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Authored by: Anonymous on Saturday, January 05 2013 @ 03:38 PM EST |
I think you are missing the point.
There is always demand for 'too easy credit', whether it's the old 'housing
bubble' or the new 'student loan bubble'.
Toxic loans were created and offered in a pass-the-parcel scam that fuelled
Mortgaged backed security products, sold to investors with improper ratings.
There are well-documented instances of fraudulent activity that are being
passed-off as 'process failures'. The Rolling Stone and Naked Capitalism
articles refer to some of these. They are good examples of Control Fraud that
were prosecuted in the past (Google: Savings and Loan control fraud)
In the UK, this type of behaviour is recognized as 'mis-selling' and has cost
the UK banks billions in restitution to customers. Of course, the loans are only
'toxic' because the customer can no longer afford them and cannot afford to
sell, because every created bubble is bound to burst with resultant impacts on
valuations. To this day, the toxic values have never been fully accounted for in
the lending banks: the 'foreclosure processes' are part of this other scam too.[ Reply to This | Parent | # ]
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Authored by: Wol on Saturday, January 05 2013 @ 03:47 PM EST |
Unfortunately, there seem to have been a lot cases where the borrower was behind
due to two causes in particular...
1) The borrower is not the home owner being foreclosed. The loan was a fraud
or
2) The loan was sold on, and due to a mix-up TWO lenders both claim to own the
mortgage. If the borrower can't afford to pay double the other mortgage company
is going to forclose on them.
Not helped by the attitude of many Judges believing in "no smoke without
fire" and not bothering with proper procedure, like checking out the
paperwork. So too many people who either have no mortgage, or who are fully paid
up, get foreclosed on by a lender who may be genuinely in arrears ... !
Cheers,
Wol[ Reply to This | Parent | # ]
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Authored by: Anonymous on Saturday, January 05 2013 @ 05:57 PM EST |
Complaints against financial institutions are dealt with in a different way in
the UK and possibly elsewhere in Europe too.[ Reply to This | Parent | # ]
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