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How To Avoid Bad Equity Loans Minnesota

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

City-County Federal Credit Union
(763) 549-6000
6160 Summit Dr
Brooklyn Center, MN

Edward Jones - Fisher
(952) 881-3124
9919 Lyndale Ave. S
Bloomington, MN

The Goff Group / Merrill Lynch
(612) 349-7896
60 South Sixth St.
Minneapolis, MN

Edward Jones - Larson
(612) 926-8711
4250 Upton Ave. S.
Minneapolis, MN

St. Paul Federal Credit Union
(651) 227-8240
30 East Seventh St., Ste. 270
St. Paul, MN

Financial Visions
(612) 202-0942
10541 Abbott Ave. S.
Bloomington, MN

Mutual of Omaha Financial Advisors
(952) 888-2772
1650 West 82nd St., Ste. 1080
Bloomington, MN

ING Employee Benefits
(612) 342-3363
20 Washington Avenue S.
Minneapolis, MN

Merrill Lynch - Wayzata
(952) 476-5613
308 Walker Ave. S
Wayzata, MN

Northwestern Mutual Financial Network - Columns Resource Group
(612) 758-7600
100 Washington Square, Ste. 1200
Minneapolis, MN

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

City-County Federal Credit Union

7635496000
6160 Summit Dr
Brooklyn Center, MN

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Environmental	Home Electronics	Pets	World History