The chickens have come home to roost!

Ever heard of "Operation Malicious Mortgage"? If so, you're either 'up' on your current events, or you're one of the 400+ people in the real estate industry who've been indicted by the Justice Department for mortgage fraud.

How so, you ask?

These folks lied (let's be honest) about their income or assets, forged documents, inflated appraisals, or lied about the property being purchased for "Owner Occupant" use.

Wait – you mean all those people who bought 5 properties in a month as investments and then told the mortgage lender that they intended to live in each one of them and then the appraiser all said they were worth WAAAAAY more than the HUD-1 said at closing and when the lender gave them a 90/10 no doc ARM...

...you mean all that was against the law???

But, isn't that what most "gurus" said from stage was OK to do because they were doing it to???

And now the chickens have come home to roost.

The good news to all of this? That you don't have to worry about the FBI knocking on your door because you listened to me when I told you that this stuff would come back and bite them in the ass, right?

I guess some times it pays to listen to the folks who are actively buying property with integrity instead of those who just pay lip service to it all (and judging from how hungry the FBI is to get these guys...sounds like they're going to pay more than lip service!)

About time...

 

Your Real Estate Success Coach,

Jim Canale