Housing bubbles burst. That’s a part of reality that homeowners are used to and we’ve discussed that here before. This new wrinkle at least makes it interesting.

It turns out that getting a higher appraisal for a home than its actual value is a crime. Did you know that? Me either, because I can give you the name of some appraisers in Memphis that are very generous with the value of a home when a few extra thousands are needed to make a deal work. Not that I’ve ever done that before or anything. I’m just saying I know people that can help if that’s something you are interested in.

The problem here is the lax attitude of mortgage brokers when it comes to writing a home loan. They are not doing the normal due diligence for simple things like verifying income and citizenship before writing the loan. I remember it taking months to get the paperwork right the first time I bought a home. We had to start shopping for a home almost a year out. Recently THE WOMAN and I decided that the market in NOVA had hit as far bottom as it was going to and started looking for a place to buy. We’ve gone from “Let’s look around.” to closing in less than sixty days. And the bulk of that time was to let the current owners get some things fixed before we take possession. It could have gone quicker if we had pushed the deal.

Two things are at work here. If the broker doesn’t care enough to check your income before writing the paper they should go to jail with you. They are just as complicit as you are in the crime. Second, if you are dumb enough to allow someone else to use your credit scores/report then you deserved to be jail raped with out a reach around. Period.

There are people that have hit a run of hard times and a flexible attitude in lending helps good people get started again. Everyone always wants good people to come out on top and that’s what Freddie Mae and Mac are there to do. They’re from the government and are here to help. Too many times it’s simply people wanting to buy more house than they can really afford, or don’t have good enough credit to get a rate that they like. Screw them. At some point in your life you have to begin to make amends for your sins.

If your credit sucks, maybe you should consider moving into a Section 8 housing project and paying your bills on time for a few years. Or find a nice corner and a cardboard box. It may be what you deserve.