This is a great article regarding home loan scam. Whether or not it applies to you, we recommend reading up more about her opinion. The same rule applies in any scam where weakness and greed are exploited using deals that sound too good to be true.
“With mortgage rates rising, home
prices falling and consumers hampered by more credit card, auto and
bank debt than ever, there has never been a more fertile time for scams
that target homeowners.
A July 3
New York Times article put a face on the victims of the latest practice
of “equity stripping.” In this home loan scam, homeowners who have
fallen behind in their mortgage payments sign over the deed to their
property — often unknowingly — in exchange for promises of immediate
cash and the chance to retain their home.
these unscrupulous lending companies have the deed to the property,
they borrow against the equity in the home, pocket the cash and
patiently wait for the inevitable: the homeowner again falling behind
in payments. As holders of the property deed, these predatory lenders
are then able to foreclose. Armed with misleading advertising — and
with an increasing number of homeowners seeking a quick fix for
financial woes — these companies are successfully exploiting some of
the most vulnerable members of our society.
relentless pursuit of the American Dream — big house, multiple cars, a
wallet full of credit cards stretched to the limit — has left millions
of Americans poised on the brink of a financial disaster. It takes just
one moment of misfortune: an illness, an elderly parent that needs
financial assistance or the loss of a job to put these homeowners at
risk of losing everything they have worked so hard to acquire.”