STATED INCOME Caused a lot of the Short Sales & Foreclosures - What's being done to the Buyer if they OVER STATED INCOME? ASSETS? JOB?

Have you ever read the scary fine print on a 1003?  In theory the person that signed their 1003 where there was fraud should be in a heap of trouble and subject to some hefty fines.

But NOOOOO ---- in our country the consumer can never be blamed for being bad.

They really need to prosecute people for that intentional fraud.  They should also lock up the loan officers who urged them on to make fraudulent statements.

I hope they make the banks buy back the paper if it wasn't checked.  It would be nice for the LOs to give back their commission too. 

To the original point of the story, I have been running around for over a year stating that if the buyers would be prosecuted for mortgage fraud (misstating income or occupance or whatever,) this train would have stopped dead on the tracks.  There is even no accountability in regards to DJs (deficiency judgments.)  ALTHOUGH I have heard they are going to go after them around the end of the statuatory limit (6 yrs here.)  I say whatever but if there were consequences to these actions (there are ramifications legally) this whole thing would end, NOW.

Foreclosure is talked about in a cavalier way here.  We would lose half of our agents if they yanked licenses from agents who had foreclosures (not legal now but think about it.)

I hate hijacking but read my blog post (the last part of my rant) from September here.  I put this in a different comment box so if you feel it is spamming you can delete this entire comment.