How To Avoid Bad Equity Loans Connecticut

The Federal Trade Commission has issued alerts to homeowners–and specifically homeowners who are elderly and poor–in recent months. This article tells people how to avoid bad equity loans.

Local Companies

Allstate Agent Kevin Tobin
203-237-2227
477 South Broad St
Meriden, CT
Westport Management & Financial, LLC
(203) 268-7612
10 Bay Street
Westport, CT
Rose City Financial Services, LLC
860-383-6044
65 Yantic Lane
Norwich, CT
New York Life Insurance Company
203 907 9573
99 Hawley lane
Stratford, CT
New York Life Insurance Co
203-385-5219
99 Hawley Lane Suite 1400
Stratford, CT
Alan J. Grouse
203-457-0690
42 Harrison Road
Guilford, CT
Cadwell & Associates, LLC
203 453-2989
741 Boston Post Road, Suite 307
Guilford, CT
ARIA, LLC
203 453-9075
2488 Boston Post Road, Suite A
Guilford, CT
Barnum Financial Group
203-689-9011
2614 Boston Post Road, Suite 33B
Guilford, CT
Compass Securites & Asset Management
203 453-7000
10 Water Street
Guilford, CT

The market is swarming with mortgage lenders providingequity 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 torepay 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 borrowershave been taken for a ride because they failed to read the terms and conditions on such loancarefully. The Balloon Repayment stipulated that the homeowner will repay only the interest towardthe mortgage and once the interest is paid then the homeowner will repay the principal on themortgage. Thus, the homeowner pays for the interest all to find out he never paid a dime on themortgage 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 eachmonth on his mortgage with low interest rates, and is offered and accepts the “flipping,” then he is atrisk of loss, since he accepted a loan that has higher interest rates, steeper fees and costs, and intereston all the charges applied to the loan. If you are comfortable with your current mortgagearrangement, 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


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Featured Local Company

Allstate Agent Kevin Tobin

203-237-2227
477 South Broad St
Meriden, CT

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