Comments on: Alone in 32 Story Condo: How Did This Mortgage Close?

By: What to Do Now - CBS MoneyWatch.com

What to Do Now - CBS MoneyWatch.com — Thu, 06 Aug 2009 14:27:42 +0000

[...] Morgan Stanley analyst Andy Xie in this post China Has Become a Giant Ponzi Scheme at the blog The Big Picture. (Or in my own more sedately titled post last week.) If you buy that scenario, you’d take [...]

By: Toothless SEC Leaves SOX Full of Holes | The Big Picture

Toothless SEC Leaves SOX Full of Holes | The Big Picture — Wed, 05 Aug 2009 04:47:13 +0000

[...] as U.S. Pending Home Sales Surge in June GE Pays $50 Million to Resolve SEC Accounting Probe Alone in a 32 Story Condo: How Did This Mortgage Close? High End Homes Frozen Out of Budding Housing Rebound [...]

By: Lord

Lord — Tue, 04 Aug 2009 19:02:16 +0000

In most cases out here, the developer would have a captive lender which was already providing the construction financing, so if JPM was already on the hook they would have no incentive to reappraise or reevaluate but neither should they have any objection to switching to the other tower, in fact it would be absurd not to unless it would force them to reevaluate and take a loss.

By: JAH

JAH — Tue, 04 Aug 2009 18:43:58 +0000

He made $152,210 last year:

http://jackontap.blogspot.com/2009/08/this-explains-lot.html

By: Can Massachusetts borrowers sue appraisers for negligent appraisals? « Pick your poison

Tue, 04 Aug 2009 18:17:18 +0000

[...] Leave a Comment A discussion on Barry Ritholtz’s blog this morning — and specifically a thoughtful comment by Big Picture reader “Dan Duncan” – prompted me to check out Massachusetts law in this area. Prior to 2006, Massachusetts [...]

By: flipspiceland

flipspiceland — Tue, 04 Aug 2009 18:16:15 +0000

Off topic but I just read a good review of Barry’s book in the Grey Lady from Sunday.

They recommended that members of Congress read it cover to cover over their August recess (We here in PA, call it goofing off, or VACATION. They can’t tell the truth about anything)

By: jc

jc — Tue, 04 Aug 2009 18:13:31 +0000

Firemen shouldn’t be able to afford retirement condos? Many firemen I know work second jobs, this guy’s wife is accused of stealing a few hundred dollars so that didn’t cover the downpayment.

I don’t know if anyone committed fraud with his mortgage but everything was so fast & loose in the bubble states in those years, there are dozens of ghost towers like this down there.

His only mistake was putting 100K cash into the purchase, if he hadn’t he’d be in complete control now

By: A Top

A Top — Tue, 04 Aug 2009 17:34:13 +0000

Does anyone have recent examples or anecdotes about appraisers being sued for any reason? I’m just interested to see if there is any incentive for them to give an informed opinion.

I recently had a property appraised by two different banks. The first bank had an ‘independent appraisal’ value of 1 million, and approved me for a 1 million mortgage.

The second bank got an ‘independent appraisal’ of 1.3 million, and approved me for a 1.3 million mortgage. Turns out, the second bank holds the construction loan on the property, so if it doesn’t sell, they have to foreclose on the developer. If the bank doesn’t get 1.3 million, they take a loss on the property. The ‘independent appraisal’ magically hit the number exactly, not +/- 50k.

By: investorinpa

investorinpa — Tue, 04 Aug 2009 15:48:49 +0000

Dan Duncan makes great points, all very legit. There is nothing to sue the title company over. And JP Morgan should be suing the appraiser and possibly pull a “Wells Fargo” by suing itself just like one division of Wells sued another division.

By: Transor Z

Transor Z — Tue, 04 Aug 2009 15:43:08 +0000

@Okie:

Looks that way, although the 2006 case was “just” a trial court decision. Not sure what Florida courts would hold; I have a hard enough time keeping the law straight in my little state up here. :)