MILLIONS AT RISK OF FORECLOSURE FRAUD (millions bite off more than they could chew now want bailout)

MSNBC ^ | 9/22/2008 | Bob Sullivan

[tobyhill]

Angela Carter's family has lived for 46 years in the same small two-story home in Chicago, perhaps a 15-minute ride from Barack Obama's adopted Hyde Park neighborhood. But today a piece of paper says someone else owns the property, and a judge will soon decide if Carter and her mom get to stay in her home.

The reason Carter, 55, is facing eviction, she says, is that she fell for a high-stakes scam that’s sweeping the nation, preying on the 1 in 11 consumers who are either behind on their mortgage payments or already in foreclosure.

Interviews with legal aid offices and law enforcement officials around the nation indicate the problem of so-called “foreclosure rescue scams” has spread like wildfire, neatly paralleling the downturn in the mortgage market.

The problem is so bad that in Portland, Ore., local police now automatically send a letter to homeowners who enter foreclosure warning them that they will be inundated with shady offers of help. In one case in Maryland, a single firm is accused of bilking hundreds of residents out of their homes and stealing $60 million in equity. Similar large-scale scams are happening elsewhere; in fact, foreclosure fraud is so common that it's exacerbating the nationwide housing slump, adding to the ranks of distressed homes that pull down the housing market in general, according to some experts.

[mrmargaritaville]

“caveat emptor”

[Jim Noble]

I just want to know when I can stop paying my mortgage.

If I call my congressthing, will she have the answer? Or should I check with President Bush?

These monthly payments are a pain in the ass. I'm glad the Administration is on the case.

Can I stop before Christmas?

[Leisler]

I didn’t read the article. Are the police closing in on the Democrat Party?

[blam]

More people wanting something for nothing.

Affirmitive Action housing has already bankrupt the country.

Somebody will have to go to work soon.

[tobyhill]

Just get another credit card, pay your mortgage with it and then just don't pay the credit card bill. “Millions” are doing it and it seems only fitting to make it a million and one.

[Owl_Eagle]

Angela Carter's family has lived for 46 years in the same small two-story home in Chicago, perhaps a 15-minute ride from Barack Obama's adopted Hyde Park neighborhood.

Okay, it was a pretty long article and I only skimmed it, but why would she have a mortgage if she's lived there 46 years? Did they rent it most of the time? Did she buy it from another relative?

Owl_Eagle

There are people who are surrounded by bigots
and know it is wrong, but are afraid to be vocal against it.
These people are going to pull the lever for Obama
and they are not being polled.
angee_is_mad, DUmmy

[imintrouble]

I hate to say it but I get the participants had a gut feeling they would eventually be bailed from their failed mortgages.

I wonder if they ever intended on buying their real estate in the first place or taking a gamble the whole concept would be ‘taken care of’ for them by BigBucksDaddyGovernmentMan.

[Nervous Tick]

>> Can I stop before Christmas?

Permission granted.

The concepts of personal responsibility and “moral hazard” are now completely dead.

Debts will no longer be enforced. In fact, if you owe money, on top of not making your payments, next year you’ll be granted a refundable “debt credit”. It will be a check mailed to you to spend as you please. If you are a member of a special class (minority, woman, minority woman, GLBTXYZ, and so forth) you will be awarded a double credit for the stress The Man made you suffer by demanding that you pay your debt.

I don’t have any debt. I feel like such a chump. I am unworthy. I must pay more taxes.

[tobyhill]

These “millions” don't need to work because they always have someone that will bail them out. Never mind it's the people who pay their bills on time that will be forced to pay more for these poor people that got “scammed”.

[Nervous Tick]

>> why would she have a mortgage if she’s lived there 46 years

She probably confused her house with an ATM machine. It’s a common mistake.

[Licensed-To-Carry]

That's exactly my question. My wife and I both have lost our jobs so can I stop making house payments and get a government bailout.

We are not behind in our mortgage because we have invested and saved very well but if everyone is begging for taxpayer help, maybe I should also.

/sarcasm

[tobyhill]

Very simple, she barrowed many times against the equity but once the money ran out and her house wasn't worth jack she starts the “I've been suckered” number.

[Sacajaweau]

This is what I learned many years ago. Correct me if I'm wrong.

People have been taking these second mortgages instead of using a credit card or taking an auto loan...to get the deduction.

They pay their first mortgage faithfully...but get behind on the second mortgage...not realizing that the second mortgage is actually the one that has to get paid off first and triggers the whole mess.

