home equity loan refinancing
5 People In Custody For Scamming Homeowners
Three more people were indicted for allegedly bilking Southland homeowners by telling them they could avoid foreclosure, then pocketing millions of dollars in equity, prosecutors said Thursday. Cynthia Valenzuela, 23, of Downey, was charged Wednesday along with Vladimir Stefanovic, 35, of Lancaster, and Maria G. Juarez, 36, of Reseda. The three are charged with playing roles in a con prosecutors allege was masterminded by Martha Rodriguez and Edward Seung Ok, who ran real estate and escrow agencies in Downey and Seal Beach. Rodriguez, a 35-year-old Downey resident, and Ok, a 40-year-old Torrance resident, were charged in November in the case. Both have pleaded not guilty.In all, prosecutors allege the five skimmed off more than $12 million in equity by telling more than 100 homeowners they could stave off foreclosure with short-term loans and refinancing.
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Don't gamble away home equity on gambit
Q: We recently attended a mortgage-company workshop on "equity maximization," in which they touted putting the equity in your home to work earning income and building wealth.
They recommended refinancing to an interest-only loan and investing your equity, plus the difference due to your lower mortgage payments, in an insurance instrument plus side accounts.
The interest-only loan's tax deductions would help offset taxable 401(k) withdrawals.
Another key element was using a death-benefit insurance policy as a primary investment device that would encompass "side funds."
They stated that even IRA accounts could be legally rolled over, in time, to these side funds without tax liability. These funds would then become nontaxable accounts from which you could "borrow" funds monthly for living expenses, etc.