Tuesday, May 6, 2008

Housing Stories II

Housing Stories discussed that this blogger finds many of the “sob stories” re folks’ housing woes appearing in the news to be unpersuasive, and in general the fault of the borrower… This blogger also argued that where buyers were approved for home purchases based on falsified documentation of nonexistent income, that in such cases the fraud was perpetrated conjointly by the borrower and agent against the lender.

An article in the Cincinnati Enquirer, “In way over her head and angry about it” had a sub-headline that caught this blogger’s eye. It read “Woman says she was tricked into buying 3 homes worth $5M” (see link below for the story). A woman with a $52,000 per year job that was slated to be eliminated told her tax preparer of her difficulty. Oh, she also had $70,000 of debt. He persuaded her to go into “business” with him, telling her that she would make enough to clear her debt. She then proceeded to close on 3 houses worth five million dollars, declaring nonexistent income and investments to qualify. Subsequently there appears to either be a falling out between thieves, or else the tax preparer had planned to cheat her. He is living in one of the houses, while she is holding $5 million in mortgages!

In her suit she says that “… Duke told her she was an ideal partner because she had impeccable credit…” and that her “… credit rating, which was previously exceptional, has now been destroyed, and she can not borrow funds for any purpose…” Being laid off from a $52,000/year job while carrying $70,000 in debt equals an exceptional credit rating?? Wow.

Homeowner in over her head

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