by Dave Kranzler, Investment Research Dynamics:
It was only a matter of time before the mortgage data started reflecting mortgage fraud again. I have suspected that mortgage application fraud had been rising with the sudden re-emergence of home-flipping and the “get-rich quick – find it, finance it, flip it” seminars proliferating in the larger metropolitan areas. The hot-spot fraud and flip areas the first time around are largely the hot-spot fraud and flip areas now: California, Nevada, Florida and the northeast.
Often overlooked is Colorado, which at one point during the last bubble collapse was in the top-5 for foreclosures. For the past year, up until about four weeks ago when the market seems to have stalled, Denver was as hot as any market in country as “investor/flippers” began bidding wars on homes. Wash, rinse, repeat. Just like stock market chasers, the retail home bubble chasers will never learn…
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