This venue has been marked "private" by the Organizer.
Description:
THIS IS THE SAME WORKSHOP MANY HAVE PAID UP TO $199 TO ATTEND! Fee has been reduced to only $50 and *MUST* be paid at the time of reservation. See the note below about why there is a fee at all.
Short sales (pre-foreclosures or REO's) are an excellent way to acquire a home (or investment property) while doing good for the community. To my knowledge no other lender presents a workshop on how to handle a short sale and, it is after all, the lender is the one you will be ultimately dealing with.
You will learn:
Short Sale Basics - what they are, why they exist and how they work Locating Short Sale Opportunities Assessing the Short Sale Opportunity Dealing With The Seller (Lender) - who, what, when and why What To Expect What is a BPO? How To Fund The Deal Does The Property Have To Be Listed? How Long Does It Take? What If They Don't Accept My Offer? What Happens To The "Home Owners"? Do I Get A Clear Title? What About Tax Liens? Other Liens? How Do I Get Sellers To Call Me? How Long Do I Have To Close? Much more ...
Two Hours of FAST PACED and information packed presentation. Table will be opened for Q&A at the end of the presentation. We will start without you.
About the fee: The fee has been reduced dramatically but is still in place to ensure those who reserve do actually show up. Seats for this workshop are highly valuable and very limited. Unfortunately because it is so easy for people to reserve a seat through MeetUp we generally see only about 30 percent of the people who reserve the seat. BUT I WILL TELL YOU YOU WILL PROBABLY FEEL LIKE YOU SHOULD HAVE PAID MORE! Reservation fees are non-refundable after October 16th.
If you want more information you can contact Ken Cook at 678-946-0101
Ken Cook - Georgia - FHA, USDA, VA and Conventional Home Loans (678) 439-8683
We don't have to "just exist" or "hope we make it" in this very strange time for real estate. At least we don't have to take it laying down like some race horse with a broken tibia just waiting on the final bullet. We can win and we can do more than just survive.
A very good friend since high school called on Friday and said, "That's it. I'm done. I'm closing down." Wow. She used to have so many listings. Now she has nine and in spite of massive marketing campaigns she can't stick it out any longer. It saddened me. She's smart, beautiful and feeling beaten down by this market.
Most days I feel confident even if there is a sense of urgency. Yes, my business is down. Not because we don't have money to lend but because people just aren't calling as much as they did. Why is it? Are we offering less than we did a few months ago? Well, yes, but we have more alternatives than any other lender in our niche. I still teach about short sales (from the lender's viewpoint which to my knowledge is unique in all the nation), introduction to real estate investing, how to write a business plan that works, developing a business model for your lifestyle and much more. People still come. About one-fourth as many as once came.
The past week was unique in a new way: Almost every real estate agent I recently worked with emailed or called to ask if I could help them close a difficult deal in a difficult time. My first thought was to say, "where were your other deals for the last 5 years?" But, I understand. When you're known for closing really tough deals and doing so legally and ethically it doesn't cross people's minds that a nice conforming deal now and then makes better business relationships. Nope, we got all the ones Homebanc or Wells or insert lender name here couldn't close because they didn't want to take the time to do the work or simply did not know a Fannie or FHA program existed for that particular deal.
One thing I learned, that I knew all along, tough deals aren't getting closed by in house lenders and there are a lot of tough deals today. Well, no duh.
So, Mr. Smarty Pants, are you just going to vent/rave or do you have a Grand Plan?
Ha! I have a grand plan! This is NOT the time to sit at home and mope. This is the time to be proactive. Monday morning try this: If you are an agent pick up the phone and call every loan officer you can think of. If they no longer work there (this will be a common event unfortunately) ask for their supervisor. Introduce yourself and ask them if they are interested in doing some combined activities. Yes, RESPA dictates how these can be funded so just make sure you are splitting the costs evenly if their are any. You may simply want to team up and canvas a neighborhood.
Canvas? What's that?
Well boys and girls, back in the day before Vista Print, even before the internet, even before cell phones, sales people actually went outside and actually knocked on doors! And guess what? We met people and created clients! We did! No joke! And people were not put off by us knocking on their door.
Sure you can send postcards ... they do work. Not quite as well as putting your face near someone else's face at their house but they do work.
Invite an old friend to attend a business luncheon with you! Been to your area's business association breakfast or luncheon lately? Then how do you know what the business owners are planning to do? How will you know the rug store needs a new location they can buy instead of renting at the strip mall?
