User74748_1_t Shane Montgomery
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Pay close attention to what CNN has to say about what is happening with one side of the foreclosure game. It's 100% correct on many of the issues. The one part they leave out is that some foreclosure experts represent buyers that make substantial gains. Real estate profits are made when you purchase so that you are nearly guaranteed a return when the sale is made.

The most difficult thing to imagine about this video is what CNN doesn't mention. They don't mention that some investors (loosely used term) actually seek out purchases simply to foreclose. Yes, you read that correctly. Please let me describe how BANK FLEECING could happen. It's up to you to decide if you think this is actually happening in our local markets. Example.... Step One: Buyers taking large refunds from the seller (concessions) at the closing and raking in 3%-6% cash refunds. I'm almost certain additional money under the table has happened from time to time also. Step Two: The new owner is colluding with a fraudulent mortgage broker to take out a second home loan (home equity mortgage) up to 125% of the value of the property in cash. Step 3: New owner rents the property to a tenant and collects rent for eight to nine months (length of foreclosure process). Step 4: The new owner NEVER PAYS ONE PAYMENT on either the primary or secondary mortgage loans. Step 5: The cash from the initial seller concession is added to the second home loan (tens of thousands of dollars). These two combined are now added to the rent collected from the unsuspecting tenant and it's all added together for a new fraudulent, yet very liquid, net worth for the individual. In may cases where I have allegedly heard of these stories, the new money holder simply assumes a new identity prior to making the transactions. Otherwise, if the scheming individual is not a permanent resident or citizen of the United States of America, then they simply send the cash via Western Union to a relative abroad or flee the country with thousands and tens of thousands of dollars that will never return to the United States economy. Hence, the fleecing of the banks.

The best part comes next. The federal government is bailing out the banks through the Federal Reserve Bank printing more money (dropping interest rates). This mechanism opens up capital markets or makes cash available to banks at highly discounted rates for them to remain liquid. The net result is a devaluation of the United States Dollar and newly reflective price for a barrel of oil that has nothing to do with supply/demand. In the end, we are all paying for some unscrupulous people to gain wealth illegally without ever being caught. The fraudulent borrower walks free, the banks liquidity is replenished, while the investor, middle class worker, and U. S. economy become highly compromised.

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FORECLOSURE INFORMATION
FORECLOSURE BROKER: CHICAGO
 

1 Comments on CNN FORECLOSEURE WARNING = BANK FLEECING

I am currently on the market for a new home. I have a family of 6 and need a house with at least 5 bedrooms. It is a little scary right now with the foreclosures skyrocketing. I constantly hear that this is a buyers market and the best time to get a home is now. What steps should I take to ensure that me and my family will not fall victim to forclosure?

05/15/2008 08:29 AM by Jeff Davis

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Real Estate Agent: Shane Montgomery (Koral Realty / VIPpropertychicago.com)
Shane Montgomery
Chicago, IL
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Koral Realty / VIPpropertychicago.com

Office Phone: (877) 829-5161
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