Comments on: How Does This Happen? http://www.up2daterealestate.com/2008/06/19/how-does-this-happen/ Brought to you by Doug and Deena Willis Wed, 25 Aug 2010 15:49:51 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Creative Financing Gone Awry » Pasadena California Real Estate Blog http://www.up2daterealestate.com/2008/06/19/how-does-this-happen/comment-page-1/#comment-1065 Creative Financing Gone Awry » Pasadena California Real Estate Blog Tue, 19 Aug 2008 04:38:19 +0000 http://www.up2daterealestate.com/2007/08/26/how-does-this-happen/#comment-1065 [...] radar this would be a much more easier way to pull it off consistently as opposed to other forms of mortgage fraud, previously reviewed here. However if you can get in with nothing down, then the opportunity for [...] [...] radar this would be a much more easier way to pull it off consistently as opposed to other forms of mortgage fraud, previously reviewed here. However if you can get in with nothing down, then the opportunity for [...]

]]> By: Tim K. http://www.up2daterealestate.com/2008/06/19/how-does-this-happen/comment-page-1/#comment-651 Tim K. Fri, 20 Jun 2008 16:55:52 +0000 http://www.up2daterealestate.com/2007/08/26/how-does-this-happen/#comment-651 Here's how this happens - mortgage fraud. The home was likely sold to straw buyer who only agreed so both the seller and buyer could split the $300K gain, fully intending to not actually pay the mortgage. Both parties end up with $150K of easy money, and the lender gets screwed. This scenarios happened all over this country during the 2005-2007 because it was so easy to get away with it - when nobody was analyzing the loans, this kind of fraud was rampant. The 850K sales price was not "real". And, as we're seeing now, neither was the $550K price. Here’s how this happens – mortgage fraud. The home was likely sold to straw buyer who only agreed so both the seller and buyer could split the $300K gain, fully intending to not actually pay the mortgage. Both parties end up with $150K of easy money, and the lender gets screwed.

This scenarios happened all over this country during the 2005-2007 because it was so easy to get away with it – when nobody was analyzing the loans, this kind of fraud was rampant.

The 850K sales price was not “real”. And, as we’re seeing now, neither was the $550K price.

]]> By: Lets Play Lender Roulette » Pasadena California Real Estate Blog http://www.up2daterealestate.com/2008/06/19/how-does-this-happen/comment-page-1/#comment-74 Lets Play Lender Roulette » Pasadena California Real Estate Blog Thu, 18 Oct 2007 03:49:18 +0000 http://www.up2daterealestate.com/2007/08/26/how-does-this-happen/#comment-74 [...] in just two years? Unfortunately, it is just one more example of how loans were being carelessly funded without the proper research and documentation and the predominant thinking that home prices would [...] [...] in just two years? Unfortunately, it is just one more example of how loans were being carelessly funded without the proper research and documentation and the predominant thinking that home prices would [...]

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