November 28th, 2006 3:58 am
Borrow 50 Grand to Stop Foreclosure and Sell My Houses Creatively
This is one of the burning thoughts that I came up with during the facing foreclosure fast: I really want to sell all those houses ASAP and stop foreclosure! I’m sick and tired of having all this non-performing inventory continue dragging me down for so long. I need to be moving forward towards my goals of becoming a successful real estate investor.
The hope: I do have some buyers from my creative marketing efforts who are willing to take over the mortgage payments. This is a good thing because I won’t have to do a short sale. The buyers will assume the current mortgage balance and refinance later when they improve their credit (and when the market recovers so the house would appraise).
That’s great because the lenders will not loose any money on me and the credit-challenged buyers will get their dream of home ownership. We have the makings of a WIN-WIN here.
The Problem: the buyers don’t have enough of a down payment to bring my loans current, which is about $15k per house by now.
The Solution: borrow some money, bring the loans current and factor the payments on that new debt into the payment on the house. So I would pass the cost of borrowing the money on to the buyers, so I’m happy. The buyer is happy because they are getting a no-money down deal without having to qualify for a loan. Pretty good heh?
Well sort of….
Another Problem: since the buyers don’t have any skin in the game, what stops them from defaulting? They are “credit challenged” for a reason. People tend to stick with their patterns. So if the buyer defaults I’m back to facing foreclosure. But hey, it’s worth a shot. Better than nothing.
The Protection: to do this smart, I should probably sell via a lease option (a.k.a. “rent to own” ) instead of an All Inclusive Trust Deed (a.k.a. “wrap around mortgage” ). This way if they default, I can evict instead of having to foreclose. Plus it avoids the due-on-sale issue.
Also, I should borrow a little bit of extra money so that I can invest into additional marketing. This way I will have more buyers to choose from and can pick “the cream of the crop” instead of acting out of desperation. Christmas is coming up and I need to get those houses MOVED!!
How much do I need? I want to do this strategy on my California houses (I’m still hoping for the raffle idea for the New Mexico model home). So I will need $15,000 per house to re-instate the loans and stop foreclosure. Times by three houses = $45,000. Add $5,000 for additional marketing. Total needed: $50,000.
Where am I going to get $50 grand in 3 weeks?
Who is going to lend me money with my awesome credit score and no collateral?? Maybe I can talk the lender into using my (un)TrueCredit score? Yeah, right.
I need something creative… I have an opportunity but I’m still checking it out. Will share it shortly.
What do you think of my idea to borrow money, stop foreclosure and sell the houses creatively?
312 Comments
November 28th, 2006 at 3:59 am
According to the Sacramento County Records, both of your Sacramento houses have the notices of default (one on 11/2/06 and the other on 11/16/06).
What’s the plan?
Come on … you gotta get to work! You know the timeline!
November 28th, 2006 at 4:34 am
Surely this is some sort of sick joke. Although I hear that you can sell a testicle for around $40k, and you wouldn’t even have to pay it back (I’m serious - it beats the hell out of driving a truck in Iraq).
November 28th, 2006 at 4:37 am
What’s another 50k between friends?
Just make sure you keep stacking up the contacts in terms of Bankruptcy lawyers…
I sure hope your luck changes at some point Casey but really I think you need to take a cold hard long look at your situation, on a full stomach, and admit game over.
I can’t see how credit-challenged buyers are the answer.
November 28th, 2006 at 4:52 am
Casey, there are reasons why some people’s credit score is low. The whole credit score thing works because - as a trend - it predicts whether people are going to be able to pay back what they borrowed.
What happens if even one of your buyers is unable to keep up their payments? Does your “creative financing” mean that you’ll be liable?
I can’t believe you’re thinking of borrowing more money…
November 28th, 2006 at 4:58 am
casey,
was that ebid post a legit auction?
you think you can get out of this by helping people (finding a bigger fool
http://en.wikipedia.org/wiki/Bigger_fool_theory
somehow “HELPING” credit challenged buyers find the
“DREAM OF HOME OWNERSHIP”
which is NOT the same as “OWNERSHIP OF A DREAM HOME”
November 28th, 2006 at 5:02 am
I’m thinking 150+ comments on this one.
November 28th, 2006 at 5:11 am
You. are. insane. nobody in their right mind would lend you one dime. I think you need to be institutionalized
November 28th, 2006 at 5:22 am
Casey,
I am writing this for my benefit, not yours. I have been reading your trainwreck of a story for a month or two, and I do not for a second think you will take any of the adult advice you have been given. Still, reading your blog makes me want to tear my hair out. When I think how I have struggled, and had sleepless nights over being a few K in the red, your story - if true - is staggering.
You are bankrupt. Face it. Stop thinking you are some sort of investor/speculator/hotshot. Stop borrowing more money - your government might be turning it into toilet paper anyway, but you are still a waste of what little value the $ still has.
November 28th, 2006 at 5:26 am
Oh you are UNBELIEVABLE. You deserve everything you get from here. I can’t look away, it’s too mesmerising, even though I’m disgusted wth myself.
November 28th, 2006 at 5:35 am
How would you pay back $50,000?
November 28th, 2006 at 5:37 am
“People tend to stick with their patterns”
You said it best yourself Casey and PLEASE stop using LOOSE in place of LOSE
November 28th, 2006 at 6:09 am
Do “creative” do you mean “deceptive”?
November 28th, 2006 at 6:15 am
I don’t think any lender in their right mind is going to give you another $50k. Look at your track record!!!!!!
If the buyer wants the house, and is willing to just TOP, then s/he should be able to come up with $15k for the down payment. If they are paying what you have listed (~$350k) and can’t come up with a measly $15k down payment, they’re probably going to default. I would DEFINITELY do this ONLY as a lease-purchase, if at all.
