rugbythug
11-05-2008, 12:31 PM
I have told many of the People I know if Real Life this But I thought I would share it with my internet Community.
First what I do. I have a full time job but on the side I buy houses fix em up and then put in good people to rent them with or with out an option to buy. Mostly low end stuff top rents around 1000.00. Over the past 2 years I have found in my research a very disturbing pattern.
50-75% of the previous owners to these foreclosed on homes had the same owner. There was a couple of guys out there who a few years ago bought up old foreclosures put in paint and carpet then resold them. This is a very common practice- Tons of good people have done it. Here is the kicker They did it in crazy numbers had an appraiser come in appraise it way over value and then sell it to people who shouldn't have been allowed to own a pet much less a house. Then on the backside of the loan he gives them some cash. He sold some people 4 or 5 houses this way. Now this only works if banks give the people the money. But Lending practices were so slack and so permissive that these guys got multiple loans. And then never even really tried to make the payments. They sucked out all the cash put in Gang Banger Renters and then steal the copper before they leave.
Now I only know what I have discovered in my area but I have no doubt this was perpetrated through out the country. Ton's of those loans are run through Fannie and Freddie. This is where our bail out money is going. And while they were doing it everybody knew.
The Flipper Knew
The Appraiser Knew
The Selling Agent Knew
The Mortgage Broker Knew
The Bank either knew or was so stupid that the should not be allowed to count money let alone lend it.
Now I am not saying everyone who gets foreclosed on was in this kind of situation. But I have looked at enough to know that it was very very common. Remember this next time the bail out talk starts up, or if they start talking about rewriting loans to keep people in their homes.
First what I do. I have a full time job but on the side I buy houses fix em up and then put in good people to rent them with or with out an option to buy. Mostly low end stuff top rents around 1000.00. Over the past 2 years I have found in my research a very disturbing pattern.
50-75% of the previous owners to these foreclosed on homes had the same owner. There was a couple of guys out there who a few years ago bought up old foreclosures put in paint and carpet then resold them. This is a very common practice- Tons of good people have done it. Here is the kicker They did it in crazy numbers had an appraiser come in appraise it way over value and then sell it to people who shouldn't have been allowed to own a pet much less a house. Then on the backside of the loan he gives them some cash. He sold some people 4 or 5 houses this way. Now this only works if banks give the people the money. But Lending practices were so slack and so permissive that these guys got multiple loans. And then never even really tried to make the payments. They sucked out all the cash put in Gang Banger Renters and then steal the copper before they leave.
Now I only know what I have discovered in my area but I have no doubt this was perpetrated through out the country. Ton's of those loans are run through Fannie and Freddie. This is where our bail out money is going. And while they were doing it everybody knew.
The Flipper Knew
The Appraiser Knew
The Selling Agent Knew
The Mortgage Broker Knew
The Bank either knew or was so stupid that the should not be allowed to count money let alone lend it.
Now I am not saying everyone who gets foreclosed on was in this kind of situation. But I have looked at enough to know that it was very very common. Remember this next time the bail out talk starts up, or if they start talking about rewriting loans to keep people in their homes.