In the news today

[rose-colored-coolaid]

[sniglet]

Actually, I would argue that the criminality and fraud are on the DECLINE today, now that the real-estate bubble is starting to deflate. Most of the fraud occured as the bubble was growing, when it was easy to get lenders and appraisers to put their stamp of approval on anything that crossed their desks. By contrast, it has become much more difficult to commit fraud when trying to buy or sell properties in the last 6 months.

The irony is that it is only now that the criminal actions of past years is starting to come to light. Rising prices masked a great deal of the criminal activity taking place while the bubble was inflating. It is only now that all these past sins become obvious.

In fact, all the calls to do something about real-estate fraud are a little late. The time to do something was several years ago. There simply isn't very much new fraud taking place today.

[deejayoh]

[jillayne]

sniglet and I disagree on this but that's okay; disagreement can sometimes lead to insight.

I believe that we have a huge number of people in the real estate industry who received very little training as to what constitutes fraud. Those folks are still writing mortgage loans and selling homes.

Even recently in the classroom when I explained about jacking up the sales price so that the homebuyer would receive cash from the seller under the table after closing, I had an combo agent/lo feign ignorance to that practice being a problem.

Also, with desperate times comes the motivation to act more in line with self-interest.

Further, we do not have enough government resources (state investigators, FBI agents) to investigate and prosecute all the players. I've got to think that some fraud will continue to slide through the cracks and then we all end up paying for it in the form of a massive bailout like what is surely headed our way.

[sniglet]

[rose-colored-coolaid]

[deejayoh]

[Alan]

[deejayoh]

[rose-colored-coolaid]

[deejayoh]

[ira s]

But in the State of Washington, the vast majority of home loans are Deed of trust as opposed to mortgages, which makes foreclosure simpler and faster.
So, while i don't consider it especially fraudulent or even unethical to try to stay in your home for as long as you can get away with, it may be irresponsible for the "Just Walk Away" folks to suggest that you can stay for 8 months. Maybe in a mortgage state, but not likely in a deed of trust state.

[rose-colored-coolaid]

[jillayne]

People want the easy way out and don't want the shame of having to go talk to another human about their situation, even if the cost on that conversation is "Free."

FREE counseling is available through HUD-approved housing counseling agencies. There are hundreds of these avail all across the U.S.

We fund social services like this through our tax dollars. If these people have $1,000 then why aren't they able to take HALF that amount and hire an attorney for themselves in their own state? It may even cost way less than that.

When people are in true financial distress, they can apply to receive FREE LEGAL AID through the local county bar association.

They can get some of these same documents for FREE (such as a copy of their state's foreclosure laws) just by going to the internet.

I for one couldn't open up a service and charge that dollar amount to people in distress when so much is available for free. I guess that makes me a lousy capitalist but at least I can sleep at night. Then again, I'm sure those folks are sleeping well too.

This is nothing more than another foreclosure rescue scam where people are taking advantage of consumers who are easy prey. I wonder what their profit margins are like? They're getting lots of free press, they have to pay attorneys to answer the phones....they could hire baby attorneys fresh out of law school and pay them on the low end.....everything else is free other than the cost of printing and mailing the documents.

These consumers need to have someone explain all the CONSEQUENCES both positive and negative of just "staying in your home and not making payments" for X months.