Equity Stripping News Articles

This post provides a list of a number of links to news articles available on the Internet on foreclosure rescue transactions involving an equity stripping of the home equity of the financially distressed homeowner by the foreclosure rescue operator.

There are times when the "home rescuer", either after or simultaneously with taking title to the property of a financially strapped homeowner, proceeds to "strip the equity" from the property either:

(A) by getting a mortgage on the property for more than what is currently owed and where the rescuer pockets the difference, or

(B) by selling the property to a third party (who may finance the purchase with a mortgage) and where, again, the rescuer pockets the excess proceeds,

in either case, while the homeowner maintains possession of the home, both before and after the equity stripping.

The following links are to online news articles that reported on incidents where the equity stripping described above took place.

1) Homeowner gets hard lesson in foreclosure rescue plans (Texas)

2) Madigan Sues Another Mortgage Foreclosure "Rescuer" (Illinois)

3) Attorney General Abbott Files Emergency Action Halting Bogus Foreclosure Rescue Operation (Texas)

4) Three Defendants Added To Federal Indictment In Foreclosure Scam Targeting Homeowners In Default (California)

5) Mortgage fraud cases multiply, hit more homeowners (California)

6) False Hopes - Inland homeowners facing foreclosure encounter scams under guise of refinancing (California)

7) State sues mortgage companies in homeowners scam (Illinois)

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