http://www.washingtonpost.com/wp-dyn/content/article/2007/12/17/AR2007121701993.html?hpid=topnews.
When reading this article about the FBI probe into the flipping of properties in Prince William County I was reminded how this is the state of the country's economy in microcosm. More than ironic that this came across my desk whiles listening to NPR lament about the state of the economy country wide. Both in this article and in their program the act of flipping and speculating on properties to gain profit went from being a respectable business to the downfall of civilization as we know it.
How was it that just 3 years ago that what Zak Ahmadzada did would be applauded as savvy business now it is considered FBI investigative fraud? Upon a fourth reading of the article I think I know why and why now so many fingers are pointing in so many directions.
When a buyer is placing their trust in the realtor, the seller, the financier, and sometimes the needed lawyer, it is their belief and trust that they will own a home they can love, care, and pay for. Or there was the speculating buyer that many say, got what he deserved for paying too much for his greed. Now some blame the buyer when they took a short cut by using owner financing or no doc loans. But it is really the lender, not the buyer that took advantage of someone's ignorance? Not the buyer for wanting the security of a home.
Some blame the appraiser, for giving a home more value than it is worth, and say now if we had correctly appraised the properties worth all this problem would not be here.
Point taken.
And probably right , but then how could we have re inflated the economy if we had not done such and allowed disposable income for the seller?
We would have only had the impending recession sooner. It is a very simple premise, if it is too good to be true, it is. And if you take a short cut, you will pay. And maybe Zak Ahmadzada will find out once this investigation is over. But if you charge him, be prepared to charge many more, for he did what so many did in the last 3 years.
He is just an easy one to find in Prince William Co.
May we learn from there and get better from here.
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