Buzzword: Equity stripping

Marketplace Staff Jul 6, 2007
HTML EMBED:
COPY

Buzzword: Equity stripping

Marketplace Staff Jul 6, 2007
HTML EMBED:
COPY

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.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.