseling agency, if they are calling from outside the Westchester County area.
The project's objectives are to:
- identify the impact of predatory lending in Westchester County, including communities and households most affected
- develop and launch a public education campaign targeted to neighborhoods & populations vulnerable to predatory lending practices. (e.g. elderly, new immigrants, communities of color, female single heads of households, and persons in a housing/financial crisis)
- provide direct assistance to clients in mortgage default, intervening on behalf of homeowners to prevent foreclosure
- identify, coordinate and expand community resources to counter and respond to predatory lending practices
- build access for consumers to community resources
- provide outreach and education to community organizations and community leaders to increase awareness and understanding of predatory lending practices
- assess the Campaign's effectiveness in reaching communities and populations vulnerable to predatory lending.
The campaign will respond to a wide range of predatory lending and mortgage default / foreclosure-related issues, including debt consolidation, refinancing/mortgage flipping, foreclosure rescue scams, property flipping, and more. It will reach individuals and families seeking to purchase a home, considering refinance and/or debt consolidation, and in need of foreclosure prevention.
At a time when property values are beginning to level off—if not, fall— in Westchester County, many homeowners who purchased their homes with adjustable rate mortgages are experiencing financial hardship, as the value of their homes have decreased relative to the amount of equity they have built up in the property, or relative to the adjustment in their interest rate. Faced with this scenario, many families become prime targets for mortgage flipping, a scenario where predatory lenders prey on consumers with high debt or in a financial crisis who have available equity. After repeated refinances that often consolidate debt, the homeowner actually incurs increased debt and loans with high fees and interest rates, ultimately stripping them of their equity and even leading to foreclosure. There are many ways that dishonest lenders can take advantage of unsuspecting consumers. Click here for tips on How to Spot a Predatory Lender.
www.dontborrowtroublewro.org
