Articles about Loans---How to Avoid Bad Equity Loans

Menu

Home

Similar Topics:

Debt Reduction

Credit Cards

Loans

Mortgages

Automobiles

Recreational Vehicles

Great Outdoors

Love, Dating

Cameras and Photography



Related Articles

Advantages of Small Business Loans

Business Start Up Loan - Script Your Own Success Story With the Right Finance Method

Deciding Which Loan is the Right Loan

Easy UK Loans - Loans Now Come Handy

Fast Unsecured Loans: snapping away those financial burdens !!

Home Equity Loans After Bankruptcy - Choosing A Low Rate Lender

Interest Only Loans For The Real Esate Investor

Loans from Credit Card Banks

Why should you consider Loan consolidation

To View a list of all articles about credit and credit cards click here






70 Tips To Get Your Home Ready for a Quicker Sale at a Higher Profit. Click Here Free Report



How to Avoid Bad Equity Loans

The Federal Trade Commission has issued alerts to homeowners–and specifically homeowners who are elderly and poor–in recent months. The market is swarming with mortgage lenders providing equity loans and some of these lenders are taking advantage of the misfortune.

Some lenders are giving loans to homeowners who do not generate enough income each month to repay the debt. The lenders’ goal is to take possession of the home once the mortgager fails to repay the debt, thus gaining equity for himself.

Some lenders are encouraging homeowners by offering them a equity loan. And some borrowers have been taken for a ride because they failed to read the terms and conditions on such loan carefully. The Balloon Repayment stipulated that the homeowner will repay only the interest toward the mortgage and once the interest is paid then the homeowner will repay the principal on the mortgage. Thus, the homeowner pays for the interest all to find out he never paid a dime on the mortgage itself, and once the repayments kick in for the principal, the homeowner is at risk of losing his home if he doesn’t have the cash to repay the debt.

Few lenders will offer what is known as “flipping” loans. If a homeowner is paying $150 each month on his mortgage with low interest rates, and is offered and accepts the “flipping,” then he is at risk of loss, since he accepted a loan that has higher interest rates, steeper fees and costs, and interest on all the charges applied to the loan. If you are comfortable with your current mortgage arrangement, it is wise to stay put when a lender calls offering you (what appears) to be a good deal, but is probably either a scam or high-interest loan in disguise.

About The Author

Talbert Williams offers debt consolidation referrals and advice. For more information, articles, news, tools and valuable resources on debt solutions, visit this site: http://www.1debtfreedom.com.

partnership@1debtfreedom.com

Written by: Talbert Williams

 

70 Tips To Get Your Home Ready for a Quicker Sale at a Higher Profit. Click Here Free Report

Related News:

 


www.betterthanokay.com

 

Other Articles of Interest

How To Save Money After Your Loan Has Closed Pay Down Your Mortgage The repayment of principal on a mortgage is an investment that yields a return equal to the interest rate on the mortgage. In other words, the lower your principal balance, the less interest you're paying. If you make... ...read more

Interest-Only Loans Can Buy More House and More Trouble They're spreading like wildfire--interest-only mortgages appear to be the panacea for rising home prices and the incomes that can't quite catch up. You can buy "more house" and have a low mortgage payment and a big tax deduction. Who wouldn't... ...read more

Super Jumbo Loans: Interest Only What is a super jumbo loan? No, it's not a loan for the obese, and it's not a loan for the elephants in the circus. A super jumbo loan refers to a type of loan for an amount of money that exceeds the normal mortgage product loan limits. Today,... ...read more

The Quick Payday Loan - Taking A Look At The Loan Agreement A payday loan will require you to sign a loan agreement, just like with any type of loan. Before you sign though, you should take the time to read through all the fine print. Not only will you learn your rights, but there is also valuable... ...read more

Unsecured Business Loans - Earn finance without a clause of collateral Running a business is a risky task, filled with uncertainty. Despite of cautions taken by entrepreneurs, crisis may occur anytime. Entrepreneurs may need urgent cash at that time. How can they get that instant money? Unsecured business loans... ...read more