With low interest rates, a lot of homeowners are considering refinancing their homes or taking out home equity lines of credit to pay for remodeling or other debts. While this can be a good deal for some homeowners, it is important that you watch out for potential lending scams including loan flipping, equity stripping and phantom help. An unscrupulous lender could employ any of these schemes which could cause you to lose your home.
Read more about home equity loan scams here and be aware of required disclosures that went into effect January 1, 2010 (RESPA – Real Estate Settlement Procedures Act). Protect yourself – and your home – by researching the rules and your rights!