Stop giving second mortgages WITH THE DEDUCTION.

There was a time when interest on credit cards was deductible.

[Vaduz]

No the msm is doing the same old cover job.

[whd23]

Here is Carter’s version of events: After signing a flurry of paperwork, she signed title of the house over to Second Chance, selling her house for $140,000 with the understanding that she would pay the firm rent and could repurchase the house a year later for $180,000.... “I had no idea what the building was worth,” she said. “And I had no idea they were buying my house. All along I thought they were giving me a loan.”

Does not compute!

Some people are too stupid to be home owners. As represented in this article, this woman is one of them.

[wbill]

IF people are dumb enough to get into a mortgage they can't afford, they're dumb enough to get defrauded.

That being said, you can't legislate away stupid...otherwise, there wouldn't be any politicians to pass the bill.

[tobyhill]

I have no problem with people borrowing against the equity but what some are doing is borrowing against the equity then taking the money, putting some of it down on another home then foreclosing on the one they borrowed against. When it all catches up to them, they just sell back to a relative who continues the chain with the banks somewhat complicit in the whole thing.

[wbill]

I don’t have any debt. I feel like such a chump. I am unworthy. I must pay more taxes.

Just vote Dem. They'll gladly give you the opportunity, and relieve you of all that burdensome moolah.

[tobyhill]

I guess when time came for her to buy back her home she didn't qualify. :)

[Notasoccermom]

This goes back to the "it's only about sex" principle of integrity that was popularized by the media and politicians in the 90's. One who prevaricates will lie about anything at any place. The root is the Latin praevaricari which means to walk crookedly. Those who walk this way are likely to at every turn. It is their walk.

[Nervous Tick]

>> Just vote Dem. They’ll gladly give you the opportunity, and relieve you of all that burdensome moolah.

Great Idea!

Unfortunately I hear I can’t vote Dem because I’m racist.

[blam]

"If you are a member of a special class (minority, woman, minority woman, GLBTXYZ, and so forth) you will be awarded a double credit for the stress The Man made you suffer by demanding that you pay your debt. "

Shut Up White Boy

[Wolfie]

The principle has been ceded by bailing out Wall Street. Why not bail out everyone else?

[Nervous Tick]

>> Shut Up White Boy

Wow. Just wow.

Note to self: stay out of new orleans

[Dr. Ursus]

I agree.I want my credit card debt renegotiated!

[SwankyC]

I smell a turd.

has lived for 46 years

Who pays a 46+ year mortgage?

[Eric in the Ozarks]

Moron.

[nascarnation]

Who pays a 46+ year mortgage?

more than likely multiple re-fi & HELOCs

pulling out cash to buy "stuff" like Escalades and 56 inch HDTVs

[Trailerpark Badass]

Okay, it was a pretty long article and I only skimmed it, but why would she have a mortgage if she's lived there 46 years?

They wanted to "cash out" some of their equity to take a trip or pay off "high interest credit card" bills?

When I see those commercials, I always wonder who's stupid enough to do that, and here I get to meet Angela Carter.

[Trailerpark Badass]

I must pay more taxes.

It's the patriotic thing to do!

[Trailerpark Badass]

she signed title of the house over to Second Chance, selling her house for $140,000 with the understanding that she would pay the firm rent and could repurchase the house a year later for $180,000....

Wow, what is that, like 28% interest? Plus, "rent?"

I'm no math/finance wiz, but even I can see those numbers suck.

[A Strict Constructionist]

I’m tired of paying my taxes and being fiscally responsible. Will someone please point me to something that I can purchase that will help me get a bailout. I want my fair share.

[VOA]

I hate to say it but I get the participants had a gut feeling they
would eventually be bailed from their failed mortgages.

Sounds like the liability of being either illiterate and/or
ignorant has come home to some homeowners.

Maybe they thought that their home-enterprise was "too big
to fail" and would qualify for a bailout.

You'd surely think President Obama wouldn't let "the little people"
be forced to abid by their mortgage contracts.

[RockinRight]

1 in 11 consumers who are either behind on their mortgage payments or already in foreclosure.

It's nowhere near 1 in 11. It's about 2% from what I have seen.

[VOA]

more than likely multiple re-fi & HELOCs

pulling out cash to buy "stuff" like Escalades and 56 inch HDTVs

Just so the DU Lurkers don't bootstrap that into "racist rhetoric"...
let me say that I see that sort of Bravo Sierra
committed by people all across the spectrum of "The Family of Man".

