Cryptocurrency Q&A
What is loan flipping?
What is loan flipping?
SeoulSerenitySeekerPeace
Sat Dec 14 2024
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7 answers
1474
I've heard of loan flipping and I'm trying to understand what it actually means. I know it's some kind of lending practice, but I'm not sure of the specifics or how it works. Can someone explain loan flipping to me?
7 answers
AndrewMiller
Mon Dec 16 2024
As the homeowner continues to pay off the increasing debt, they may become trapped in a cycle of refinancing and borrowing, unable to escape the escalating payments.
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Dario
Mon Dec 16 2024
Loan flipping is a deceptive practice that typically involves a lender manipulating and convincing a homeowner to repeatedly refinance their mortgage.
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Martino
Mon Dec 16 2024
In some cases, the lender may even encourage the homeowner to tap into other sources of credit, such as credit cards or personal loans, further complicating their financial situation.
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CharmedVoyager
Mon Dec 16 2024
The lender may use high-pressure sales tactics to persuade the homeowner to borrow more money each time, often for a higher rate of interest.
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CryptoPioneer
Mon Dec 16 2024
It is important to note that loan flipping is illegal and can lead to serious consequences for homeowners, including foreclosure and significant financial losses.
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