Wednesday, June 13, 2007

Come on!

She was 22 and tired of exotic dancing for a living. So Irene Thomas bet her future on real estate, hoping that becoming a landlord would be her first step toward exiting the stage.

With the help of Universal Mortgage Inc., a brokerage company in Brooklyn Park, Thomas signed the papers to buy a house early last year. And she kept signing. And signing.

In 90 days, with none of her money down, Thomas had $2.4 million in debt and 10 houses in her name, most in north Minneapolis. Nine belonged to officials of Universal, the same company that handled the transactions for her.

Less than 18 months later, Thomas was losing every property to foreclosure after the monthly payments weren't made. Her credit ruined, she now says she was duped by a group of real estate insiders who sold houses at inflated prices.

This is the beginning of an article from the Strib that tells a tale of the increasing foreclosures in the Twin Cities. Several questions went through my head while reading it:

  • How can you realistically think you can sign up for more than $2M in debt with $0 down?
  • Who LETS someone do this? These people are evil.
  • How did the reporters find this chick's story to report?
  • WTF?
  • Come on!
  • Really?

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At June 14, 2007 9:16 PM, Anonymous Anita said...

The news is full of this stuff - how can people be that dumb? Where are the banking laws that regulate this stuff?
Your WTF comment reminded me that I heard an MPR story about a book called Whiskey Tango Foxtrot (Army for WTF) about stuff that has happened in Iraq. Sounded interesting. Plus I love the title.


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