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Home Improvement> Real Estate & Finance> Home Loans & Finance

Home Equity Loan Scams

If you are considering a home equity loan, be sure to work with a reputable lender.

Scam artists and unscrupulous, fly-by-night lending companies are infamous for granting home equity loans with outrageous hidden terms and costs to unsuspecting homeowners. These bogus loans can ultimately cost homeowners their homes.

These scam artists prey heavily on senior citizens, minorities, low-income families, and people with with a history of poor credit. If you are among any of these groups, be especially wary of companies who are eager to loan you money.

Manipulative lenders may alter loan terms, hide extra charges, and conceal “bait-and- switch” techniques. The Federal Trade Commission warns homeowners to be wary of the following:

Loan Scam #1: Equity Stripping

Loan Scam #2: The Balloon Payment

Loan Scam #3: Loan Flipping

Loan Scam #4: “Home Improvement” Loan

Loan Scam #5: Credit Insurance Packing

Loan Scam #6: Mortgage Servicing Abuses

Loan Scam #7: Signi ng Over Your Deed

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	Jump to:

•	Home Equity Loan Scam #1: Equity Stripping

•	Home Equity Loan Scam #2: The Balloon Payment

•	Home Equity Loan Scam #3: Loan Flipping