There is so much mortgage fraud going on locally it is really frightening. Won't go into details now, but you can search my FR posts. You cannot believe what is happening. The court system is corrupt. People get a Notice of Foreclosure in the mail and ninety days later they are moving out of their homes. Sheriffs enforce the court orders and people are scared out of their wits. It will get even worse, very quickly.
Very insightful.
The Department of Justice is investigating numerous homebuilders over fraund with regard to FHA financing. Specifically, fraudulent practices with regards to loan underwriting and appraisal.
For example, a homebuilder qualifies buyers who can't really afford the house. In addition, they build the financing into the house price. Hence, whole new-build neighborhoods are experiencing substantially higher-than-average default rates.
Shameful lending practices. And we haven't even touched "subprime" or "predatory" lending practices. We are getting more and more like Russia and China all the time!
For example, a business journal or real estate industry publication may report that "recent deals in midtown Manhattan are being signed at an average lease rate of $40 per square foot." Technically, this may be true. If you were to look at one these leases it will show a rate of $40 per square foot. But when you look at the fine print of the lease you'll find that the landlord has included all kinds of clauses and give-backs to the tenant that effectively reduce the lease rate -- sometimes substantially. If you sign a lease for $40 per square foot and the lease includes three "free" months per year for the duration of the lease, then you aren't paying $40 per square foot -- you're paying $30.