Friday, January 15, 2010

Oh, Yes, There ARE Dirty Banks

Let's talk about dirty banks.

...there appears to be yet a new mortgage fraud out there today, allegedly perpetuated by agents of, yes, the big banks.

...many of the borrowers in trouble, and many who are so far underwater on their loans that they don't qualify for any refi or modification, are choosing short sales as a way out

The author tells us that TWELVE PERCENT of home sales during 2009 were 'short.'

...Since many second lien holders are getting very little, they are now allegedly requesting money on the side from either real estate agents or the buyers in the short sale. When I say "on the side," I mean in cash, off the HUD settlement statements, so the first lien holder doesn't see it.

Names? Citi, BofA, JPMChase.

What we have here is blatantly illegal activity.

HT: Ticker


Dan said...

Here in Vegas, Bank of America is going to put 6000 homes in the Vegas housing market this year because of foreclosures. Talk about killing the value of housing.

Neo-Con Tastic said...

There are also stories regarding "Loss Mitigation Specialists" (agents of the bank that used to be mortgage underwriters) in which they simply call at-risk loan holders and ask them a variety of questions.

In nearly all cases, the LMS coax the note holders into answering in a specific fashion, delaying the inevitable default. In essence, they keep pushing off the date of implosion.