Mortgage Implosion ... From The Inside Out
From an Insiders View
What a very sore subject at this point of our demise. Unfortunately for the Brokers they hung themselves with all the illegal activity that took place. Following the trend of hundreds of Lenders going under very abruptly, the Brokers are now scrambling for jobs...any jobs.
Many consumers have been fooled, and led into destined failure because of Brokers covering up the facts, dummying up W2's, Tax Returns, Employment etc. The real problem is that they fooled the Lenders too. The Wholesale divisions of Banks, were none the wiser, as to what was being submitted. Not all are innocent, but many became victims of their own efforts in getting Brokers to refer. It's a vicious cycle with Banks, and Lending.
Our Market has now Collapsed, we had allowed the Brokers to build our Lending Industry into a House Of Cards, that has now fallen into a pile of rubble. Our home values are plummeting, and it's not stopping.
I have been in Banking over 25 years, and I remember when we had people approved in the 80's at 17%, and they were jumping for joy! Today...you will be very lucky if you even get a loan. I am now aware, as of today that Major Finance Companies are now doing all their Underwriting in another country. On the other side of the planet. I would love to see how that's working. Unless they're shipping experienced people with the loan packages to Sri Lanka, for example...You have a fat chance in you know where of getting a loan...Any kind of loan. Unfortunately they're not.
You as the consumer will be reviewed by a foreigner, in another Country, for a small loan, Mortgage, or other like product in the U.S. It makes perfect sense, doesn't it?
This also means, that your very private information, that has been scattered all over by Brokers, is now going to be scattered all over in another country, and you have no way of monitoring any activity in that country, and how they may handle "your" personal, private information on all your private assets, Bank accounts, investments, and credit, etc.
I am a first hand witness to what is, and has been going on in Mortgage companies. In plain English, I am disgusted with the industry, and extremely angry with what is being done to hard working consumers who have been duped by countless Brokers. Now the Vultures have come out to pick at the carcasses that are left.
Now the Realtors, Brokers, Investors will swoop in and actually take those same houses away from these unsuspecting victims already. They will be successful too, because this entire situation has literally rendered people useless. Without a way out. They can't possibly get what they owe, so the bank forecloses, and gives it away in a short sale, to some vulture Realtor/Broker/Investor who is (Beyond a shadow of a doubt) an opportunist, cashing in on the devastated consumer they set up earlier. That's how Vultures work, they wait, and they watch, and then whammo they swoop in to claim it as their own.
I had personal conversations with a very large Bank about a mans home in foreclosure. He owes $365K since the purchase date of Feb. 07. He was in Foreclosure by June 07, and by December they had begun proceedings. I spoke to his Bank about renegotiating his loan, and advising them as a Realtor, what the comps were in the area. They were willing to discuss the house, and what they would settle for, but not for the man that was loosing the home. Only for a Short Sale to one of the Vultures. The comps for the house were $180K, and going down. The Bank instructed us to list it for $180K. Resulting in the man loosing the home. All because he himself was duped by the Broker, appraiser, and anyone else in the pipeline who had knowledge of the area values. Not only was he duped, but he's now loosing everything he has.
The Banks are rushing to Short Sale Foreclosures because it closes the chapter in that case of the previous fraud, and they can value out more sensibly at the end of the year. They definitely don't want the homes, then it's like hanging a sign out, "Come Look At The Fraud we Committed". The quicker they close the cases, the better, and less negative publicity there will be.
Another scenario that comes to mind is submitting a perfect credit loan into a large bank, and learning her identity is stolen a week later, and they drag a girl out in hand cuffs. The FBI seized all their records, and it was hushed. The girl was stealing peoples credit, (only the Good Credit of course) and selling them to other criminals who were running up huge $10K charges of all kinds. Why do I know this first hand? One of the victims was my own mother!
It didn't matter that her own daughter has 25 years experience in the business, there is no protection from this, and once you've applied for something...consider all of your private information scattered into every place you would dread the thought of. They can swear until the cows come home it's perfectly secure. It's not, and will never be.
Now when applying for a loan, all of our private critical data will be spread out, and scattered into other countries who have much lower standards than we do. Security is lacking, the general public in many of these countries do not even like Americans, yet they are being hired to handle our critical private transactions, that could potentially destroy us? Americans are being ousted from their own jobs, and opportunities.
I am privy to several foreclosure situations, and none of the Banks are working anything out with the homeowner. NONE. They are being blown off the phone, and told sorry there's nothing we can do. One of them owes more than double what the house is worth, and it's located in New Orleans, and she's a Katrina Victim!!! Go Figure! Why would anyone want to help her right, she only has about $250K in damages from the hurricane, and has received little help, or financial assistance. Now they plan to nail her coffin shut, and throw her out. Yet they will sell it to one of the lovely Vultures for $250K, instead of the $550K she owed before the hurricane, and Market Crash, but they won't do a thing for her.
Here's another fine example of how well our industry works. 700 Credit Score, Assets, Bank Statements of $15K pmo plus, steady perfect Credit History same Employment for 30 years...We're talking Pristine Credit...Well...She got turned down today for a small loan from a well known Finance Company. Why? You Ask? My guess is the foreigners in the Country on the other side of the planet, couldn't fathom why someone with perfect credit should get a loan at all. Even though that same person had just paid back $28K 2 months previous, to the very same "well known" Finance company. Resulting in a "Turn Down" on her very perfect credit rating.
The case is actually now going to blossom into a full blown Banking Commission Complaint, due to outright discrimination she just experienced. It's been confirmed, not only did she qualify for the loan in question, but she actually qualifies for "ALL" their Loan programs! Yet her fate was decided in another country, which has resulted in damaging her credit, and not getting what she so obviously qualified for.
Our entire world has changed while we were sleeping. The Vultures are all now sitting on the fences waiting until they can swoop in, and take what you've worked so hard for, for so many years. There are no options anymore, even with perfect credit. We are relying on other countries, who are now going to control your finances, personal information, and what money you can get now, or in the future.
People are who makes up a Society that spends money, and allows for economic growth. Hurt the consumer, and you've just destroyed "Your" Future sale. The Society is unravelling because there is no trust, or honor anymore. Ironically, our entire existence is based on the Honor system. Don't we all "Swear, to Tell the Whole Truth, and Nothing But The Truth", at some point in life?
The Brokers thought they we're exempt from that rule, and took paths down very dark gray roads. Destroying their own Industry. I am in it, I was there, and I see what they do, and have done on a daily basis. They usually avoid me, because I pull no punches with Brokers, and tell them right up front, that every mortgage is investigated, to verify all documents are true, and correct. As soon as they hear that...they usually disappear. I have actually had brokers submit documents indicating there was a particular property owned, when in fact...the property didn't even exist!
I recently discontinued my association with a particular Bank, who is now making efforts to focus only on "Short Sales". What that means is instead of helping the home owner, they would rather help the Banks, and help the Home owners right out of their homes! I personally do not want to make my living...Taking peoples homes away from them. Some people may call me crazy...I'm fine with that. I refuse to cash in on peoples plight, especially knowing they are already victims! I don't know how some of these people sleep at night. This is what's happening, and it's not going to stop for many years to come. I am extremely concerned for the many unsuspecting victims that are out there. Beware of the Vultures sitting, and watching on every corner!
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