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.''