Update: Calgary MP Shory Accused in Giant Mortgage Fraud

[mykalberta]

Originally Posted by Shazam

He's in IT, so he's accountable to no one, not even to himself.

I guess thats why lawyers get paid what they do. Peanut Gallery comments apparently come free of charge.

[Shazam]

Originally Posted by mykalberta

I guess thats why lawyers get paid what they do. Peanut Gallery comments apparently come free of charge.

Well, yeah. How much professional liability insurance do you have? How about E&O insurance?

It's pretty easy to think you're absolved of anything when it turns out that, well, you're not really responsible for your own actions.

[fredr123]

If part of the fallout from all of this is an increase in the potential liability to lawyers in real estate transactions, I wonder if legal fees will be increased accordingly? Lawyers fees in these transactions tend to be a fraction of what listing agents get...

[EddyBeers]

Originally Posted by Shazam

Well, yeah. How much professional liability insurance do you have? How about E&O insurance?

It's pretty easy to think you're absolved of anything when it turns out that, well, you're not really responsible for your own actions.

That is the beauty of CMHC, the system basically creates a moral hazard for Banks. They can lend at will and not really be overly concerned about the consequences. The reason BMO has to go this route is that a Master in Alberta (I think Laycock, but don't quote me on that) ruled that they could not get deficiency judgments on their mortgages from 2004 through 2009 because they failed to include CMHC clause in the body of mortgage, rather it was in the standard terms. If they had received deficiency judgments on their properties, at the very least, it would not be BMO pursuing this action.

[chemgear]

Originally Posted by fotze

This site keeps crashing my browser. I wanna see if troutman is there?

I saw a link on a blog with the document:


http://documentcentre.eycan.com/eycm...14,%202010.pdf

EDIT: it also has the specific homes in question near the end of the document.

[zuluking]

BMO didn't have a problem with this when the market was red-hot and property values were climbing. They'd make their fair share of dough off this. Now that it ain't so hot, the fingers start pointing. When alot of the fingers actually start pointing back to BMO, they're going to regret having used legal means to save them from their own negligence.

Based on the link troutman posted, there are loopholes in those statements miles wide for multi-million dollar mansions to drive through.

[chemgear]

Well, isn't it like a Ponzi scheme? As long as people keep buying in then it remains propped up. In this case, it would be increasing housing prices (so the straw buyers/whomever could always turn it over for the same/more and never be in trouble.)

That doesn't seem to be the case any more.

However, I once saw (on these forums) that you can't EVER go wrong investing in real estate. Buy these properties NOW - OR BE PRICED OUT FOREVER! NOW! NOW! NOW!