Florida Mortgage Fraud Helped Destroy Housing Market, Borrowers Believe
More than three out of four Americans believe mortgage fraud wrecked the booming real estate market, according to a poll conducted by Housing Predictor.com, which forecasts local housing markets in all 50 U.S. States.
A nearly over-whelming majority of 76% of respondents said that national/Florida mortgage loan fraud has had a negative effect on the markets. Another 20% of respondents said they believed that loan fraud did not have an impact, while the remaining four percent were undecided.
The Predictor Poll is especially timely becaue Congress is embroiled in tackling the growing bad credit Florida mortgage loan crisis.
Foreclosures 47% nationally in March as a result of loose lending guidelines and unscrupulous lenders and mortgage borrowers. The nation’s foreclosure rate, however, was much higher during the U.S. Savings and Loan Fraud Crisis in the early 1990’s. That crisis resulted in major bailouts by the government costing every man, woman and child in the nation an estimated $10,000.
Congress is considering new laws to control the mortgage industry, which many feel would cause a backlash for homeowners, many of whom need to Florida mortgage refinance out of adjustable rates coming due and result in an even higher rate of foreclosures.
The increase in foreclosures has been part of the Housing Predictor forecast model since the beginning of 2007, long before the rise in foreclosures. Researchers for Housing Predictor became aware of the growing problem of mortgage fraud more than two years ago.
Despite the increase in mortgage fraud cases and the resulting hike in foreclosures, 13 states have at least some local housing markets that are performing strongly, as prices appreciate there. Housing Predictor forecasted in early March that the number of appreciating markets will rise by late summer.
Housing Predictor regularly surveys visitors for their opinions on crucial economic issues related to real estate, widely considered as the single largest driving force of the U.S. economy. Approximately 68% of the nation’s population are now homeowners, an all-time high.
