If you own your own home it may be your single greatest asset. Opportunites abound for homeowners who are house-rich but cash-poor to turn the equity in their home into cash but beware - not all home equity loans are equal and some lenders may exploit low-income borrowers.

If a lender is aware that your monthly income is not enough to qualify for the loan and advises you to exaggerate your income on the application, the lender may be looking only to a future foreclosure. This type of lender doesn’t care if you don’t meet your obligations, he is looking to take your home in foreclosure when you default on the loan.

Some abusive lenders target the elderly, and those with low-income or poor credit. Don’t sign a home equity loan if you do not have sufficient income to keep up the payments. Lenders who “help” you get the loan approved are setting you up and you will lose your home. Don’t risk your most valuable asset.