Beazer homes - Ian McCarthy- CNN's Top Ten culprit list names
Number six on Cooper's list of the 10 most responsible parties for the economic collapse is Ian McCarthy of Beazer homes , President and CEO of Beazer Homes USA. Beazer homes is a major homebuilder. They are also in the mortgage business. They can build your home and then finance it for you. The loans that Beazer offered their homebuyers were the worst kind of mortgage fodder. But these loans were presented in a way that sounded favorable. In most cases, Beazer homes would help make the mortgage payments for the first year. What a decent proposal! Buyers contend that they were informed that payments would go up after year one, but the numbers were grossly understated. When the first year was up and the payments adjusted, the new payments were way more than what was represented. Maybe this proposal was not so decent after all.
In addition, homebuyers with Beazer are alleging that the information on their loan applications did not reflect what they reported to Beazer agents. Some buyers say that, unbeknownst to them, their income was inflated and their debt was understated making it seem that the buyers were better qualified than they really were.
Beazer has a big presence in Charlotte, NC. The Charlotte Observer did an investigation of Beazer loan applications and found a pattern of inaccuracies. North Carolina representative Brad Miller expresses disbelief at this unusual circumstance of a builder knowingly putting buyers in homes that they cannot afford in order to sell inventory. Out of ten Beazer communities in Charlotte, one in five homes is in foreclosure.
Foreclosures are the forerunners of deteriorating communities and rising crime rates. High concentrations of foreclosures devastate the values of other homes in the area. The result is that many homeowners in these neighborhoods now owe more than their house is worth.
Another fact that enrages devastated homeowners is that these mortgages are insured by the government—more accurately, the taxpayers. The builder collects even if the homeowner defaults-- and the taxpayers foot the bill. At least the government is alarmed enough to take action. The IRS, the FBI and other government agencies are investigating Beazer under suspicion of fraud. Beazer says they are cooperating.
An internal audit found Beazer employee violations of federal regulations dating back to at least 2000. Beazer is being sued by many of its homebuyers. They say they feel trapped into trying to stay in their homes because the properties are worth so little that they cannot sell for enough to get out from under their mortgages. CNN top ten Culprits - Culprit #1 CNN top ten Culprits - Culprit #2 CNN top ten Culprits - Culprit #3 CNN top ten Culprits - Culprit #4 CNN top ten Culprits - Culprit #5 CNN top ten Culprits - Culprit #6 CNN top ten Culprits - Culprit #7 CNN top ten Culprits - Culprit #8 CNN top ten Culprits - Culprit #9 CNN top ten Culprits - Culprit #10
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