Illegal Signs Show Predatory Lending is Alive and Well

At MinnPost, Bill Lindeke reports on a silent war going on in Minneapolis and St. Paul. Predatory lenders staple their signs to utility poles and plant them in boulevards, and do-gooders like St. Paul City Council member Amy Brendmoen and North Minneapolis activist Jeff Skrenes take them down. It has even escalated — literally. Skrenes carries a 10′ ice scraper to reach the signs, which the lenders are posting out of reach to try to keep them up longer.

The signs are illegal, and the people and companies posting them are generally engaging in some form of DIY predatory lending — offering a bad deal to people struggling with a mortgage that was probably a bad deal to begin with. It must work, because the signs keep going up even though people like Brendmoen and Skrenes keep taking them down.

But there are better options for homeowners struggling with a mortgage. Both the Minnesota Homeownership Center and Habitat for Humanity have phone hotlines and can help homeowners figure out what they can do. The best option is almost certainly not taking a fraction of the equity in cash or converting bad mortgage into a bad contract for deed.