Home Equity Scams & Fraud
 

The Practices:

Equity Stripping

The Balloon Payment

Loan Flipping

The "Home Improvement" Loan

Credit Insurance Packing

Mortgage Servicing Abuses

Signing Over Your Deed

Do's and Don'ts

More Info

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Signing Over Your Deed
 
If you are having trouble paying your mortgage and the lender has threatened to foreclose and take your home, you may feel desperate. Another "lender" may contact you with an offer to help you find new financing. Before he can help you, he asks you to deed your property to him, claiming that it's a temporary measure to prevent foreclosure. The promised refinancing that would let you save your home never comes through.

Once the lender has the deed to your property, he starts to treat it as his own. He may borrow against it (for his benefit, not yours) or even sell it to someone else. Because you don't own the home any more, you won't get any money when the property is sold. The lender will treat you as a tenant and your mortgage payments as rent. If your "rent" payments are late, you can be evicted from your home.

Do's and Don'ts

 

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Home Equity Scams & Fraud:

Do's and Don'ts

 

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