While U.S. real estate markets simmer, those in China are boiling over. There’s such a buying frenzy in China, that home prices were up 12.4% last year, and mortgage fraud is rampant to help buyers afford those high-priced homes. Rapidly rising prices along with bogus loan valuations are creating a bubble that could give the global economy a good jolt… if it bursts.
Reuters writes that mortgage fraud is running wild in China. Chinese homebuyers reportedly draw up separate agreements. One is a legitimate contract with the true home value and the other is a fraudulent document for the bank with a higher home valuation.
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