equity stripping

(redirected from Equity skimming)

equity stripping

A term applied to a variety of sleight-of-hand practices,most often:

• Offering to assist homeowners facing foreclosure through buying their home and then selling it back to them, usually at rates and on terms guaranteed to result in default and loss of all equity

• Protecting assets from creditors by encumbering the equity with loans from friendly creditors, such as relatives, who won't foreclose if you miss a few payments

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Builder Bailout 2% Advance Fee 2% Foreclosure Rescue 2% Commercial Real Estate Loan Fraud 4% Short Sale 4% Real Estate Investment 7% Title/Escrow/Settlement Fraud 14% Loan Origination Schemes 62% Equity Skimming 2% Bankruptcy Fraud 1% Source: FBI, "2010 Mortgage Fraud Report, Year in Review," August 2011.
"Some of the current rising mortgage fraud trends include equity skimming, property flipping and mortgage-related identity theft."
The USDA's previous guidance for this program was revised to address the OIG's concerns about potential "equity skimming" that they have found occurring in this program.
The report notes significant new trends in mortgage fraud as well, including equity skimming and more sophisticated property flipping.
Michelle Ku, representing Community Legal Service for Mid-Florida, also told the committee that each of the questions constitute UPL and many of the companies involved in mortgage foreclose assistance are engage in "equity skimming."
"Some of the current rising mortgage-fraud trends include: equity skimming, property flipping and mortgage-related identity theft," said the report.