Jeff Turner via Flickr
New PACE loans, offered by sketchy lenders who are trying to make a quick buck on the housing recovery, allow borrowers to take out a loan against the equity in their home.
Hold on… it’s bad.
The loans encourage homeowners to buy energy-efficient solar panels, window insulation and air-conditioning units. Ok fine.
Large loans for solar panels, YAY. With no credit check required, BOO. With the loan amount based on the value of their home, BOO.
It Gets Worse
Contractors are encouraging homeowners to get a PACE picante loan AND THE CONTRACTORS GET KICKBACKS FROM THE LENDERS. Poor Ms. White’s annual property tax bill went form $1,215 to $6,500 with her new PACE picante loan.
Hot hot hot. Not.
Originally published in the Ms. Cheat Sheet newsletter. See more from Kathryn Cicoletti at Ms. Cheat Sheet here.