Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (51413)	4/5/2006 12:05:06 AM
From: XoFruitCake	Read Replies (2) \| Respond to of 306849

This is an interesting discussion on who is ultimately getting hurt on mortgage fraud. I don't have any problem up to the point of hiding the asset and go bk. In my book, it is fraud and is no different than any white collar crime. There are thousand that get away each year and there are thousand that get caught in different version of this "hiding asset"game (e.g. someone hiding his/her asset and apply for welfare.). I guess it is one of the "do you feel lucky today" type of deal. But a lot of people in the last few years is doing the legal version of this scheme. They did the 110% cash out with stated income/IO loan and draw money out to spend on luxury items. And when the music stop, they go bk. Since they don't have any money left, it is legal. But ultimately some bagholder will loss a lot of money. The question is who. And I am not sure anyone know. I am looking at some closed end bond fund and a lot of them has some MBS in their portfolio and you wouldn't be able to tell if you just look at the name of the fund (e.g. Is the bond from FNM safe? What about bond from WM?).