Here’s your Mortgage Crisis! Katrina, Fraud, what to do??

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There’s been a lot of people asking about how the presidential candidates are going to keep people from losing their homes.
The story below is one of MANY in which borrowers falsified documents in order to obtain loans.

Please read it, then tell me why tax paying citizens should bear the burden for these bad loans?
Thanks.

“Robert Green had pleaded guilty in April to federal felony charges stemming from a scheme in which he prepared false tax returns attached to fraudulent home loan applications from as early as 2001

Before word of his guilty plea surfaced in December, Green had been championed by actor Brad Pitt to be among the first to receive a home through Pitt’s Make It Right program.”

More here:
http://news.aol.com/story/_a/activist-gets-probation-for-fraud/20080227093109990001?ncid=NWS00010000000001

My green card is pending, but I got my work permit and social security number already. I currently don’t have a job and I am 66 years old.

Can I buy a house now, i.e. put my name on the title so that I can senior tax exemption and first time home owner incentives?

Can my child who is US citizen be the co-owner of the house so that he can avoid inheritance tax when I pass away?

Can I be a co-borrower with my child to get a mortgage loan? I just live in US for a year and don’t have much credit. But my child has good credit score. I want to get the lower interest rate for first house owner.

5 Comments
  1. Reply
    Mahal
    February 4, 2011 at 4:59 pm

    It’s not the government’s job to prevent people from losing theri homes.

    It’s YOUR job to protect your home and those who live in it. If you’re too weak to do that, you don’t deserve a home of your own, and you might as well move back in with your parents.

  2. Reply
    wwsracing
    February 4, 2011 at 5:27 pm

    People are losing their homes because they lied on forms, the banks didn’t ask for proof of income because they didn’t care, they were selling the loans.
    They all were in this together, and the homeowners and banks should take the hit so they learn not to allow this again.

  3. Reply
    EINAH PETS
    February 4, 2011 at 5:34 pm

    Many got screwed out of insurance, some to poor to have insurance in the first place and many STILL haven’t receieved help from the government, even if they’ve been working there asses off, it is still not enough.

    And I love the people who think they know what they are talking about when it comes to New Orleans. Go off and listen to your fox news.

  4. Reply
    Goddess
    February 4, 2011 at 6:08 pm

    Anyone can buy a house if you have the money. Even if you are to visit it every so often.

    You could buy the house along with your son. I would suggest you buy in joint ownership which means that you both own the dwelling in the same interest, and God forbid something happens to any of you the survivor will own the house in its totality.

  5. Reply
    A.J.
    February 4, 2011 at 6:39 pm

    Yes to the first and third question. For the second your adult child(ren) can be co-owners, but I’m not sure about the inheritance tax. If you co-own with your children, the senior property tax exemption will be limited or not available though, depending on the state.

    Immigration law does not restrict property ownership in any way. I know people who own houses in the USA as investment property that have never even been here and have no immigration status.

    The problem is your lack of credit history may lead to a higher interest rate anyway and balance out any other positive tax incentives that you may gain. Especially with the credit tightening in the current economy, and even more so if your child has a very good credit history, since they may get better terms getting a mortgage themselves (if that is an option).

    I think the best thing would be to meet with a reputable bank or mortgage broker and discuss your options.

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