Comments on: Mortgage Fraud Report – Burn after Modifying: FBI Finds Rampant and Deep Fraud in Real Estate Industry. Guess What State Ranks #1? IOU All-Star California.

By: Marlene

Marlene — Thu, 23 Jul 2009 09:06:11 +0000

I was married 20 years and during this time, I come to find out recently, my “ex” had over 65 deeds, reconveyances, defaults, substitutions, release of obligations, etc. filed on the property I now have given him hundreds of thousands of dollars more than the house is worth just to have “shelter” as I am disabled and he is making $30,000 per month, or was, just the months and years before the Judge granted me a slight modification in spousal support, which now, neaerly two years has gone by and not one dollar has been given me. Going into foreclosure and no one cares about “who better to steal your identity than your “ex”?” I can’t get one person even interested in throwing out a woman in her late 50′s, disabled, having MRSA which kills more people htan AIDS in the United States since 2004, and is legally blind! Can anything or anybody else do more damage to my request to “exist”? This is a horrible situation perpetuated by a bitter “ex” who just won’t stop until I am in the streets like he promised he would do to me. But because you were once married to this scam artist, and has been since the day we got married, but it does not show how stupid I was, it shows how good he was! Any advice or organizations to go to…..I feel “raped” over and over again, losing every single dollar I worked for and gained through the marriage, but he had other things in mind and saw me as a “financial cash cow” as I raised and worked full time the entire marriage and took care of his small children from the day we got married (well, before that) until their majority, then I go blind, and I get out gracefully and what a person can do, even if you were once married, does not mean that it should be overlooked and not investigated by some agency, authority, government assistance to the disabled, or whatever else I can think of that would care in this cruel act on someone I did not know at all! Thank you.

By: covered

covered — Tue, 14 Jul 2009 05:03:57 +0000

@consumer–absolutely right on. It was robbery pure and simple but I guess too complicated for people to demand accountability. It burns me to see a few thousand people loot billions right under our noses. When the social contract gets broken, the “let them eat cake” moment arrives and the corporate media flee their studios like the helicopters from the Saigon embassy in 1975. This has happened before in history, just not here…at least in our lifetimes.

By: jude lynn

jude lynn — Mon, 13 Jul 2009 07:36:38 +0000

Laura, your math is way off. Additionally, your understanding of interest only and negative am is hopelessly confused and incorrect. A pair of kids making $200,000 a year, or $16667 a month in total are only devoting 25% of their GMI (gross monthly income) to the P & I payment, using 6% on a 30 year fixed. When using 7% on a 30 year fixed the figure jumps to 31% of GMI..we don’t know the taxes or insurance, and we don’t know other recurring debts. At 7% fixed rate P & I, which should cover the majority of full doc, 30 year fixed mortgages written in the last 7 or 8 years, the couple still has $11,000 in residual income to cover other monthly expenses. More than enough for most borrowers.

3x income is pretty safe. Depending on other monthly debts, and property escrows a lender might start to get nervous at 4x or 5x income, yet many international banks will entertain 4x or 5x income mortgages all day long. Of course, here in the US we use debt to income ratios, not 3x income or 5x income, and other foreign affectations.

By the way, interest only mortgages never negatively amortize, by definition (look it up) and by the mechanics of such a product. Only negatively amortization mortgages (such as option arms) will negatively amortize.

By: SteveP

SteveP — Mon, 13 Jul 2009 02:10:23 +0000

In the early to mid ’90s I worked for Freddie Mac where it mas my job to audit EPD’s (mortgages that became at least 90 days past due within 12 months of origination). Way back then, I recall that after auditing and re-verifying the authenticity of the EPD file’s documentation, at least 90% of them proved to contain material misrepresentation. I suspect that more than 95% of the present day defaults are fraudulent. That’s why all this modification crap is such a pipe-dream. 95% of the defaulted borrowers either do not have the means to repay even the principal much less the interest, or the defaulted borrowers were scammers who never had any intention what so ever to repay a penny of the defaulted mortgage.

By: Melanie

Melanie — Sun, 12 Jul 2009 20:58:07 +0000

Prime mortgages are now foreclosing: per cover of Sacramento Bee.

http://www.sacbee.com/business/story/2017811.html

(If you would remove your reference to Love SoCal, I could get people in NorCal interested in this blog)
Thanks.