Michael is right that the lenders are not really “victims”. The lenders who got deep into this got caught up in the whole notion that these loans could get packaged into mortgage backed securities (with largely illegitimate credit ratings) and become someone else’s problem, so that they basically gave up on all rational lending standards and just pumped out the loans for their commissions.

However, from the deed records that I’ve seen in Detroit, I’ve also found that the bulk of the current foreclosures are very quick Early Payment Defaults, which are fraud for profit. This may not mean that the majority of foreclosures nationwide are fraud for profit, but I think it’s a much larger percentage than people realize. Also, the subject of this thread “Foreclosures Aren’t the Result of ARM Resets” would lead me to believe that a significant percentage are due to fraud for profit, since ARM Resets are pretty much fraud for housing.

In any case, it doesn’t matter that much, because the lenders abandoning prudent, legal guidelines (due to the spreading/hiding of risk in these securities) is the root cause of the massive increase in BOTH fraud for housing AND fraud for profit.

Sven, if it would be possible for you to contact me with some of the public record info you have in MN, I would be very interested, I could share my info from Michigan. dway at mailcan dot com.

Sven, that’s why we are here, for the legitimate homoenwer, not the fraudster or speculator.
You made some great points and I appreciate your comments.

Michael, right on as always.

However, it looks like our government is trying to put a stop to the double header with the mass loan modification campaign.

Mr. Blomquist, I looked at your websites. I agree that we are in the first inning of a double-header. I too think Option ARMs were created to deceive and should be illegal. I too think that virtually the entire financial world foresook sound underwriting guidelines in pursuit of short-term gains. And I too think the government should not be bailing out anyone. The point of my original post was to point out that in my particular neck of the woods (I don’t know about CA, NV or FL), the houses CURRENTLY in foreclosure appear to me, after a detailed investigation of public records, to have involved fraud for profit. That’s why they went into foreclosure virtually immediately after the origination of the loans. The coming waves of foreclosures in 2008 (subprime ARMs) and 2008-2011 (Option ARMs) by and large did not involved fraud for profit (by the borrowers at least). I would agree that the marketing of Option ARMs, in many cases, was deceptive. I wish you all the luck in the world in suing on behalf of legitimate owner-occupants who were misled. Since they seem to be a minority of borrowers who were recently foreclosed, my guess is that you may have to wait to sue on behalf of the option ARM borrowers before you really hit the jackpot.

The lenders abandoned prudent, legal guidelines, which virtually guaranteed this would happen. In the interim many executives got rich beyond their wildest dreams and the tax-payers and dollar will continue to pay the consequences.

The overwhelming majority of these foreclosures were not from fraud for profit; they were from fraud for housing.

Lenders didn’t care if borrowers could qualify because rating agencies and investment banks were aiding and abetting the fraud.

http://www.youtube.com/watch?v=Oya0PlwA-NM

Make sure you get to the GMAC loan.

The trillion dollar smoking gun is to tie this pandemic to the government ala Shock Doctrine.

What has happened is a complete dislocation from reality. Fraud of epic proportions.

I have yet to see any opinions from the BIS, but I am certain there will be consequences. This could destroy the global economy and financial markets.

We are only in the first inning of a double header.

http://www.discountrealty.com

Memo to news reporters: THE BUYERS WERE IN ON IT !