Mortage failures and mis-use (fraud) of credit

[A854321]

WSJ article about soCal and the mortgage bailout. It's the Oropeza family saga that leaves me speechless. Their repetitive use of refinancing to deal with ever-increasing and careless mismanagment of credit card debt must truly qualify as credit fraud.

Mortgage-Relief Plan Divides Neighbors - WSJ.com

[crazy connie]

Quote:

Originally Posted by A854321 WSJ article about soCal and the mortgage bailout. It's the Oropeza family saga that leaves me speechless. Their repetitive use of refinancing to deal with ever-increasing and careless mismanagment of credit card debt must truly qualify as credit fraud. Mortgage-Relief Plan Divides Neighbors - WSJ.com

Hmmmmmmmm 4000 sq ft, waterfall for the pool and new cars including a Lexus... YUP it sounds like rip off artist and fraud to me.

[A854321]

It was the "long-planned Caribbean vacation" that frosted me.

[CybrMike]

probably figured they better buy the car before their credit goes to ****. Then of course they wouldn't qualify.

[tryan]

My realtor told me nice tale about a young couple who bought at the right time and proceeded to re-fi the equity out of the house. Lot's of new funiture, cars, vacations .... then when the market slowed they re-fi'd one last time by adding the boy-friend to the note. Never made a single payment on the last refi.

Few months later they're using my realtor to negotiate a SHORT SALE to the owner's SISTER. Banks approved the short sale ... what choice did they have. BUT said they would pursue FRAUD charges against the couple. Sooo the sale was dropped; house was foreclosed. Last I heard the sister was now triing to buy the house as an REO.

[FinanceDude]

Quote:

Originally Posted by A854321 WSJ article about soCal and the mortgage bailout. It's the Oropeza family saga that leaves me speechless. Their repetitive use of refinancing to deal with ever-increasing and careless mismanagment of credit card debt must truly qualify as credit fraud. Mortgage-Relief Plan Divides Neighbors - WSJ.com

Is it really fraud? Regardless of their personal usae of home equity,why is it fraud? Stupidity is not a crime..............

[Siv]

The Housing Bubble Blog » A Lot Of People Made Dumb Decisions In California

Oropeza family definitely gets the heat from the blog. I'm just baffled how people can think of doing all these lies. Unbeliveable....no wonder I can never get rich, my way is too sllloooww...saving and saving and invest and lose money up and down, recycle... :-)

[Retire Soon]

Will the government bailouts be used to aid borrowers like those depicted in the WSJ article who have refinanced their home one or more times in order to pay off credit card debt that was used to finance extravagant vacations? Maybe this is why some were subprime borrowers to begin with, they handled their credit in an irresponsible manner.

[bright eyed]

Living near the hub of this mess, I can tell you - a lot of people just got caught up in the flurry - and acted like kids - the candy was in front of them - they were eligible and took it. Didn't hear much about long term consequences, whether it was affordable long term etc. I just kept looking around going - this is nuts! How is everyone affording all this stuff? and I guess the answer was they can't!

[twaddle]

Quote:

Originally Posted by bright eyed How is everyone affording all this stuff? and I guess the answer was they can't!

Yeah, I was scratching my head the whole time. In SoCal, some people paid $1 million for cookie-cutter tract homes. I can understand getting sucked into the hoped-for appreciation, but at some point don't they have to ask themselves how a cookie-cutter tract home could possibly be worth the equivalent of a lifetime salary for most people?

[bright eyed]

$1 mill tract home built next to a garbage dump and former oil field? who needs 6000 sq feet? hehehe

they had all the new shiny things like granite counter tops, bla bla bla...

[tryan]

Quote:

but at some point don't they have to ask themselves how a cookie-cutter tract home could possibly be worth the equivalent of a lifetime salary for most people?

Where's Honobob? Someone needs to tell us to "suck it up, keep paying, it'll appreciate".

[MooreBonds]

Quote:

Originally Posted by CybrMike probably figured they better buy the car before their credit goes to ****. Then of course they wouldn't qualify.

Kind of like GM issuing the billion$ of debt in the year before getting knocked from the coveted BBB- rating?

[disclaimer - I'm not in any way condoning the actions of the fraudulent jerks in the mortgage situation...just saw a similarity]

[TickTock]

Money magazine had a front-page picture a few years ago (don't recall the exact issue) of a 20-something in San Diego who had purchased a $520,000 with no money down 1000' from an airport! She was going to make a killing on the appreciation.

Would like to see Money magazine do a follow-up on her (and the other folks profiled in that issue).

[Retire Soon]

I hope the young lady featured in Money Magazine bought prior to the price peak of November, 2005 as today's San Diego Union reported statistics from DataQuick that showed prices in San Diego County have dropped 15% since the market peak.

[clifp]

I lot of us forsaw the same thing with the internet dot com bubble. The one critical difference between the housing bubble and the dot com bubble is that while most houses have a lot more intrinistic value than dot.com (pets.com anybody) company, the collateral damage appears to be so much greater during this collapse.

When the dot com millionaire because thousandairs after the internet stocks went from $100 to $2 for the most part the only people who got hurt were the employee of the companies, speculators, and the hopes and dreams of people sucked into the get rich quick mentality.

The Oropeza family is for the most part going to get out of this situation by trading a CA house (which they never should have had in the first place) for an affordable Texas house, plus nice cars and a vacation. The bank is going to be out a few hundred thousand dollars in the scheme, and the neighbor are going to be looking at falling house prices because of one more foreclosure. If the bank made enough of these dumb loans (or more likely bought mortgage broker loans) they'll go bankrupt and FDIC (i.e. us taxpayer) will pick up the tab.

[FinanceDude]

Quote:

Originally Posted by clifp I lot of us forsaw the same thing with the internet dot com bubble. The one critical difference between the housing bubble and the dot com bubble is that while most houses have a lot more intrinistic value than dot.com (pets.com anybody) company, the collateral damage appears to be so much greater during this collapse. When the dot com millionaire because thousandairs after the internet stocks went from $100 to $2 for the most part the only people who got hurt were the employee of the companies, speculators, and the hopes and dreams of people sucked into the get rich quick mentality.

And whomever bought QQQ in those days........