25 Apr 2018
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A mortgage is a loan that is placed on the acquisition of a real property. These mortgage loans are often...
Home loans are great ways to generate the cash we need especially when it is used for managing matters in our financial aspects. We often tend to have an impression on loans being something that can lead us to bad debts. The truth is, a home loan can be a good tool to help you with other financial decisions that you need to make and help you organize your money management.
The real concern one should worry about are financial frauds which also happens when you take on a home loan. Personal loan scams are happening and being aware of these scams will help you avoid them. Not only does it secure you, it also helps the industry maintain licensed and good operating financial institutions.
This is one way of most fraudulent lender gets away from potential borrowers. Upfront fees are not a practice of personal loan lenders. Any fees that need to be paid upon the onset of the loan is deducted from the proceeds. Fraudsters often ask and require high upfront fees to be paid before the loan is processed or approved. They give an excuse such as processing fee and/or evaluation fee. When these terms come into conversation, better step out of the door and leave.
Several cases have been raised about businesses and business owners being enticed to have their credit repaired. Most businesses often have an average credit rating which limits them to borrow what they can actually afford. These types of fraudsters approach businesses and business owners to help in repairing their credit. They then charge professional fees from which a regular loan is being placed on the borrower’s shoulder to cover.
This is a case where unscrupulous lenders show the borrower terms which are hard to pass off. Once the borrower agrees, the money lender then switches the agreement to a more stringent and predatory terms which the borrower ends up getting tied to. A bait agreement is accompanied by very high rates which the borrower may find hard to pay off.