Real Estate Scams – Home Equity Fraud
In the scam of home equity stripping, also known as home equity liquidation or collateral stripping, the lender will be able to take away your home and strip you of all the equity you have built. A lender will talk to you asking you to falsify information, for example, the source of your down payment, or to inflate your income to qualify for a larger loan. Be wary and don’t fall into his promise of a bigger amount on hand with lower rates over a shorter period. Your real estate investment was approved for the long term and this was based on your assessed paying ability.