Watch Out For These Home Equity Loan Scams | Shawn Shai Halahmy
Home equity loan scams trick homeowners into predatory agreements or identity theft, often by targeting those in financial distress or with large equity. The most prevalent scams include equity stripping, fraudulent account takeovers, and fake foreclosure rescue services. Common home equity loan scams Equity stripping: A scammer offers a loan based on your home's equity, ignoring your ability to repay. The loan often includes extremely high interest rates, hidden fees, or balloon payments, which leads to you defaulting and the scammer seizing your home. Account takeover fraud: Using stolen personal information obtained through phishing, mail theft, or data breaches, a fraudster accesses your Home Equity Line of Credit (HELOC) to transfer funds or make unauthorized withdrawals. Fake foreclosure rescue: Scammers target homeowners behind on payments with promises to save their home, charging large, illegal upfront fees for services they never deliver. They may also instruct you...