You were asking for $27k down and for them to take over $2816/mth; if they can’t scrape together $15k through whatever means, they certainly can’t afford a mortgage note of $2816 (which would actually be higher because you need to figure in taxes and insurance).
November 28th, 2006 at 6:17 am
buy a gun with whatever credit you have left….rob a the local wells fargo branch(they have been ripping you off but then so has everyone right). You may have to hit more than one branch to get 50k(tellers usually only have a few grand.
Good luck with that. remember….ask nicely.
November 28th, 2006 at 6:27 am
Casey, with all due respect, who at this point would loan you $50,000?
November 28th, 2006 at 6:39 am
Given your inability to pay your current debt obligations, and recent foreclosure, a $50,000 loan doesn’t seem very reasonable at this point. I haven’t seen any comment about your budget or paying back the remaining $3,000 loan from your friend. Have you made any progress in these areas. I suggest consulting a bankruptcy attorney about financial situation.
November 28th, 2006 at 6:40 am
Yes you should do that. In fact, I have 50 grand right here I’ll send over to you, interest free, your credit is excellent. You are better than 1% of the people. After that, me, you and Prleechbix can flip condo’s in Morroco. I heard Donald trump is developing luxury multi storied condos there.
Cool.
Cow_tipping.
November 28th, 2006 at 6:47 am
Casey: You need to start talking to someone with connections. I suggest you start with your local Italian or Vietnamize restaurant owner.
There is money available all time if you are willing pay the interest. In your case, we’re talking a few points a week. If you’re serious, you can get the money today and get these monkeys of your back in a matter of a few weeks.
November 28th, 2006 at 7:11 am
You had no skin in the game, so what stops you from defaulting. It is just a matter of time. Your game is in its final inning.
November 28th, 2006 at 7:14 am
Casey, borrowing more money and creating more debt is not the answer.
Here is what I would do, if I ever made such a huge disaster for myself:
1. Find a Lease To Own tenant with a down payment of a minimum of $5k
2. Lease with 5 year term.
3. Lease with rent of current costs + $200 per month.
4. With lease in hand go to see my banker (lease may not be completed, but in the works. Do not lock yourself in on something you do not know will bear fruit.)
5. Negotiate with my banker to hand over the complete down payment.
6. Request the banker to assist me in re allocating the past due. Either by adjusting my current payments or paying extra with each payment an agreed upon amount until the past due balance is gone. I prefer the later, because should my situation improve, I can remove the burden without a refinance.
I would continue this process with each property until things were moving forward again.
Also, when beginning negotiations with possible tenants, I would not start at the $5k down level. I would most likely start at the $15k, knowing full well this is highly unlikely. Giving them the feeling of pride in negotiations as the whittle me down. I would NEVER take less than $5k.
NOTE: I am not a professional, this is just what I would do and you must make your own path.
November 28th, 2006 at 7:18 am
I have some thoughts, but since you are absolutely unwilling and/or incapable of even the trivial task of listening and learning the difference between “loose” and “lose”, I am convinced you are a lost cause.
November 28th, 2006 at 7:25 am
Let the houses go……it’s time to stop this pyramid before anyone else gets hurt. Seriously.
November 28th, 2006 at 7:29 am
You forgot to mention ANOTHER PROBLEM
YOU are credit challenged (among other things). Who in their right mind is going to loan you money ?
November 28th, 2006 at 7:31 am
Wow… seriously I think the lack of food during your fasting has taken its toll on your thought process.
So if you cannot pay what you currently owe and now you want to borrow more money???
What ever happened to the “do the right thing mentality”?
Just take the foreclosure like a man and move on you are young.
November 28th, 2006 at 7:37 am
Casey,
You are intensely, extremely, terribly uncomfortable. You’re seeing monsters. You’re losing your mind and you feel it going.
November 28th, 2006 at 7:37 am
—What do you think of my idea to borrow money, stop foreclosure and sell the houses creatively?—
Not much. You should file for bankruptcy now. In your position, I would also shed any ambitions of success in real estate. Your mistakes so far suggest that you should be an employee, not the person in charge.
I would like to see someone with the know-how run a comprehensive investigation of what’s really going on here. Other posters, such as Charles Martel, have hinted there’s more than meets the eye regarding your history. I do not know where to look for these types of revealing fun facts, and unfortunately I do not have the time to haunt the web and verify blog posts all day. I have a job, you see.
November 28th, 2006 at 7:42 am
Enclosed is a bill for $249.00 to replace my monitor. After reading this thread, I spit my coffee al over it.
Casey Serin, our little Borat of foreclosures. Can you sing, ” throw the Jew down the well?” ROFLMAO
November 28th, 2006 at 7:48 am
No! Going even more into the hole isn’t going to help. What happens when those houses are worth even less next year, the renters default, and drag you through a lengthy eviction process? Plus you have no means to pay back the 50k, the 3k to your friend, the 180k of unsecured debt.
Declare bankruptcy and get a real job. Study the market for the next few years and make a comeback five years from now. You’re in this hole because you had no experience or real education in this market.
November 28th, 2006 at 7:57 am
Casey,
STOP!
I used to have rental properties. I had 2, with positive cash flow and enough in savings to pay a years worth of the mortgages on BOTH in case the scat hit the fan. As soon as I was hurt at work and knew that I would miss a year or more I sold both. There was no way I was willing to risk the debt. You have over $2.2 Mil, and now you want to sink another $50k into the hole?
If you sell these things this way, you will be quite lucky to just cover the nut on the mortgages. How will you pay the $50k back? Will these folks that you sell to pay the taxes and insurance or “let them slide”? Will they even make their payments on time to you or to an escrow company? Will these folks properly maintain and repair the property? Will your mortgage holders accelerate the very second that they catch wind of this?
