Financial Scams Await Uninformed House Owners
Even in this age of information technology and easy access to information, a majority of people are still unaware of the rules and regulations in the financial sector. This lack of awareness among people serves as a catalyst for the synthesis of a scam.
Most of us buy a house or build one with the help of some or the other type of loans. Unfortunately, some people may not be able to repay the loan or credit promptly. When the dues mount, the finance companies go for excessive interest rates followed by foreclosure. This is a difficult scenario for any home owner. This is exactly the time when the people behind the scams make their moves. They approach you with various short-term advances from obscure financial companies. They will be ready to accept the property that you have already pledged to another bank as collateral.
But after taking the easy money, you will soon realize that they charge a heavy fee and hefty interest for this new loan. You will be helpless as you would have already signed some documents without reading them properly due to your hurry.
If you had found it hard to repay the previous loan with a normal interest rate, then it is unlikely that you will be able to repay this new advance with its exorbitant interest rate. Before long, the same people who came to help you out earlier will come to oust you from your property, showing the documents that you had signed.
They will be so very strong and well-organized that you will find it difficult to counter them. The lesson here is that do not trust the obscure finance companies and their fancy schemes. No respected company will provide credit to a person who has a bad credit history.
Another type of scam involves unregistered renovation contractors. Usually, such people will try to lure you into remodeling the house. They would promise that they will arrange finance for this purpose. You just need to sign a few papers and provide an initial amount.
If you fall for the trap, that's it. Once they get an initial amount and the papers signed by you, they would start dictating terms. If you are not smart and informative enough, it is unlikely that you will be able to get rid of them. The morale here is- don't trust unregistered or unlicensed contractors.
Far more complex varieties of loan scams exist. A good indicator here is the speed of processing the application. If you get your loan application sanctioned within minutes, think again before signing the documents.
Category: Financial Plan & Invest
Featured Financial Plan & Invest
Related Articles
- Building a Better Future in an Economic Downturn
- Stock Picking Strategy - What Works
- Debt Reduction Can Set You On Course For A Brighter Future
- Finding Buyers of Structured Settlement Annuities
- Robotic Trading Systems - Find Reviews
- How to Reduce Debt Fast
- Self Directed IRA and 401k - What Is It
- How to Open And Set Up An IRA - Who To Cal
- Credit Bureaus Is Your Identity Safe
- Business Loans Why Hire a Professional
- Stock Market Trading Strategies and Software - Which Is Best
- The Best Penny Stocks - How to Find them
- Find Automated Trading Software and Systems
- Best Software Programs for Stock Trading
- How to Protect Your Identity
- The Rich Get Richer and the Poor Get Poorer
- Trading Stocks Online - How To Do It
- Top 10 Mistakes Business Owners Make
Business News
Popular Posts
- How to cure a hangover
- How to make pancakes
- What should I eat today
- How to get rid of acne
- How to make slime
- How to meditate
- How to write a cover letter
- How to make pizza
- What is my zodiac sign
- How to start a blog
- How to kiss
- How to make friends
- What to do on a first date
- How to save money
- How to bake a cake
- What is the meaning of life
- How to make scrambled eggs
- How to make lasagna
- How to get more followers on Instagram
- Mind Balance Free Education Platform