Equity skimming/stripping clarification?

[Richard Rodriguez]

Hello all,

I have just become aware of this and have watched a few videos and read some documentation about it but I'm a bit confused. 

If a property is worth 300k and the owner has a 50k mortgage but is in default (so preforeclosure), can I buy the property from him for 100? I would NOT allow the owner to remain in the property nor rent/lease from me. I'd be buying it outright from him/her. I thought this has been going on forever but equity skimming has me wondering. Is this allowed?