Monday, August 18, 2008

Boston area "Vacation Homes" Target of Lending Scam?

"More than a dozen condos, many in abandoned or distressed buildings" in the definitely non-vacation Dorchester neighborhood "have sold at sky-high prices to 'buyers' using mortgages designed for vacation homes, according to a local housing researcher," Scott Van Voorhis wrote in the Boston Herald yesterday. "The rash of vacation-home lending in Dorchester is stoking fears among some industry watchdogs that a new wave of speculation may be brewing in Boston’s poorest neighborhoods, which are already reeling from a devastating wave of foreclosures," the article added. Local observers warn that such loans may be obtained by speculators who put only a small amount of money down using financing that is reserved for vacation-home lending, and then re-sell for quick profits.

Chris Lovett posted a Dorchester Reporter's similar suggestion of strange resales on the blog Civic Boston in late July.

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