What am I doing Monday? Well, instead of sending out a representative from my office I am personally going to be visiting all of the real estate brokerages in my area. Oh I'll likely get the same reception I used to when I was doing the same as a loan officer, "we already have a lender" or "she said leave a card and she'll call you". It would be nice to hear, "Oh, you're the Vice President of Operations? Come on back, we have a dozen deals we need closed today!" Maybe I will .... I won't know until I put my large pale butt in my bright yellow car and drive. Nope, this time I won't be letting the postman deliver my contribution to the broker's trash can. I'll be door knocking and bringing some home made cookies and homemade marshmallows and my own version of good news.
Will you join me this week? Will I see you in your car with your magnetic signs on the side? Will your smiling face actually come to my office and say, "I've heard of Novation Mortgage. I am a real estate agent. What can we do together to turn this market around?"
I'll keep the coffee on ...
Ken Cook - Georgia - FHA, USDA, VA and Conventional Home Loans (678) 439-8683
Touchy one for you here! From time to time we get a call and out of the blue a new caller will ask us to send them a GFE - Good Faith Estimate (of Settlement Charges).
A recent caller begin to turn rude and unruly and demanded to speak with me - by job position not name - and soon got their wish. This particular buyer had not completed or even begun an application and were calling about a real estate investment property. The originator sent the caller to my extension where they left a message and I'm not sure if they were trying to be calm but it did not appear to be the case!
Some calls require a little research but this one required only seeing that the caller was not in our system meaning they had not begun an application. So why were they demanding a GFE at that time? Simply they feel they have learned that the GFE is the answer to everything and the way to shop for a loan. In truth it is a way to shop for a loan but to be valid must be done in order.
When I contacted the caller they began recounting federal laws to me and how I and my company are in violation of federal law by not sending her a GFE on her demand. The conversation was not going to get any prettier so I asked if she had started an application with us. "No", was the answer. Have you identified a property? "Yes." Are you planning on occupying this property yourself? "No. It is an investment property." Will you be making a down payment on this property? "They tell me I have to pay down 10%." Has another lender sent you a GFE? "Yes." And what was the interest rate they showed you? "6.25%" And the amount of pre-paid interest days? "0".
She was not going to like my response but I provided it as calmly as possible. Ma'am, the estimate of good faith you have is worthless. The interest rate is an impossible rate on an investment property, they have not estsimated pre-paid interest which indicates to me there are likely other fees not included - a very commonn trick for lenders/brokers who send GFE's on demand prior to accepting an application on a new purchase. I'm also going to assume they did not send a TIL (Truth In Lending) which is required to accompany a GFE. Furthermore, until you have completed an application for an identified property you intend to occupy there is no law requiring a GFE and TIL be sent to you. You have not completed an application and you are calling regarding an investment property.
Expecting her to get livid and start saying words like "report you" and "my attorney" I was surprised to hear her say, "Really? Where can I find out more about this?"
Where FAQ number 31 says, "When the potential borrower furnishes a substantial amount of financial information for prequalification, but no particular property has been identified, must the good faith estimate be furnished to the borrower?
No. A submission by a borrower to a lender that does not identify a property is not an application and thus does not trigger the Good Faith Estimate requirement. However, HUD encourages providing information to the borrower on settlement costs as soon as it can be estimated, so that the borrower may be better able to shop. "
So do we send GFE's and TIL's? YES! Even on investment property where it is not covered by RESPA. We send the GFE and TIL as a part of our Early Disclosure package even when a property has not been identified but we have accepted a full application and examined the borrower's credit. We re-disclose when a property has been identified or if the loan program must be changed for any other reason.
Why do we not send a GFE and TIL to every caller? Do we have something to hide? We do not send a GFE and TIL to every caller arbitrarily because if we don't know anything about the borrower we cannot possibly provide an accurate estimate. What we WILL do is quote our fees. Interest rate, pre-paid interest, attorney fees, etc., are not fixed numbers and depend on many other conditions.
When should you expect a "re-disclosure"? If, for reasons of credit, condition of the subject property, or some other event causes the broker or lender to be required to change the loan program they should send you a new GFE and TIL. For example if you were pre-qualified for an FHA loan but were not able to meet the qualifications for any reason and your lender or broker had to move you to a FNMA loan solution they should send you a new GFE and TIL at that time.
Novation Mortgage does not like surprises - especially last minute ones. We have a long standing policy, even on non-covered loans, of sending a new GFE and TIL any time there are any new discoveries during the process. We also prefer to review the GFE and TIL within a couple of days of closing to make sure the buyer knows exactly what to expect at the closing table ... almost to the penny.
