Equity Stripping

Business, Legal & Accounting Glossary

Definition: Equity Stripping


Equity Stripping


Full Definition of Equity Stripping


Asset protection maneuver which occurs via two methods: 1) a mortgage lender or private party extends credit or a loan against existing equity to homeowners attempting to avoid creditor collection activities. (The additional encumbrance makes the property unattractive to creditors) or 2) through a process whereby a third-party purchases the house for the mortgage balance and sells it back to the homeowner, charging fees that strip equity from the homeowner. Also called equity skimming.


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https://payrollheaven.com/define/equity-stripping/
Modern Language Association (MLA):
Equity Stripping. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 28, 2024 https://payrollheaven.com/define/equity-stripping/.
Chicago Manual of Style (CMS):
Equity Stripping. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/equity-stripping/ (accessed: March 28, 2024).
American Psychological Association (APA):
Equity Stripping. PayrollHeaven.com. Retrieved March 28, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/equity-stripping/

Definition Sources


Definitions for Equity Stripping are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.