Understand risky loans before you agree to one. And
watch out for these common loan scams.
This chapter deals with common but risky types of loans, such as
balloon loans and high loan-to-value loans. They’re perfectly
legal, but dangerous if you don’t know the consequences. The rest
of the chapter covers loan scams and what you can do about them.
Did you know the Truth in Lending Act provides a right to cancel
certain real estate
loans? Read about it here.
What you can expect to learn from this
Beginning with an explanation of amortization, the concept of a
balloon loan is delineated.
Risks of high
High loan-to-value loans could lead you to owe more money than your
house is worth.
Equity stripping, loan flipping and a dozen other schemes you need
to be wary of. Plus, a list of things you must always do when
taking out a loan.
The Truth in Lending Act gives you the right to cancel certain real
estate loans within three business days. That’s the right of
If you’ve been a victim of fraud, you’ll find all the phone numbers
and Web sites here to help you with the problem.