EQUITY STRIPPING SCAMS
Many Americans borrowed too much money to buy a home when interest rates were low and alluring. Others took out variable-rate mortgages that have since skyrocketed. The consequence of over borrowing and easy lending is that millions of people are now facing foreclosure on their homes. The threat of losing your home can create a desperation in people that makes them susceptible to falling for a scam called "equity stripping."
The Pitch 
Are you in trouble with your home? Do you want to avoid foreclose? Call now!!! We'll pay the bank for you! You can stay in your home!
How does the scam work?
You sell your house to a company or individual who then pays the mortgage.
What do the scam artists tell you?
They tell you that they'll let you stay in your house until you can get your financial feet back on the ground. You sign a contract stating that you'll later be allowed to buy back your home for a nominal fee - say $5,000.
What does the scam artists actually do?
Here's where the real scam begins. The person or company who is "rescuing" you from foreclosure turns around and borrows up to the full amount of hard-earned equity that you put into your home. The scammers then disappear with the cash in their pocket and an eviction notice goes up on your door.
Play it Safe
· Remember it won't be called an "equity-stripping." The scam will have a legitimate-sounding name to entice victims.
· If you are behind on your mortgage payments, you can't rely on anyone other than yourself.
· Ask your lender and work out a payment plan that allows you to keep your home. If you've already approached your lender once and been turned down, get in touch with them again.
· Re-prioritize your bills. Your mortgage should be at the first bill you pay each month.
For more information on money traps and other scams, check out http://consumerjungle.org They have some great tips for smart consumers.