Wednesday, February 12 2025

Avoiding Home Equity Scams

You could lose your home and your money if you borrow from unscrupulous lenders who offer you a high-cost loan based on the equity you have in your home. Certain lenders target homeowners who are elderly or who have low incomes or credit problems—and then try to take advantage of them by using deceptive practices.

The Federal Trade Commission cautions all homeowners to be on the lookout for:

Equity Stripping: The lender gives you a loan, based on the equity in your home, not on your ability to repay based on your income. If you can’t make the payments, you could end up losing your home.

Loan Flipping: The lender encourages you to repeatedly refinance the loan and often, to borrow more money. Each time you refinance, you pay additional fees and interest points. That only serves to increase your debt.

Credit Insurance Packing: The lender adds credit insurance to your loan, which you may not need.

Bait and Switch: The lender offers one set of loan terms when you apply, then pressures you to accept higher charges when you sign to complete the transaction.

Deceptive Loan Servicing: The lender doesn’t provide you with accurate or complete account statements and payoff figures. That makes it almost impossible for you to determine how much you have paid or how much you owe. You may pay more than you owe.

Some of these practices violate federal credit laws dealing with disclosures about loan terms, discrimination based on age, gender, marital status, race, or national origin; and debt collection.

You also may have additional rights under state law that would allow you to bring a law suit.

The FTC suggests if you’re thinking about using your home as collateral for a loan, be careful. Unless you can make the loan payments out of current income, you could lose your home as well as the equity you’ve already built up.

Shop Around for the Best Terms

Some additional tips to remember:

  • The lure of extra money or the chance to reduce monthly credit payments can be very costly in the long run. High interest rates and other credit costs could get you in over your head.
  • Credit insurance may not be a good deal from a lender. If you want the added security of credit insurance, shop around.
  • Don’t sign a loan agreement if the terms are not what you were given when you applied.
  • Ask for an explanation of any dollar amount, term, or condition that you don’t understand. Federal law is very clear about what credit and loan term information must be provided in writing when you apply for a loan and before you sign any agreement.

In addition, shop around for the best loan terms and interest rates. Contact lending institutions, such as banks and credit unions, and consult a legal or financial advisor, or someone you can trust before you make any loan decisions. Or contact your local Fair Housing Office, legal aid, or senior services organization for information and help.

Saturday, January 25 2025

The 'Nigerian' Scam: Costly Compassion

Nigerian advance-fee fraud has been around for decades, but now seems to have reached epidemic proportions: Some consumers have told the Federal Trade Commission (FTC) they are receiving dozens of offers a day from supposed Nigerians politely promising big profits in exchange for help moving large sums of money out of their country.

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Monday, January 13 2025

Stopping Unsolicited Mail, Phone Calls, and Email

Tired of having your mailbox crammed with unsolicited mail, including preapproved credit card applications? Fed up with getting telemarketing calls just as you're sitting down to dinner? Fuming that your email inbox is chock-full of unsolicited advertising? The good news is that you can cut down on the number of unsolicited mailings, calls, and emails you receive by learning where to go to "just say no."

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Friday, January 3 2025

Smart Lighting Can Promote Circadian Health

Over the past few years, smart lighting companies have been innovating ways to mitigate these seasonal mood declines and imitate natural light in the home – both to create a comfortable, cozy ambiance and to allow people to experience the health benefits of circadian lighting, even on gloomy winter  […]

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Wednesday, December 11 2024

Indoor Tanning

Ads for tanning salons and tanning systems promise a bronzed body year-round, but experts agree that ultraviolet (UV) radiation from these devices damages the skin and poses serious health risks. Sunburns and tans are signs of skin damage. Deliberate tanning, either indoors or out, increases your risk of skin cancer.

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Friday, November 22 2024

Ice or Heat? What Is Best for Injuries?

When you have pain in your muscles or joints, what is the best treatment, heat or ice? What should you do first, use an ice pack or pull out the heating pad? The answer, according to pain experts, is it depends on the type of injury and the location of the pain. Is the injured place swelling? Are  […]

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Thursday, November 14 2024

Smart Homes Help Seniors Age in Place

With 95 percent of adults over the age of 55 saying that aging in place is an important goal, technology is increasingly becoming a lifeline for older Americans. Specifically, smart home technology can empower independence by offering benefits like 24/7 on-call emergency support, simplifying daily  […]

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Thursday, October 24 2024

Guide to Buying a Hearing Aid

There have been many technological advances in hearing aids in recent years, and finding the right one for your lifestyle and budget can make a big difference if you’re coping with hearing loss. Before you buy a hearing aid, it’s important to understand the various types of hearing loss and what to consider when you’re shopping, so you get the product that’s most appropriate for your particular kind of hearing loss, your lifestyle, and your budget.

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