Insurers of Foreclosed Homes Brace For Arson Epidemic

[Joanne98]

Wednesday, Jan. 9, 2008 10:45 a.m. EST

The real estate market could be going up in smoke – literally.
Insurance fraud investigators are bracing for an epidemic of arsons as desperate borrowers torch their homes for insurance money.

Recent arson incidents could be the start of an alarming trend. A Houston man allegedly burned down his home for insurance money to dodge foreclosure, the fraud group reports.

Authorities became suspicious, in part, because the house was virtually empty of furniture and appliances and the power had been shut off. The insurer paid off the mortgage and gave the owner $10,000 in equity but is now is trying to recoup its money.
http://apatriotsmanifest.com/feb08/economy08021203.html

[RaleighNCDUer]

1. Well, since the insurance companies and the banks share each

others' boards, they're keeping it all in the family, so what's the problem?

They did it to themselves.

[Celebration]

2. fires in San Diego

I think that there was some suspicion that some of them started for these reasons, but the media didn't report on it much, not wanting to give anyone any ideas.

[Warpy]

3. Partially completed houses here

especially the very large ones being financed by iffy paper, have been falling victim to builder's lightning once in a while as the mortgages start to fall through at the last minute.

It's amazing how fast a dream house can turn into somebody's worst nightmare.