Guide to Real Estate Fraud

Housing Equity and Home Renovation Fraud

This one is growing at a phenomenal rate. Be very careful when using your home or your home equity as security for a home improvement loan.

Fast talking salespeople offer to refinance your home at a lower interest rate to provide cash to the homeowner, explaining the cash can be used to pay for home improvements or to pay off bills.

Later, the homeowner discovers that they signed a contract that contains terms in contrast to the originally promised terms. This results in the loss of equity in the victim’s home, and also they have signed a mortgage in which they have incurred considerably higher interest rates. The homeowner is now faced with a higher mortgage payment, one that they may not be able to afford.

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