Home loans: I can't believe folks are so dumb
- Thread starter Smart Money
- Start date
House bubble is another example of a "TULIP MANIA" of olden days.
Fraudulent real estate brokers simply had to say to the fool, "well by the time an adjustment comes your castle will be worth twice as much, sign here friend".
Greed is still around and always will be.........greater fool theory is alive and well.
good evening all
Fraudulent real estate brokers simply had to say to the fool, "well by the time an adjustment comes your castle will be worth twice as much, sign here friend".
Greed is still around and always will be.........greater fool theory is alive and well.
good evening all
Can the IRS collect taxes from you for the amount of debt forgiven saying that it's income?
If so, what can they do if you are broke?
not to mention that some loans were outright fraud....everyone involved ( title company, appraiser, buyer ) will be investigated even the seller according to what Ive heard..example
Buyer wants a 750K house in the keys lets say . He gets an appraised value of 950K because in essence an appraised value is pretty much a sheet of paper faxed to the lender ( not one person goes to see the actual house ). The borrower gets 950k to buy a 750k home which he then pockets the 200k doesnt even make a payment and then walks away...this is just the jist of it...I know there is more to it than what i wrote but you can get an idea of what is also taking place with some of these loans
how dumb are they???
"In corporate news, homebuilder Beazer Homes is under investigation for its mortgage lending practices as well as other financial dealings by a host of government agencies. Beazer, which fell $2.87, or 9.14 percent, to $28.54, said it is complying with a request for documents from a federal prosecutor."
Anyone surprised?
Anyone surprised?
angel mozilo is a perfect example of what is wrong with the current state of american style capitalism. there is a disconnect between the managers and owners/shareholders of publicly traded
companies. the managers receive large compensation in spite of poor performance. the shareholders do not control the compensation of the officers of the co. they can as all the free marketers on ET will immediately say is to vote with their feet and dump the shares. it is quite obvious that shareholders of small size like individuals or larger holders eg mutual funds do not see that the interests of managers and shareholders do not coincide. when insider sales take place the emphasis in public statements by executives is always on how many shares they still hold not on the tens of millions they made by selling shares or the inflated salaries they receive,
bottom line. do due diligence or eventually lose your shirt.
What amazes me is that people are surprised at all. The last time we had a credit boom where everyone made their fortunes in the market, and borrowed and consumed ad infinitum was in the 1920's.
"But this time its different"
Yes, it is. This time, not only did the people borrow and spend themselves into holes they couldn't dig out of, the nation did it too. And this time not only did we dig ourselves into a huge hole, but its not like we can call in the coins and melt them into gold again this time. And this time we are dependennt on the rest of the world for food, energy, and everything from spoons and clothes, to ipods, toasters and LCD screens. And this time our enemies are the ones selling us all that crap, and sitting on huge piles of our paper iou's, wondering how best to issue the coup de grace.
Boy, I'm glad I'm not a pessimist.
"But this time its different"
Yes, it is. This time, not only did the people borrow and spend themselves into holes they couldn't dig out of, the nation did it too. And this time not only did we dig ourselves into a huge hole, but its not like we can call in the coins and melt them into gold again this time. And this time we are dependennt on the rest of the world for food, energy, and everything from spoons and clothes, to ipods, toasters and LCD screens. And this time our enemies are the ones selling us all that crap, and sitting on huge piles of our paper iou's, wondering how best to issue the coup de grace.
Boy, I'm glad I'm not a pessimist.
Sounds like were not doing so bad. We got our enemies to sell us and manufacture tons of real material goods for us, and for what? US paper
Sounds like the ultimate scam we have played on them.
Sounds like the ultimate scam we have played on them.
Would you have to file for bankruptcy in order to not have to pay the IRS?
Also, wouldn't it make sense that if you get foreclosed on and the home is worth less than the loan balance to just pull out your money from the bank and stick it under the mattress? That way if the lender wants you to pay the deficit or some of the deficit and/or the IRS wants you to pay taxes on the debt forgiven, you can just say you are broke?