Actually... that's an interesting thought. Get them to put down some money, approve a less than what you think the value of the home is, and, when they default (say, someone gets "tipped off" that the address was bought by mortgage such as this and they get arrested) foreclose on the home. Man. And it isn't even illegal!
(Of course, the immigration would have actually go arrest them, but I'm sure they could be "encouraged" to do so).
It doesn't have to be less than the value of the home; if they (and it will be a group of purchasers as it is likely no single buyer would qualify - multi-buyer allownaces are another illegal/foreign buyer bonus) purchase at market value, pay for a few years (interest is paid before principal anyway) and prices go up (as has been the trend) the bank wins.
Furthermore, they can get a deficiency judgement against the owners and afix to their wages should the home sell for less than the loan figure (done with cars all the time). Heck, the bank could even sell the house to itself or a puppet corp. at a closed auction (done all the time and legal), and still afix their wages.
What is puzzling is these folks aren't the best tax payers, the IRS could take the home for non-tax payments(city/county taxes are part of their mortgage payments)as can the government if it is believed the property were purchased with ill-gotten means. I believe who ever takes the property for taxes is still liable for the balance owed on the property. Can anyone verify this for me?
Banks don't really take risks, if you pay, they get their interest, if you lose, they get the property.