Kentucky Insurance

Stop paying your mortgage and walk away?

The statistics are all over the place, but it is clear that not only are mortgage delinquencies and foreclosures skyrocketing, but millions of homeowners are “upside-down” in their mortgages; that is they owe more to the bank than their houses are worth and a report this week predicted that number would be growing exponentially.

More and more the talking heads on television have suggested that these upside-down homeowners should cut their losses and hand the bank the keys to the castle. Some have even suggested that cash-stretched and equity-poor debtors should continue paying the credit card bills even as they stop paying the mortgage. The rationale? The house is already a dead loss and continued credit card access will help the homeowner get back on his or her feet.

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Are you at risk for Mortgage Fraud?

“Since the housing market started to soar in 2001, mortgage fraud has become the fastest-growing white-collar crime, according to the FBI. Last year, crooks skimmed at least $1 billion from the $3 trillion U.S. mortgage market.

Now that the market is slowing, fraud is only rising. As business dries up, there’s increasing pressure on lenders, brokers, title companies and appraisers to be profitable. That means loan and title documents aren’t scrutinized as carefully as they might be, and courts can’t keep up with the volume of paper. Then there’s the mad rush by many to sell, particularly by people who paid high prices for homes, and suddenly can’t afford the mortgages. ” … Mortgage Fraud

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