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: Mortgage Lender Implode-o-Meter

California family bought worthless second mortgage from Wells Fargo at foreclosure auction

By Implode-Explode Heavy Industries

``The home they bought for just under $98,000 and fixed up for $25,000 is scheduled for a foreclosure auction this afternoon to satisfy a debt of more than $529,000.'' -- Pretty much fraud on the part of the bank, since an underwater second has no legal force. But this scam actually underlies a lot of the sleazy loan mod agreements the banks are trying to get people to sign (trying to make liability for the underwater second "stick"), as well as general balance sheet adjustment can-kicking.

Full post as published by Mortgage Lender Implode-o-Meter on July 22, 2010 (boomark / email).