I’m not thinking of fraud, I’m simply thinking breach of contract. The buyer didn’t do fraud, he bought and re-appraised at market rate.
The appraiser hit the number for the paycheck.
The loan officer pushed the loan for the paycheck.
The underwriter verified the few numbers for the paycheck.
The bank pushed the whole no-doc/little doc stuff through for the profits.
The investment banks bundled and sold it to make their fat annual bonuses.
And the fraudsters churned the neighbor to push the comps.
Now the ‘owner’ is looking at it going hey wait a minute, these people have pushed $1.5 million on me for a house of straw.
Don’t get me wrong, the buck stops with the owner/buyer. but the complicity runs through the whole industry.
In the end, as the others said, I have a feeling, I’m going to hold the bag on the bail out.
I think I’ve been telling everyone to buy gold and silver coins with the home equity withdrawal money and squirrel them away somewhere. Make sure you buy with cash at coin dealer shows and bury it in your parent’s yard or something.
Go bankrupt every 10 years and make sure you take $500K out of the bubble-house and then default. There’s no limit to the number of times you can default. The bankers are only risking other people’s money and the government can just print more to bail out the depositors if the bank goes under.
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