Home Equity Loans Popular Scams

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.

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table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.theaustralian.news.com.au/story/0,25197,24462678-7583,00.htmlcid=1255197250ei=8bLrSP_fEKGO6APHjp38CAusg=AFQjCNEC06lMR8Q8xSrdPQiTGP5SV82aJQHouse of cards built with good intentions/abrfont size=-1font color=#6f6f6fThe Australian,nbsp;Australianbsp;-/font nobr5 hours ago/nobr/fontbrfont size=-1Americans can take out a bmortgage/b loan more or less as a one-way bet. If you can#39;t afford the repayments and can#39;t brefinance/b, you just send the keys back to b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.publicbroadcasting.net/wbfo/news.newsmain%3Faction%3Darticle%26ARTICLE_ID%3D1383875%26sectionID%3D1cid=0ei=8bLrSP_fEKGO6APHjp38CAusg=AFQjCNFQpMZ4GomLcO07UmYhN_0T_BkQrAHomeowners Pressured to bRefinance/b/abrfont size=-1font color=#6f6f6fWBFO,nbsp;NYnbsp;-/font nobr2 hours ago/nobr/fontbrfont size=-1The bmortgage/b crisis is bringing opportunity for some lenders that hope to benefit from troubled consumers. And not all those marketing efforts are in the b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.dallasnews.com/sharedcontent/dws/bus/stories/DN-mortgages_05bus.ART.State.Edition1.26e441e.htmlcid=1255178241ei=8bLrSP_fEKGO6APHjp38CAusg=AFQjCNGdoaPp6HeeS5Yohhi4tIQfbcMrhwMany pieces go flying from bmortgage/b implosion/abrfont size=-1font color=#6f6f6fDallas Morning News,nbsp;TXnbsp;-/font nobrOct 5, 2008/nobr/fontbrfont size=-1quot;People were [brefinancing/b] to pay off other debts,quot; said Ms. Watson. quot;The saying was, #39;Why get a car loan when you can get a bmortgage/b loan and write off b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.twincities.com/ci_10650793%3Fsource%3Dmost_emailedcid=1255178241ei=8bLrSP_fEKGO6APHjp38CAusg=AFQjCNF2A54qhkj741pCXg2EOIkPYNsiUQEveryday Cheapskate: Fannie Mae meltdown touches all of us/a font size=-1 color=#6f6f6fnobrPioneer Press/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1255178241hl=ennobrall 49 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.marketwatch.com/news/story/mortgage-loan-applicants-welcomed-family/story.aspx%3Fguid%3D%257B9202D88B-6F34-453F-AC9F-55CFBBBDCF69%257D%26dist%3Dhpprcid=1254808303ei=8bLrSP_fEKGO6APHjp38CAusg=AFQjCNFAa5piIyV6MqfacSckTv9q1cmR-wbMortgage/b Loan Applicants Are Welcomed at Family First Federal b.../b/abrfont size=-1font color=#6f6f6fMarketWatchnbsp;-/font nobrOct 6, 2008/nobr/fontbrfont size=-1The credit union provides various bmortgage/b services including construction loans, bmortgage refinance/b and home equity options. Anyone who lives, works, b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.kippreport.com/kipp/arif-alharmi/arif-alharmi/cid=0ei=8bLrSP_fEKGO6APHjp38CAusg=AFQjCNHNRrIAOODwW1AW7i_u2rwjDve3nQMarwan Bin Ghalita/abrfont size=-1font color=#6f6f6fKipp Report,nbsp;United Arab Emiratesnbsp;-/font nobr21 hours ago/nobr/fontbrfont size=-1Last year, Amlak announced plans to become a founding shareholder of the Egyptian bMortgage Refinance/b Company (EMRC) through Amlak Egypt. b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.theaustralian.news.com.au/story/0,25197,24462758-23634,00.htmlcid=1255131915ei=8bLrSP_fEKGO6APHjp38CAusg=AFQjCNFa5Iq5OcLuxmaRFcAaDQWj4BMwQgInterest-rate sensitive stocks/abrfont size=-1font color=#6f6f6fThe Australian,nbsp;Australianbsp;-/font nobr5 hours ago/nobr/fontbrfont size=-1As always, there#39;s a reason for the caution: SAR has to brefinance/b $US220 million ($300.6 million) of debt used to fund its Jembayan acquisition last year. b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.wsbtv.com/money/17506067/detail.htmlcid=0ei=8bLrSP_fEKGO6APHjp38CAusg=AFQjCNG-8aYRKA1CrWsn8S4OzrvYnduimgViewer Stories: Housing Market Victims/abrfont size=-1font color=#6f6f6fWSBtv.com,nbsp;GAnbsp;-/font nobr1 hour ago/nobr/fontbrfont size=-1Well to make a long story short, two months ago we looked to brefinance/b again and start making regular payments, only to find that the bmortgage/b company added b.../b/font/div/font/td/tr/table
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