How To Avoid Bad Equity Loans Maryland

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

First Financial Group
(240) 401-2682
323 Oak Knoll Dr.
Rockville, MD
Orrstown Bank
717-597-7596
210 South Cleveland Avenue
Hagerstown, MD
Friedland Financial Planning
(301) 309-1988
2275 Research Boulevard, Suite 500
Rockville, MD
LawLeaf
Online
12 Muddy Lane
Elkton, MD
mycashwell.com
866-95-CASH4 (866-952-2744)
1010 Wayne Ave.
Silver Spring, MD
The Kairos Group LLC
410.263.8125
1612 McGuckain Street
Annapolis, MD
Provident Bank
410-277-2698
114 E Lexington Street
Baltimore, MD
Genworth Financial
240-506-4611
2915 Ascott Lane
Olney, MD
The Lewis Financial Group
(443) 622-0561
517 Harwood Ave.
Baltimore, MD
New York Life
410-740-4727
10480 Little Patuxent Parkway Ste 500
Columbia, MD

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

First Financial Group

(240) 401-2682
323 Oak Knoll Dr.
Rockville, MD

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