YOU DON”T HAVE THE CASH RESERVES THAT IT TAKES TO PLAY BALL ON THIS FIELD! STOP!
Without access to at least 6 months worth of money to float this mess you are screwed at the very first little slip up. If someone is late on a payment or skips a tax bill or bolts because the place needs a new roof or furnace or something else YOU are the one that will have to pay that bill. YOU DON”T HAVE THE MONEY!
Take some other advice here. Stop trying to short these things or come up with another scheme to save this mess. DIL all 4 that you have left and begin to repair your credit. That alone will take 5 years or more. The longer you delay, the older you are when things can get back to normal for you.
November 28th, 2006 at 8:03 am
If you have bank loans, you are not going to be able to have someone ‘assume’ your mortgage. And who will lend you $50k with your credit? Private lenders? With even higher interest?
Give it up - get a BK atty, declare BK, & retain a criminal atty just in case.
November 28th, 2006 at 8:04 am
OMIGOD….get real!!! borrow more money…sure….How’s that working for you up to now? With your stellar credit rating…why not continue? I hear the Russian Mafia (or is it the Israeli mafia?) still have some coin laying around that they had reserved for Maurice Clarrett (check out that story some time….) By the way, how do you know you’ve still got three weeks till this whole house of cards collapses around you? Seems to me the end could be much sooner than you think.
I think what you should do is contact a Hollywood agent and try to sell the rights to your story. Oops…wait…you already kinda botched that one in Phoenix.
Why not just commit outright check fraud? Write yourself a few $15,000 dollar checks. Really,what could it cost you? Not more than $33 from Wells Fargo, right? Much higher cost/benefit ratio than some Jamba Juice or Macaroni Grill. Go ahead….DO IT! Just consider it a short term loan…..tell them that you’re serious about repaying it, but just need to fast a bit longer to acquire the proper positive motivation before acting.
Even better, why not just go Che’ on us, and rob a few banks? Surely any judge or jury would acquit you based on the unbearable stress of your current situation. With your charm and Tony Robbins patina, I’m sure you would have no problem swaying anyone to the righteousness of your cause. At any rate, the consequences can’t be any worse than what you’re currently facing, plus you get free food in prison….delivered to your room.
November 28th, 2006 at 8:04 am
Casey, Casey, Casey. Go back to fasting and praying.
November 28th, 2006 at 8:08 am
I appreciate the ‘thinking outside of the box’, but these are not buyers you have. These are people that cannot afford a home and cannot qualify for a home. They might be willing but are not ready or able. But do keep us abreast of how you can raise another $50,000 in three weeks.
November 28th, 2006 at 8:11 am
Casey explains his own traits in three sentences, and manages to sound condescending about people exactly like himself: “since the buyers don’t have any skin in the game, what stops them from defaulting? They are “credit challenged” for a reason. People tend to stick with their patterns.”
November 28th, 2006 at 8:15 am
hey Casey,
Let me be the first to say that this is a BAD IDEA!!!!! I understand you want to stop the foreclosures and get the world off of your back, but before you make any decisions think about the followings things.
1. My bread and butter are selling on lease options, so i know a thing or two and you are right. Selling VIA a lease with option to purchase is safter than the other choice. No here is the problem. You are already in debt pretty much and have stated that one of the reasons was that you couldnt support the mortgage payments on some of the houses. So , lets say you borrow 50,000 and pass the cost on to the tenant. More than likely they will not stay in the house. Trust me most tenant buyers never buy. So, lets say you evict them. Lets say you cant find another tenant for 3 months, plus the time of the eviction. Can you cover the payments, plus the mortgage……If you are not 100% sure, then the answer is no.
Basically you will be back in the same trouble again, only now you’ll have a extra 50,000 debit to add on top. Also, taking extra money out of loan only adds to the payments and never really plays out the way you think. So, just think about it is all im asking. Do you really want to add another 50,000 debt. My advice is to continue to do what your doing and i dont know if you have tried it, but there are many investors who have the money to cover payments and make up back payments who will take a mortgage over subject 2. I dont know the numbers of your deals, but just a thought. In my opinion, adding more debt will only result in more problems. Well, good luck with everything and remember. YOu are very young still and you do not have to be success over night. Becoming great at real estate takes time and baby steps. Good luck
November 28th, 2006 at 8:16 am
I am forced to believe that this is a joke to you and you are baiting us, or you are clinically insane. As of this post I have completely stopped being at least mildly interested in your screw ups and hope you get plenty of time in jail.
November 28th, 2006 at 8:18 am
Casey,
Unfortunately, you can’t borrow yourself out of this situation. No institutional lender will loan to you based on your credit. No hard money lender will give you a cash out second or third.
If you have credit challenged buyers for these places, go ahead and do the lease option, take a deposit upfront and negotiate a forbearance with the lender - now that you have a way to pay them. If they won’t negotiate, start making payments anyway. You’ll avoid foreclosure. You don’t really have anything else to protect credit wise.
Break down your problem into chunks you can actually work with. Borrowing 50k with bad credit and no collateral is impossible. If you’re behind 15k on each house, look at that number. It’s a bit easier to digest.
Why not do this for all your remaining properties? The lottery idea for the New Mexico house is a waste of time. Have you marketed the California properties with the newly approved short sale prices? Something else to consider.
Casey, you’re rapidly running out of time here. Some of these properties have the possibility of languishing on the market for over a year. You won’t have the ability to gain equity if you don’t own any properties.
Now is the time to come to grips with reality. Find one of the houses you like, move in and declare bankruptcy. You’ll lose the other homes, but still have a base to build from. Don’t let pride or stubbornness force you to lose everything. You’ve done everything you could over the past few months and you’ve done well to get rid of two properties, but now is the time to restructure, regroup and declare bankruptcy.
