SteveC sent me the following, and has graciously given me his permission to share it:
About 4 months ago a home came on the market very close to the place where we stable our horses. In fact, we ride past it every day.
I did my due diligence and looked up the recorded documents. A fellow bought the home from his brother for $200,000 on a new loan. Within a very short period of time, he refinanced as an owner occupant with a first and second totaling $550,000. I am not sure he ever occupied the property. He took his cash and walked.
About 10 days ago I decided to go inside, as it is on MLS lockbox. It was built in 1981, and I am confident everything original is still in the home- including the shag carpet. I looked up the lender and found it to be a company in Michigan or Minnesota . I can’t remember. They sold to a mortgage company in California . I looked up the president’s name and sent a package of all the recorded documents.
Tonight the guy called me at home. His bank did not purchase this loan but he did say this cash out stuff is rampant. He said he would like to report it as well, but due to the way mortgage loans are sold, it would be a lengthy process to track down the investor holding the bag.
This tells me no one really knows who is holding this paper. Hmmmm….
And I don’t think anyone can tell us how often this story is being repeated across the nation as well. My best guess- lots.
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Nice! Linked it.
By the way, you notice Countrywide is still sliding even as the market rallies today? I think it’s going to zero eventually.
WC-
So’s FNM and the HBs this morning. CNBC keeps saying, “low volume, high volatility” this week.
While it is “low volume, high volatility” this week, I doubt we’ll go back to a bull market when everyone gets back from vacation.
Wow.. As a consumer you imagine that there are safeguards to keep this stuff from happening. But just like we hear on the news sometimes, the most blatant crimes sometimes still go unpunished.
The response from the president almost sounded like the police on a car burglary or theft. They’d like to do something, but the truth is it’s probably gone and parted out by now..
Heh, which when you think about it, is probably more similar to the mortgage in question than you’d think
MG -
I saw an adv. on Craigslist (phx) a few weeks ago offering for sale a big, elaborate patio grill center from an almost new house in a far flung subdivision. (I think Queen Creek.)
The ad said it was around $ 15 – 20K to build, and they were selling it for around $ 8 – 10K.
(I don’t remember all the details.)
The first thing through my mind was: “They are parting out this new house.”
The second thing through my mind was a string of reasons why they might be parting that new house out.
None of the reasons were very good……
Asset Hunter -
I was thinking of you when I wrote this:
THE TEN COMMANDMENTS OF REAL ESTATE:
I) I am Real Estate, your Daddy. You shall put no other Daddies before me, such as the stock market or your family. Your idol to me shall be a single-family house. Make no other idols, such as duplexes or multi-family or office buildings.
II) Do not take the name of your Daddy in vain when your mortgage reset comes in the mail.
III) Remember the mortgage payment and keep it holy when you’re thinking about going to the casino or strip club.
IV) Honor the fact that your mother and father made principal payments on their mortgage.
V) Thou shalt not murder your appraiser after he colludes with his pal the mortgage broker in order to justify the loan.
VI) Thou shalt not commit adultery with your realtor in a vacant house.
VII) Thou shalt not steal from your kids’ college fund to cobble together a down payment.
VIII) Thou shalt not bear false witness to your mortgage broker.
IX) Thou shalt not covet your neighbor’s house.
X) Thou shalt not covet your neighbor’s ex-wife’s house.
Twist – comment #2
I predict the bull market in foreclosures will continue unabated.
Please send me information about this home. I want to present it to Larry Kudlow. The value of this home will depreciate. He says that the government must help prevent this. My question is why? Fraud is rampant in CA. There should be a very painful correction.
Joe Dobbs
jdobbs7@houston.rr.com
It is not uncommon for people to strip down homes before foreclosure. Often, they sell the stuff for cash.