Buzzword: Equity stripping
An “exposed” housing scam brings us this weeks Marketplace Money buzzword: Equity stripping.
Equity stripping is a con that tempts cash-strapped homeowners. The strippers say they’ll refinance the owners’ homes, give ’em cash, lower their payments and let them keep their house. But in reality, the dirty dancer takes over the deed, and borrows as much as possible against the house’s value. And the owner loses their home.
Regulators worry there’ll be more victims falling for this scheme, so many states have passed laws against it — ’cause this show is definitely obscene.
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