{"id":369310,"date":"2016-04-04T10:47:20","date_gmt":"2016-04-04T15:47:20","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/mortgages-equity-loans\/home-equity-loan-scams.html"},"modified":"2024-07-12T11:00:10","modified_gmt":"2024-07-12T16:00:10","slug":"home-equity-loan-scams","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/mortgages-equity-loans\/home-equity-loan-scams.html","title":{"rendered":"Home Equity Loan Scams"},"content":{"rendered":"\n
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Home Equity Loan Scams<\/h1>\n
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\n By Robert Rafii, Esq.<\/a> | Legally reviewed by Robert Rafii, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Unlike a primary mortgage loan used to buy a home, a home equity loan is a second mortgage. There are legitimate ways to use home equity loans and unlock the value of your home to borrow a lump sum. Home buyers with good credit scores can also responsibly get credit lines secured by their homes. But with home equity scams on the rise, you should look for red flags.<\/p>\r\n

Predatory lenders may offer you a high-cost loan based on the equity you have in your home. If you fail to pay back a home equity loan or home equity line of credit (HELOC)<\/a>, your home could go into foreclosure. You could lose your home and money if you borrow from unscrupulous lenders.<\/p>\r\n

Even large or typically reliable financial institutions could slip up and fail to give you proper information. They might have negligent employees or loan officers who violate procedures. Certain lenders target homeowners who are elderly or who have low incomes. They go after borrowers who have:<\/p>\r\n