Mexican Self Deportation

Looks like as the economy in Mexico continues to improve, 3% growth last year, more residents of Mexico are going home. Meanwhile growth in Obama's America is still flat so there isn't much reason for them to stay, especially with unemployment still high and wages staying flat.

In the border states, up to 25% of the home foreclosures are illegals choosing to go home.

How soon before American citizens start following them?

Gazing at the fresh snow, Puerto Vallarta is looking pretty good right now.

How is it possible for illegal aliens to be able to purchase a house? Do banks and mortgage companies not run financial background checks? Why are illegal aliens not prosecuted for fraud? There are serious legal penalties for falsifying information to obtain a loan.

FredHayek wrote: In the border states, up to 25% of the home foreclosures are illegals choosing to go home.

Wondering if you can provide a source for this? I believe mortgage banks are limited to providing financing to US citizens or legal immigrants. I'm not aware of any lenders that lend to undocumented or illegal aliens.

I think it was a Pew Study, but I do know of a anecdotal story of an illegal family who was financed in the crazy pre 2006 days where anything went. It would be very hard under today's new regulations to get approved for a new loan or a refinance. And that may be another reason they are abandoning their current overpriced homes and high interest rate mortgages.

FredHayek wrote: I think it was a Pew Study, but I do know of a anecdotal story of an illegal family who was financed in the crazy pre 2006 days where anything went. It would be very hard under today's new regulations to get approved for a new loan or a refinance. And that may be another reason they are abandoning their current overpriced homes and high interest rate mortgages.

No. Your anecdotal story is BS. Pre-2006 makes no difference. Banks don't lend to illegal immigrants...it makes no sense. Mortgage underwriting is all about assessing the potential layers of risk each loan presents. An illegal immigrant as a borrower would be a HUGE risk. I don't believe any financial institution would take on that risk knowingly. If illegal immigrants obtained mortgages, they did so fraudulently. The banks invest a lot of money in combatting mortgage fraud, but they don't catch everything.

You shouldn't believe everything you 'hear' about, Fred.

plaidvillain wrote:

FredHayek wrote: I think it was a Pew Study, but I do know of a anecdotal story of an illegal family who was financed in the crazy pre 2006 days where anything went. It would be very hard under today's new regulations to get approved for a new loan or a refinance. And that may be another reason they are abandoning their current overpriced homes and high interest rate mortgages.

No. Your anecdotal story is BS. Pre-2006 makes no difference. Banks don't lend to illegal immigrants...it makes no sense. Mortgage underwriting is all about assessing the potential layers of risk each loan presents. An illegal immigrant as a borrower would be a HUGE risk. I don't believe any financial institution would take on that risk knowingly. If illegal immigrants obtained mortgages, they did so fraudulently. The banks invest a lot of money in combatting mortgage fraud, but they don't catch everything.

You shouldn't believe everything you 'hear' about, Fred.

rofllol You apparently don't know many illegal immigrants. They have been getting house loans for years w/o showing any documentation. The scheme is to purchase an FHA home for nearly nothing down, stop making the payments and live there for free as it takes at least a year or much longer to kick them out and then go home to Mexico since the economy stinks here while claiming numerous dependents and taking the deductions on their income tax and collecting aid for the kids. My brethren are not stupid. They know how to play the system. And no most of them didn't have to lie about not being US Citizens. They weren't asked.

akilina wrote: rofllol You apparently don't know many illegal immigrants.

Right you are! I don't know many (if any) illegal immigrants...I admit this. Why do you know so many? What have you done about it?

akilina wrote: They have been getting house loans for years w/o showing any documentation. The scheme is to purchase an FHA home for nearly nothing down, stop making the payments and live there for free as it takes at least a year or much longer to kick them out and then go home to Mexico since the economy stinks here while claiming numerous dependents and taking the deductions on their income tax and collecting aid for the kids. My brethren are not stupid. They know how to play the system. And no most of them didn't have to lie about not being US Citizens. They weren't asked.

You're full of it. Actually, I'll give you the benefit of the doubt that you are just misinformed and not a bald faced liar. I will say this very clearly so it isn't misunderstood...there has never been a time when anyone, illegal or otherwise, could obtain an FHA loan with NO documentation. Also, every mortgage loan is done using a standard form called a Uniform Residential Loan Application (FNMA form 1003). The 1003 contains a section of 'Declarations' that must be completed. One of these questions asks if the applicant is a US Citizen. The next questions asks, if not, is the applicant a permanent resident alien. If both of the questions are answered 'no', the loan does not qualify...so clearly, your assertion that the illegal immigrants weren't asked is just flat out wrong. Every loan also contains a credit report. Almost all lenders use a tri merge report and review the residency history, the public records, the fraud detection information (which contains info about when the social security number was issued and in what state), the OFAC search...all on top of reviewing the applicants credit history (even on so-called 'no doc' loans of the past). If any illegal immigrants obtained mortgage loans, they did so fraudulently. If you have evidence that ANY lender EVER knowingly gave a mortgage to an illegal immigrant, present your evidence. Otherwise, admit that you don't really know much about the mortgage industry...I admitted I don't know many illegal immigrants. Now, do you have backbone to admit you don't know what you're talking about?

For a commision on a mortgage, salesman were falsifying all kinds of information like income, etc. Wouldn't be much more to falsify citizenship. The morgage companies know they will just sell the loans to Fannie Mae anyway.

I think someone here is a little too optomistic about current and past controls on getting home mortgages.

Forgot to mention that while their home is in foreclosure and before they are kicked out, not unusual to see everything sold - copper, electrical, kitchen cabinets, kitchen sink, toilets, drywall, flooring, etc.

Are they worried about getting caught in any of this? No, that is how they get their free ride back to Mexico.

PD you are full of it. Like you said you don't know any illegal immigrants. How do I know so many? As a Latina I am related to a few, meet up with some from Ecuador where I volunteer and others from Mexico. As I said my brethren are not stupid. They know how to scam the system making hundreds of thousands of $ while poor smucks like you pick up the tab. Report it? Do you really think the mortgage companies give a damn? They are reimbursed by the federal govt for their losses. They will give anyone a loan. Granted these days bankers are being a bit pickier but not much. If you have a job and they do a credit report, they don't have much info to go on, but the mortgage companies still know they will be covered if they default. As long as illegal immigrants can find work they will scam the Americans because one the Americans are just plain stupid and two it is easy to do, there aren't any consequences.

Not optimism, Fred...actual first hand knowledge.

Yes, many loan officers falsified all kinds of information...that is fraud. That is what I said. Mortgage lenders went (and go) to great lengths to protect themselves against fraud (bear in mind, the average bank robber gets about $3500...the average mortgage fraud incident involves more than $150K), but they don't catch everything. If loan officers were boosting their commissions by pushing through fraudulent loans, that was not the lenders' fault. And many loan officers who engaged in such activities are now wishing they hadn't, as mortgage fraud prosecutions have increased greatly. Lenders did not willingly push through these loans, as FNMA doesn't buy the loans that don't have all of the supporting documentation proving it to be a legit loan. The lenders know if they fund loans like this, they will be stuck holding them as a 'portfolio product'.

Now, again, show me that any lenders knowingly provided mortgages to illegal immigrants. I don't think you can.