Predatory Lending
VT  Attorney General's Consumer Assistance Program

     If you are a homeowner who needs money to pay bills or make repairs, a home equity loan may be the answer. But some "predatory" lenders target homeowners who are in financial difficulty or are elderly and offer them loans they can't afford to repay.
    If you're having money problems, before you borrow on your home, talk with a non-profit or other reputable credit counseling organization to work out a plan to pay your bills. Check whether you are eligible for help with energy bills, weatherization or other needs from local social service agencies or religious groups. Talk to someone you trust who knows about financial matters.
If you decide to take out a loan, review the terms of the loan offer, including:

  • The interest rate and the monthly payment to see if you can afford the payments.
  • How long it will take you to repay the loan and whether there is a large "balloon" payment at the end.
  • All "points" and fees you will have to pay. In  total, these should not exceed 1-3% of the loan.
  • Other related charges. For example, credit    insurance can be expensive and provides little benefit.
If you decide a loan is right for you, talk with several lenders, including a local bank or credit union, to compare costs. Comparison shop!
Get a "good faith estimate" and advance copies of the closing documents. Have a knowledgeable friend, relative or attorney review these documents.
     You have 3 days after the closing to cancel the loan in writing, for any reason. Beware of home contractors who offer to arrange financing.
     If you have questions or feel that you have been taken advantage of by a lender, don't hesitate to call the VT Consumer Assistance program at 1-800-649-2424, write them at 206 Morrill Hall, UVM, Burlington, VT 05405, or email them at consumer@uvm.edu. For more information, you can also visit their website at www.atg.state.vt.us.

Thinking About "Senior Housing"?

     As the cost of maintaining a house rises and the energy to perform maintenance tasks declines, many people find themselves considering making a move to subsidized "senior housing", where the expenses will be fixed and the  repairs will be someone else's responsibility.  If this     describes your situation, there are some things you need to know.
     Most subsidized senior housing developments in our area have a lengthy waiting list. It may take two years to make it to the top of the list and be contacted about an opening. Don't wait until you are desperate to move to apply! If you are on a waiting list, be sure to respond to any requests for updated information. If you change your address and do not notify the management firm, you may be dropped from the list without notice.
     To qualify for subsidized senior housing, you must be age 62 or older, or permanently disabled. There are monthly income guidelines that also limit eligibility.
     There is no single place to apply for senior housing and you cannot apply at the housing   itself. Each one had a professional management firm that must be contacted for an application form. After you fill out the application form and return it, the management firm will either confirm your eligibility and inform you of your status on their list, or tell you that you are not eligible. If you are told that you are not eligible, you may  request a written explanation.
     If you would like more information, please call Melanie Ferrell at the Bugbee Senior Center. The income guidelines are subject to change but Melanie can give you the up-to-date information. She can also assist you with filling out the application forms.
     For a list of subsidized senior housing,  assisted living and residential care facilities in our area, call Bugbee Senior Center at 295-9068.

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