I have to say, I was delighted to see that those responsible for much of the real estate crisis, have now been charged with their crimes of mortgage and real estate fraud. They lived large at the expense of many hard working Americans, and now it’s time to pay. Some of these folks will get “government owned real estate”, but not the kind they can pick up for a song and flip. In fact, singing will be the last thing they do in jail - but they’ll have plenty of time to think about what they’ve done, the people they’ve harmed, and the lives they have destroyed.
Sound harsh? Well it is, and so is the reality of hard working people getting screwed by money hungry lenders. As a loan office, I cannot tell you how many of these stories I have had to listen to first hand. Here are just two that stick out:
- A Maryland couple in the seventies on fixed income whose lender they met at church put them in a monthly adjusting ARM (the kind that used to pay the highest commissions). When I met with this couple, it was heart breaking, but I was able to help get them into a fixed mortgage that met their needs by keeping their budget consistent in line with their fixed income.
- An elderly California couple whose lender told them that she would “get them in the house and then refinance them” (a very common LIE told by unscrupulous lenders). Their mortgage was more than their income (in the $6,000 per month range) and this couple was retired and on fixed income, dipping into their savings every month to pay the bills. So where was this genius lender who was supposed to refinance them? Nowhere to be found. The fact was that she had lied about this couples ability to purchase and they now had a fraudulent loan - and one that they would soon lose. I did not get to find out the outcome of this case because unlike the first couple, there was on help from a lending perspective. I did however, refer them to the authorities to report what had happened,
It’s lenders like those that really hurt the market. Sure, people have to take responsibility, but these people are paid professionals, and in many cases licensed. They have a responsibility to educate their customers and clients and do what is in the clients best interest - even if that means saying no to business.
Want to read more about mortgage fraud? Visit the mortgage fraud blog - it is eye opening and sad. I hope these folks remember “you reap what you sow”.
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