Most borrowers fail to realize that when trading their much beloved home for cash, lenders can foreclose on their property in the case of default. Moreover, because of fly-by-night operators who are ready to strip unsuspecting borrowers of their most prized asset, it is doubly necessary that borrowers be familiar with some frauds that could be perpetrated on them.
Stripping: The most common type of home equity loan fraud is "stripping," wherein lenders give loans to borrowers knowing fully that the borrower would be unable to repay them, thus paving the way for these scamsters to foreclose on your property and then sell it for a neat profit. The most common ruse for making borrowers accept such high-cost debt is disguising them as home repair loans. Many an unsuspecting borrower who has a lot of home equity but also piles of credit card debt can easily be taken for a ride.
Flipping: This is an old favorite where a lender will agree to refinance an existing mortgage rather than foreclosing. This is normally music to the ears of a weary borrower, but what is not disclosed are the exorbitant fees that are charged in refinancing which only increase the debt burden of the borrower.
Packing: In such a case the lender adds or "pads" extra charges into the home equity loan in the shape of credit insurance, settlement charges and other fringe charges which are of no real use to the borrower. The worst part is that such charges do little benefit to the borrower but unnecessarily eat away at the equity of a home.
However, some simple steps, such as checking a lender's credentials, shopping around for better deals, and consulting experts, can make the task of applying for a home equity loan that much easier.
Home Equity Loans - Rates, in depth articles and professional second mortgage advice. Find the lowest home equity loans rates and lenders.
Home loans for people with poor credit demand that you... Read More
I have written many articles on refinancing a fixed rate... Read More
Mortgage underwriters can be a suspicious bunch. If you have... Read More
Why You Need a Bridge LoanYou have to move fast... Read More
Sub prime lenders come in two groups: reasonable and unreasonable.... Read More
In days gone by, the family typically spent their evenings... Read More
Interest rates are at an all time low, making now... Read More
Buying a home is probably the single largest investment most... Read More
Buying a home after a foreclosure is not an impossible... Read More
Man has been known for continually simplifying things in his... Read More
Real estate lenders now offer mortgage loan quotes and application... Read More
A 2nd mortgage loan after a bankruptcy is possible in... Read More
Let's start by taking a look at 7 key elements... Read More
Many homeowners want to know if it worth taking a... Read More
Just as there are many types of mortgages and mortgage... Read More
Happy New Year. Make a difference this year. "Pay it... Read More
The market for mortgage refinancing has been brisk during the... Read More
You have been paying on your mortgage for quite sometime... Read More
Shopping online for mortgages ought to be trouble free, even... Read More
Private lenders, banks, and mortgage companies are all setting up... Read More
I fully realize if it sounds too good to be... Read More
Most people choose a home owner loan as it can... Read More
Recent news has made much of parents stretching their finances... Read More
When you consider that the average home owner will pay... Read More
If you are looking to refinance in New York, it... Read More
Simply stated, a reverse mortgage is a loan that enables... Read More
A brief list of some of the most common Mortgage... Read More
You may have heard people, especially mortgage lenders, extolling the... Read More
There are great mortgage loans for people with poor credit,... Read More
Refinance NOW-before it's too lateIf you haven't found the time... Read More
Buying a home, especially for the first time, can be... Read More
If your mortgage company is threatening foreclosure, there are things... Read More
Buying a home remains the great American dream. Home ownership... Read More
The market for mortgage refinancing has been brisk during the... Read More
Being a creature of habit can cost you plenty when... Read More
Private lenders, banks, and mortgage companies are all setting up... Read More
Real estate prices have been increasing steadily over the last... Read More
Happy New Year. Make a difference this year. "Pay it... Read More
There are many reasons for choosing a home equity loan.... Read More
An adjustable rate loan, most simply stated, means that your... Read More
With so much lender advertising focusing just on rates, you... Read More
Before you go looking at houses, you'll need to find... Read More
For years, when someone wanted to purchase or refinance a... Read More
Online high risk home mortgage lenders specialize in offering loans... Read More
A quickly growing trend in lending is the online homeowner... Read More
This article will help you understand the differences between a... Read More
Getting approved for a jumbo mortgage loan online is similar... Read More
Sub prime lenders handle high risk mortgage loans that traditional... Read More
With today's relatively low interest rates and climbing property values,... Read More
There are many mortgage products available on the market today.... Read More
Mortgage Refinance Mortgage Refinance |