As America racks up more debt the lending community has it’s fair share of lenders that are trying to get those consumers who are refinancing their houses to pull out some of the equity. You need to be aware of illegal practices that are called equity stripping. What this involves are lenders that target long time homeowners with substantial equity built up in their homes to refinance and get cash out for home repairs or to pay off other high interest debts. They will then set up the loan to more than the consumer may be able to handle, and in hopes that the homeowner will default on some of the payments. The lender can then foreclose and sell the home and strip the homeowner of the equity that they have built up.
So when you get those calls in the evening to help you get out of debt or pay off those high interest credit cards bills from the holidays please be aware of the terms and conditions.
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