Equity Stripping during Foreclosures

“Equity Stripping”

Equity Stripping can occur when you allow an individual or company to acquire an interest in your property in return for their promise that you will be allowed to lease the property back. Many homeowners presented with this offer see it as an opportunity to remain in their home. However, too often, the loans offered never materialize, the rents charged are outrageously high, or there is a complete loss of equity for the homeowner.

It is always wise to work with a real estate attorney if you are facing a foreclosure. For assistance if you are falling behind in your payments, contact:
Home Ownership Center
Minnesota Housing Finance Agency

For more information on equity stripping, and to view a pamphlet published by the Office of the Minnesota Attorney General, click here.