You own your home but you have fallen on hard times and you need money. You don't have much income coming in each month. You have built up equity in your home. A lender tells you that you probably qualify for home equity loans, even though you know your income is just not enough to keep up with the monthly payments. The lender encourages you to "pad" your income on your application form to try and get the home equity loans approved. Be careful. This lender may be out to steal the equity you have built up in your home.
Home equity loans can be dangerous
You have qualified for home equity loans. The lender doesn't care if you can't keep up with the monthly payments. As soon as you don't, the lender will foreclose, taking your home and stripping you of the equity you have spent years building. If you take out home equity loans but don't have enough income to make the monthly payments, you are being set up. You could lose your home. When you applied for home equity loans you used your most valuable asset. Abusive lending practices range from equity stripping to hiding loan terms and packing a loan with extra charges
Home equity loans can be dangerous
Homeowners, particularly elderly, those in minority sectors and those with low incomes or poor credit, should be extra careful when borrowing money based on their home equity. Why? Certain abusive or exploitative lenders target these borrowers, who may unwittingly be putting their homes on the line. Home equity loans are a dangerous business and the unscrupulous are out there waiting for the unwary to step into their web. If you need money never consider home equity loans. Go to your bank first for good solid advice. You have invested too much in your house to lose it over some minor debt.