Equity-stripping scams Quiz

1. What is equity stripping?

A. A legitimate financial strategy to increase home equity B. A type of fraud involving loans against valuable assets C. A government program to help homeowners

2. What do scammers typically promise in an equity stripping scheme?

A. To help the victim get out of debt B. To provide free financial advice C. To offer a low-interest loan

3. Which of the following is a recommended step to prevent equity-stripping scams?

A. Accept unsolicited offers to improve your financial situation B. Work only with reputable lenders and financial advisors C. Avoid reviewing loan agreements before signing

4. What should individuals do before signing any loan agreement?

A. Seek advice from a trusted financial advisor or attorney B. Ignore any unclear terms in the contract C. Sign immediately to secure the offer

5. What action should be taken if you suspect being a victim of an equity stripping scam?

A. Ignore it and hope it resolves itself B. Report it to the authorities and seek legal advice C. Continue making payments to the scammer