Posted on 04/12/2006 6:40:26 AM PDT by babbabooey
Homeless Man Gets Five Fannie Mae Loans In Florida
The St. Petersburg Times found a homeless man who had bought a few houses. “After struggling much of his adult life with unemployment, homelessness and drug addiction, Johnny Moon Sr. died last year on a dirty mattress on the floor of a small home near Tampa’s College Hill district. Moon left behind a watch, a flashlight and a wallet containing a solitary dollar bill. And more than a half-million dollars worth of real estate.”
If this is not a sign of the massive bubble in RE - I do not know what is...
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")
I'd say this gets more into "Why are people homeless?"
Most are homeless because that is the choice they make in life.
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")
I've seen it done, so I believe it. However, it is also very likely that he was a victim of identity theft (or a willing accomplice) and someone else was racking up assets using his name.
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")
"Ain't got no home...do da do..."
Short version: telling lies on enough documents for about three years will do it. Financial statements, loan applications, profit-and-loss statements, tax returns, etc. Lie consistently and build up a history.
Not identity theft. Much more likely that he was a clueless front man for a trio of crooked appraiser, mortgage broker, and real estate agent.
You find a dump, have the crooked appraiser make a bogus sky-high appraisal, the crooked mortgage broker arranges the financing, and the real estate broker does the paperwork. They find some random guy in the street who has no ID and poor health (so it's one less loose end when the feds come knocking) -- they picked the right one here, huh! -- gin up a "no-documentation" loan, cash the mortgage check, and disappear.
I'd say.....this isn't a "homeless" man.... since he owned 5 homes. Title should be revised to state ......"Real Estate Tycoon Lived and Died as a Pauper".
Ok, I read the article. He was somebody's warm body with a signature, that's all. He probably never had to walk into a bank. The mortgage broker and the puppeteer did it all, and just dressed this guy up for closings whenever necessary.
Whoever was his puppeteer will just start over with someone else if he isn't fingered by the money-finding mortgage broker. A broker's job is to find banks crazy enough to lend; they get a nice percentage for this and they also know how to smell good in case something goes wrong. The broker in this case is likely to claim he knows nothing, considered Mr. Moon a reputable investor---and the broker will be able to prove it with a hundred pounds of paperwork nobody wants to read.
As for the lenders, they don't care. No really. They don't care.
I agree with the rest of your post, but three is too many crooks. It's best to keep the number down to 2 crooks, the broker and the shadowy puppeteer who actually gets the cash. There is no need to involve a realtor, they are notoriously talkative and fearful. No need to use a crooked appraiser, they get enough money for telling the truth, it's less risky, and they also fear for their positions. It's only half a million dollars in Florida; chump change. Nobody will get in any trouble...unless they're in junior high school.
At some point, all these unqualified buyers who got these Loans will be turned into "Victims", because they were tricked into buying homes they couldn't afford & the government will forgive these loans!
Where's the Republican oversight, I just dunno? But, I'm sure the Republicans will allow Raines to get another 10 million dollar bonus for ending Homelessness.
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