[tortoise]

Yet another "lier loan" scheme . . ABC News report.

[AA702]

I thought there are guidelines to counter this. I thought if you were upside down or have negative equity on your current home, they will not give you another loan for another home?? I could be wrong though.

[airics]

now that is just wrong, here is a guy that owes 330k on a house, basically walks away and buys a 285k house (probably a foreclosure).. if this is the case, the taxes may be higher on the 285k house and he has the same if not higher payment.. unbelievable...

[dynimagelv]

I certainly hope that this can be construed as fraud and delt with appropriately

[airics]

it is like burning down the house to collect the insurance to pay the bank

[airics]

so where did the guy get the downpayment for the 2nd house? equity loan off the first house?

[dynimagelv]

Originally Posted by airics

it is like burning down the house to collect the insurance to pay the bank

atho it wasn't invented by....it was used very effectively by a guy named Stupak, as I recall

[airics]

stratosphere?

[olecapt]

Where have you guys been? Been going on for a while now.

The other part is you rent the old house once you move to the new. Then you get 6 months to a years rent before it gets foreclosed.

And you can buy the identical house next door at 40 or 50% off what you owe on your existing house. That way you don't even need a moving truck.

Quite legal. In fact sensible if you are caught in that situation and are able to pull it off.

Not very common however. Requres sufficient income to carry both mortgages as the lender will not accept rental income from a house with no equity. And you have to have the downpayment on the second house...likely 10% or so.

But yeah it can be done and it is not mortgage fraud. And he might have used a second on the first house to get the down payment on the second...but it has to have been a while ago. You don't borrow money against an underwater property.

[dynimagelv]

Originally Posted by airics

stratosphere?

started as a joint called "The Treasury" walls papered with US Currency [out of circulation and worthless] got insurance for FACE VALUE....paid the bill at 10:30 on a Friday morning....poof shortly after midnite....used the $$ to build a casino on the Auustralian Gold Coast [despite the fact that Australia said they wouldnt License him....poof....used the money to change name in LV To "VEGAS WORLD" sign was condemed by the city and ordered removed....poof....and the insurance company get to pay the tab....built the Stratosphere [with the hump in one leg] would cost a larege amount of $$ to remove the wood forms from inside the legs and the tower....poof and the insurance company pays the tab.....coincidence???? maybe but being the ol skeptic that I am...................................