Bad Credit Home Loan
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Watch Out for Predatory Bad Credit Home Loan Lenders
It is estimated that 5 million American homeowners hold bad credit home loans. With a complete upsurge in housing prices in the last five years, people who are finding themselves in financial difficulty are turning to the substantial amount of equity they have built in their homes to help. Who can blame them really? There are so many attractive interest rate offers around for a bad credit equity loan that costs far less than credit cards.
However, people should be conscious that there are lots of predatory lenders out there who will base loans on the equity in your property and not your ability to pay. They will offer you a bad credit home loan that you cannot necessarily afford to pay back, leading to you defaulting on the loan, unable to pay your mortgage and eventually having the home repossessed.
What are the warning signs of a predatory bad credit home loan lender?
According to the Federal Reserve Commission you should avoid any bad credit home loan lender who:
How Can I Make Sure I get the Right Bad Credit Home Loan Lender for Me?
Now is the time to use common sense and follow the checklist above. Also, if one lender offers an unbelievable offer, check with another financial institution to see what bad credit home loan they can offer you. If they can't offer a similar product, then it probably doesn't exist!
You should do your homework. Get references from the company if you have any doubt about the bad credit home loan whatsoever. Also compare the interest rate, terms and fees associated with the bad credit home loan with other offers from several other banks, credit unions and specialist lenders. You are potentially putting your house at stake if you do not check the credentials of the lender.