HomeAsCOLLATERAL - Angie Shull

IS YOUR HOME SMART COLLATERAL?

Using your home as collateral for a loan is a risky undertaking because if you
become unable to make the loan payments for whatever reason, the lender can collect
your home instead. This risk is one reason why the federal Home Ownership and Equity
Protection Act (HOEPA) mandates certain protections for consumers who obtain a highcost
loan, as defined by law. These protections are as follows:
• The lender must make certain required disclosures at least three business days
before the loan transaction closes.
• It is illegal for the lender to disperse loan proceeds directly to a home
improvement contractor.
• A high-cost loan cannot have a balloon payment or a big final payment that’s due
sooner than five years.
Be sure to consult a trusted attorney, financial advisor or other qualified person
before you obtain a loan secured by your home. If you ever have second thoughts about a
loan transaction, contact an attorney immediately. Acting quickly may preserve a right to
cancel the loan.

Angie Shull
Seniors Real Estate Specialist
REMAX Property Centre
1134 W. Granada Blvd.
Ormond Beach, FL 32174
386-295-9605