Saturday, January 10, 2009

Second Mortgages – Caution - How not to Get Taken

Second mortgages are often a financially sound way of handling excess debt, especially in this times of hard credit. Second mortgages can help you pay of expensive credit card debts, consolidate your debt and make payment easier. You can also renegotiate the terms of second mortgages. A few things to watch out for when applying for second mortgages are:

1. Second mortgages lenders may offer you an incredible deal, extremely low interest rates, or a deal which looks to good to be true - if it does then it probably is.
Where rates offered are much lower than current rates then you can be sure that you are dealing with adjustable second mortgages rates and you can be sure that when the rate adjusts you're going to be in for a major shock.

2. Second mortgages lenders may encourages you to exaggerate your income for the application for second mortgages or falsify the loan application
If you need to falsify info chances are you can't really afford the amount you're trying to lend. Remember that most lenders work on a commission basis and they're watching out for their own bottom line first not yours.

3. Never, EVER, sign a blank form when applying for second mortgages A lender should never ask you to sign a blank document.
In fact, never ever sign a blank document, period. A document can be as good as signing a blank cheque on your cheque account. Never do it. There are plenty of lenders out there looking for your business.

4. The second mortgages lender pressures you to sign for second mortgages with bad credit If the lender pressures you to sign even though you've expressed reservations or puts sales pressure on you then back away.
Always take your time to make sure that you are getting the best second mortgages deal for you and never sign a document unless you're one hundred percent sure.

5. Promises not kept. Where a lender makes promises but make excuses where it comes to making those promises in writing then get out.
If they won't put it in writing then you can sure that they won't do what ever they're promising

6. Arbitration
Where contracts for second mortgages has an arbitration clause then know that if you sign that contract you are giving up your legal recourse to the courts. IF you have to sign that can kind of document then make sure the Arbitrator is from an accredited association.

For more information please visit http://www.low-interest-second-mortgage-rates.com for more information

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