If you are at the closing table and your loan is a gross mismatch from your GFE and TIL you have the ability to stop the process, call your lender and get the issue resolved. If they cannot resolve the issue and it is unacceptable to you LEAVE. Walk away. What many borrowers do not know is the broker/lender is supposed to approve the HUD-1 proper to closing. Many times the borrower will see the HUD-1 before the broker or lender. We've actually had closing agents completely leave off our fees and close the loan and let the borrower leave the closing table. We didn't see the HUD-1 until hours after the closing. Of course that was a government contracted (HUD) closing attorney. ASK THE CLOSING AGENCY IF THEY HAVE SENT THE HUD-1 to your Loan Originator BEFORE you sign the documents or have a heart attack about the fees your lender may not have approved.
Ken Cook - Georgia - FHA, USDA, VA and Conventional Home Loans (678) 439-8683
For new investors and new agents here is a quick clarification of an often misused/misunderstood term. You will hear people saying "REO" in one form or another including "REO's" and "REO Properties" among a few others. REO simply means Real Estate Owned. Where it gets confusing to some is that REO does not only mean real estate owned by a bank or lender they have accepted in lieu of foreclosure or have foreclosed upon but the term also indicates any property held by an individual including their primary residence.
When a loan originator is accepting an application from a prospective borrower there is actually a section for the listing of real estate owned. When that part of the application is encountered the loan originator may use the abbreviation REO instead of saying the words "real estate owned". This is the time where all properties are listed whether or not there is a registered mortgage attached to them.
In the real estate investment industry when you see the words REO in an advertisement it is generally assumed the subject property is a foreclosed property or property that has otherwise come into the possession of the bank or lender.
Novation Mortgage does provide financing for REO properties (foreclosures and pre-foreclosures) in Georgia, Florida and Alaska and can be reached at 866-946-0120 extension 101.
Ken Cook - Georgia - FHA, USDA, VA and Conventional Home Loans (678) 439-8683
Yes! This is the answer to a question that a decreasing percentage of the inhabitants of this diverse state can give. The question? Are you a native? Indeed I am. Born just 3 miles from my current place of residence I am indeed a native. Oh, I've travelled - called other places home temporarily. Honestly there are other places I love but none of them can ever be "home". In fact the home in which I currently reside has been in the family since 1978. Well, part of it - we've added on extensively. But I want to tell you about my home state.
I want to tell you about My Georgia
Few outsiders realize the diversity of this state. Just as I know nothing about the streets of San Fransisco, the ski slopes of Vermont, the lakes of Minnesota, I do know and have seen a great portion of Georgia. From the Golden Coast Islands to one of the largest canyons in the United States to the flat plains of the Piedmont and the diverse population of the Okefenokee Swamp.
Did you know that the Ocmulgee (oak-mull-gi) Indians left artifacts dating back to pre-9000 BC? The Ocmulgee Mounds are located in Macon, Georgia about 2 hours south of Atlanta just off Interstate 16 at the Ocmulgee River. In the 1930's a "clovis" spear tip was found on the Macon Plateau and was the first artifact found where it was used in the Southeast.
Just north of Atlanta in the city of Emerson are the Mounds of the Etowah. Thousands of Etowah people lived by the banks of the Etowah River just outside of present day Cartersville. This area was rich in iron and gold and was, in fact, the site of some early gold rush acitivity. This area was inhabited roughly from 1500 to 1000 BC and it is easy to see how they were able to farm corn, tomatoes and other vegetables on their large area of their village as well as making use of large stone "fish traps" in the river.
In the most northwest corner of the state is Cloudland Canyon. I have posted some photos from Cloudland to Localism.com. Cloudland is located in Rising Fawn and you can't get there from here as people are known to jest. It is about a 2 hour drive from Marietta up to and through Chattanooga or a longer drive up through the smaller towns. A satellite photo shows the outline of the canyon.
Follow the Georgia/Tennessee line east and you will come to the Blue Ridge Mountain area. These mountains, much older than the Rockies, are weathered and worn and covered with thick, lush vegetation. The satellite photo shows the rich, vegetative coverage. There are so many points of interest in the Blue Ridge area that even a voluminous book and accompanying video would not be able to amply tell the story.
