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  • Casual Articles - Home Equity Loans: Abusive Lending and How to Avoid It

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    -Prime Lending
    Home Equity Loans fall into a broad category known as sub-prime lending. Unlike prime lending, which is heavily regulated and offe
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    Home Equity loans were initially designed to allow individuals who had not yet paid off the full amount of their home, the ability to borrow against what portion of the home they had paid for. So for example, a couple who had been making monthly payments for many years on their 30 year lease, could use the money they had already put into their home as collateral when they needed a loan to send their child to college. So, while the initial intent of the loan is regarded by some as noble, in practice it has served as a free-for-all for unscrupulous lenders and other scam artists.

    Explaining Sub-Prime Lending
    Home Equity Loans fall into a broad category known as sub-prime lending. Unlike prime lending, which is heavily regulated and offer

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    at portion of the home they had paid for. So for example, a couple who had been making monthly payments for many years on their 30 year lease, could use the money they had already put into their home as collateral when they needed a loan to send their child to college. So, while the initial intent of the loan is regarded by some as noble, in practice it has served as a free-for-all for unscrupulous lenders and other scam artists.

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    e the money they had already put into their home as collateral when they needed a loan to send their child to college. So, while the initial intent of the loan is regarded by some as noble, in practice it has served as a free-for-all for unscrupulous lenders and other scam artists.

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    Home Equity Loans fall into a broad category known as sub-prime lending. Unlike prime lending, which is heavily regulated and offe

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    the loan is regarded by some as noble, in practice it has served as a free-for-all for unscrupulous lenders and other scam artists.

    Explaining Sub-Prime Lending
    Home Equity Loans fall into a broad category known as sub-prime lending. Unlike prime lending, which is heavily regulated and offe

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    -Prime Lending
    Home Equity Loans fall into a broad category known as sub-prime lending. Unlike prime lending, which is heavily regulated and offered to those living in good neighborhoods with fair to good credit, sub-prime lenders target those in bad neighborhoods with worse credit ratings. Because they offer loans to individuals who otherwise might have difficulty finding a loan, they were and are able to justify to the government the need to have greater free reign when it comes to setting the interest rates and finance charges associated with their loans.

    This window, combined with the deep pockets of Home Equity Loan firms able to grease the campaigns of politicians, has prevented the industry from coming under the heavy scrutiny an

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