Equity Stripping

Let's say you want or need to borrow some money. You may not have much income coming in each month. You have built up equity in your home. There are mortgage lenders that are looking to steal the equity you have built up in your home.

These predatory lenders may tell you that you could get a loan, even though you know your income is just not enough to keep up with the monthly payments. The lender encourages you to "pad" your income on your application form to help get the loan approved.

The lender doesn't care if you can't keep up with the monthly payments. As soon as you don't, the lender will foreclose-taking your home and stripping you of the equity you have spent years building.

If you take out a loan but don't have enough income to make the monthly payments, you are being set up. You probably will lose your home.