Scam operators are all too aware of this and are willing to do whatever it takes to steal this equity.
Techniques used in home equity schemes vary but they typically involve the same key features.
The first step is for the con artist to get the owner to sign a first, second or third mortgage. Frequently this isn't difficult because all that's required is the home owner's signature. The loan documents, including the mortgage, are written in fine print and many home owners have no idea what they're signing. They frequently are coupled with a balloon payment a few years down the road. With a loan like this the unscrupulous lender can't lose.