WV RESIDENTS HAVE LOST HOMES TO HOME EQUITY OUTFITS - Hedges Says Companies Use Loopholes To Entice

(09/29/2003)

Borrower beware! More than 1,600 West Virginians have lost their homes in the last two years to companies that require borrowers to put up their houses to secure loans. A survey by a Charleston law firm called Mountain State Justice found has uncovered a number of problems associated with the home equity loans. Home equity lending companies foreclosed on residents in 54 of the state's 55 counties between July 2001 and June 2003, according to well-known social activist and attorney Dan Hedges. Only Gilmer County did not have a foreclosure. Hedges said home equity companies lend money to customers who agree to put up their homes as collateral. The out-of-state companies often involve borrowers with bad credit or low incomes who cannot otherwise borrow money. Hedges blames the state's high number of low-income homeowners and eroding state regulations to limit the lending practice. He believes there are numerous illegal practices involved with the loans. Hedges is a native of Spencer.

Hur Herald ®from Sunny Cal The information on these pages, to the extent the law allows, remains the exclusive property of Bob Weaver and Dianne Weaver The Hur Herald. All information may be freely used but must not be sold or used in any type of commercial endeavor, or used on any web site without the express permission of the owners ©Bob and Dianne Weaver, The Hur Herald, 1999, 2000, 2001