For many low- and moderate-income homeowners, home equity represents their single largest asset. 1 Unfortunately, unscrupulous lenders and real estate sales people are targeting low-income residents in fi nancial distress to profi t from rising house values. They are offering equity-stripping refi nancing, selling over-appraised homes to fi rsttime buyers, and offering fi nancial assistance that can place unaware homeowners in serious jeopardy of default, foreclosure, or eviction.
Ababon, A. (2006). The double-edged sword of borrowing: Increasing costs of homeownership and the roles of property and loan flipping in New York City. Cornell Real Estate Review, 4, 65-88.