Sample Hardship Letter: In an equity-stripping scam, an unscrupulous mortgage lender will come to you with an offer to get you a loan; this person is usually aware of your poor financial condition. The lender pushes you to exaggerate your income on the application form to get the loan approved. You accept the loan because you need the money, even though you aren’t entirely sure that you can afford the monthly payments. The moment you default on your mortgage payments, the lender will rush in to foreclose your property and strip you of your home’s hard-earned equity. equity stripping began to spring up in the early 2000s and is conducted by investors or small companies that take properties from foreclosed homeowners in exchange for allowing the homeowner to stay in the property as a tenant. Although “foreclosure reconveyance” schemes can be beneficial and ethically conducted in some circumstances, many times the practice relies on fraud and egregious or unmeetable terms. Hardship Letter.
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