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Foreclosure Equity Stripping

Legal Theories and Strategies to Attack a Growing Problem

By Prentiss Cox

Foreclosure equity-stripping scams are carried out by unscrupulous property "acquirers" who prey on low-income and often unsophisticated homeowners who face foreclosure. As prices of real estate skyrocket and homeowners gain equity, these scams are becoming more prevalent. Against the acquirers, homeowners who fall victim to these scams and are in danger of losing their property may resort to such remedies as claiming an equitable mortgage, the Home Ownership Equity Protection Act, and state laws on unfair and deceptive acts and practices.

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