Far to the south is one of my most favorite places in the state. Drive to Stephen Foster (Way Down Upon The Swanee River) State Park and you'll be on the edge of the great Okefenokee Swamp. Yes, there are many alligators, snakes, huge black tadpoles and gianormous bullfrogs, wild boar, black bears, coyote, fox, hummingbirds, turkey vultures, racoons, ah ... on an on. I have personally seen each of these and have some funny stories about most of them. I'll save you.
While you are at the park be sure and take the canoe tour to Billy's Island. There is nothing quite as exciting as being in an 11' canoe rowing silently over the top of a 15' alligator! Just try not to remember you may be in the middle of 438,000 acres with no road and no place to land a helicopter. Remember, that may look like solid land in the photos but the name, Okefenokee, means "land of the trembling earth" because that is actually floating vegetation!
One last stop for this tour, and there are hundreds I haven't mention, is Cumberland Island. You like roughing it? Cumberland Island is the place for you! Many people don't realize that Georgia has a large Atlantic Ocean coastline and there are several barrier islands on that coast. The island was, and still is, home to many of Georgia's elite families. There are still private residences on this island but most of it is park property and you can hike and camp in many places. I once had the privilege of escorting seven beautiful Auburn students on a two week assignment. Sounds exciting until you realize there is no electricity, no running water within five miles, no open fires and the island is covered with wild life that will eat people. Our assigned campsite was a full day hike from anything.
One of the most amazing things about the island is the herds of wild horses! They are beautiful but definitely wild - you do not want to try and approach them - trust me!
There are at least 100 more places in Georgia I have visited and hopefully will find the time to share with you. I love my state. Like everyone we have our issues. The modern state, while in the deep south, is no longer the backwoods redneck breeding ground depicted in many Hollywood movies. In fact, as I indicated earlier, there are fewer and fewer of we natives remaining every year.
Here are some stats on Georgia for the Census Bureau: Population 2006 (est.) 9,360,000 Bachelor's Degree or Higher 24.3% Housing Units 2005 3,771,000 Median Household Income 2004 $42,269 Manufactured Shipments 2002 $126 billion Wholesale Sales 2002 $202 billion
Thanks for reading! Hopefully I'll be able to offer more Georgia His Stories in the near future.
We have, ladies and gentlemen, a great number of un-named and named enemy who want us dead. At least they want our businesses dead. At first I fought back. I accused anonymous posters, including Mikey, of a wholesale bloodfest on the very fabric of the American economy. My words for the media have been blatant and accusatory of their globalization of "the housing bubble" and "mortgage fiasco". They globalized the real estate bubble by lumping all markets together. Never one time have I heard a talking head (reporter or anchor) talk about improving market areas even though they are prolific. Sure they had guests on their shows who did but the reports never included the good news.
Please remember that the media has a mantra and it has never changed. They are never going to lead with good news. Remember the mantra: if it bleeds it leads. They WANT bad news and we have been taught to want it, too. For example, we rarely hear anything about the space shuttle flights except which tile was knocked off by which piece of faulty foam. No major media outlet tells even one good story out of Iraq. Not one. The American media seems as anti-American about Iraq as Al Jazeera when reporting on events there. Think I will ever be interviewed? Ha! No way, friend, I have too many good things to say about real estate and the American Dream.
So what can we do together?
First we must remember that this is a war. The media wants more blood. The elected officials want to do something but with their usually limited knowledge of the market only make things worse by creating new regulations which hurt the citizens more than the people they are trying to "protect them from". More than anything it's the media about which you must be most diligent. This is YOUR industry. The people watching the news are generally going to believe the reporter more than you because they have all the Hollywood glitz around them. Remember when actors were jesters and jesters were fools? How did America come to be directed by fools?
Secondly we must know not only our own market but our regional market. Remember, knowledge is power. Not only we but our clients. We must know the truth that is never heard in the media. There are still good lenders, good mortgages, good market areas and even good locations in down market areas. Please, real estate agents, don't try and do the job of the lender. Even conforming and agency loans are changing and there is no way to keep up with all of the changes unless you are trained daily and notified hourly. Talking about the part of the industry in which you are not an absolute expert only ads to the confusion and fear. And please don't take offense to that statement - it comes from a long history of good relationships with agents in my area.
Finally we must not be on the defense but on the offense. Host a seminar in your area and invite everyone to talk about the condition of the market in your area. Back it up with numbers and facts. I may even be able to come speak there and help - depending on where you are located. Not to get more business but to redirect our industry and overcome the fear so fueled by the media. Place articles in your local newspaper, call your local talk shows, host an industry fireside chat.
