Real Estate News Blog April Archive

Subprime `Liar Loans' Fuel Bust With $1 Billion Fraud

By Art C. Ryder at 04/25/07 18:51

Details what many in the real estate mortgage industry, especially the subprime bunch, called Liar Loans in which homebuyers either overstated earnings or mortgage lenders fabricated data to get loans approved to make their commissions. The high level of pending foreclosures, leaving little help for homeowners affected by more stringent lending conditions, is leading federal investigators (the FBI) to go after applicants who practiced fraud for profit. Sounds like when home prices went up, everyone was a winner… until reality caught up with fantasy and not even a more zealous lending market could spank money to out of home equity.

Original source: . Subprime `Liar Loans' Fuel Bust With $1 Billion Fraud

Home sales: Worst drop in 18 years

Home sales experience their worst drop in 18 years as evidence shows even worse than expected decline compared to economists’ estimates. Foreclosures and subprime mortgage news seems to be affecting real estate market sentiment.

Original source: . Home sales: Worst drop in 18 years