February 08, 2008

Cash-back mortgage fraud. Builder incentives masking values. Duped appraisers and lenders. Inflated values. Sounds like the US but it's the UK!

Poor Brits. They seem to think it's "different over here".

It's not.

The bumbling idiots in their government are likely bought off by the REIC-UK, just like the US's corrupt leaders were bought off by the NAR and NAHB to look the other way.

You'll love this Panorama video - they do great in-depth investigative reporting, better than anything in the US. This week's episode:

Bursting the House Price Bubble
Panorama exposes a sharp practice in the housing market keeping house prices artificially high and plunging some homeowners into negative equity.


eric in vegas said...

She paid 170k pounds and less than two years later it was purchased from the bank for 74k. Almost a 200k haircut it dollars. Nice!

Anonymous said...

Sure is worse. The chart around these parts has been on a plateau. How great if prices could normalize in 1.5 years. But they are just creeping down compared to the meteoric rise.

Stuck in So Pa said...

Talk about taking it up the wazoo! Pay 175K (is that like DOUBLE in U.S, dollars?) valued at 200K (she got a bargain, right!,) sell at 75K. OUCH!

Notice that the new owner plans to rent it out for 600 a month. Do you think that he was being very polite (while laughing his a$$ off inside) when she asked what he thought about renting for 1200/mo.

I wonder how large those London banker's bonuses will be this year?

Anonymous said...

Europe will be much worse than the US. I remember the 70sf closet masquerading as an apartment that sold for $300,000 or so?

Anonymous said...

Ooh, good. Before it was Channel 5, but now we've gone mainstream on Panaroma. Excellent!

Another wave just crashed ashore...