NYT on House Scams

Further to our recent discussion about “We Buy Houses” scams, the New York Times explains these scams, describing how “financial predators are finding yet another way to take advantage of people” with the housing market tanking.  #

1 Response to “NYT on House Scams”

  • Caveat emptor.

    A “loss leader” in a store ad is a scam in that it is deceptive. Matter of degree here.

    I sympathize with the plight but not the pith of the the problem of people in trouble with their homes. It is prudent to look at any business deal in an adversarial fashion, something these buyers failed to do. The “I want” “I must have” syndrome played a part here and whose fault is that lack of discipline?

    Many folks gambled, yes, that is the correct term, that interest rates will never rise over thirty years (home mortgage term)(simplified the problem here) or their income would rise to match outgo. An unbelievable risk. They lost the gamble. If interest rates did not increase and the banks lost the gamble, what then, would we be in deep mourning over the bank`s failure to make a large profit in their loan department? The banks are doing fine which, if you own bank stock, is great. There are many home owners who are eating the increase in payments and many who can`t. Devil take the hindmost is a well known maxim. Just don`t be in the hindmost category.

    There are few businesses that will not take advantage of customers (if the customers let them) – I know of none. That is the nature of business. Small retailer or large Corporation.

    The people who are now “preying” as it has been stated, on homeowners in trouble are merely following business practices, although to an unforunate degree. Someone who signs over the deed to their home because a business is “trying to help them” (have you ever heard such a pathetic statement?) is worthy of pity but certainly will not garner praise for their acumen.

    If we put all business owners in jail for employing deceptive practices, the stores would probably all be in trouble, right down to the grocer watering his produce and coloring his meat.

    It is not illegal, it is business. Deceptive – yes. Illegal? Probably not provable in most cases.

    People deserving of sympathy? Sure. Whose fault? Theirs. It`s called life.

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