Recently a reader asked why we started RE-Insider. What was it that finally pushed us over the edge from just being angry and made us want to enact some change. Perhaps the best answer is the engagement of the FBI in the real estate market.
Our own investigations have provided a window into a layer of corruption that took place amid the national housing boom and its subsequent hangover – a period that saw a surge in real estate malfeasance of every imaginable variety, including false loan application, predatory lending schemes, illegal property “flipping,” equity skimming and loans for property that doesn’t exist.
Here’s some interesting data: according to FBI data, the number of suspicious activity reports related to real estate fraud filed by financial institutions jumped from 6,936 in 2003 to 67,190 in 2009. That’s an increase of almost 1000%!
Eventually we couldn’t take it anymore. What pushed you over the edge?