The latest scam is :
People with houses that have greatly devalued are buying a cheaper house and letting the other house get foreclosed on.
The banks are allowing this !
Yeah...credit check?
Maybe the government will just buy the mortgages so no one needs to worry about it.
Anyone heard this tid bit:
Economic crisis President Bush mortgage speech 2002
http://www.youtube.com/watch?v=eW9viaJatpo
As you know a mortgage is lent against the value of the house. The bank accepted the appraisal of a professional appraiser independent of the bank and the buyer. Banks keep folks on staff who bird dog appraisers to make sure they are honest.
If the buyer can't make the payments and defaults, the bank takes possession of the property.
They knew the risk when they accepted the appraisal.
Defaulting on a mortgage is NOT bankruptcy, nor is it good public policy having folks homeless on the open highway.
Now, why would another bank mortgage a different property if someone had defaulted on a higher mortgage? Well, because maybe they can pay the lower mortgage for a less costly home.
That way the bank gets at least one home off its books and starts receiving income for a mortgage.
Here is another problem.
Countrywide has outsourced their phone banks to india.
It is IMPOSSIBLE to negotiate or deal with those “operators” outside of their script.
it is all sad.
You also have short sale negotiations where there is no concept of REAL valuation.
It is just easier to go bankrupt rather than deal with non-english speaking and delusional note holders.