USA condo and studio apartment no credit check mortgages

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Liar loans or no credit check mortgages were often approved by banks through mortgage brokers or other financial intermediaries. Effectively self employed people declared their earnings, often overinflated, completed an application form which they gave to their broker who in turn gave it to the bank.

When the bubble burst these self employed borrowers who had inflated their earnings were the first to feel the heat as the economy imploded. Many saw their businesses close down and they struggled to pay back their mortgages.

Condo and apartment no credit check repossesions began to rise and the whole bubble surrounding no credit check mortgages swiftly began to unravel and banks that had bundled these mortgages in asset backed securities like Lehman Brothers were brought to their knees and collapsed.