We don’t even jail, enough, real criminals in this country. The banks voluntarily loaned, on known shaky collateral, to minimal borrowers that they had reason to believe would have trouble making payments. That is a personal, civil problem between these two parties.
Since the government chains us all together such that if a crack addict can’t get the full cable sports package, we have to be taxed for it, we are now chained to those two above parties by both Republicans and Democrats ‘to help the homeowner’, which means help the sloppy, lazy, greedy banks, mortgage underwriters, and bowers and even the local governments.
Nice.
And the government wonders why productive citizens don’t want to risk their money, make investments, fend off local, state and Federal business codes, permits, permissions, inspections, laws, rules, regulations, fines, fees and penalties....plus had over half of your profits.....and pay for others and, if in the real estate or banking business..pay for your failed competition.
The "civil problem" and local governments... The local courts are corrupt, especially when a property owner (like myself) can arbitrarily and falsely sue a rental tenant for damages which are really a failure to perform maintenance.
I have seen some homeowners "helped" by the courts, because they have connected friends or have bribed local officials screwing an honest working person to pay for remodels. The tax evasion is another question. Local contractors drawing up false bills for work never done to help their buddies in damage claims. They give the judge a cut buying the judgement award and all feast on the profit.
Slum lord economics. Kind of like Dianne Fiendstein. Get a suspect loan, buy a pile of junk, rent it out, sue the working tenants for money to remodel. This works especially well if you have a lot of Section 8 housing tenants and the government to carry the loan payments while you use your security deposits to file small claims against those who have jobs.
It is more difficult to do in a larger city unless you are one of the "in" crowd.
You better read any loan contract carefully and state laws to assume that lenders can coax borrowers or borrowers can say anything on a loan application. It is one thing to state that you only earn 45000 dollars and the bank gives you a 600000 dollar loan, and another thing to say you earn 70 000 dollars when you actually earn 45000 dollars in order to meet the minimum debt ratios to qualify for a 600000 dollar loan. It is the later type fraud that the feds should go after. Read about the WaMu civil lawsuit where loan originators are now the star eyewitnesses against the bank. You will be appalled at the deliberate mistatements on the loan application colluded by the originator and the applicant.