Equity skimming and any type of mortgage fraud charges must be fought aggressively with an experienced attorney on your side. Phoenix White Collar Criminal Defense Attorney Ashley D. Adams is a former Assistant United States Attorney in Arizona. She now uses her knowledge of federal prosecution for the defense of her clients. For a knowledgeable and aggressive attorney with the experience to defend your rights, call 480-219-1366 for a candid, confidential and complimentary consultation Adams & Associates Criminal Defense Group.


Most mortgage fraud schemes contain a material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase or insure a loan. “Equity skimming” is a type of mortgage fraud that consists of the practice of purchasing residential properties whose owners are in default on their mortgages or real estate taxes, and then diverting rental income from these properties for personal gain rather than applying the rental income towards the overdue payments. This practice “skims the equity” out of a property. In most cases, a “buyer” approaches a homeowner that is either in foreclosure or is rapidly approaching foreclosure but still has equity in the property. The buyer offers the homeowner a new mortgage in exchange for the transfer of title on the deed of the property. The buyer then collects rent from the homeowner with the promise to use it to make mortgage payments. The buyer may also promise to deed the property back once the mortgage is paid. However, the buyer never makes the mortgage payments and allows the mortgage company to foreclose. Equity skimming can also involve:

The following summarizes the key elements of equity skimming:

  • the homeowner in danger of foreclosure is approached by a so-called investor with a “rescue plan”

  • the homeowner deeds his or her home to the investor

  • the homeowner signs a rental agreement

  • the investor offers the homeowner an option to purchase the house back (at a price that is always higher than the price the homeowner sold it for)

  • the investor collects rent from the homeowner

  • the investor fails to make mortgage payments as promised

  • the original mortgage holder forecloses on the house

Equity skimming is a serious type of mortgage fraud that can lead to a prison sentence and heavy fines. Equity skimming on mortgages issued by the Federal Housing Administration is a federal crime that can involve FBI investigation and aggressive federal criminal prosecution. If you are under investigation or have been charged, contact the Law Offices of Ashley Adams immediately. 


At Ashley D. Adams, PLC, we have a well-established track record of success that can make a difference, whether in defending charges of white collar crime, health care fraud, financial fraud, general fraud charges, other criminal or civil matters, or representing our clients during a government investigation.

Ashley D. Adams, Principal
+1 (602) 524.3801

Adams & Associates, PLC

7502 E. Monterey Way
Scottsdale, AZ 85251
Phone: 480.219.1366
Cell: 602.524.3801
Fax: 480.219.1451



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