Get a laugh from the Long Johns in this video on our financial markets and sub-prime loans. This is a tongue and cheek explanation of how financial markets work. If you do not like politically incorrectness then skip link and read on. youtube.com/watch?v=SJ_qK4g6ntM
I laughed at this video but had to stop laughing after reading the National Realty News reports today. There are several people in California currently being indicted on mortgage fraud. Two former Prudential Real Estate Brokers in Los Angeles and several others from a Century 21 Firm in San Diego have plead guilty to mortgage fraud that resulted in over $100 million in losses and collected commissions. What irks me is that in one of the cases, the defendants in their plea agreement promised to pay back $1,070,000 in commissions they collected. Nothing was said about prison time with hardened criminals. Nothing was said about the victims and the wrongs they have suffered.
Who are the victims? You and I are. These criminals have done much more than steal from the lending institutions that entrusted them. These criminals and thousands like them have, thru fraudulent acts, inflated prices and set the stage for the housing slump we are currently experiencing across the country today.
As reported in National Realty News Friday November 30, 2007: According to court records, Alejandro and Emilio Lopez were two of the owners of “Century 21 El Dorado,” a San Marcos, California firm that offered real estate and home financing services targeting mostly Hispanic clientele. The Lopez Team obtained funding for financially unqualified clients from several sub-prime lenders who offered “stated” or “no income verification” loans at higher interest rates than conventional loans. To secure the loans, they submitted false information on loan applications and false supporting documents to lenders. During the conspiracy, they brokered fraudulent loans (including first and second mortgages), averaging approximately $400,000, for over 200 unqualified clients. LOS ANGELES, CA - Two former Prudential real estate agents, as well as two California state-licensed real estate appraisers, were indicted recently by a federal grand jury for allegedly participating in a massive mortgage fraud scam that caused more than $40 million in losses to federally insured banks. I urge you to demand stiffer penalties for these types of criminals. I also urge you to do due diligence in all of your real estate transactions. Demand to see the most current comparables. Get a list of inspectors, appraisers, mortgage lenders, surveyors, attorneys, and even title companies from your realtor. A one stop shop might not be in your best interests.
Although the Taos market has not suffered from foreclosure woes, things have been a little slower than past months. There are some great deals out there so now is the time to start looking.
~Douglas Bachtel