…is like saying there was no fraud that took place during the last few years in housing.
- No loan officers falsified loan documents
- There was no signature fraud
- No escrow/title agents producing phantom Settlement Statements
- No complicit real estate agents in the loop
- No complicit Notary Public signers
- No fraudulent appraisals
- No cash back post closing fraud transactions
- No buyers buying homes to flip which were financed as “primary residences.”
- Short sales are rarely the result of fraud initiated by any of the above.
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10 responses so far ↓
1
S-Crow
// Mar 19, 2008 at 9:05 pm
Inspired by Biliruben’s forum post.
2
Everett Renter (Used to be Buyer)
// Mar 20, 2008 at 5:43 am
Intriguing post S-Crow.
I once heard part of the closing portion of home buying referred to as legalized extortion. Based on this post looks like there may also be an illegal element associated with home buying as well. For us first time buyers, further explanation from anyone on what things like this that can happen in the process would be a very helpful education. Thanks much in advance!
3
TJ_98370
// Mar 20, 2008 at 10:02 am
Confessions of a Subprime Lender
4
S-Crow
// Mar 20, 2008 at 10:25 am
TJ-
Good article. In hindsight, if making money was my sole goal in life, there would be two businesses that I would invest in. 1) Title Insurance 2) Lending.
One thing that I really screwed up on was not investing a dime in Title Insurance over the last 5 yrs. And, not having the knowledge to short the heck out of mortgage insurers over the last year.
So many Short Sales have been non-owner occupied. In other words, they were bought to flip. As hard as this is to fathom, I’m still seeing people trying to flip a home in this environment. The key is the purchase price.
5
Ray Pepper
// Mar 20, 2008 at 10:37 am
Don’t think anything has changed with the “fraudulent” appraisals. I had some nice Thai food for lunch yesterday with 3 appraisers who stated the pressure to meet value is more then ever.
One of the appraisers has rejected 3 that were sent to him in the last 3 weeks saying in his prelim he couldn’t support the price. The appraisal was quickly sent to another appraiser and was completed. He lost out on about 675.00.
The “pressure” on these guys in a declining mkt is intense. Same old story but just a different day.
Ray Pepper
http://www.500Realty.net
6
TJ_98370
// Mar 20, 2008 at 10:54 am
S-Crow - I agree that people are still attempting to flip. A couple from out of state recently bought an older farm-type home near where I live in Central Kitsap. They’ve poured significant bucks into renovation and I expect a for sale sign being planted on the front lawn any day now. This house is right next to a similar one that has been on the market for nearly a year. It’s like this couple is totally clueless of current market conditions.
7
Mike626
// Mar 20, 2008 at 3:10 pm
I’m wondering why in the bulleted list above there is a block of spam links with a style assigned of “display: none”
As of 2:53 PDT today, the source of the list item that reads “No buyers buying homes to flip which were financed as “primary residences.”" looks like this:
[edit by The Tim: snipped]
8
The Tim
// Mar 20, 2008 at 3:42 pm
Um, that is weird Mike626. I cut it all out of there, and don’t know how it got in. Perhaps S-Crow copied the source of his list from some site with the hidden code, or maybe he’s got some kind of malicious toolbar installed. Either way that’s just odd. S-Crow, any ideas?
9
S-Crow
// Mar 20, 2008 at 4:18 pm
Nope. I see nothing but normal bulleted list. I’m running Firefox . I didn’t copy and paste anything. Typed from my thoughts.
10
biliruben
// Mar 20, 2008 at 4:38 pm
[i]Inspired by Biliruben’s forum post.[/] - S-Crow
Assume you are talking about the comp killers reply?
That’s just a crazy drop. Any idea whether a bank would go for a quarter million short-sale in Seattle?
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