Scams to Avoid in Real Estate: 5
October 22, 2009 by Heather
Filed under Real Estate
Another scam involves home equity flipping. Here, a lender will instead encourage you to refinance your loans again and again, claiming that the rates will be better every time you refinance. However, interest and other fees will prove to be the nails in your coffin, and they will occur with every new loan. This scheme is hard to detect, partly because it can take a while for it to show up. You can lose your home because interest and general debt will keep piling up on you. Thus it is imperative that you always known everything about fees and rates when you want to refinance.
Last but not least, there are even home improvement scams. Contractors are usually involved, and they claim to be able to help you find a lender who will aid them in financing a home improvement project you cannot afford on your own. These scams involve disastrously high rates as well. It is better to only work with those contractors you know you can trust.