The other story that may seem unbelievable is the following:
There was a certain company who came up with a scheme. The would hire very attractive 20 year old hispanic, spanish speaking girls. Their job was to approach single men at Hispanic markets and our lhuge flea market and ask them if they would like to own a house? Of course, this is a double bonus. Own a house and speaking with gorgeous woman.
If the answer was yes, the hottie would connect them with an agent. The agent would tell them that America is a wonderful country and there is a way that they can become a proud homeowner. Here's how it works. All you have to do, is to CO-SIGN for someone else. This will allow them to qualify and........you get $5000. Of couirse, the loan application is doctored but what the lender doesn't know won't hurt them. Then, when when we find a house for you to buy, someone else will CO-SIGN for you, so that you can qualify and own your own home.
The frequent result was that the poor guy was actually buying the house but didn't know it until the lender started sending late notices. The victim then goes an finds the house that he actually owns, only to find out that it is retned to someone else. One guy actually owned 6 houses, but didn't know it.
Do the math on this. The agent double ends a $600K home. They overpay for the property with collusion from a friendly appraiser. Then, puts the buyer into a no down sub-prime loan where they collect big back end fees. And, they rent the property for 4-6 months at $2K or more a month, until it all crumbles. But, It is not uncommon for them to clear $40-50K on each one of these.
Obviously a scam but very few people have gotten in legal trouble. First, many of the victimes are illegal, thus are afraid. Also, they knowingly signed a made up loan application and got $5000 as a payoff, so who was the victim??
At least one company that was doing is is closed and under investigation by the District Attorney but lots of people have been harmed.
Does it make you proud?