For one thing, all mortgages issued are SOLD, and after 2008 Uncle Sam is the guarantor of ALL HOME LOANS.
So your uneducated, financially unsavvy "migrant" will get a down payment and a mortgage backed by the government. SOMEHOW and be able to pay this with their wages. Yeah ok. Property taxes too!
The long con is that they won't and all these houses will snatched up through the mortgage foreclosure or tax foreclosure process. This is nothing but a ruse for Blackrock and the like to snatch up real estate for pennies on the dollar. They will already get the house in foreclsoure at discount b/c the gubbamint has provided the down payment!
Meanwhile, Juan gets to live rent free, mortgage free until the Sheriff comes and evicts him, which from start to finish is about 2 to 3 years. Plenty of time to save up money (even more since no rent or mortgage!) and then go back to wherever he came from with a fat wad of cash.
Blackrock gets more real estate to rent or turn into tenements, again, with substnatial costs paid for by the government.
Posted by letsberealforamoment
4 Comments
Its very high likely, similar schemes are pulled in my country, migrants get bank credits, timed contracts rent agreements etc. and bail without paying anything. and everything is government backed so we taxpayers pay it.
There are a limited number of spots available for this program, all of the current funds have already been taken so one else is getting one of these loans, just because immigration status won’t be an automatic disqualified does not mean they’ll get approved or meet the other criteria, just because this program approves you doesn’t mean that a bank will approve you for a loan
This is without a doubt a huge real estate scam
Toxic loans are very lucrative, especially when you know the taxpayers will have no choice but bail you out.