Foreclosure equity stripping is the classic case of kicking someone who is down. The person perpetrating the equity strip-let's call this person the "acquirer"- targets homeowners who are in foreclosure and have equity remaining in the property. Promising to "save" the home for the desperate homeowner, the acquirer offers refinancing or other assistance to "stop the foreclosure." For too many foreclosed homeowners, these promises end when the acquirer or the acquirer's confederates gain title to the property and take the homeowner's equity.
Prentiss Cox, Foreclosure Equity Stripping: Legal Theories and Strategies to Attack a Growing Problem, 39 Clearinghouse Rev. 607 (2006), available at http://scholarship.law.umn.edu/faculty_articles/275.