With the current U.S. mortgage situation in a state of flux and foreclosures at all-time highs, scams are rampid. And while the majority of lenders, large and small, are honest businessmen, there will always be a few who will grasp any situation to profit from dishonesty. These unscrupulous individuals frequently target the frailest members of society as their primary marks, including old people, those in terrible financial straits and those who are deeply in debt with few escape options. The current mortgage mess fallout represents a golden opportunity for the dishonest.

Rapacious lending is a word that defines unjust mortgages. They are usually targeted toward people desperate to refinance and willing to take risks in order to solve short-term crisis situations in their lives. This includes people under the yoke of crushing debt who would do virtually anything to escape from it and those seeking a foreclosure rescue siuation. In this mental and emotional state, they are ripe picking for the mortgage scam artists.

The only way to truly avoid mortgage scams is to be educated about how they work so you can recognize the signs. Or to borrow only from larger, established lenders who have well-known reputations. The latter, of course, is usually not an option when your on a sinking ship devoid of life rafts. One does not need to be an expert to understand and recognize the hallmarks of a scam; merely to be sufficiently aware of them and take adequate time to carefully consider the details of any offer. The old adage, “If it seems to good to be true, it probably is” definitely applies here. In today’s financial climate, foreclosure rescue scams are on the increase.

The most important thing to look for when searching for a mortgage, especially under difficult circumstances, is an honest, reputable lender. If you don’t know the company, a quick call to your local Better Business Bureau will alert you to any lodged complaints about the lender company. Remember that the mortgage scam artists will promise you anything to get a signature on the loan contract, but may not deliver what they promised. Read all the fine print. Ask questions. Demand answers before signing.

The actual details of mortgage foreclosure rescue scams are many and complex. In these days of the mortgage fallout mess, they are all too common. It is far better to protect yourself before hand than to try to escape from the scammer after the fact.

If you’re looking to buy a home, the most common option is to take out a mortgage loan. This is where you pay monthly instalments, much like you would if you were renting a property, with the difference being that eventually you will own the property outright.

However, there are certain criteria that you need to meet if you do wish to take out a mortgage loan – after all, with the amount being borrowed running into the hundreds of thousands, lenders need to make sure you are suitable for a loan, and not a bad risk. So what criteria do you normally need to make?

Credit History
One of the key factors that any mortgage lender uses, whether it’s your own bank or an outside source, is your credit history. Since a mortgage loan involves a high payment on a regular monthly basis, lenders need to know that you’re not likely to default on payments.

The way they find this information out is by using one of the three major credit-scoring bureaus in the US – Equifax, Experian and Trans Union. These companies have access to all loans, payment schemes and finance deals you may have had in the past, or currently pay. They also look at your credit cards and how you pay the amount on these as well.

You are then given a credit score – a high rating for payments and loans that have been settled on time, and a lower score for late or defaulted payments. The higher your score, the better your credit rating, and the more likely you are to get the mortgage loan you need to buy your home.

Debt Levels
As well as your credit score, another way lenders determine if you’re suitable for a mortgage loan is how much debt you have, compared to your income levels. The higher the debt you have, the less likely you are to be approved.

For example, if you add up all your outstanding debts, including loans, insurances, etc, and it’s close to what you make monthly, then lenders will take the view that you may struggle to meet your mortgage payment, and be less inclined to offer you one. A good ratio for debt-to-income is 28/36, so if you fall within this band, you should be able to get a mortgage loan without too much difficulty. You may still get one if you’re outside this band, but it could be with a much higher interest rate.

Current Financial Status
The third most-used method of criteria is your current standing financially. If you’re in a full-time job and you’ve been with that company for over 2 years, you’re viewed as a responsible person who doesn’t job-hop. Add to this the fact that you are receiving a steady income from that job, and you’re more likely to be approved for a mortgage loan application than if you were working part-time, or unemployed.

Many online lenders are offering equity loans with rates as low as 1 per cent. Homeowners can avail this facility at the click of a mouse. It is advisable for homeowners to do their research before settling on a company, no matter how tempting the rates are. Even if it is 1 per cent, please calculate exactly how much it could cost you over a period of time. Use the online calculators available to establish your goal in the home equity loans. These calculators can help you decide whether you want to or are capable of taking out a second loan on your home, and show you if your choice of home equity loan is valid. You can also calculate the cost of rentals against the cost of your home – and you can calculate all of this online.

If you’re considering a second home equity loan, make sure the first one is all in order, payments-wise. Go over all terms and conditions, and search for penalties or clauses carefully – things you might have overlooked. After all, you don’t want more money problems or financial burdens in your hands, do you? Most lenders will require you to fully repay the loan amount on your first mortgage fully in order to avail of another mortgage. In effect, while covering the costs of the second mortgage you will also be paying for your first one. Many online companies offer colossal debt amounts, and you can opt for these. Please make sure you do your research well before settling for anything. Get as much information as you can about equity loans and mortgages and use all this research to come to the most sensible conclusions. Remember that when you get an equity loan finally, it is a long term and important commitment, so know what you are agreeing to and avoid making rash decisions that you might regret later. Be extremely cautious – it is for your own benefit. Huge amounts of information are available online and make use of these resources to get your money matters in order. Look for reliable lenders as there are many unscrupulous dealers out there who will cheat you out of a lot of money if you are not careful. A trustworthy lender won’t rush you or pressure you to sign anything immediately. Watch what you sign – in short, be extra-cautious when it comes to financial commitments, for your own good.

Self employment is a huge rage these days. Statistics show that more and more people are choosing to be self-employed in recent times. After all, who wouldn’t like to work on his or her own terms, get better pay by him or herself and have flexible work hours? Most people would rather be answerable to themselves than their bosses. Many people are beginning to consider these factors and are considering self-employment as a feasible option.

In spite of the positive factors outlined above, self-employment has its own share of disadvantages as well. To start off alone, you must be prepared to live with the insecurity of not having a fixed income. You could go without pay for an entire month and then go ahead and earn a lot the next month. There is none of the fixed monthly pay security that comes with regular jobs.

This has its own pitfalls. Suppose you are self employed and want to buy a house. Keeping in mind the fact that you do not have a fixed source of income, which lender will give you a mortgage? After all, the people who do business with you also need to be assured that you will have the money to pay your monthly installments. Look at it from the lender’s point of view – why would he risk his money to give someone who probably can’t pay every month as opposed to someone who is sure to pay every month (that is, a person with a fixed income)?

Is there a solution to this? Yes, it comes in the form of something known as a “flexible mortgage”. These are specifically for self employed people, but they do have awfully high interest rates. The upshot if this is that it doesn’t require you to pay a fixed amount per month and you can pay as little or as much as you want depending on how much you can afford that particular month. You can also borrow from the paid-up amount – it’s not called flexible for no reason! This will lead to a long duration mortgage period, but it certainly makes things simpler for a self-employed person. That way, if you are self-employed, you don’t need to worry about buying a house.

So if you are pondering about being self employed and still want to be able to buy your own house, consider getting a flexible mortgage. If you have braved risking the insecurity of not having a fixed income then you can certainly brave the higher rates of interest and longer loan duration of a flexible mortgage.