Nigel
November 28th, 2006 at 8:19 am
Ha Ha Ha You are you are simply amazing.
But seriously if you find a numbnut willing to lend you $$$ tell us all so I can get a loan from there as well.
November 28th, 2006 at 8:23 am
“People tend to stick with their patterns. ”
I think all of us here are witnessing truth to that statement.
November 28th, 2006 at 8:23 am
You’re still writing ‘loose’ instead of ‘lose’.
You haven’t learned a thing, have you?
November 28th, 2006 at 8:36 am
Hello,
I think this is a bad idea. You are planning to throw more money after bad money. Houses in the past month or so have lost on average $8-10,000 per month. I think those “credit challenged” prospects are suckers for wanting to buy from you. Not only are they getting over priced houses, but then you are gonna stick them with more higher debt on top of the high debt you have them pay.
Those people who you want to sell to, are better off getting a mortgage themselves, rather than deal with you and your background.
I think the advice given the other day that you try to negotiate with the lenders to carry the past due payments as a balloon payment at the end of the mortgage is a good idea. This is an alternative for them instead of spending money and liability in foreclosing, since they are gonna deal with a huge amount of foreclosures the coming new year.
But again, I think no one should buy these houses from you. They will not be able to refinance for at least five years or more, when this market goes back up. If they try to refinance prior to that, their appraisals will be less than they paid for the houses and it wont be in their best interest to do so.
Casey! I dont know what your religion is, and it doesnt really matter. I think that you are too optimistic and need to face reality. You do not need to borrow another $50,000, when you have negative net worth, no real job, and this time, because your scores are so low, you wont qualify for a no doc loan.
Casey! You may have admitted your crimes and sins, but you are not changing your ways. You are back to your old ideas just with new twists. If you are Christian, you are required not only to repent, but to actually stop sinning and committing more crimes. Just because you “fasted” and planned, stuff you should have done before you bought your first property, does not mean that you have learned your lesson.
November 28th, 2006 at 8:38 am
HEY,
JOIN OUR CLUB, I EARN ABOUT AT LEAST $3K+ PER NITE, LIFE IS GOOD!
November 28th, 2006 at 8:40 am
Metallica - The black album (Metallica)
Enter Sandman
Say your prayers little one
don’t forget, my son
to include everyone
tuck you in, warm within
keep you free from sin
till the sandman he comes
sleep with one eye open
gripping your pillow tight
exit light
enter night
take my hand
off to never never land
something’s wrong, shut the light
heavy thoughts tonight
and they aren’t of snow white
dreams of war, dreams of liars
dreams of dragon’s fire
and of things that will bite
sleep with one eye open
gripping your pillow tight
exit light
enter night
take my hand
off to never never land
now I lay me down to sleep
pray the lord my soul to keep
if I die before I wake
pray the lord my soul to take
hush little baby, don’t say a word
and never mind that noise you heard
it’s just the beast under your bed,
in your closet, in your head
exit light
enter night
grain of sand
exit light
enter night
take my hand
we’re off to never never land
November 28th, 2006 at 8:43 am
@D: I already tried asking the bank to re-structure the loan and move the past-due amount to the back of the loan or spread it out over a few payments via a “forbearance” but its a NO GO because of 2 reasons:
1) the loan is officially in default now. If the NOD hasn’t been filed they said that would have been a remote possibility
2) They also asked me how in the world would I be able to start making payments again when my credit report shows liabilities of $15,000/month. The bank would have to see that I all of a sudden I have an income high enough to cover that amount and then some. So I would have to somehow convince them that I will be paying just THIS mortgage and do some serious lying. Not good.
November 28th, 2006 at 8:47 am
Look, I understand that some of you think this is a joke post or another sensational “stir-the-pot” type of post.
It’s not.
I really AM considering this idea because I found a possibility to borrow 50K unsecured to accomplish this.
However, before I rush out and get into a bunch of debt again, I figure I will bring my idea to my blog readers and get some feedback so that I don’t do stupid stuff impulsively without consider all the sides.
My desire is to try to repay these mortgages… bank is going to loose a BUNCH on a short sale (or a DIL or foreclosure)… the mount of loss is UGLY… so I’m looking at whatever ideas I can as an alternative to prevent any losses.
November 28th, 2006 at 8:48 am
Casey, you’re a riot! Thanks for putting a smile on my face this morning! (Off for another personal training session at Crunch…will write more later)
November 28th, 2006 at 8:48 am
Hello,
Casey! Everyone knows that the housing bubble is going to burst soon. That means, a person in your situation is to either go into the military, where they need young stupid people, or go to school. The military is probably out, but you never know, because they do check your credit record. The only loans you probably qualify for in this country, are student loans. They arent based on your credit score. You could ride out this coming recession as a student, or get a real job.
November 28th, 2006 at 8:50 am
NO ONE WILL LEND YOU $50K…NO ONE!
Living proof that prayer doesn’t work…you fast and pray and this is what you come up with.
If you came up with I’m just bailing since that is the only solution, I would have said maybe there something to this fasting/praying thing.
Throwing good money after bad is what you came up with and the universe’s answer is a BIG FAT NO!
Casey, this game is over for you right now. You’ll need to clear up all debts before you can start again. Foreclose, declare bankruptcy, take a year or more off, regroup and then plan a comeback (done slowly).
What you really need to do is take enough time off to see what exactly about you that created this mess…because whatever THAT is…IT still there…and unless you change THAT, you’re a time bomb that will go off again in the future. You have to change and do a lot of proving that you have before anyone will lend you money.
Your actions were wreckless in any market.
Best to you but I think you’ve seen the best already for sometime to come.
