U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Nevada > Las Vegas
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
 
Old 09-06-2007, 03:40 PM
 
Location: Santa Monica
4,708 posts, read 5,560,885 times
Reputation: 1002

Advertisements

There is lots of RE fraud going on all through the boom. I'm beginning to think that it's possible that a significant percentage of the "foreclosure" activity is actually the tail end of planned fraudulent transactions. The crooks had 3 to 5 YEARS to hone their techniques.

Last edited by ParkTwain; 09-06-2007 at 03:51 PM..
Reply With Quote Quick reply to this message

 
Old 09-06-2007, 03:53 PM
 
Location: Santa Monica
4,708 posts, read 5,560,885 times
Reputation: 1002
Quote:
Originally Posted by dude66 View Post
"Summerlin of course is the prototypical faux-OC of Vegas. Today we look at Monterossa, a gated community of luxury homes built between 2002 to 2004. ...

Bubble Markets Inventory Tracking: If Only I Waited... In Monterossa

Haven't you figured out yet that these "RE bubble and doom" blogs are actually hate screeds by antisocial folks who probably don't know a whole lot about RE transactions and how they can hide all manner of scams.
Reply With Quote Quick reply to this message
 
Old 09-06-2007, 03:58 PM
 
Location: NW Las Vegas - Lone Mountain
15,757 posts, read 20,720,558 times
Reputation: 2661
Default August results...

The August results are up. Actually a little better than expected. Single Family Residences sold 1316 units which is 2 less than last month. The median sellling price was $299,900...up from $295,000 last month. So basically the same volume and 1.5% increase in price.

So it simply continues. Low volume, stable prices, increasing inventory. weird.
Reply With Quote Quick reply to this message
 
Old 09-06-2007, 04:02 PM
 
Location: Santa Monica
4,708 posts, read 5,560,885 times
Reputation: 1002
Default Interesting mortgate fraud report - April 2007

http://www.mari-inc.com/pdfs/mba/MBA9thCaseRpt.pdf

See p. 4 where Nevada is ranked 10th in rate of mortgage fraud in year 2006.
Reply With Quote Quick reply to this message
 
Old 09-06-2007, 04:16 PM
 
Location: NW Las Vegas - Lone Mountain
15,757 posts, read 20,720,558 times
Reputation: 2661
Quote:
Originally Posted by ParkTwain View Post
http://www.mari-inc.com/pdfs/mba/MBA9thCaseRpt.pdf

See p. 4 where Nevada is ranked 10th in rate of mortgage fraud in year 2006.

Actually when you go through the whole thing it is pretty obvious Nevada is not much of a player. I find that pretty surprising actually. We do tend to attract sharp operators...but apparently not on the mortgage fraud front.
Reply With Quote Quick reply to this message
 
Old 09-06-2007, 05:40 PM
 
85 posts, read 136,127 times
Reputation: 60
Mortgage fraud is very tempting on my side.

I have turned a blind eye many times and just shook my head at some of the practices I hear in casual conversations with insiders.

I am hoping that most of those guys are back selling used cars.

I think the biggest fraud was not so much income but Occupancy. Everyone focuses on Liar-Loan stated incomes. Occupancy was a much bigger culprit.

In order to purchase/refinance a home that you do not physically occupy most lenders required 20% down payment.

The 20% downpayment is a function of higher risk. The idea is that if the property is not genuinely your principle residence...push comes to shove you will let that property foreclose before the one you live in.

However, if the appraiser, broker, and borrower all agreed fraudulently that the borrower "lived in the home" or "intended to occupy"...well one little tiny box checked on the appraisal changed everything.

Imagine this:

A 2004 would be investor lives in California. He sees the rampant run-up in new construction for Las Vegas. He secures 100% financing on a home not yet built through owner occupied status. The mortgage broker doesn't care to check if he really is moving in. The sales guys wants to sell the unit and could care less if he lives there or not. The Lender is making bank on Wallstreet. Why bother to check the actual "occupancy"? He sells it for 35K profit as soon as it closes. No harm no foul...minor fraud no guilty conscious..

A 2006 guys does the same thing. However now the property values fall. He dumps the home as he has 100% financing and stands to lose nothing. Foreclosure city and plummeting values...he might have rented it out if he was 20% vested...

I fully believe if every single investor actually put down 20% downpayment for true "owner occupied" loans....NONE of this hassle would have ever happened.
Reply With Quote Quick reply to this message
 
Old 09-06-2007, 07:52 PM
 
Location: NW Las Vegas - Lone Mountain
15,757 posts, read 20,720,558 times
Reputation: 2661
Quote:
Originally Posted by TerpsandHorns View Post
Mortgage fraud is very tempting on my side.

