Post by Scambuster on Nov 17, 2009 13:09:34 GMT -5
It often is a case that a contractor calls or knocks on your door and gives attractive offers to install a new roof or remodel your kitchen at unprecedented prices that sounds reasonable. You show your reluctance due to insufficient funds. The contractor assures of arranging a financing through a lender he knows. You approve it and the project begins. You agree to the project, and the contractor begins work. You have to then sign a lot of papers after the contractor begins the work. The papers may be blank or the lender may rush you to sign before you have time to read what you’ve been given to sign. You sign the papers. Later, you realize that the papers you signed are a home equity loan. You are then in the quagmire where the interest rate, points and fees seem very high. To add to it the contractor do not work according to your wishes and the work hasn't been completed. The contractor, who may have been paid by the lender, has little interest in completing the work to your satisfaction. To avoid such a common situation, try to be cautious and beware beforehand. Check and assess the reputation of the contractor before you choose him to be a contractor for your home.
The Don'ts of Lending practices.
You can protect yourself from inappropriate lending practices. Here’s how.
Don’t:
Agree to a home equity loan if you don’t have enough funds to pay the monthly installments.
Sign any document you haven’t read or any document that has blank spaces to be filled in after you sign.
Let anyone pressure you into signing any document.
Deed your property to anyone. First consult an attorney, a knowledgeable family member, or someone else you trust.
Agree to financing through your contractor without shopping around and comparing loan terms.
The Don'ts of Lending practices.
You can protect yourself from inappropriate lending practices. Here’s how.
Don’t:
Agree to a home equity loan if you don’t have enough funds to pay the monthly installments.
Sign any document you haven’t read or any document that has blank spaces to be filled in after you sign.
Let anyone pressure you into signing any document.
Deed your property to anyone. First consult an attorney, a knowledgeable family member, or someone else you trust.
Agree to financing through your contractor without shopping around and comparing loan terms.