FBI Raids local Title Co's.. over Flipping - Posted by JT-IN

Posted by B.L.Renfrow on July 23, 2003 at 22:05:32:

I was in Manhatten last week, and while walking up Third Ave. in midtown, couldn’t help overhearing the conversation of a couple walking behind me.

They were discussing an acquaintance who’d apparently decided to buy a house, and what a poor decision he’d made. “Well, as an owner he’ll have ALL these other expenses coming up all the time…” The other one chimed in, “Yeah, whenever something goes wrong now, it’s his problem, not the landlord’s.”

“You’re right, I can’t imagine ever wanting to be a homeowner… I dunno how we could afford anything if we owned a house.”

Heh…

Brian (NY)

FBI Raids local Title Co’s… over Flipping - Posted by JT-IN

Posted by JT-IN on July 23, 2003 at 07:06:53:

The lead front page article in the Cincinnati newspaper… "FBI raids focus on real estate “Flipping”

The accurately describe the problems with flipping of appraisal, investor and buyer fraud, however, many folks never really read the entire article… and are influenced by the Headline…

The entire article is found at this url:

http://www.enquirer.com/editions/2003/07/23/loc_flipping.html

Re: FBI Raids local Title Co’s… over Flipping - Posted by Kristine-CA

Posted by Kristine-CA on July 23, 2003 at 13:09:09:

JT: thanks for sharing the story. To the paper’s credit, they at least describe “flipping” accurately in regards to faulty appraisals–which is where flipping scams start.

What I still don’t understand is how the homebuyers are always viewed as victims and never held responsible for mortgage payments they can’t afford. Of course there are predatory lenders and people do get taken advantage of. But the foreclosures are happening because owners can’t make payments–regardless of whether the appraisal was phony or not. Surely this has to be the lender’s fault as their underwriting policies are obviously not stringent enough.

Of course, if a home becomes inhabitable due to repair and maintanence issues, the mortgage payments become that much more difficult.

I see so many low-income properties and foreclosures where I work and, in my opinion, it is because too many people get into homes that really can not afford them. There is so much more to home ownership than a mortgage payment… Everyone is being sold on this American dream that turns into a nightmare for many.

Sincerely, Kristine

The American Dream… - Posted by JT-IN

Posted by JT-IN on July 23, 2003 at 14:11:50:

Years ago it meant owning your own home… albeit making payments on it for 20 or 30 years…

Today it means owning your own home, (maybe a little more than you can really afford), having two new or newer cars, both with payment books, sending kids to expensive camp, gotta have $ 75 worth of cable TV each month, a few other toys for Mom or Dad… and probably with payment books too…

No wonder folks are in foreclosure so often. The priority has changed today, as well as the stigma that goes along with taking the foreclosure or BK plunge… Not much of a big deal, in fact it is viewed almost as a status symbol if you’ve been there and done that… in today’s society… I really don’t get it myself.