Frank
November 28th, 2006 at 8:51 am
face it casey you are going to borrow the 50k. is it from family members or the mafia?
November 28th, 2006 at 8:52 am
“Another Problem: since the buyers don’t have any skin in the game, what stops them from defaulting? They are ‘credit challenged’ for a reason. People tend to stick with their patterns.”
Sashenka: You have never written truer words - please take a good hard look in the tzerkala and see if you can’t muster some honest self reflection.
November 28th, 2006 at 8:58 am
Remember back in the late ’80s, the “No Excuses” jeans ads? And remember how SNL parodied them with “Bad Ideas” jeans…an ad with a bunch of guys playing basketball saying things like, “Normally I use protection, but then I thought, ‘When am I getting back to Haiti again?’”?
This idea would have been perfect for the “Bad Ideas” commercial. Honestly, I’ve never heard a worse idea. Giving K-Fed a recording contract, New Coke, invading Iraq–they all pale in comparison. This is so mind-numbingly awful it could only have come from Casey’s twisted mind. Carry on sir, you’re providing loads of fun.
November 28th, 2006 at 9:03 am
50k should be no prob to find if the numbers make sense. Any good investor will want to turn 50k into millions. That’s what we’re trying to do with my friend’s inheritance… at FlipperNation.com.
November 28th, 2006 at 9:06 am
I try to look away, I really do. I drive by and have to look back. I was thinking about telling you what you’ve heard 1000s of times. Turn in the keys, get a job, blah blah blah. But why bother?
I think you should borrow as much money as you possibly can (most likely zero) and try to get your FICO into the 400s.
I can get you a movie gig as a “fluffer” if you need to drum up some quick money.
November 28th, 2006 at 9:07 am
Casey, you’re really becoming irrational.
You remind me of those people who have shopping or gambling addictions.
This is addictive behaviour.
“There are three stages that the compulsive gambler goes through. In the early or winning phase, the dependency on gambling develops as the individual begins to bet more frequently and tends to win as his/her knowledge of gambling odds and risks is developed. During this stage, the person still “controls” the behavior and can stop gambling. Rarely does the individual borrow money, since winnings are usually enough to support continued gambling. This phase may continue for months to years and typically ends with a substantially big win.
During the next phase, the losing phase, the individual begins to gamble alone instead of with friends and begins to bet large amounts of money. Around this time, because the individual is gambling more, he/she begins to lose. Out of frustration, the individual begins to bet more money and take more chances. As his/her winnings are quickly depleted, the person begins to draw upon other resources in order to “get even.” This is often money that has been earned, saved, or invested. If the person continues to lose, he/she feels a sense of urgency to win back what has been lost and eventually may borrow money. The individual then tries to cover up and may lie about his/her gambling, which alienates both family and friends. When friends or family do lend money to help the person get out of debt, it usually is quickly lost.
During the last or desperation phase, the person disregards creditors, family, and friends and begins to take even further risks. He/she may engage in illegal loans, thefts, or other crimes. The person often loses family and job. Depression is common, and suicide attempts are frequent.
The cause of compulsive gambling is not known. Most gamblers talk about the “thrill” or “high” they get while gambling, and it is speculated that, as in other addictive behaviors, perhaps beta-endorphines are produced in the brain, which causes the individual to repeat the behavior to obtain the pleasant feeling. It is interesting to note that during treatment, compulsive gamblers undergo withdrawal symptoms similar to symptoms of persons addicted to depressant drugs: headaches, abdominal pain, diarrhea, cold sweats, tremor, and nightmares.”
Addictive behaviour in general:
“There are many common characteristics among the various addictive behaviors, as suggested by Miller, Levison, Hatterer, and others. First of all, the individual becomes obsessed (constantly thinks of) the object, activity, or substance and will seek it out, often to the detriment of work or interpersonal relationships. The person will compulsively engage in the activity, that is, do the activity over and over even if he/she does not want to. Upon cessation of the activity, withdrawal symptoms of irritability, craving, and restlessness will often occur. The person does not appear to have control as to when, how long, or how much he or she will continue the behavior (loss of control). He/she often denies problems resulting from his/her engagement in the behavior, even though others can see the negative effects. Individuals with addictive behaviors usually have low self esteem and feel anxious if the do not have control over their environment.”
Get help dude.
November 28th, 2006 at 9:10 am
Um, Young Casey, even assuming that you could con some loan shark into loaning you USD 50 000 unsecured - you still owe more money on each of the properties than the properties are worth.
That is a losing proposition. A lose-lose.
But who on earth would lend you money? How drunk are they? We won’t even go into why sub-sub prime homebuyers can’t get credit for some reason. Didn’t you learn anything from your earlier attempt at landlording?
November 28th, 2006 at 9:10 am
Casey:
Let me be the first to say that this is a great idea. You’ll keep the properties and when the housing market gets back on track, you’ll be in the game and ready to become rich! Don’t listen to all of the idiots posting on the board, they don’t understand the idea of taking risks to get ahead. Sure, it might seem a little odd to borrow money to keep control of properties that appear to be worth significantly less than what you owe on them…but this is outside-the-box thinking, man. Those who think inside-the-box are stuck there. You are free. Good luck!
Bob
November 28th, 2006 at 9:14 am
Casey,
Maybe try prosper.com. It is a site where individuals loan to each other. Maybe you can get a loan there. I think your in the right direction here dude.Hope you are doing great.
November 28th, 2006 at 9:15 am
Hello,
Casey! I grew up in Sacramento, born and raised. The town that I call home, has been ruined. Granted, Sacramento, or parts of it, arent the best places to raise children to own a car, but its my home. But people like you and Bay Area trash, have turned the area into a tract home nightmare. Thousands and thousands of houses, no matter the price, will be useless in 20 years or less. Natomas is going to be a slum. This disgusts me. Natomas should have been kept a rice field, and so should Elk Grove and other places. Dang, if people are buying houses in Sutter and Colusa counties and commuting, they are nuts.
