How lending schemes hurt you

Some homeowners are trying to cheat the system by allowing their loan to go into default and then getting relatives or friends to buy back their house for less money.

As Mike McHugh of Melville-based Continental Home Loans tells Newsday: "The bottom line is somebody is being stuck with the loss. We're all paying for that every day. We're paying for that in the cost of our banking system. We're paying for that in the cost of our loans."

Read the full Newsday report here.