Hidden losses to come

Implications: The problem with programs of this type is flight from debt. For many of the lenders for which we work, we can not find a high number of these foriegn buyers. if they have any problem with their financial situation they leave the country. Numerous principal residences are vacant and we have tracked them to housing scams where the refinance or purchase was related and inflated.

Analysis: These borrowers have a tendancy to move around and become difficult to find. When the payments stop and delinquency does occur, then the default go straight through to foreclosure.

many of the eastern european customers have been related to mortgage fraud as straw buyers. Many of the South American buyers we find leave the country and either do not pay while they are gone, or never return.