[quote=flu][quote=andymajumder]I was thinking exactly along similar lines after reading Flu’s proposal 🙂
Think about it, this was quite easily doable during the bubble years when appraisal process was completely messed up….buy your friend’s house at a over inflated price, get a kickback and than default on the non-recourse loan.[/quote]
I really hope you folks don’t think I was serious…
AINT GONNA WORK….
It’s called “strict appraisals”… Though housing in bay area is still crazy, it’s not as crazy at those levels…
And no, I don’t want to be the guinea pig seller. Thanks, but no thanks. I’m pretty happen with the tenant right now…[/quote]
I used to believe there were “strict appraisals,” but have seen enough flips lately that negate that theory. I’ve seen flippers make $100K-$150K in a couple of months with maybe $20K in “improvements.” If appraisers are valuing the **same house** $100K+ more than the what it sold for just a few months ago, the whole system is broken.
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BTW, you absolutely CAN get zero-down financing right now. I’m helping a friend deal with a foreclosure/short sale situation right now, and they’ve had multiple offers on their SS. One of the offers was for well above asking price, 3.5% down, courtesy of taxpayers/FHA and “seller concessions” (don’t even get me started on this!) of 6%. We’re right back to people **being paid to buy a house with no skin in the game!!!** (can you sense my frustration?)
Quite frankly, with the way the govt has screwed over responsible buyers and savers, I think the idea of buying with the intent of strategically defaulting is brilliant and it’s giving the govt EXACTLY what it’s asking for.
More bailouts/stimulus = more fraud. Once the govt gets this, we might be able to find our way out of this mess.
