As a homeowner, you often receive solicitations to open a home equity line of credit. They are enticing, but you know that a growing number of Americans have lost their homes in recent years due to becoming victim to predatory lenders. Some of these victims are consumers who try to free themselves from credit card debt through a home equity line of credit.
I'm assigned to research predatory lending on the internet.
What we are essentially looking at is loan frauds. In essence, individuals are offered a mortgage or loan at a very attractive rate. This allows them buy a large house, and they think that they will be able to pay it off with low monthly payments. What these people don't realize is the old cardinal rule - if it seems to go to be true, it must not be true.
So how does it work? You are offered a mortgage. On the surface, it seems attractive. Little do you know that they are scamming you.
Here are some ways in which they take advantage of you:
Points and fees are costs not directly reflected in interest rates. Because these ...
440 words of research into predatory home lending in persona finance.