Grass roots. We can turn this around - not spin it as I have been accused - but rather find the good and nourish it back to health. People are on hold because they are afraid and we can overcome that fear with facts, calmness and by truly caring about our clients and prospects. I still love the real estate industry and we have been dealt a severe wound but people still need homes, they still need to add on or remodel, they still need to refinance for any number of reasons.
Let's do this together.
Ken Cook - Georgia - FHA, USDA, VA and Conventional Home Loans (678) 439-8683
It is easy to take control of a person, or a country, when they are weakened by fear. From the sound of my phone and from reading ML Implode I would say at least our industry is somewhat paralyzed by fear. Oddly enough when our phone rings we are still able to accept applications and close loans. Hmmm.
Perhaps I am overly critical of the media and my accusation of their implicit involvement in the destruction of the sub-prime mortgage industry. What do you do when someone attacks someone you love? More than likely I am exhibiting some neanderthal, base human defense posture because I love my industry and I still believe in sub-prime loans. Well, there is more to it than that simple statement.
Those of you who have been reading my blogs here on Active Rain and in other places for the last few years know I also held in contempt my own industry and the hacks called loan officers who were inexperienced, under trained and void of personal liability. I am a vocal proponent of licensing every person who is involved in the origination, processing and underwriting a loan. It would not be more regulation, it would be the same regulations but a method to ensure that when someone wilfully violates the laws and regulations of our nation, states and industry is properly disciplined.
Why is our industry so disrupted? If you have read my blogs you know I hold the media almost solely responsible for the fear that has gripped the hearts of many. The fear caused investors to sell out early, major lenders to lose their ability to fund loans and make timed corrections to the industry. Fear caused the plug to be pulled immediately. The truth is investment trusts, hedge funds and lenders were NOT losing money prior to September 2006 when this all started. Yes, we've been full fledged into the mortgage collapse for over a year.
Today fear is even interfering with conforming loans. People we excellent credit, good income, strong assets, are also being victimized by this media typhoon.
We must work together to calm the nation, present what IS available and continue in our due diligence to perform better than ever!
This posting is not an advertisement but if you are a real estate professional in Georgia or Florida and you have not experienced how we operate Novation Mortgage I encourage you to give us a try. If you are a mortgage professional I encourage you to get certified, take classes, and learn more about your industry than you knew in the past.
This, my friends - investors, agents, loan officers, is the time to SHINE!
Let us work together to end the fear and allow our industry, once again, to begin to live.
(I'm still looking for that hero with a few million to help save the niche!)
Ken Cook - Georgia - FHA, USDA, VA and Conventional Home Loans (678) 439-8683
"Times has been (sic) good" and I will testify to it. Truly, deals fell out of the trees from about 2002 until mid to late 2006. "Hello sir/ma'am, please breathe on this mirror and if we see some fog ... sign here and get the keys."
How do we survive on this forced fast of "sorry, we no longer offer that program"? Simple! We adapt and adjust just like we used to do! Homes are still being purchased, I know - we're closing almost all purchase loans ... about 15 per month. Loans are still available and it's not your fault the national mentality was, "Spend, buy and purchase for tomorrow we die!"
GUILTY! GUILTY AS CHARGED!!!
I facilitated a percentage of the "problem" we have today. I facilitated the ability for people to participate in The American Dream who never would have had that opportunity elsewise. Had we not listened to the cries and accusations that "the bankers are holding back the underserved market". Yes! I did! I helped people purchase a home who would never been able to do so without sub-prime mortgages!
And guess what?
95% of them are still in those homes making their mortgage payments!
THEY ARE HOMEOWNERS! Building equity, paying property taxes (in the states where that applies), voting because they now care who represents them, paying school taxes, feeling like Real Americans instead of second class citizens.
GUILTY AS CHARGED!
Did I profit from my efforts? You're damn right I did! I worked HARD and invested my own cash to tell people what WAS available to them. Did I "stick them in loans they couldn't handle"? Evidently not!
Even if our default rate matched the national average of 14% (of subprime loans) that would mean that 86% of those borrowers either purchased investment properties or primary residences that would not otherwise have been able to do so.
LET IT BE KNOWN that I am not naive, I do understand that some lenders put borrowers into subprime loans who should have been in conforming loans. I know that. But not all of us followed that pathway.
WE NEED A HERO
Someone has billions of dollars to put into the market. Someone understands that front-loaded interest and a 14% fallout ratio (of which a major percentage can be recovered) is still a fantastic ROI will turn their billions into multiple billions.
