Unfortunately, a few bad lenders in the home equity lending market force all of us to be extra careful. You should be on the lookout for the following questionable practices:

Equity stripping occurs when a loan is made based on the equity in a property rather than on a borrower's ability to repay the loan. As a general rule, loans made to individuals who do not have the income to repay such loans usually are designed to fail. They frequently result in the lender acquiring the borrower's home and any equity the borrower had in the home.

* Packing is the practice of adding credit insurance or other "extras" to increase the lender's profit on a loan. Lenders often stand to make significant profits from credit insurance and, therefore, have strong incentives to induce consumers to buy it as part of a loan.

* Flipping occurs when a lender induces a borrower to repeatedly refinance a loan, often within a short time frame, charging high points and fees each time.

The best way to avoid problems in getting a home equity loan is to compare different web sites to find the best plan for you. Also, your local banks are a good source of home equity loans.