Stripped Clean

Everyone's trying to figure out what makes equity stripping illegal. Misty Collins just wants her house back.

A A A Comments By Sheila Mulrooney Eldred Wednesday, Jul 21 2004

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But even with Kolar's proclaimed magnanimity, there's a huge price to pay. What investors don't say, contends Becky Gomer, ACORN's head organizer, is that homeowners are often financially better off with their equity than with the opportunity to lease their home. Most equity-stripping victims lose tens of thousands of dollars in equity.

Meanwhile, Collins's case remains unsettled, and only chipping paint and crumbling steps indicate the havoc inside her house. A friend rescued the family from the streets the day of the eviction, paying for a hotel for the weekend. But afterward, Collins says the family returned to find the home cleared of most belongings, although the family maintains residency thanks to a judge's order. The house is now furnished with old mattresses and broken furniture recovered from neighbors' trashcans.

Raoul Benavides

Hoodwinked: A court will decide whether Misty Collins can own her home again

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As she waits for her trial in November, Collins considers herself lucky to have a lawyer and a place to live, at least temporarily. But because of the legal loopholes and uncharted territory that equity stripping broaches, the house could still slip through her hands.

"We have nothing besides our house," Collins says. "I'm hoping and praying to God we don't lose that."

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