Home Equity Scams & Fraud
 

The Practices:

Equity Stripping

The Balloon Payment

Loan Flipping

The "Home Improvement" Loan

Credit Insurance Packing

Mortgage Servicing Abuses

Signing Over Your Deed

Do's and Don'ts

More Info

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Hidden Loan Terms: The Balloon Payment

 
You've fallen behind in your mortgage payments and may face foreclosure. Another lender offers to save you from foreclosure by refinancing your mortgage and lowering your monthly payments. Look carefully at the loan terms. The payments may be lower because the lender is offering a loan on which you repay only the interest each month. At the end of the loan term, the principal-that is, the entire amount that you borrowed-is due in one lump sum called a balloon payment. If you can't make the balloon payment or refinance, you face foreclosure and the loss of your home

Loan Flipping

 

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Home Equity Scams & Fraud:

Do's and Don'ts

 

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