U.S. subprime crisis exposes mortgage scams

[Happy renter]

With 11% rate, how can a loan balloon into $234K from $89K in 9 months? I feel the reporter is misleading. He wants the audiences feel all borrowers are poor victims and all lenders are evil robberies.

**Nine months later, her $89,000 mortgage has ballooned into a $234,000 loan, her monthly payments have doubled and she faces foreclosure on a house she no longer owns. Housing officials call Cunningham the victim of one of the worst cases of predatory lending they’ve ever seen and warn.

The result: Cunningham says her mortgage, an $89,000 loan at 8.5 percent when she bought the home in 2000, is now a $234,000 loan at 11 percent. Monthly payments have gone from $1,038 to $2,275. And her name is no longer on the title.***

http://www.signonsandiego.com/news/business/20070326-0529-usa-subprime-scams.html

[kewp]

They will have my sympathy when I get my ‘kewp has to live in a sh!tty apartment because of all the idiot FB’s’ article.

[Happy renter]

It is my Guess! I think may be she borrowed $89k in 2000. 9 months ago, she refinanced with higher loan or got the equity loan. But the reporter did not mentioned it and “How Much Money did she Cash Out?”.

The reporter made it like the lender robbed Cunningham $145K and also her house. It sounds stupid, but I think a lot of Ignorant Americans blieve it and give Poor Cunningham mercy & bail out.

Once again, she should be responsible for what she signed!!

[no_such_reality]

It is my Guess! I think may be she borrowed $89k in 2000. 9 months ago, she refinanced with higher loan or got the equity loan. But the reporter did not mentioned it and “How Much Money did she Cash Out?”.

That’s because it’s called an equity strip. It is a well know scam by people promising credit or foreclosure help.

The key is ” And her name is no longer on the title. ”

Someone else took the money out and left her with the bill.

[Happy renter]

no_such_reality,

So, it’s really a scam and she signed her house away without getting any moeny.

[drunkle]

“Gabriellee Cunningham had fallen behind on the mortgage on her modest suburban Miami home and was mired in debt when she was approached in June by a door-to-door “mortgage lender” who promised to help her. ”

the first paragraph says it all. she was already in trouble to begin with, an offer of assistance probably went over real well with her.

[kev374]

it’s ridiculous that these deadbeats are blaming the lenders now. Yes, the lenders were predatory but aren’t all salesman like that to a certain extent? This woman most probably took cash out equity. Now, she did not have any problems spending all that money.. and now she is crying? For what? I don’t get it.

[carlislematthew]

These people that fall for these scams and sign anything in front of them fall into a number of categories:

1) Stupid, through no fault of their own, and were actually lied to and scammed out of their money/house/whatever. In this case, the law should protect them, or laws should be made to protect them.

2) Fools, through willful ignorance. Average people who wanted to get rick quick, saw the housing train and got on board. They didn’t care about the loan, the rate. That stuff doesn’t matter as you “have to live somewhere”, and you’ll “make tons of money” and, hell, you “save money with the tax deduction”. They saw the big fancy house, they wanted it, they bought it, they signed up.

We’re seeing far too many articles from the (1) category when it is my belief that these people are in the minority and that the fools in the (2) category are the vast majority that will lose their homes.

Someone please tell me why average Joes spend days or weeks researching their next car, but can’t figure out interest rates and money? It takes some effort, but it can be done. It’s only the BIGGEST FINANCIAL DECISION YOU’LL EVER MAKE IN YOUR LIFE, after all. I mean, why on earth would you bother to learn about what you’re signing?

[Happy renter]

This Scam is specious:

1. I still feel Cunningham might get some cash from the lender. Otherwise, what did she sign for?

2. The article did not mention if she got any money, but it does not mean she did not. Or the reporter did not check if she got any money from the lender.

3. Nobody knows what did the lender say! Everyghing is accoding to Cunningham.

If she really sign off her house’s title to a “Stranger” knocked at your door without getting any money and without looking the document. I would say this is more like a Joke, but not a scam.

[recordsclerk]

It sounds like this poor lady got scammed. The worst part is she got scammed because she was desperate and not greedy. Most scams are done on greed. A deal is too good to pass up and you get scammed. This poor lady was just desperate and dumb. If she actually got cash out during her refi/scam, then I’m the bigger fool for getting scammed into feeling sorry for her.

[recordsclerk]

“They sent a black guy. I’m black,” Cunningham said. “He said he was a Christian. I’m a Christian.”

This has got to be the most pathetic part of this whole story.
My wife was in her last year of her RN program. So she met this fellow student who wanted to talk to her about some investment in real estate, real estate sales and lending commission type pyramid thing. Anyway my wife is Filipino, the couple that came over with this pyramid thing was Filipino, my wife is catholic and so were they. How stupid or blind would I have been to ignore the facts just because these people were of the same race and religion as my wife. They couldn’t even answer half of my questions. They wanted something like $5,000 to join this thing. Of course I was polite since this was my wife’s friend. I believe the scam in Temecula involves Filipino Nurses. I’m pretty sure they were Catholic also.
I’m sorry but these people need to stop using excusses.

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