If you’re looking to rescue your home from foreclosure, equity stripping might help you. This is something that can save you in several ways:

1. You get some money out of your house
2. You don’t get dinged with foreclosure on your credit rating
3. You can live in your house as a renter and not have to move.

The cons of this system are that it is considered predatory lending. Although the lenders benefit significantly by giving you only a percentage of your equity, if you are in a dire situation facing foreclosure, this could be a good option for you that saves you from losing everything you’ve put into your house.

Be careful when looking at these types of lenders and read the fine print. If you are in danger of losing your house without other options, equity stripping could be the lesser of two evils.