One thing, FP: -- Some may think I am obsessed about Liar Loans/Mortgage Fraud - and they'd be right. So what?!
Anyway -- What is your line on Liar Loans? What do you think should be done to stop them?
PLUS -- The MOST IMPORTANT thing to remember about Liar Loans, imo, is that THEY SKEW THE MARKET "PRICE" upwards - EVEN IF ONLY SOME PEOPLE USE THEM:
i.e. Wherever a Liar Loan is taken out to make a purchase - be it a village, a street, a town, a city etc. -- IT HAS A PROFOUND EFFECT ON THE LOCAL MARKET --
BECAUSE - AS THE EAs USE LOCAL PRICES RECENTLY PAID FOR PROPERTIES AS A COMPARISON WHEN THEY RE-SET ALL THE LOCAL PRICES -- AND -- WHEN Mr Lying-Cheat comes along to ANY given locality and USES his DISHONESTLY OBTAINED [Liar] Loan -- and pays OVER THE ODDS FOR THAT PROPERTY. THEN - OVERNIGHT -- THAT "PRICE" HE PAYS BECOMES THE NORM -- AND EVERYONE ELSE HAS TO MATCH THIS PRICE TO BUY LOCALLY AND FURTHER AFAR!.........
THIS IS THE SECRET WEAPON THE HYPERS, FRAUDSTERS AND VI's HAVE BEEN USING FOR THE LAST 7-9 YEARS+..........
THIS IS ONE HUGE REASON FOR MASSIVE HYPES IN HOUSE "PRICES"..............
I admit it is not the ONLY reason for HPI -- but it is a VERY MAJOR DRIVER of HPI........... No?
Your views FP? Would you be prepared to try and get a discussion about this on air?
If anyone has watched this --- http://video.google.co.uk/videoplay?docid=...75&hl=en-GB
and this -- http://video.news.sky.com/skynews/video/?&...270508_0900.flv
AND WOW!!!!!!! THE IMPLICATIONS ARE SEISMIC!!!!!!!! WHY IS THIS STILL GOING ON!?!?!?
So...what are you saying Eric???
P.S. I have 'borrowed' Muttley, too precious to be left lurking on our HD...hope that you don't mind.
This post has been edited by greysquirrel: 15 August 2008 - 06:45 PM