Most Lenders On The Equity Loan Marketplace Are Legitimate Lenders; However, A Few Lenders Aretaking The Less Fortunate For A Ride. These Unscrupulus Lenders Offer Appealing Loans, Yet Fail To Tellthe Borrower About Hidden Charges Or Balloon Charges. Hidden Charges Are Often Stripped Fromloans, Since The APR Is A Supposed Security To Borrower That Weeds Out Hidden Fees. Equity Stripping Is One Of The Leading Scams On The Loan Marketplace. The Lenders Engaging Inequity Stripping Will Often Present To Borrowers (too Good To Be Real) Deals, Leading Them To Believethat They Are Saving Money. Thus, Once The Borrower Agrees To The Contract, The Lender Will Pose Newcharges, High Interest, And Other Fees That Puts Weight On The Borrower, Until He Or She Breaks Andfails To Make Payments On The Mortgage. The Lender Then Repossesses The Home, Selling The House Forprofit While The Borrower Is Standing On The Corner, Wondering Where He Will Live Next. Thus, The Federal Government Has Provided Information To Help Borrowers Avoid Losing. Sinceequity Stripping Is Becoming A Huge Industry, The Feds Advise Homeowners To Watch Out For Equitystripping, Including Paying Attention To Lenders That Are Offering Loans That Reach Above Your Wages. The Feds Also Advise Borrowers To Stay Alert To Loan Flipping, Which Is The Process Of Switchingloans Regularly And Requesting Larger Amounts Of Cash On Each Refinance Applied. If A Lender Ispressuring You To Sign An Agreement, You Will Need To Find Another Lender, Since Pressuringborrowers Is A Surefire Tip That The Lender Is Out To Take You For A Ride. You Will Also Want To ConsiderPMI, Which Is Personal Mortgage Insurance, Which Is A Requirement; However, Few Lenders Attempt Tocharge For Additional Coverage That Is Not Needed. Thus, Homeowners, Especially The Less Fortunate,should Adhere To Advice And Read Details Of Any Loan Offered Thoroughly.
