home equity - How to spot home equity loan fraud

Be wary of any business that actively solicits you, particularly if the firm already seems to be aware of your financial plight.
Watch out for businesses that say they're not concerned with your ability to repay the loan. The ads may say "No income or credit check. If you have equity, we'll guarantee the loan." These catch phrases may be a tip-off to an unfair scheme.
Look for discrepancies between the promised or stated interest rate and the annual percentage rate (APR) figure required in all consumer loan contracts (Truth in Lending). If that figure is significantly higher than the rate stated in the contract, the loan contains hidden interest charges.
Determine who the lender is. A lender could be nothing more than a few individuals in for a quick score. Does the agent have an office? Is the company an old and established one with community ties?