Be wary of builders, painters or landscapers that know exactly where you can get a home equity loan to pay for their work. You may not be dealing with a legitimate workman, but with a front man working for predatory lenders.

After homeowners take out the loan and pay all the fees, the lender claims to write a check directly to the fake contractor. The contractor does a shoddy job -- or no job at all -- and disappears.

The lender says that's the borrowers' problem. They're still on the hook to repay the loan or face foreclosure.

For many reasons, home equity lending attracts more than its share of charlatans. Click here to learn more about protecting yourself from predatory lenders.