This makes me angry. How could this happen? I’ve known quite a number of people who’ve ended up with upside down mortgage loans and who’ve lost their homes to foreclosure. In some of these cases, we can blame mortgage fraud and subprime borrowing for these unfortunate events. In some others, we can point the finger at the poor real estate market that fizzled and buckled under the weight of the subprime mortgage financial crisis.
But then there are the people who did nothing wrong and everything right, but who still end up becoming victimized by mortgage fraud. In the past, I used to think that these misfortunes were confined to victims who were unlucky enough to get tangled in a predatory lending scheme. But apparently, that’s not the case as mortgage fraud and other forms of foreclosure fraud can actually happen to anyone — even those with clean records and NO mortgage. It seems rather far-fetched but some homeowners have been unlucky enough to be targeted and therefore sucked into a dreadful situation concocted by an evil bank or lender.
Here’s a video by Congressman Alan Grayson from Central Florida on this matter:
So here’s the message here: foreclosure fraud can hit anyone, whether or not you have a mortgage, whether or not you pay on time or have an income. Root of the problem? Poor record keeping during the real estate bubble paved the way for fraud and foreclosure mills (whose business it is to forge legal documents on anyone targeted for foreclosure). Watch out for those unscrupulous loan servicers! Now the video is an eye-opener but it kept me hanging. How do we get rid of these thieves? What laws do we have to protect us from the vultures?
Blast from the past — here are more articles I’ve written on this topic:
- Who’s To Blame For The Subprime Mortgage Mess
- How To Destroy Your Credit With Bad Mortgage Loans
- The American Nightmare: A Look At The Subprime Lending Mess and Borrowing Bust
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