Mortgage scheme preys on struggling homeowners - 2004-02-26
Equity strippers generate profit by acquiring
houses in foreclosure under the guise of helping their owners. The scheme typically goes like this:
• • The equity stripper contacts a homeowner who has built substantial equity but has fallen behind in payments and is facing foreclosure.
• • The equity stripper offers to pay off the mortgage balance and rent the home to the owner with an option to buy it back.
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