If you are truly of immigrant stock, which I suspect is true, because of the broken english, and I admit, I watched your video for like thirty minutes. You should know and understand the concept of hard work. In that video you stated that your father did menial jobs or hard working jobs to raise you and your siblings. Why didnt that rub off onto you?
What was wrong with getting a good education? Either you went to college, failed, or dont want to admit which school you went to. Or you tried to get in, and was turned down. Education is the only real way of getting ahead in this country, for you and if oneday you have children. Are you gonna teach them to get something for nothing or to actually work for what you want?
The money part of your problems will work out one way or another, with or without your participation at this point. That is not what I am worried about Casey. There is no free lunch. I have a degree in Economics. That is the first thing they teach you in your first economics class, No Free Lunch. That means, nothing is free or comes for free. There are prices for everything, costs, even if you think you got away with something, made a sweet deal, or made a big profit off some sucker.
This country and our culture is built on stealing, so it does not suprise me that you exist, or your story. If you exist there are probably more Caseys out there, at least another. In the end, the banks, insurance companies, mortgage lenders, finance companies, credit card issuers, make their money for their risk. You make your big profit, someone loses. You lose your shirt, someone wins.
Flipping has always existed, just in different forms. The founders of this country stole the land from the Indians, and then flipped it to “settlers” for dollars an acre. It will continue, and thats the sad part of this whole story. You may or may not learn from your mistakes, but there will be more Caseys in the future, as long as the hope of getting something for nothing is perpetuated in our culture.
I hate to be sarcastic at this point, but I will. Casey, maybe you should open a hedge fund investing in real estate in a big way. Since you have experience in the real estate market, I am sure there is some one willing to give you billions.
November 28th, 2006 at 9:22 am
First, yet again, it’s LOSE. Not ‘loose.’ Sample sentence -
You appear to be on the verge of *losing* your mind, if you think it’s a good idea to let people with no downpayment *loose* in those houses.
I do think you’re serious. I also think you’re bordering on a diagnosable delusional disorder here.
You’re… tired of non-performing inventory dragging you down? I enjoy how you phrase that as if the houses were somehow attached to you without your knowledge. Nevermind how you phrase it as if there’s performing inventory someplace.
In the Modesto house info post, you say that credit-challenged buyers, you’ve heard, are not at all picky about the houses or prices they can get. So you think, you honestly, seriously think, that some people, who do not have $15,000 saved, are just so desperate to own a house that they don’t care what the house is like or how much they have to pay? Uhm, why would that be, Casey?
Why would someone with not a lot of money pay a lot more than they would to rent something comparable to get something that’s not as nice and will saddle them with maintenance, taxes, utilities, and possible depriciation? Why would they do that, Casey?
No one in their right mind would do that, Casey.
Same as no one in their right mind would think that borrowing $50,000 to help people who don’t have $15,000 to their names - and who can’t get it, from any means - take over a $3,000-a-month payment?
If someone makes enough to be able to shell out $3,000 a month, and still, you know, eat, why don’t they have $15,000, Casey? Because if they’re comfortable enough to be able to keep up your payments, then I’d think they could save a little, or get an advance, or something.
Also, if you have people just desperate to pay $3,000 a month to live in a crappy house when they could get something nicer for less money, why do you need $5,000 to advertise? Do you have these people or are you imaginine they’re out there, someplace, wishing for a way overpriced, run-down, nearing-foreclosure shack to come up so they can pay too much to live in it?
November 28th, 2006 at 9:25 am
The clear problem here is that you refuse to see the game is already over, and you still believe all the BS from the gurus. You think you are going to make a go of this, you think you can find “sweet deals”, you believe easy money is there for you to find which will fix your problems.
I believe you will not accept reality until you hit bottom completely, but that’s coming soon. The foreclosures will all be done sometime in the next 6 months and the houses gone, and that’s about the time when some authorities will start looking at making an example of you.
You seem to think that the houses will all start to magically appreciate again, and save themselves. Get it. That isn’t going to happen for a long time. Bubbles when popped don’t reform for a long time because people burned learn from their mistakes and move on. Speculators burned at RE won’t try it again until enough time passes that they have forgotten. You don’t seem to accept reality.
Perhaps similar to Gandhi’s fast, you should vow to fast until every dirty penny is repaid.
November 28th, 2006 at 9:30 am
This blog has amazing comedy value.
November 28th, 2006 at 9:32 am
The only way I see of getting the money is to borrow it from a loan shark… It fits your criteria of being “creative.” These types of loans aren’t discharged in bankruptcy, and when you default, the lender will proceed to beat the living crap out of you until you make good on it.
But, hey, if this plan is a sure thing, there’s no risk of that happening, right?
November 28th, 2006 at 9:38 am
“I really AM considering this idea because I found a possibility to borrow 50K unsecured to accomplish this.”
Identity theft? Anyone that would loan you 50k unsecured would have to be more insane than you are and would frankly deserve to lose the 50k.
November 28th, 2006 at 9:39 am
My desire is to try to repay these mortgages… bank is going to loose a BUNCH on a short sale (or a DIL or foreclosure)… the mount of loss is UGLY… so I’m looking at whatever ideas I can as an alternative to prevent any losses.
More lies. You continue to delude yourself with the idea that vast real estate riches are just around the corner, if you could only make that ONE sweet deal.
Give it up. You are delusional, and probably mentally ill.
November 28th, 2006 at 9:40 am
Unless it is a relative, whoever telling you that they are going to lend you 50K is lying to you.
A quick Casey Coolidge quote:
You loose!
