Check out this wild story:
The Mess That Greenspan Made: This May Take a While
I am a lawyer and I represent illegal aliens in deportation. In all but one of 35 cases I currently have on docket the illegal owns a home. But it is the loan terms that fascinate me. One lady finished school at second grade, speaks no English, and works for a recycling company binding cardboard boxes. She makes about $30K per year and is a single mom with three children. She has a $430K interest only loan that she used last year to buy a $430K condo – 100% financing – she paid $3,000 in closing costs. I tried to explain that her monthly payments will rise substantially in four years. She does not believe me, did not understand what I said and told me the loan and real estate agents specialize in real estate and would have told her if her payments could go up. If 34 of my clients with risky loans and no school past at best eighth grade are surprised by rising loan payments, we should be afraid. This is the last group desperate lenders pander to, meaning we’re near the end.
Sound bogus? Is it crazy that this segment of the population is getting Interest Only mortgages? Is this all made up?
Banks help illegal immigrants own their own home – Aug. 8, 2005
Banking on illegal immigrants
Banks are seeing an untapped resource in providing home loans to undocumented U.S. residents
Bet you didn’t know!