It seems as if you can't trust anyone. Believe me -- if it sounds too good to be true, it is. Especially when it comes to money. Don't be fooled by the idea that only the elderly, the young and the desperate are targeted by scams. Everyone can be a target. If you are vulnerable, you are especially at risk. If you fall for a scam, you could lose a lot of money, your credit history and even your home. What is your best defence? Education. You need to know what scams are out there. You need to know how the lending of money works, so if you see something out of the usual, you know to ask questions. You need to ask those questions about everything. I recently heard of a homeowner who was offered $100,000 more for his home than he was asking. Upon closing, he was to turn the $100,000 over to the buyer. That way, he got his home sold at the full asking price, while the buyer had money for "improvements and moving costs." This sounds good, but it is often a scam. And by taking the buyer up on it, the seller becomes involved and can be criminally held accountable. Many lenders offer equity loans to homeowners who can't afford them. This is called equity stipping. If you don't have anything but equity in your home, abusive lenders could try to get you to pad your income using a home loan. They count on you not affording the payments. The lender then waits for you to default on the home and they foreclose. You lose your home. Never agree to a loan you know you can't afford. If something sounds like the easy way out, you need to look again. Make sure that you have an attorney that you trust read over everything you are offered. Don't sign anything without concurring with someone you trust. Don't ever allow yourself to be pressured into signing anything. In fact, don't ever give out your personal information to anyone who contacts you. You should only give your information to reputable businesses that you are sure of. Be aware of lenders who come to you. After all, your bank doesn't try to give you money. Be wary of anyone who does this. And finally -- don't trust anyone. At least, not with your money. |
