11 Apr Mortgage Fraud, Housing Bubble, and You
T Washington Post notes the connection between the rampant mortgage fraud, lax lending practices, and the housing bubble.
Many experts have concluded that the nation’s real estate boom of recent years was fueled in part by weakened lending standards that sparked excessive demand and drove up prices. Now, some are worried that the looser standards may have permitted a boom of another kind — a big expansion of mortgage fraud.
Initially, these schemes pumped up housing values for everyone as artificially high appraisals helped the swindlers get inflated loans. Legitimate home buyers rushed in to get a piece of what they thought was a soaring real estate market. Now as the fraud is being exposed, their home values are taking a hit.
Many people not directly affected by these practices will also pay a price, because they bought when home prices were artificially high, or will be forced to sell when prices have dropped. Much like the savings and loan bust of the 1980s, we are all going to be paying for this one, for a long time.
Bankruptcy Law Network (BLN)
Latest posts by Bankruptcy Law Network (BLN) (see all)
- Bankruptcy Rule 3002.1: An Unlikely New Weapon Against Debtors - January 9, 2017
- Court Says Chapter 7 Debtor May Not Have Two Cases Pending at Same Time - December 12, 2016
- What Happens to My Inheritance in Bankruptcy? - December 2, 2016
- Unsettled Question: Another Court Rules That Bankruptcy Client Worksheets Are Privileged - February 6, 2016
- Chapter 13 Debtor’s Lawsuit Tossed Out for Failure to List It in Bankruptcy Documents - January 31, 2016