Ah, the problem with free money, no oversight, Fannie Mae, corrupt appraisers, corrupt mortgage brokers and a system out of control.
This is sickening. Thanks SS for the link. Great reporting by the St. Petersberg Times. For Catherine Reagor of the Arizona Republic - this is how it's done sport.
Bottom line on this one - Company A buys house 1. Immediately transfers to Buyer B for an inflated price, then kicks back (probably in small, unmarked bills) Buyer B. And since the system is broken, nobody cares. But someone, somewhere (China?) in the end is holding that loan, even though Buyer B is obviously going to just walk away.
TAMPA — Jill Jackson is not your average real estate investor.
A 30-year-old single parent, Jackson takes home about $24,000 a year from her job at a credit services company. She rents an apartment in St. Petersburg and, until this year, her assets totaled about $8,000 and her financial statement showed a negative net worth.
She had zero experience in real estate acquisition — until Feb. 28. That day she bought three Tampa homes for $560,000. In the next few weeks, she bought seven more properties. She used 10 different mortgage lenders and managed to borrow 100 percent of the cash she needed for every deal.
The grand total for this greenhorn investor: 10 weeks, 10 purchases totaling $1.84-million, not a single penny down.
Jackson won’t say much about her sudden foray into real estate. She won’t discuss why she paid a huge premium for a handful of lower-value homes in Tampa or reveal how her financial statement and meager income qualified her for almost $2-million in mortgage loans.
"It’s a business I started with the help of others,’’ she said. "The mortgage payments are being made. I can’t talk any more right now.
June 11, 2006
Of course there is fraud with the housing bubble. But read this - even I am amazed
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19 comments:
Taxpayers will be left holding the bag
She probably has her bankruptcy lawyer bills pre-paid, and a side-agreement from the scammer to pay her "under the table" to be invisible to BK court.
Wanna make a bet that when the second phase of the deal happens (defaults) the scammer will scam her too?
No bubble here... Move along..
Yikes - when is this ride gonna stop..I'm feeling sick!
The appraiser who checked off on this and the mortgage brokers who wrote the loan should be in prison too.
What's going to happen to China in all this?
When you have black ghetto trash getting in on the action, you KNOW there's a bubble!
I suspect lots of straw buyer stories are going to come out in the next year or two. Those who orchestrated the scam need to be imprisoned.
The taxpayer bailout of the GSEs in around 2009 is probalby going to be bigger than the taxpayer bailout of the S&Ls. The taxpayer is always left holding the bag.
The Mafia scammed about $30 billion out of the S&L bailout. I wonder how much they'll get this time around "helping" Uncle Sam clean up this mess?
"The taxpayer bailout of the GSEs in around 2009 is probalby going to be bigger than the taxpayer bailout of the S&Ls. The taxpayer is always left holding the bag."
There is NO reason why the US Gov't should "bail out" anybody on this. It is crime and fraud and human greed. Let the bagholders beware. If the Gov't does bail out the bagholders then fraud is rewarded and there is no big correction back to lending sanity.
Instead of jail, ghetto whore should be put on the next plane back to her homeland, Africa.
Yeah every "Jackson" you meet is black...racists...why no venom for the people who are obviously manipulating this ignorant, desparate woman? Anyone like to assume what race they are as well?
Actually, a lot of people are being dupted. The scammers approach people and ask can we "use" your credit? Don't worry you won't have to make any payments. In a year or two we'll sell the property and refinance.
A lot of people fall for this. They typically prey on the uneducated, immigrants, and other vulnerable populations. The real cuprits are the mortgage brokers who are arranging the deal. The mortgages are sole in huge packages to investors and defaults in particular loans are covered by insurance and/or credit swaps.
LA friends
The comment wasn't "racist" it was an observation of reality. Use of the term "Black ghetto trash" indicates a level of prejudice, and what's wrong with that? Or are you telling us that you'd welcome a group of black ghetto trash into you home?
Of course you wouldn't because their morals and values are totally different and you'd be uncomfortable when they took your expensive stereo and sold crack to your daughter. But for people like you it's easier to hide behind the racist mantra and spew political correctness instead of thinking rationally.
Hey, who are you calling a troll? Aren't trolls dark, swarthy little people? You're just a racist! And where do you get off telling someone to go live under a bridge? You probably hate homeless people too!
Those hateful, racist comments don't belong here...
When our Chinese landlords come calling for their rent money, Americans will find out what true racism is all about. All you Berkenstock wearing, free-range cheese curl eating, VW buss driving freegans will see what PC sensitivity buys in the new world order.
"stereotypical black name"
Oh my, somebody needs a trip to Sensitivity Boot Camp. Any more outbursts like that infidelsix, and you'll have to watch The O'Reilly Factor for a whole week!
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