Shotgunning

“Shotgunning” refers to the practice of attaining more than one home equity loan at the same time for a sum significantly greater than the actual value of a property. The owner of such a property may simultaneously apply for loans with multiple lenders, or a “shotgunner” may sell the same property to several different purchasers at once. There is no universal credit bureau for lenders or buyers, which can make “shotgunning” problematic to identify.