The home equity loan is offered against the market value of your home. Any existing debt is reduced from this value. Your home acts as collateral to ensure that the loan is secured and you will repay it. In the event you fail to repay this amount the lender has a right to foreclose the property and they usually sell  it in public auction.
An attempt to steal the equity in your home is home equity loan fraud. Swindlers do it in number of ways. They may come as a door to door sales person offering easy financing for your home improvements and repairs which your house might not need at that time. You get surprised when you have to pay monthly payments which are out of the line of your income and it may result into failure of payments and foreclosure.
Some gain the trust of the senior people and convince them to sign over the house to them. Or sometimes set up home equity loans. It may happen while refinancing. They forge your signatures on a blank “grant deed” to transfer the ownership of the property. They use the rest of the information from the public records.
 Federal Home Owners Equity Protection Act came into effect in 1995. It ensures that there is no unfair practice. If any of the prohibited terms are included in a home equity loan contract, it is unenforceable. Also the securities interest in the home is removed. The law allows a consumer to cancel the home equity loan contract in three days for any reason. Once loan contract is signed and received the notice of right to cancel then only the three days period would begin which must exclude Sunday.
To prevent any such mis happening with you make sure that you agree to a home equity loan only if you do not have funds to pay bills. Do not sign any document without reading. Make sure you do not deed your property to anyone. If ever you find that you are a victim of home equity fraud, you should contact the state mortgage banker’s agency for further action.