(if you could only be so laconic and introspective - I have given up on the spelling.)
November 28th, 2006 at 9:53 am
Casey,
The way I see it you have 3 options to make a fast $50k.
1. I already proposed to make the Casey dolls that people will give you $10 on each sale. I was serious but you never wrote back. You’d only need to sell 5000 dolls and with the traffic on this blog that shouldn’t be too hard. is money in the bank!
2. Contact one of your Uzbekistani friends who can lend you the money as a short term high interest rate deal. Of course now you are placing your physical body in jeopardy if you cannot repay.
3. Someone suggested taking a student loan. That’s not a bad idea- apply for a 2nd semester program, try to extract the $50k for total student fees, then drop the class and get your money back. Main drawback is you don’t have enough time.
Big Cheese
November 28th, 2006 at 9:54 am
What a joke! Why even bring this up on your blog ? To encite a lot of reponses, and string everyone along for a bit longer, right ?
You are going to make your own stupid decision in the end, no matter what advice you receive here. Why even ask us ?
I can see you screwing up a couple of times, but I am beyond having sympathy for you. You continue to make very bad decisions against the advice of many here.
This would be a very stupid idea, even if you could secure the funds. Which I highly highly doubt that you can.
November 28th, 2006 at 9:55 am
Last thing, I predict todays entry will top 250 comments within 3 days. And most will be from ‘haters’ (or critics), whatever.
November 28th, 2006 at 9:56 am
result of 24 hours of praying and fasting
is….
maybe i can borrow 50K and get back in the game?
50K from WHO & on WHAT TERMS???
November 28th, 2006 at 10:01 am
Drive a truck in Iraq. You can make $50K in less than six months.
November 28th, 2006 at 10:01 am
The fact that you’ve found someone to lend you $50k unsecured is amazing. I wouldn’t lend you my water bowl.
However, even with $50k MORE debt (Ack! Blechh! ooh.. another hairball)… this wrap-around, lease-to-own, whatever scheme is S-T-U-P-I-D. Because:
1. If you find someone dumb enough to take your houses at - what? - 200% of their market value, they are NOT likely to be of good character. They probably smell bad, too - and are likely looking for somewhere to set up a meth lab.
2. You don’t have any cash to fund the loans if anything should go wrong with the deadbeats you find to occupy them and take over your loans. And I GUARANTEE you, something will go wrong.
3. People who can’t come up with $15k for a deposit are NOT likely to be able to afford the payments required to get you square for any sustained period of time. You said it yourself: people stick to their patterns. And so do YOU, by the way.
Turn out the lights, Sparky - the party’s OVER.
S_t_C
PS - Thanks for the daily entertainment.
PPS - I’m out of fishy treats!!!
November 28th, 2006 at 10:03 am
Bodog should start taking bets on Casey blowing another $50k. Could you imagine the odds… 50,000 to 1?
Let’s pretend for a moment there are some people who would you loan you $50,000. Let’s pretend these people aren’t exactly your typical bank. You know what happens when you don’t pay them back, right? I can’t wait to see your post in 2 months…’I “lost” 2 fingers, and now I can’t type. I shouldn’t have been so impulsive and gotten into more debt. I asked Mr. Soprano to forgive my debt, but he had other ideas…’.
November 28th, 2006 at 10:10 am
I don’t get it. What is so hard about learning that “lose” rhymes with “use” and “loose” rhymes with “noose”? He obviously reads these comments, but even in the most recent comment a few posts up, Casey writes “loose” again instead of “lose”. H
Wait a second, I have an idea. I will use the language Casey understands.
Casey, if you can write a complete sentence demonstrating that you understand the difference between “lose” and “loose”, I will put $50 into your tip jar.
Ok, let’s see if that works.
November 28th, 2006 at 10:16 am
OK, Let’s to some math on the Burdet house.You paid $310,000 and presumably haven’t put a dent in the principal. It’s now worth (let’s be generous) $250,000. You have ~$15,000 in back payments, etc.
Sooooooo,
You figure that asking someone to assume all of the payments, plus a bit more to cover bringing the arrears current is a good thing. Let’s examine it from their side of the table:
You: Sweet deal, nothing down, no credit check, just pay.
Them: Hmm. I assume $325,000 in debt for an asset worth $250,000. Isn’t that a negative equity of $75,000?
You: Don’t look at it THAT way, you just sign and move in. Nothing down.
Them: $75 bones in the hole to start with, and housing historically tracks inflation long term. At 4% appreciation per year, I’m right side up in this deal in, um, a quick 7-1/2 years. Sweet!
You: See! It really is easy. Sign here (please press hard, you’re making 5 copies).
Them: Well, I’m a little concerned that we haven’t seen the bottom yet. If it goes down another 10%, I won’t see any equity until 2015. Maybe I’d better wait until next summer.
You: No no no no no no. If you do that, I’ll have to lop on another $40,000 in delinquencies to get you in. That will make the your total “investment” $365,000 and the house will be down to $225,000. So if you wait, you won’t see any equity until 2023. You gotta move fast. If you only overpay by $75,000 now, you actually wind up $90,000 better off by July.
Them: Oh! Now I get it. I’m actually making $90,000 right now by paing $75,000 too much today! Right?
You: Absolutely! Air tight deal. In fact, I personally guarantee that next July you will be able to make a $90,000 deposit in your bank account. You have nothing to loose (oops, there I go again)
Them: Cool. Do you have any other pprtunities for me that can generate such huge profits in so little time?
You: Well, I kind of like you so, let me tell you about a couple of other……….
November 28th, 2006 at 10:17 am
I think you’re spun out Casey.
Nobody is going to loan you 50k or even 5k. You have trashed credit, no collateral, no assets, and no material income.
