Well it's a sad situation, but for one I am not surprised. The Foreclosure firestorm has created a wildfire that is getting out of control. Home owners who are stressed and strained with the burden of subprime mortgage debt that's just too much to handle are snapping all over the land. According to the latest reports many are resorting to torching the house rather than lose it to the bank. Detroit, Cincinnati and other major cities are experiencing an abundance of home fires suddenly.
The strange coincidence is that these home fires seem to all have one common denominator. They were all in various stages of the foreclosure process. Looks like homeowners are taking matters into their own hands and literally fanning the flames of the foreclosure housing fire sale.
Is it any wonder? I don't say it's right. Actually it's wrong, but look at the situation. Several thousand people were actually scammed when they purchased these homes in the first place. Despite what the media says, there are thousands of people who just didn't understand what they were getting into and in fact after they signed loan papers thinking they had one deal, they in fact ended up with another. The reason? The documents were changed after many of the home buyers signed the papers. They never even looked at them after the deal closed. They were just happy to have a home.
Think I'm blowing smoke. Think again. According to a recent USA Today report, the FBI opened 1,210 mortgage fraud cases in fiscal year 2007, nearly triple the number of new cases in 2003. Convictions total more than 260 in 2007. Within that article FBI financial crimes section chief Sharon Ormsby states "We expect that number to increase in 2008"
It's clear that mortgage lenders and banks are the primary culprits in this mortgage mess. Now that they are going down in flames they cry foul and want the federal government and the consuming public to bail them out. I don't think they deserve any symphathy. How about cutting the bogus mortgages in half and allowing the people to keep their homes. That seems like a reasonable solution to me.
Even then we will never recover from all the money that was stolen from the unsuspecting consumers who are caught up in this perfect fire storm.
I personally know of one young Hispanic female who was duped into signing papers to get a home and ended up with fraudulent papers being submitted in her name and on her credit, which was in the mid 700's. She works in a hotel cleaning rooms for a living. When she realized what had happened two loans had been obtained in her name and she owned two propertys. She couldn't afford to make the payments. The homes were foreclosed on, she lost her good credit, reputation and now suffers other personal and financial problems as a result of this.
Her fault? I don't think so. I looked at the papers myself and from an attorney's stand point it was clear fraud. I don't feel sorry for the banking industry.
What's your take on it?
Roy Landers, attorney and real estate broker/investor teaches what’s working and making money in the current real estate market with FREE content from The Real Estate Playbook, the place where savvy home buyers, sellers and investors gather information to build a solid financial foundation.
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