Ah, it's the tsunami I wrote about a few months ago. The only problem is all the people who can and should are frozen by fear.
FEAR. Pass the doughnuts, I think I'll work on my figure.
Bottom line ... I have previously blogged about King Cash returning to the throne. That day is no longer coming, it is here. The hiccup is that most of our borrowers are "cash strapped" which is a nice way of saying "leveraged to the eyeballs". I really agree with the term "credit crunch" because we have continually rewarded people for having bad financial habits and etiquette.
WE'RE ALL GUILTY
It is a season of help, a time of reckoning. We screwed up collectively. I have the answer and so do most of you but it will not likely be heeded. Instead of crying on each other's shoulders we must do what we can do. Offer great care and concern for our family of clients. Provide services better than we would expect for ourselves and, most of all, be forthright and honest in all of our statements and actions.
The End ... No, it's The Beginning
(Nationwide 85% of people who "didn't deserve that loan" are still making their payment on time and glad to own that piece of The American Dream. Furthermore 56% of those who are in adjustable rate loans can easily qualify for a conforming refinance with a fixed rate mortgage. Yet they are frozen ... by fear.)
Ken Cook - Georgia - FHA, USDA, VA and Conventional Home Loans (678) 439-8683
Sometimes we use terms familiar to our own little clique but confusing or misunderstood to others. There is one term in particular we hear in my business somewhat frequently that is obviously misunderstood by many. The term I am writing of is "straw buyer". This blog has a dual purpose and that is to define the term and briefly explain why it is a problem and even illegal.
Here is a straw scenario for you and it is very often used by people who just can't seem to understand how it can be a problem. Let's say you find a lovely new home you like and you enter into a contract to purchase it. During your workings with your banker you find out you can not qualify for a loan to purchase the home. Your brother, however, who has great income and great credit is willing to get the loan and "purchase" the property for you as though he intends to occupy it and for his trouble you will give him $500. Your brother just committed mortgage fraud and you just engaged the services of a "straw buyer".
A straw buyer is a person who uses or allows their credit to be used for the purchase of a property they never intend to use or control. Straw buyers can also be used to purchase non-owner occupied properties by being paid simply for the use of their credit. The ads on Craig's List look like this:
CREDIT PARTNER - GET PAID FOR DOING NOTHING! All you need to do is let us use your credit score to purchase properties and we will handle everything else. We will make the down payment and pay the monthly mortgage note and give you $10,000 for each purchase you make. You don't even need to come to the closing! Call Leroy at 404-555-1212 and I will give you $10,000 cash on your first deal by the end of this month!
Of course you may not be so inclined to answer an ad so sometimes it comes from an industry insider such as an investor or more likely than not a "bird dog" (unlicensed real estate agent). It can even happen if your mother-in-law actually uses her credit to buy your home and she does not live in or control the home. Even if she goes to the closing it can still be a straw purchase.
The common disinformation says that a straw buy is always fraudulent in other ways. This is not true ... anytime one person applies for a loan for a property they do not intend to live in for the purpose of allowing another person to live in and control the property this is a straw buy. IF the "straw buyer" does not intend to occupy the property AND they apply for an investor loan AND they use their credit and their funds to purchase the property THEN they can do whatever they want EXCEPT let someone else directly make the payment. The payment still needs to come from the investor.
Why is this illegal if the mortgage gets paid? Because of RISK posed to the lender. You make false statements to lower the perceived risk and therefore commit mortgage fraud by making false statements (I intend to occupy the property) to the lender at the time of application.
So I've been bashing the media and their wholesale attack on the "great losses" in the subprime secondary market which supposedly caused the problem we have today. I have said the problem is not the lenders, the problem is the sissy pants, scared little pansy-ass nuevo-riche investors who know NOTHING about the FVM or ROI on any scale who pulled their little investments at totally the worst time. AND the blame falls on the shoulders of each individual borrower IN MOST CASES. I will keep saying that over and over and over because it is the truth.
I have issued a challenge to the media to SHOW US HEDGE FUNDS or REIT's that LOST MONEY prior to September of 2006 (because that's when the media started sucking the very marrow out of the industry with their skewed statistics and lack of knowledge of an intensely complicated economic engine that drives 1/3 of the nations business).
So what was the news on Friday? A 410% change in a HEDGE fund that invests in SUB PRIME MORTGAGES. Did they LOSE? NO! They are UP 410% THIS YEAR from their investments in sub=prime mortgages! How could that be? I thought every sub-prime mortgage in the nation was in foreclosure.
