The Art of Real Estate » equity http://arslexis.com Your free source for honest Real Estate information Wed, 04 Jan 2012 13:53:02 +0000 en hourly 1 http://wordpress.org/?v= Scams to Avoid in Real Estate: 5 http://arslexis.com/blog/scams-to-avoid-in-real-estate-5/ http://arslexis.com/blog/scams-to-avoid-in-real-estate-5/#comments Thu, 22 Oct 2009 19:22:29 +0000 Heather http://arslexis.com/?p=166 scam 5Another 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.

]]> http://arslexis.com/blog/scams-to-avoid-in-real-estate-5/feed/ 0 Scams to Avoid in Real Estate: 4 http://arslexis.com/blog/scams-to-avoid-in-real-estate-4/ http://arslexis.com/blog/scams-to-avoid-in-real-estate-4/#comments Wed, 21 Oct 2009 19:21:56 +0000 Heather http://arslexis.com/?p=162 200310310-001Title 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.

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