|
What to do when a family member ruins your credit Homeownership is possible What you need to know about the IRS and collection agencies Will being turned down for a store credit card hurt my credit? Beware of credit repair Debt Management versus Debt Settlement How to get ahead of late fees Is There a Service That Helps You Not Pay Bills Is a Debt Owed Patience is the key to furnishing a new home How to split expenses with your partner Will my boyfriend's bad credit affect me? Tax filing options to consider What to do if your account is turned over to collections Celebrating Valentine's Day on a budget Personal Credit and Starting a Business Finding Money to Reduce Your Debt and Improve Your Credit Simple Keys to Personal Finance Be vigilant to avoid telephone and internet scams Debt Settlement Understanding credit utilization Setting New Year's goals that you can keep The pros and cons of skipping a payment Strategies for Financially Surviving the Holidays Creating a fun and memorable holiday on a budget Keep an open line of communication with parents about their finances. Make a Choice to Get Ahead Financially What to do when a relative asks you for money Should You Buy a Home Now or Wait? The difference between debt settlement and debt management Tax Refund Delays for some in 2017 The negative impact of paying a payment 30 days late Stressed by Finances How to navigate two significant financial decisions: starting a family and buying a home How to advise someone close to you who is coming into a significant amount of money Make a Conscious Decision on How to Spend Your Money Tips for Back-to-School Shopping How do you know if you have a good credit score? Americans spend more money eating out than on groceries Having Good Credit Saves You Money Developing good money habits with your first job How to save for a home How to Know if you are Ready for Home Ownership When is the right time to buy a home? You can improve your credit to buy a home Plan a Memorable Vacation Without Incurring Debt The Hidden Costs of Payday Loans Be Wary of Credit Repair Services Use Caution when playing the credit card game What does it mean to say bankruptcy gives you a clean slate? How your credit is affected by various debt options Be wary of predatory small business loans What to do if you fall behind on mortgage payments Financing a College Education Money, Credit and Relationships Should you be concerned with your date's credit scores? Best options for a small, short-term loan How to help a relative who is always borrowing money from you Setting New Year's goals that you can keep Making the holidays memorable for families on a tight budget. Skipping a Payment over the Holidays What to do if you are overwhelmed by medical bills Make your financial intention a financial goal you can achieve Should Consumers Use the New EMV Cards? What to do when a collector calls you The difference between paying bills and managing your money My wife and I have gone through some tough financial times, which eventually led us to file for bankruptcy. Following this experience, I don’t ever want to use credit again, but my wife What do I need to know to pay ahead on my mortgage? What to do if you get an unsolicited credit card in the mail What to do when moving in to share expenses doesn't work out
|
Keep an open line of communication with parents about their finances. Q. My parents are in their seventies and recently refinanced their home using an online lender. They thought the loan would pay off all their debt, but it did not. Now their house payment has almost doubled, and they still have debt to pay. Why would a lender let people in their seventies refinance their home? What can they do now?
A. I understand your concern for your parents and their financial well-being. A recent study from Texas Tech University confirms that aging Americans are at a higher risk than younger consumers when it comes to their finances. Researchers found an alarming decline in financial awareness among Americans of retirement age. What’s more, the study showed that while the ability to manage money decreases for retirees, confidence in their ability stays the same. A decrease in financial ability means seniors are more vulnerable and at a greater risk for fraud and abuse.
While the Internet gives us access to more services than ever before, when it comes to significant financial decisions, I maintain that people, of any age, should choose to work with a local lender. Prospective borrowers need to take the time to review a major decision and ask the right questions. And if there is an issue, they need to be able to reach a person on the phone or speak to someone in person.
At this point, I would encourage your parents to visit with counselor at a HUD-approved housing counseling agency. A trained housing counselor can review their entire situation and provide options for them.
Not liking the terms your parents received isn’t enough to take legal action. However, if your parents were given incorrect information, then you should encourage them to file a complaint with the Consumer Financial Protection Bureau at www.consumerfinance.gov. On the other hand, if your parents are satisfied with their decision to refinance—but you aren’t—you have little recourse.
As for your question about a lender allowing your parents to refinance, lenders cannot discriminate based on age. Therefore, your parents’ request to refinance has to be met with the same opportunity as a younger couple.
I encourage to you continue to communicate with your parents about their finances. As parents age, they need someone who is looking out for their best interest.
Bonnie Spain is the executive director of the American Center for Credit Education and Consumer Credit Counseling Service of the Black Hills. For more information, email acce@acce-online.com.
The material in this transmission is provided for personal, non-commercial, educational, and informational purposes only. ACCE makes no representations or warranties with respect to the accuracy or completeness of the contents of this transmission and assumes no responsibility for errors, inaccuracies, omissions, or any inconsistency herein. You should consult a professional where appropriate.
|
