From the Washington Post today:
It was a little baffling when Jose F. Lara got a check in the mail for almost $2,800 from a bank in Arlington County in December. When the bank told him that it was the overpayment on his second mortgage, things got really baffling.. . . Here's wondering if WestStar will also end up on the Implode-O-Meter list, as the investors for these loans dry up.
He didn't have a second mortgage.
Elizabeth Cabrera-Rivera pleaded guilty to identity fraud, credit card theft, conspiracy and obtaining a loan under false pretenses. (Courtesy Arlington County Police Department. - Courtesy Arlington County Police Department.)
Turned out it all tracked back to that day last year when Lara's wallet was stolen. Elizabeth Cabrera-Rivera found it and used Lara's identification to buy . . . a house.
A $419,000 townhouse in Springfield. With no money down.
. . .
WestStar [Mortgage Inc. in Woodbridge], which financed the first and second mortgages on the Springfield townhouse for $419,000 at 7.125 percent interest, advertises on its Web site "no documentation loans" in which "you can avoid the need to verify your income."
Also, U.K. consumers are being forced to cut back on beer (oh, the humanity) as their own mortgage crunch looms:
Ben Craster says he'll be drinking less beer this summer, and Christine Baines is cutting back on clothes and cosmetics. They're among the millions of Britons preparing for a mortgage crunch.
. . .
Designer Craster, 33, said a new mortgage ``is going to cost me an extra 200 to 300 pounds a month, easily.'' After considering the impact on his beer budget, he said he may take more drastic action.
``I may think about selling,'' he said after cycling to visit a client to save a one-pound bus fare. ``It's getting too expensive to live in London.''
8 comments:
Jim Cramer says if your house goes down 20% and you have no equity, WALK AWAY!
Videos from TheStreet.com:
http://tinyurl.com/33b2wj
http://tinyurl.com/3blaz7
Easier said than done.
You will need some $$$ to put a down payment on another house...especially if the days of 100% financing are over....which they are!
Per Cramer, "You met a bet and you lost".
And...."Credit cards are much more important than your house."
Whatever, Cramer - you can't borrow forever.
You guys really need to read up on the serious illegal population issue. They number around 20 million in the US right now, with very slow progress being made on stopping this imense problem.
Its sad and sobering, but we need to understand so we can act. Please dont discount this post. Think about the area you live in - dont you notice a deteriorating situation? A little like a third world country?
http://www.fairus.org/
http://www.alipac.us/
http://www.illegalaliens.us/
Read the 2005 bear stearns report, down the page. yes I recognize its bear stearns, but it its a worthwhile read
Do searches, read blogs...do independant research. Thanks.
http://www.bvbl.net/
A Prince William County blogger on Illegal Immigration in that region.
This Washington Post article seemed a bit more sympathetic to the thief than to the victim. I wonder what the status was of the guy who skipped the country.
Regarding Cramer:
I wonder if the lenders will go after owners who walk away for deficiencies (excess of outstanding mortgage over net proceeds from foreclosure sale). Cramer assumes that lenders will treat this debt as non-recourse financing. He also assumes that the “walk aways” will have little difficulty obtaining financing for a new property after defaulting on a previous mortgage. Is he right?
Starbucks asked:
"He also assumes that the “walk aways” will have little difficulty obtaining financing for a new property after defaulting on a previous mortgage. Is he right?"
Lenders are out there to make money by lending money. If they feel the current loan scenario is such that they can lend the money and make money on the loan, they will lend to such "dead beat" debtors. I.e., they don't hold grudges, it's all a business proposition ... and in most cases, they CAN lend to a former problem borrower provided the loan is covered with enough of a down payment, rising values, or any of many other factors. So yes, Cramer is correct.
If you think otherwise, put yourself in the lender's shoes. Your livelyhood is lending money to others. Are you going to hold a grudge and keep yourself from earning your livelyhood off of someone simply because "they should be punished"? Or are you going to put those feelings aside and go forward with what you always do ... that is, that make reasonable gambles in lending money?
I don't know if it counts as a short sale, but here's a Countrywide-owned home in 22207
ARLINGTON 1903 N EDISON ST,
ARLINGTON, VA 22207 SFR CERITA AKRAM 703-8244800 $585,900.00
Motley:
http://www.fool.com/investing/general/2007/08/01/more-housing-bull.aspx
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