Summary: With the growth of the real estate market in India, the number of real estate fraud is also on the increase. Sub-premier credit market is the exploitation by the need to induce the owners to borrow more equity in their homes.
Each boom has a downside. The merger mania of the eighties has produced insider trading scandals. The 90 years of stock bubble was busted for biased investment research and added "built-in volatility" as a synonym. And it is the turn of real estate, the hottest market in the past eight years. The need for cash in on rising home values has spawned a growing share of hucksters, schemers, scam artists and abuse.
Until now, it is difficult to know exactly the extent of the problem is in the Indian sector of the property, just as conflicts with stock analysts and bankers were not revealed after the Internet bubble in 2001 jumped and investors began to get hit. According to statistics conducted by a national economic daily, real estate 235 fraud cases against individuals in 2005, more than double the number introduced in 2001 and this number has increased nearly five times between 2001 and 2007. The market was so lucrative that everyone was looking to jump and make a quick buck, and that leads to a large number of property flipping and false assessments.
Moderate-income homeowners who are tempted to extract cash from equity in their houses have been badly affected by unscrupulous people in this sector. In one of the most common scams, customers sign away the acts of their homes as "guarantee" or on loans they could not afford, which led to the ouster or resumption. Another method unscrupulous lenders is to convince borrowers need to avoid the annual income claims on applications for a loan more important than their ability to repay. An applicant who can not make payments on time can lose his property and find themselves in situations like bankruptcy.
Stripping people of their home equity has become rampant in sub prime lending market. From credit-challenged or adverse credit assessed owners who often do not know exactly how much home equity they are sitting on the easy target.
Each boom has a downside. The merger mania of the eighties has produced insider trading scandals. The 90 years of stock bubble was busted for biased investment research and added "built-in volatility" as a synonym. And it is the turn of real estate, the hottest market in the past eight years. The need for cash in on rising home values has spawned a growing share of hucksters, schemers, scam artists and abuse.
Until now, it is difficult to know exactly the extent of the problem is in the Indian sector of the property, just as conflicts with stock analysts and bankers were not revealed after the Internet bubble in 2001 jumped and investors began to get hit. According to statistics conducted by a national economic daily, real estate 235 fraud cases against individuals in 2005, more than double the number introduced in 2001 and this number has increased nearly five times between 2001 and 2007. The market was so lucrative that everyone was looking to jump and make a quick buck, and that leads to a large number of property flipping and false assessments.
Moderate-income homeowners who are tempted to extract cash from equity in their houses have been badly affected by unscrupulous people in this sector. In one of the most common scams, customers sign away the acts of their homes as "guarantee" or on loans they could not afford, which led to the ouster or resumption. Another method unscrupulous lenders is to convince borrowers need to avoid the annual income claims on applications for a loan more important than their ability to repay. An applicant who can not make payments on time can lose his property and find themselves in situations like bankruptcy.
Stripping people of their home equity has become rampant in sub prime lending market. From credit-challenged or adverse credit assessed owners who often do not know exactly how much home equity they are sitting on the easy target.
1 comments:
May 23, 2008 at 11:52 PM
i agree 100% with you And Govt. is not doing enough to bring laws to prevent such fraud builders. Ravinder aggarwal (Executive member - Association of certified Realtors of India)
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