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How To Avoid Bad Equity Loans New York

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

Anthony B. Smolen, Jr., CPA
(716) 834-6111
3949 Forest Park Way 100
N. Tonawanda, NY

Bank of America - Niagara Falls Boulevard Office
(716) 833-3330
1188 Niagara Falls Blvd.
Tonawanda, NY

Bank of America - Payne Avenue Office
(716) 694-2551
1012 Payne Ave.
North Tonawanda, NY

Bank of America - South Side Office
(716) 822-4601
2221 Seneca St.
Buffalo, NY

Bank of Holland
(716) 537-2264
12 South Main St.
Holland, NY

Citizens Bank - Mid City Plaza/Tops
(716) 692-4397
301 Meadow Dr.
North Tonawanda, NY

Citizens Bank - Niagara St./Tops
(716) 693-2658
150 Niagara St.
Tonawanda, NY

Citizens Bank - South Park-Buffalo/Tops
(716) 826-0500
1989 South Park Ave.
Buffalo, NY

Citizens Bank - Tonawanda
(716) 693-2440
20 Main St.
Tonawanda, NY

Citizens Bank - Young St.-Tonawanda/Tops
(716) 693-7285
890 Young. St.
Tonawanda, NY

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.

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Featured Local Company

Anthony B. Smolen, Jr., CPA

(716) 834-6111
3949 Forest Park Way 100
N. Tonawanda, NY

Read more about How To Avoid Bad Equity Loans

- Home Equity Loans New York

Home Equity loans were initially designed to allow individuals the ability to borrow against what portion of the home they had paid for. This article explains the process of home equity loans in detail.

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Advertising	Family	Home Services	Real Estate Resources
Business Services	Fashion	Industrial Goods & Services	Retail & Consumer Services
Career	Financial Services	Insurance	Software
Cars	Food & Beverage	Internet	Technology
Computer Hardware	Franchise	Legal	Telecommunications
Construction	Health	Miscellaneous	Trade Shows
Education	Holidays	Nightlife	Travel
Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History