US top court broaches subprime crisis in property value case

The US Supreme Court in Washington, on November 6, 2013The US Supreme Court Tuesday heard arguments born out of the subprime mortgage crisis concerning how to estimate a property’s value when its worth has plunged. Benjamin Robers borrowed a total of $451,000 he never intended to pay back in a mortgage fraud scam in the midwestern state of Wisconsin just before the housing market collapsed. A brief filed before the hearing by the United States Department of Justice argued that the amount of restitution due to the lender should be offset by “the amount of money the lender ultimately obtains by reselling the house.” Justice Samuel Alito compared the situation to a truck full of tomatoes that are sold once they have gone bad and lost most of their value.

Share this article