Posts Tagged ‘equity stripping’

Millions at Risk of Foreclosure Fraud | The Red Tape Chronicles

Some scammers in California were caught telling groups of Spanish-speaking homeowners in foreclosure that they could transfer their homes to the federal government for $10,000. The scammers are in jail, and the police are trying to find the money. Foreclosure scammers busted in San Diego | California Debt Blog

Consumer attorney Nick Slade has joined the Caveat Emptor blog as a contributing editor. Nick has been taking consumer cases since 2000, when he refocused his practice from criminal defense to consumer law.
Nick deals with a variety of consumer issues, including auto fraud, equity stripping (also called foreclosure rescue scams), predatory lending, the Truth-In-Lending Act, [...]

From the article:
As Twin Cities home foreclosures multiply, so do the opportunities for mortgage fraud.
With more and more homeowners desperate to hold on to their homes, experts are concerned that many are vulnerable to rescue scams like equity stripping.

Not much to add, here. It seems obvious that with more targets, equity strippers and predatory refinancers [...]

I was a first-hour guest on the CTX Home & Wealth Show this morning. Sue, Alex, and I talked about foreclosures, including looking out for equity strippers and dishonest mortgage brokers, and about using conciliation court. It was a fun experience, and I hope to be invited back to follow up with other consumer topics. [...]

Equity stripping is a type of predatory lending brought on by the housing “boom.” As housing prices skyrocket, many homeowners don’t realize they are living in a goldmine. At the same time, property taxes are skyrocketing, forcing many homeowners into default. Those living on fixed incomes are particularly vulnerable.
This combination means unscrupulous individuals have a [...]