Real Estate Equity Loans

Use Your Real Estate Equity To Make Money

Credit unions and banks make most real estate equity loans today, but you may need to shop around to find a lender. Equity loans are a good way to finance Fixer Real Estate for the short term.

Borrowers beware use your real estate equity wisely or you may suffer some pain because flipping real estate has no guarantees.

The two most popular types of equity loans are. HELOC’s also known as Home Equity Loans and Home Equity Lines of Credit.

Generally real estate equity loans are second mortgage loans, because they are secured by your real estate just like your first mortgage loan.

Equity loans and lines of credit generally have a repayment period of 5 to 25 years. If credit is a problem look at Hard Money Lender Loans.

The interest rate on a HELOC is variable interest rate and the minimum monthly payments are generally interest only. The interest rate is usually based on an index, such as the Prime Rate, Libor or T-Bill’s. Also look at the video on Private Lenders.

Traditional mortgages are usually Non Recourse loans. HELOC’s on the other hand may be a Recourse Loan for which the borrower is personally liable.

This difference between Recourse and Non-recourse becomes very important in event of a forced real estate sale. The borrower may remain personally liable for a recourse debt on a foreclosed property.

Equity Loans: Borrowers Beware!

Protect yourself against losing your home to Predator Lenders.

Do Not - consent to a loan if the payments are more than you can afford.

Do Not - sign any document you Have Not Read and Understand.

Do Not - sign any document with blank spaces to be filled in after you sign.

Do Not - agree to a loan that includes credit insurance You Do Not Want.

Do Not - let the promise of extra cash or lower monthly payments cloud your judgment.

Do Not - deed your property to anyone without consult an attorney or someone else you trust.

Read all real estate loan terms carefully. If you need an explanation of any terms or conditions, talk to someone you trust, such as a knowledgeable family member or an attorney.

Consider all the costs of financing before you agree to sign any loan documents because after you sign it is too late.

Predator Lending and Abusive Real Estate Lending practices range from equity stripping and loan flipping to hiding loan terms and packing a loan with extra charges and balloon payments.

If you believe you are the target of a Predatory Lender report it to The Federal Trade Commission and your states Attorney General.

Predatory Loan Practices Can Cause You to Lose Your Home.

Check other pages on this real estate site for useful information about loans. If you want to have access to cash when you need it real estate equity loans are hard to beat.

REAL ESTATE EQUITY LOAN: When legal troubles show up be prepared. Watch the videos on this site and you will see how to defend your self: Jurisdictionary Watch the FREE Instructional Videos. Left Side Half Way Down...

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