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What is equity stripping?
Equity Stripping is the process of placing a mortgage on a piece of real property. The mortgage act as a "lien" on the property. A lien is a "notice" attached to the Client's property, in the form of the publicly recorded mortgage, telling the world that a creditor claims the Client owes money. Any person searching the title of that property will see that the property is encumbered by a lien, i.e. the property is not worth its full value unless that note is paid.