E Loan

Home Equity Scams

Another pitfall is predatory scammers. The Federal Trade Commission warns about, “Unscrupulous lenders (who) target older or low-income homeowners and those with credit problems. These lenders may offer loans based on the equity in your home, not on your ability to repay.”

Avoid lenders who tell you to falsify information on the application, e.g. saying your income is higher than it is to qualify for the loan.

Avoid lenders who don’t provide the required loan disclosures or who tell you not to read them; or those who won’t give you copies of the documents they want you to sign.

Avoid lenders who promise one set of terms when you apply, and give you another set of terms to sign; or who ask you to sign blank forms, saying they’ll fill in the blanks later.

Don’t let anyone pressure you into using your home as collateral to borrow money you may not be able to repay. If you can’t make the payments, you could lose your home.