[quote=SD Realtor]Peter I know man… sad but true… I have heard alot of stories like that.
Diego… yes fraud is running rampant. It seems pretty darn easy to “create” a relative, gift the downpayment money and presto the buyer gets the home.
I cannot tell you what percentage of people commit fraud but it would not surprise me at all if it is higher then ever.
I wouldn’t even raise an eyebrow if the government soon just becomes a direct lender. Isn’t that the next logical step?
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With the govt funding most of the loans — either directly or indirectly, we might as well just call it a government-financed mortgage system.
Also agree with you about the fraud. Basically, if you engaged in fraud over the past few years, the govt applauds you and gives you “free rent”! If you’ve saved and tried to stay out of debt, then you are graciously offered 0-1% rates on your liquid savings. You’d be a fool **not** to engage in fraud. The government wants fraud, and that’s what they will get. BTW, the fraud going on right now WRT mortgage paper is the most egregious — all funded or backed by the taxpayers! Their message is being heard loud and clear.
Add to that the fact that the liars and cheats are branded as “victims” while the buyers who still remain on the sidelines are called “stubborn”, “unrealistic”, “greedy”, etc. shows us which side the govt is on.
It’s sickening, but what else can we do but wait them out?
