I don't this this mess can affect NY RE directly because NY didn't have the rampant fraud that was perpetrated by lenders like Countrywide. Turns out Co-op boards can have a real upside -- if only you didn't have to live with those people. However, if this fraud unravels to the point where investors sue based on the fact that they never had title to the mortgage securities they were holding, the... [more]
I don't this this mess can affect NY RE directly because NY didn't have the rampant fraud that was perpetrated by lenders like Countrywide. Turns out Co-op boards can have a real upside -- if only you didn't have to live with those people.
However, if this fraud unravels to the point where investors sue based on the fact that they never had title to the mortgage securities they were holding, the stock market will take a hit. And that will affect NY RE. Even if CNBC keeps harping on this issue, as they have been all day, the market might be affected. This is one huge mess. I think the following iis a good 12 minute conversation to listen to from the all day fraud marathon on CNBC.
http://www.cnbc.com/id/15840232?video=1614396321&play=1[less]
Response by steveF
almost 16 years ago
Posts: 2319
Member since: Mar 2008
How many foreclosure does Manhattan have? What was it 6 or 7?
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Response by apt23
almost 16 years ago
Posts: 2041
Member since: Jul 2009
Not the point. Do you think that the several thousand point drop in the DOW affected Manhattan RE in 08?
Quote:
"...New York's second place ranking was primarily due to illegal activity in the New York City metropolitan area. The Big Apple had the highest rate of mortgage fraud of any metro area in the nation, while Los Angeles came in second and Chicago third...."
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Response by apt23
almost 16 years ago
Posts: 2041
Member since: Jul 2009
sledge: I was really referring to Manhattan because I didn't think there was much fraud here. I knew it was prevalent in the Bronx and parts of Queens but I had no idea NY metro rated so high in fraud. If the article you posted is correct, perhaps this fraud mess will have deleterious effect in the metro area. It behooves everyone about to be foreclosed upon to just say "prove it. show me the clean title". The banks cannot easily track ownership. It is a legal nightmare.
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Response by sledgehammer
almost 16 years ago
Posts: 899
Member since: Mar 2009
Most people think the biggest mess happened in Florida and California because of the Subprime and Alt R rate mess but mortgage fraud in NY is rampant! Some of you may differ Mortgage fraud from foreclosure fraud but to me it's all the same...
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Response by apt23
almost 16 years ago
Posts: 2041
Member since: Jul 2009
Sledge. Mortgage fraud is directly correlated. Part of the dire consequences that were discussed on CNBC today is if the title insurers are on the hook for payments where title is not clear due to fraud, then they could literally go under. Mortgages might be difficult to get now but if you can't get title insurance, the mortgage industry would come to a dead standstill. Even cash buyers would be out of the market if there were problems with clear title.
How many foreclosure does Manhattan have? What was it 6 or 7?
Not the point. Do you think that the several thousand point drop in the DOW affected Manhattan RE in 08?
What are you talking about apt23?
NY is the 2nd state with the highest mortgage fraud rate in the country:
http://money.cnn.com/2010/04/26/real_estate/mortgage_fraud_rose/index.htm
Quote:
"...New York's second place ranking was primarily due to illegal activity in the New York City metropolitan area. The Big Apple had the highest rate of mortgage fraud of any metro area in the nation, while Los Angeles came in second and Chicago third...."
sledge: I was really referring to Manhattan because I didn't think there was much fraud here. I knew it was prevalent in the Bronx and parts of Queens but I had no idea NY metro rated so high in fraud. If the article you posted is correct, perhaps this fraud mess will have deleterious effect in the metro area. It behooves everyone about to be foreclosed upon to just say "prove it. show me the clean title". The banks cannot easily track ownership. It is a legal nightmare.
Most people think the biggest mess happened in Florida and California because of the Subprime and Alt R rate mess but mortgage fraud in NY is rampant! Some of you may differ Mortgage fraud from foreclosure fraud but to me it's all the same...
Sledge. Mortgage fraud is directly correlated. Part of the dire consequences that were discussed on CNBC today is if the title insurers are on the hook for payments where title is not clear due to fraud, then they could literally go under. Mortgages might be difficult to get now but if you can't get title insurance, the mortgage industry would come to a dead standstill. Even cash buyers would be out of the market if there were problems with clear title.
Agreed!