Not agreeing to the terms that are in your favor does not make the deal a 'scam'.
Title states collateral will be provided when it is not ---> scammy behaviour. Offered deal is extremely dangerous.
The collateral value overtime is not a consideration in whether I pay or not - I must pay, because you are supposed to pay back your loans no matter what. Am I missing something here?
Yes. The purpose of collateral is to insure the lender against the borrower. For more benefit please read here:
http://en.wikipedia.org/wiki/Collateral_(finance)
To call this standard arrangement a 'scam' because it did not settle in your favor - what a joke. You apparently think loans are supposed to be 100% in your favor and know nothing about how deals like these work. It's a trade off, and 3rd party escrow acting as the insurance against fraud - an option that I favor.
Beginners tend to mix LOAN with INVESTMENT. Is this a loan request or an investment opportunity? Secured loans are supposed to be 100% in the favor of the lender unlike an investment which exposes both parties to risk.
Please check it here:
http://en.wikipedia.org/wiki/Loan --- under SECURED section.
You try to cater serious investors, please act accordingly.