If you are a homeowner who is having difficulty with making your mortgage payments on time, you might find yourself being preyed canada viagra online upon by scam artists. While there are many scams out there, one of the most popular is the “equity stripping” scam. But, what is the equity stripping scam and how can you prevent yourself from becoming a victim to the scam?

Understanding the Equity Stripping Scam

For those who fall victim to the equity stripping scam, the con artist and the offer he or she is providing seems like a dream come true at first. This is because the con artist offers to purchase Cialis Jelly the home at a discounted price while the homeowner works at getting his or her finances in order. According to the “deal,” the original owner is allowed to continue living in the home as he or she pays the con artist back for the home with interest due.

While this plan may seem reasonable, the con artist has no intentions of selling the home back to the owner. Even if the con artist produces a contract, he or she Kamagra jelly will find ways to make the original owner default on the deal. For example, the con artist may drag out the process to the point that the monthly payments are more than the homeowner can actually afford to pay. Regardless of the reasons, the con artist ultimately finds an excuse to evict the original homeowner and then sells the home.

The equity stripping scam is a brilliant scam for the con artist. After all, if you own a home that is worth $250,000 and you have $150,000 in equity, the con artist can make a significant profit after purchasing the home for the $100,000 you owe. In fact, many of these con artists will sweeten the deal by taking out a loan for slightly more than you owe and giving you some of the extra money. In the end, however, the con artist sells the home out from underneath you and sells it for its actual value, yielding a significant profit.

Avoiding Becoming a Victim of the Equity Stripping Scam

Clearly, the best way to avoid becoming a victim of the equity stripping scam is to be aware of the scam. Since there are many variations of this scam and because many con artists can be quite convincing, however, there are a few red flags you should watch for I you are approached by someone claiming to offer help. Some of these red flags include:

* Don’t fall for false promises – watch for phrases such as “We will purchase your home ‘as is’ or “We will help you get a mortgage with a low monthly payment plan.”
* Don’t sign your home away to someone else – if you are going to sign your home to

someone else, be sure to get the advice of your lawyer first. In most cases, any person or company that asks you to sign over your property is up to no good.
* Don’t agree to a plan that does not formally release you from liability – in other words, make sure you are fully aware of the rights you have as well as the ones you are giving up

Author Bio: Ryan Lynch runs the marketing department for a company specializing in Austin luxury real estate and fine estate properties. They also help buyers and sellers with Lake Travis waterfront properties including lakeside homes and condos.

Category: Finance/Mortgage
Keywords: equity,scams, fraud,mortgage,advice,tips