I have turned a blind eye many times and just shook my head at some of the practices I hear in casual conversations with insiders.

I am hoping that most of those guys are back selling used cars.

I think the biggest fraud was not so much income but Occupancy. Everyone focuses on Liar-Loan stated incomes. Occupancy was a much bigger culprit.

In order to purchase/refinance a home that you do not physically occupy most lenders required 20% down payment.

The 20% downpayment is a function of higher risk. The idea is that if the property is not genuinely your principle residence...push comes to shove you will let that property foreclose before the one you live in.

However, if the appraiser, broker, and borrower all agreed fraudulently that the borrower "lived in the home" or "intended to occupy"...well one little tiny box checked on the appraisal changed everything.

Imagine this:

A 2004 would be investor lives in California. He sees the rampant run-up in new construction for Las Vegas. He secures 100% financing on a home not yet built through owner occupied status. The mortgage broker doesn't care to check if he really is moving in. The sales guys wants to sell the unit and could care less if he lives there or not. The Lender is making bank on Wallstreet. Why bother to check the actual "occupancy"? He sells it for 35K profit as soon as it closes. No harm no foul...minor fraud no guilty conscious..

A 2006 guys does the same thing. However now the property values fall. He dumps the home as he has 100% financing and stands to lose nothing. Foreclosure city and plummeting values...he might have rented it out if he was 20% vested...

I fully believe if every single investor actually put down 20% downpayment for true "owner occupied" loans....NONE of this hassle would have ever happened.
I think we have had this discussion before. The appraiser has no role in who lives where. He values the property. I have never heard of an appraiser even visiting a property when the borrower had actually moved in.

The RE Agent/Broker is also relatively free from sin. He has no knowledge of the terms and condition of the loan nor any real insight into the buyers intent.

So who has the bag? The Mortgage Broker and the Lender writing the mortgage as well as the buyer. All knew or should have known. Too many cases where people had 3 and 4 properties...can't live in them all.

Simply a conspiracy of silence. All involved knew and kept their mouths shut.
Reply With Quote Quick reply to this message
 
Old 09-06-2007, 08:42 PM
 
Location: Santa Monica
4,708 posts, read 5,560,885 times
Reputation: 1002
No one in the mortgage origination food chain is responsible for residency verification. You would think that the mortgage company would be tasked with this by the mortgage investors, but that's not the way it is. So now after the crash, all the slipshod practices might actually be rectified.

It's too easy right now to mislead everyone, even the authorities, about where one lives. Look at Ms. Lynette Boggs -- the former Clark County Commissioner and now an "evangelist" who tells the court she can't afford an attorney -- whose residency fraud was busted by private investigators paid for by political operatives.
Reply With Quote Quick reply to this message
 
Old 09-06-2007, 09:00 PM
 
Location: NW Las Vegas - Lone Mountain
15,757 posts, read 20,720,558 times
Reputation: 2661
Quote:
Originally Posted by ParkTwain View Post
No one in the mortgage origination food chain is responsible for residency verification. You would think that the mortgage company would be tasked with this by the mortgage investors, but that's not the way it is. So now after the crash, all the slipshod practices might actually be rectified.

It's too easy right now to mislead everyone, even the authorities, about where one lives. Look at Ms. Lynette Boggs -- the former Clark County Commissioner and now an "evangelist" who tells the court she can't afford an attorney -- whose residency fraud was busted by private investigators paid for by political operatives.

Political operatives? You mean like taxpayers?

I would think all in the direct chain knew. They just "de facto" waived the requirement. Now it does not look like such a good idea.
Reply With Quote Quick reply to this message
 
Old 09-06-2007, 09:04 PM
 
Location: Santa Monica
4,708 posts, read 5,560,885 times
Reputation: 1002
Quote:
Originally Posted by olecapt View Post
Political operatives? You mean like taxpayers?

reviewjournal.com -- News - County Commissioner Lynette Boggs McDonald: Lawsuit questions residency
//
The residency challenge lawsuit filed by the Police Protective Association and Culinary Local 226 contends Boggs McDonald perjured herself in a candidacy document she filed in May by stating she lives in District F, the southwestern valley district she is seeking to represent for a second term.
//
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2011 data
Loading data...

123
Hide US histogram

Over $84,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Nevada > Las Vegas

All times are GMT -6.

2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top