Sunday, March 16, 2008 8:02:20 PM
>> NEVER EVEN MADE THE FIRST PAYMENT!
Some of the "comparable sales" in the last few years were mortgage frauds. For example, a seller was unable to sell a house for $600k, after a year on the market with no takers, he got a call from an "investor" who was willing to pay the full price then some, say $700k! The seller was ecstatic, but there's one catch: he had to raise the price to $1.5mil. So he took the house off the market, and after a few weeks relists for $1.5mil. The "buyer" has the house appraised for $1.5mil by one of his partner in crime; the seller gets $700k, the appraiser gets $100k, the the "buyer" takes the remaining $700k and never makes a single payment to the bank. Now the $1.5mil is the new "comp," and the whole neighborhood is abuzz with the new higher price
Now, that's the sort of deals that some of the lawmakers want to bail out at the cost of debasing our money!
Some of the "comparable sales" in the last few years were mortgage frauds. For example, a seller was unable to sell a house for $600k, after a year on the market with no takers, he got a call from an "investor" who was willing to pay the full price then some, say $700k! The seller was ecstatic, but there's one catch: he had to raise the price to $1.5mil. So he took the house off the market, and after a few weeks relists for $1.5mil. The "buyer" has the house appraised for $1.5mil by one of his partner in crime; the seller gets $700k, the appraiser gets $100k, the the "buyer" takes the remaining $700k and never makes a single payment to the bank. Now the $1.5mil is the new "comp," and the whole neighborhood is abuzz with the new higher price
Now, that's the sort of deals that some of the lawmakers want to bail out at the cost of debasing our money!
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