Excerpt from: Flagstaff Mortgages
|
 |
| June 20, 2008 | | Not only was it too good to be true, it probably was illegal | Luckily, I only ran into three suspect mortgage deals during the boom in Flagstaff -- all were with out-of-town lenders and appraisers, but the deals involved the transfer of Flagstaff homes. I walked away quickly. Many in other parts of the country did not. The scams involved "sales" of the properties at above market rates with 100%, or close to 100% loans. Some of that cash was then to be "kicked-back" to the mortgage broker and appraiser. The seller -- perhaps unbeknownst to the seller -- walks away with more than the home is worth. The buyer is stuck with a home worth less than the lien on it. He was in a dream world trying to flip the homes when he came into my life. His mortgage broker was no longer answering the phone and the investor to whom the loan had been sold was knocking at the door for collection. This morning we hear about the results on the news: 36 in Arizona among 406 indicted in mortgage-fraud bust, according to the Arizona Republic this morning. Listen to the story on NPR's Morning Edition. | |
| |
|
|
Email to a Friend
