Friday, December 21, 2007
Scams to defraud mortgage companies
Fraud Seen as a Driver In Wave of Foreclosures
Mortgage companies made themselves vulnerable to fraud by bringing in "stated-income loan" also known as "liar lones". Even big names like Bear Sterns got defrauded this way. "Mr. Wright was a phone technician earning only $105,000 a year, with assets of only $35,000, and his wife was a homemaker. The palm-tree-lined mansion they purchased with Bear Stearns's $1.8 million (after claiming he earned $50,000 a month) recently sold out of foreclosure for just $1.1 million."
Posted by happyrenterz @ 07:08 PM (1517 views)
2 thoughts on “Scams to defraud mortgage companies”
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Maihem says:
“Please sir, it’s not our fault, they lied to us!”
Duncan says:
As the BBC has uncovered on a couple of programs we have a similar problem here in the U.K.
Something which could be done to crack down on this problem would be to insist that all mortgage
applications are forwarded to the Inland Revenue. They would check the earnings stated on the mortgage application against the income tax which has been paid and is being paid. If the figure quoted on the mortgage
applcations was higher then the persons tax bill would be increased to cover the shortfall.
:- Duncan