Why Hundreds of Nearly Identical Bankruptcy Claims Yielded Vastly Different Results in the Aftermath of the Housing Bubble
"Randomly distributed justice."
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In late 2006, a Spanish-speaking housekeeper bought a $425,000 property for her son in the scenic town of Richmond, Calif.
Funded entirely with two mortgages from WMC Mortgage Corp. (a senior loan in the amount of $340,000 and a junior lien for $85,000), the deal was emblematic of a frothy real estate market in which borrowers of questionable means enjoyed ready access to no-down-payment loans.