Consumerist

loans

Watch Out For "Equity Stripping" Scams

The New York Times has an article about a growing problem, a scam called “equity stripping.” Here’s how it works: You answer an advertisement targeting people who are facing foreclosure, but want to stay in their homes. You think you’re refinancing your loan at a lower rate, but in reality you’re transferring the deed to someone else. That person then takes out as much as they can against the value of your home. From the NYT:

Jessica Attie, co-director of the foreclosure prevention project at South Brooklyn Legal Services and the lawyer for the Johnsons, said her office was overwhelmed with homeowners who had handed over their deeds to people pretending to help “save” their homes.

We know times are tough and a lot of homeowners are facing difficult financial decisions, but make sure you know what you’re signing. If someone offers to “temporarily” buy your home, warning bells should go off.

debt

By consumerist.com 7.3.07

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If you want to successfully challenge a charge a debt collector says you owe, you’ll want to understand the doctrine of “account stated.”

debt

12 Steps For Digging Yourself Out Of Debt

By Meg Marco 7.3.07

If you’re in debt and you don’t want to be, (and who wants to be?) you might want to take a look at Zen Habits 12-Step Get Out of Debt Program.

economy

Pending Home Resales Drop To Lowest Level Since September 2001

By Meg Marco 7.3.07

Pending sales of existing homes dropped for the third straight month as troubles in the mortgage industry continue to disrupt the housing market. Figures released today show a 3.5% drop in May, following April’s drop of 3.2% and March’s drop of 4.5%.

college

By consumerist.com 7.2.07

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How to claim the interest on your college loan as a tax deduction.

loans

FDIC Launches Program Encouraging Banks To Offer Small Dollar Loans

By Meg Marco 6.29.07

The FDIC has announced a program designed to study and encourage small dollar lending programs designed to compete with payday lenders. Under the program banks would offer “loan amounts of up to $1,000, mandatory savings components, payment periods that extend beyond a single pay cycle, interest rates below 36 percent, low or no origination fees, no prepayment penalties, prompt loan application processing, and access to financial education to help with asset building.”

credit cards

Are Reward Points Worth A Higher APR?

By Meg Marco 6.28.07

debt

Payday Lenders Funded By Bank Of America, Chase, WellsFargo, U.S. Bancorp, Wachovia

By consumerist.com 6.20.07

Seven big payday loan chains are extensively bankrolled by brand name banks. Bank Of America, Chase, WellsFargo, U.S. Bancorp, and Wachovia all extend tens to hundreds of million dollars in lines of credit to these predatory lenders who charge several hundred percent interest on cash advances, often made to the poor and uneducated.

student lending

It's Time To Think About Loan Consolidation

By Meg Marco 6.20.07

We know you just graduated and you don’t want to think about your student debt. Really. We understand. Sadly, you need to think about it, and you need to think about it before July 1st.

tips

Don't Finance Your Car With Your Home Equity Loan

By consumerist.com 6.15.07

Maryland consumer attorney Sonya Smith-Valentine warns not to use a home equity loan to purchase a car. Her reasoning makes sense. When you use a home equity loan, you pay for the for many years longer than you would with a regular car loan, multiplying the interest you end up paying.

student loans

Bankruptcy Protection For Students?

By Meg Marco 6.11.07

In 2005 congress changed the law to exclude student loans (private or public) from bankruptcy protection, meaning that it is almost impossible to discharge your student loan by filing for bankruptcy.

student lending fiasco

Cuomo Goes After Student Lending Criteria, Is So Not Bored Of This Investigation Yet

By Meg Marco 6.7.07

What criteria do student loan companies use when determining which students to give loans to and how much to give? Don’t know? Neither does New York Attorney General Andrew Cuomo, but we’re pretty sure he’s going to find out. From the NYT:

“What criteria are they using in the underwriting of these loans?” Mr. Cuomo asked. “Parental income? Student income? Student creditworthiness? How about the school you attend? How is that weighted?”

debt

20% of Americans Fear They'll Never Escape Credit Card Debt

By Meg Marco 6.6.07

According to a new survey by Lending Tree, 20% of Americans fear that they will never escape their credit card and other non-mortgage related debt and will be stuck with it for the rest of their lives. That’s depressing. Elizabeth Warren at Credit Slips says:”Lending Tree tries to put a happy face on some of the data (most people “perceive themselves as some day being debt free”), but I didn’t feel any better when I read it.” Yeah, we don’t feel any better either.

debt

Tomorrow Begins Today

By consumerist.com 6.5.07

Today, I mailed off my last final exam and finished my undergraduate degree requirements. “Luckily,” I was able to finish through online correspondence courses with my university, something I’ve slowly been chipping away at for the last three years. Yes, that’s three years after my intended graduation date.

mortgage

Should You Burn Your Mortgage When You're Done Paying It Off?

By Meg Marco 6.4.07

Uh, no. Although people do have “Mortgage Burning Parties.” In fact, take, for example, this little tale from the LA Times:

When he was a kid in Elmira, N.Y., title attorney James Wytock lived near a church that decided to hold a combination service-ceremony to commemorate paying off its mortgage.

credit cards