As I mentioned last Friday, there are a number of specific types of foreclosure rescue scams to which desperate homeowners are falling victim. Today I will discuss Equity Skimming or Equity Stripping.
Scammers convince the homeowner to sign over the title or deed for the home to him or her with the understanding that the mortgage will be paid off by the scammer and the home will be saved from foreclosure. The scammer then refinances the home for the full value, takes the additional money and never pays off the mortgage. The homeowner is left responsible for the loan balance.
Signing over a deed to a third party does not relieve a homeowner of mortgage obligations. The homeowner can lose the home and still be responsible for the balance of the mortgage.
As with all legal documents, never sign anything you do not completely understand. If you or someone you know needs assistance with a foreclosure issue please call us at 727-582-7480.
Juanita Carroll
Staff Attorney
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