About
Community
Bad Ideas
Guns & Weapons
Irresponsible Activities
KA-FUCKING-BOOM!
Locks and Security
Scams and Rip-offs
Drugs
Ego
Erotica
Fringe
Society
Technology
register | bbs | search | rss | faq | about
meet up | add to del.icio.us | digg it

Home Equity Loan Sharks


NOTICE: TO ALL CONCERNED Certain text files and messages contained on this site deal with activities and devices which would be in violation of various Federal, State, and local laws if actually carried out or constructed. The webmasters of this site do not advocate the breaking of any law. Our text files and message bases are for informational purposes only. We recommend that you contact your local law enforcement officials before undertaking any project based upon any information obtained from this or any other web site. We do not guarantee that any of the information contained on this system is correct, workable, or factual. We are not responsible for, nor do we assume any liability for, damages resulting from the use of any information on this site.

FIGHT BACK! BY DAVID HOROWITZ
Home Equity Loan Sharks

You might not think that a homeowner who's strapped for cash and behind on his or her
mortgage payments would make a very likely target for fraud. But in fact, such people are being
ripped off all the time -- not for their ready cash but for the equity they have in their homes.
These people are often poor, elderly or unsophisticated about finance, and they usually
have a spotty credit history. They may be behind on their loan payments and in need of
immediate cash to pay off old debts or medical bills. Perhaps they want to fix up a house that has allen into disrepair.
Eventually, they find a lender who is willing to refinance the property at what seem like
affordable rates. Unfortunately, they either don't read or don't understand the fine print in the oan papers. Hidden, there are rates as high as 30 percent and loan fees as high as 10 points (10
percent). There may be payment acceleration clauses and huge penalties for late payments. The
loan itself is almost impossible to pay off at the actual rate. So, the homeowner either defaults nd loses the home or finds another lender and ends up losing thousands of dollars in the
process.
Home-improvement loan scams are a similar twist on the same scam. The contractor pitches
the victims on the ad- vantages of upgrading their homes to provide a better living environment
and enhance their resale values. The contractor then arranges a loan with the property as
security. It's the same kind of loan described above -- full of hidden charges and fees. By the
time the homeowners discover the real costs of the loans, they're often behind on their payments
and threatened with foreclosure.
Sometimes, the remodeling contracts themselves are fraudulent. The contractor begins the
work, tears out a few walls and then abandons the job. The homeowners are left with damaged
homes, huge unpaid loans and possibly liens filed by unpaid subcontractors and suppliers. The
contractor has disappeared, and the original lender has sold the loan and washed his or her
hands of all responsibility.
No one knows exactly how many people are being victim- ized each year, but such schemes
are being promoted all over the country. In Southern California alone, the FBI found $12 billion
worth of loans issued during the first quarter of last year contained fraudulent disclosures.
Last month, the Los Angeles County District Attorney's office formed a special unit to
investigate and prosecute home loan, escrow and securities fraud. The unit's operating costs are
being underwritten by a $500,000 grant from the mortgage insurance industry and Freddie Mac,
the federal home-loan agency.
Admittedly, it's not easy for someone with a poor credit record to borrow money. But if youhave sufficient equity in your home, you can find a legitimate lender. You will pay a higher rate han a borrower with better credit -- anywhere from 10 percent to 15 percent plus two points in
loan fees, depending on how bad your loan history is.
You should also go to a nonprofit debt counseling ser- vice to help put your finances in
order. Otherwise, you run the risk of ending up right back where you began, with an even
heavier debt load and higher monthly payments.
If you have any questions or comments, please write to David Horowitz in the Consumer
Forum+ (go FIGHTBACK). COPYRIGHT 1994 CREATORS SYNDICATE, INC.

 
To the best of our knowledge, the text on this page may be freely reproduced and distributed.
If you have any questions about this, please check out our Copyright Policy.

 

totse.com certificate signatures
 
 
About | Advertise | Bad Ideas | Community | Contact Us | Copyright Policy | Drugs | Ego | Erotica
FAQ | Fringe | Link to totse.com | Search | Society | Submissions | Technology
Hot Topics
Robbing a dealer out of state (hypothetical)
Want Revenge on Some Guy's Car
Found CHeck
Breaking into garages?
House Arrest
Pedobaiting
Free Logitech Products Wihtout Owning
Urban Exploration
 
Sponsored Links
 
Ads presented by the
AdBrite Ad Network

 

TSHIRT HELL T-SHIRTS