Tough times call for new measures and the way some people are dealing with the tough times is to turn on other people who they know are desperate for some sort of bailout. See, here is what happened; some 15 years ago, there was a dip in the rate of interests and this caused a huge boom in the prices of all real estate. This combination gave lenders the courage or the gumption that they needed to dabble in some practices that were rather predatory in nature; these practices have come back to haunt them and also the people that they lent money too.
There have been reports that almost 19% of loans were approved for those who had less than worthy credits, that is 1.1 million when you count it in mortgages. These loans then became delinquent for more than a month or 30 days while the rest were subjected to foreclosure. So you see why there is a wave of desperation among homeowners; why, you could even count yourself as one of those homeowners feeling that panic. Due to the sudden rise in desperation, a new kind of predator has come to town and this is one bad guy that you need to watch out for. These guys are known as mortgage scammers and they do not care if you need money, they will take it anyway.
These guys are nothing more than con artists that are armed with at least 3 basic ways to steal your money, your home, or your equity. If you are really unlucky, they can get all three. So what can you do to protect yourself? Why, you get to know the enemy and all its moves and here is one of the three schemes that they use. This scheme is what they call Equity Stripping or Bailout scheme. This scam involves the scammer doing a “rescue” by giving the homeowner some help to get rid of her house. Through some twist, the scammer will trick the homeowner and make that homeowner give up the house title. The homeowner is promised that he can stay in the house as a renter and that the house will be given back to him when his finances have improved.