
12. The Mother Of All Scams Ends With A Loan Against Your Home.
According to the Federal Trade Commission, some of the most wicked contractors will try to scam you out of your home itself. The scam goes something like this. The person will approach you with the offer to do a home renovation project, such as putting a new roof on your house to get those solar panels you have wanted to install. The only problem is that you were not planning on this project and did not have the funds. Never fear because the contractors know a lender who will be more than happy to offer you a great deal on financing. Oh, surprise, the lender is actually in the neighborhood and has the paperwork for you to sign.
The paperwork for financing may not have been filled in, and the contractor and lender may rush you to sign without reading it carefully. They do not want you to know that the paperwork for financing is a loan against your home, and once you sign it, you will have very few options. The contractor will do very shoddy work that could actually damage the structural integrity of your home. You will be left with much more than a bill paying for those “services.” If you do not come up with the money right away to pay the contractor, you could end up losing your home.