Fraud has legs

Mortgage fraud continues unabated, and is evolving… upside down homedebtors jiggering the figures in order to buy another (now cheaper) house by fabricating their current house’s rental potential; once in their new digs, they default on the old house.

Sure, they take on a credit hit for the next five years, but meantime their house payment has just got down by half- or more.

I wonder how it is so many homedebtors figure out the ways of the con? Ah well, as it turns out, they have help…

” ‘Many of the brokers think it is OK, which is ridiculous. It is out and out fraud,’ Pfeifer said.

Pfeifer blamed the abuses on homeowners desperate to keep houses on which the mortgages have reset at higher interest rates and on ‘brokers who are out to get a commission and don’t particularly care how.’

‘The classic characteristic of mortgage fraud is that people think of it as a game,’ he said. “

Favortie part has to be the Christian who invokes situational ethics to justify his actions:

“His Christian beliefs told him lying was wrong, and his parents had taught him to pay his debts, he said.

” ‘The only way I can justify it (lying to his lender) is that I think a lot of people made a lot of money selling bad mortgages to anyone who walked in the door,’ he said.”

Clear as mud.

As is so often the case, the comment section is worth reading as much as the article.



3 Responses to Fraud has legs

  1. Paco Bell says:

    Isn’t sickening how many people screwed up and now want a do-over?

    More evidence for the author of the article that many people consider mortgage fraud a game.

  2. […] game, and a little more erosion just occurred. It is true that in the housing markets this is still(!) going on via unchecked fraud (buyers, sellers, mortgage brokers, appraisers, realtwhores- everybody […]

  3. Robert says:

    I get mad whenever I hear Obama or McCain describe people as “homeowners” who put no money down, paid nothing toward the principal, enjoyed cheap teaser rates. These people have LOST NOTHING. Stop treating them like victims.

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