But somehow Americans "of Asian origin" seem to be particularly
"AWOL" as far as participating in that sort of personal-finance madness.

OOPS...I suspect that some DUer will be along presently to say
I've engaged in "Racial Profiling" by indirectly paying a compliment
to a subsection of our fellow citizens.

[Larry Lucido]

“behind in their mortgage payments” can mean just beyond the grace period. That would cover an awful lot of people who are not at risk.

[kittymyrib]

Didn’t BO’s buddy Rezko get rich as a slum lord? I’ll bet a lot of Barry’s cash comes from con artists who prey upon “the poor” but their victims will all go to vote for him because he is half black. Pitiful.

[RockinRight]

Heck, I know people that intentionally wait to Day 14 of their grace period every month for that extra little bit of interest on their bank account!

[Mr_Peter]

Some day on FR it hard to read the self righteous pissants on the site claiming fiscal and moral superiority. The article is about SCAM artists exploiting vulnerable people. If it were you Mother on the verge of Alzheimer's would you write the same pompous comments? Instead of pounding the bible, why don't you all read it. Have a tiny bit of compassion.

[Prokopton]

I don’t have any debt. I feel like such a chump. I am unworthy. I must pay more taxes.

No, pay less taxes. Run up a huge tax bill and "tax advisers" will help you to skate on that responsibility too. Just make sure you stiff them for a large enough amount. Pikers who only owe $5K can't be helped.

Those who used to be thought of as responsible citizens have now been made the fool. I don't blame anyone for whatever they do to scam the system. Our elite rulers are coming at us...fight back, join them in their sleazy game.

[Mr_Peter]

With spelling corrections - need another cup of coffee.

Some days on FR it hard to read the self righteous pissants on the site claiming fiscal and moral superiority. The article is about SCAM artists exploiting vulnerable people. If it were your Mother on the verge of Alzheimer's would you write the same pompous comments? Instead of pounding the bible, why don't you all read it. Have a tiny bit of compassion.

[wbill]

Unfortunately I hear I can’t vote Dem because I’m racist.

Eh, there's still plenty of room for you in the party. You just need to learn to hate the right kinds of people. Conservative, male, white gun-owners are a good start.

[Owl_Eagle]

They wanted to "cash out" some of their equity to take a trip or pay off "high interest credit card" bills?

Oh, well... if that's the case, I really don't see how we can complain about "coming together" "as a community" and "helping her out in a time of need". Y'know, "From each according to his ability, to each according to his need."

It's the compassionate thing to do.

Believe in your ability to bring about change.

Owl_Eagle

There are people who are surrounded by bigots
and know it is wrong, but are afraid to be vocal against it.
These people are going to pull the lever for Obama
and they are not being polled.
angee_is_mad, DUmmy

[Dasaji]

Wow - 38 posts and I’m not sure who even read the article.

It’s about companines who contact people in foreclosure and talk them into signing over their ownership. The owners think they have entered into a nice-nice agreement in order to save their homes from foreclosure, however, they’ve now become tenants with an option to repurchase at a much higher price.

It’s just another form of mortgage fraud - and the same sad souls who fell for it the first time with predatory lenders are falling for it again.

[mass55th]

"Okay, it was a pretty long article and I only skimmed it, but why would she have a mortgage if she's lived there 46 years?"

That was my first question too. I'm 61 and have never owned a home, so things like this happening to anyone is beyond my scope of knowledge. Chances are though, that we'll have to listen to how minorities are the worst hit in this crisis. Never mind the fact that it was the Dems who put them in this position to begin with.

[mass55th]

"Some people are too stupid to be home owners. As represented in this article, this woman is one of them. "

Unfortunately, they vote too.

[hermgem]

Not only will you be able to stop your mortgage, but in case you're defaulting on credit cards, utility bills, property taxes, this gets cleared up first, also by the Government.
Without such debt removal, mortgage and interest clearance actions by the Government are futile.
Local institutions would just plainly confiscate the “save your house” monies handed to you by this Congress.

[sickoflibs]

Credit card is unsecured debt but the home qeuity is secured by the house, I see Suzie Ormann warn her viewers.

[Sacajaweau]

Suzie is very good. I got rid of all my debts before I acquired my new (used) car so I didn't have to choose what to pay first. It took DISCIPLINE.

I stretched my food dollars by shopping at Aldi's which is almost across the street from my regular grocery store. Saving $1.00 on a loaf of bread is $52.00 a year.

I gave everyone $50 cash at Christmas...NO TAX on cash. They can buy what they want and "save gas" on any returns.