Scams to Avoid in Real Estate: 4
October 21, 2009 by Heather
Filed under Real Estate
Title fraud is another prevalent scam. It involves identity theft, to a degree, in that the schemer behind the scam will steal the identity of a home owner, which allows him or her to get the title for the home. They may draw a mortgage against the property, or worse. This is why identity theft insurance and protection is so important.
Home equity stripping is another scam. Here, a lender will actually give you permission to exaggerate the amount of money you have. You thus get approved for a loan you actually cannot afford, and when you cannot pay it, you get stripped of your assets. You can lose your home, at the very least.
Simply put here, you should never, ever lie about your personal wealth. It can come back to bite you quite hard, and the end the loan is simply not worth it.