Here’s a cautionary tale of what can go wrong in this largely unregulated segment of the real estate industry:
$22 Million Unaccounted For
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Here’s a cautionary tale of what can go wrong in this largely unregulated segment of the real estate industry:
$22 Million Unaccounted For
BanteringBear
Wow. Sounds like a classic case of take the money and run. There is rampant fraud throughout the industry right now. It’s pretty disturbing as it hurts everyone in the long run. The mortgage fraud has reached epidemic proportions. I have found a few examples here in Reno, of homes which sold for hundreds of thousands above recent comps (using straw buyers I suspect), which enter foreclosure only months after the sale. I am sure they are cash back at closing transactions. All it takes is a crooked appraiser, mortgage broker, realtor, and buyer. The lending institutions need to get a handle on this. But I imagine government intervention and regulation is more likey.
Reno Ignoramus
Maybe this post is a bit off topic, but maybe not. I had dinner tonight with a friend who has twin sons. These young men just graduated from college in December.
One of these young men decided to buy a house right out of college. He was able to buy his house with a nothing down voodoo loan. In fact, the voodoo loan officer even fixed it up for him that he could finance his closing costs by borrowing about 103% of the value of the house. So this young man “bought” a house and didn’t need to come up with any money to do it.
The other young man decided to rent. His landlord required him to come up with first, last, and a cleaning deposit. All together, he had to come up with about $3,000 in cash.
Think about this. It is now easier financially to “buy” a house than it is to rent. At least to become a so-called “homeowner”, although the term “debtowner” is likely more accurate. You can buy a house with no money, and, if you are willing to lie sufficiently, you can borrow hundreds of thousands of dollars too. In order to rent, however, you have to have cash.
Does something seem a bit out of whack about all of this?