Finance
In South Carolina, 'equity stripping' in predatory lending refers to:
AA legitimate way to access home equity
BA predatory practice where a lender repeatedly refinances to extract fees while reducing the homeowner's equity✓ Correct
CA strategy to strip a property of its equity before selling
DA government program to assist homeowners
Explanation
Equity stripping is a predatory lending practice where a lender encourages borrowers to repeatedly refinance, charging high fees each time while reducing the owner's equity. The loan amount grows while the owner's stake shrinks, eventually leading to foreclosure.
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