You borrowed 2mil and still ended up a few hundred thousand in the red. What makes you think after all of this that you can do anything worthwhile with 50k?
I’m actually having a bit of sympathy for you because it’s become obvious that you are seriously deluded and staring into the abyss.
Nobody in their right mind would take over these mortgages. The only people who would even consider it are obvious flakes. That guarantees the idea will flop.
Borrowing money is what’s got you into this mess and caused long-term damage. The answer to your problems isn’t more borrowing. You need to learn what work is. It’s inevitable that you will, whether on your own accord or forced into by your circumstances. All you’re doing now is wishful-thinking, desperate thinking, and putting off the inevitable.
You sound like an addict. I’ve seen many in the markets and even in Vegas come up with the same ridiculous rationalizations when they can’t let go of the dream-turned-nightmare. A person with absolutely no experience whatsoever has a better chance at becoming a “successful real estate investor” because you have already shown that you will make a mistake at every turn. You have 2 mil handed to you and not only did you not produce results, you got yourself 1/4 mil in debt and created a huge mess that’ll haunt you for a decade and even longer. You have shown you can’t even manage basic simple personal finanaces let alone a multi-million dollar business. The sooner you admit this to yourself, the better off you’ll be. You need to come up for air dude.
November 28th, 2006 at 10:21 am
Why do you persist in misspelling “lose” and “loose”, and confusing “loser” with “looser”?
This is exactly why most of us now think that you have serious psychological problems. You ignore, completely, the valid, repeatedly stated criticisms of your readers (of your spelling, and most other aspects of your behavior over the past ten months). You just slide right past them; if they conflict with your peculiar conception of reality, you just blow right past them.
The notion that you can borrow, or otherwise finagle, your way out of this mess is ludicrous.
When I first approached your blog, I wanted to believe your story of the young, headstrong 24 year old, easily manipulated, who made some huge mistakes but really, truly, wanted to make things right and get his life in order. I don’t believe that now. You haven’t really learned a thing, have you?
November 28th, 2006 at 10:22 am
Why do you need $50k? Why not borrow $15k and try your crappy scheme with only one house. That way, you’ll only be $2.215 million in debt instead of $2.250 million in debt…
OTOH, when you look at it that way, the difference is negligible. Sort of like those $33 overdraft charges you kept piling up. Who really cares at this point?
Who are you gonna borrow from? What are they taking as collatoral? (Hope its not your knees…)
Personally, I think those credit-challenged buyers are just looking to take you for a ride, live in your house for a few months (up to a year) for free, never pay any rent, never pay the utilities and generally be a pain in the a** . But, since you’re already bankrupt, why not borrow another $15k if you can find someone stupid enough to loan it to you.
I hope this doesn’t come as a surprise to you, but people will often exploit weakness if they see it — and you are, at least financially (and intellectually) about as weak as they come.
As a postscipt, what finally happened to your Dallas house? Did it sell at auction? For how much?
November 28th, 2006 at 10:25 am
2000 vs. 2006
In 2000, the get rich quick guys were day trading their way to fame and fortune (remember the commercial with the tow truck driver and the tropical island?). The on April 10, 2000 the bubble burst. Margin calls were the norm. Dot coms plummeted. The smart said sell! and had what was left of their oney in 3 business days.
The dumb ones stayed in until the brokerages sold them out. Ususally the lost no more than 70% (margin rules). In some of the worst case scenarios (fortunately very rare, but they did hallen), the dot coms they were chasing fell so fast that all of their equity was wiped out and the firm actually sent them a bill — no kidding!
Now, a scant 6 years later, the greedy ones started chasing real estate. 3 major differences: 1) Far less transperancy in the deals (cash back at closing anyone?); 2) High transaction costs 6% versus $9.95; and, 3) Liquidity. The specialist or market maker has a duty to set a price to fill the trade. The real estate market does not.
So, lack of liquidity sucks.
November 28th, 2006 at 10:28 am
Surely, this threat will insprire many to comment
I see 200+ posts in next day or so.
Casey has a gift for bringing out the worse in people
November 28th, 2006 at 10:34 am
If this was just “one of your burning thoughts” what were some of the others ? I don’t expect you to answer because YOU NEVER DO.
November 28th, 2006 at 10:39 am
The word is LOSE you idiotic dolt. Is it possible to learn just that lesson?
November 28th, 2006 at 10:40 am
The more energy you put into what you *don’t* want to happen, the higher the chance that it will happen.
Get it?
Your credit is shot already, so why not just get this all over with and declare bankruptcy? It’s not the worst that can happen!
And stop worrying about the banks losses, who cares? The money they lent you was created out of thin air anyway. Ultimately, they couldn’t care less whether or not the principal is repaid, they just want the interest payments.
November 28th, 2006 at 10:45 am
Why do you always ask for your reader’s advice and thoughts? You never follow it or even appear to seriously consider what others write.
November 28th, 2006 at 10:49 am
Stop spinning!
Your loans are at VERY high rates and you are talking about “SELLING” houses to people with bad credit at 10% or 20% or 30% ABOVE current property values! This is a fiaso that will NEVER work. Have you thought about how much income a person or couple would need to have in order to take over your payments in the range of $2500 per month? Assuming these people will also eat, drive and wear clothes? Would people at that level of income want to live in your houses, let alone pay a HUGE premium in terms of sales price and interest rate?
You aren’t in ANY POSITION to try this.
End your losses and walk away. If you don’t have a criminal issue then you only have to worry about bankruptcy and the IRS, everything else will be sorted. In time you will be able to start over, but this isn’t the way to get there.
November 28th, 2006 at 10:52 am
[…] Borrow another $50,000 and then sell the houses in the next few weeks! […]
November 28th, 2006 at 10:53 am
Casey says:
“They also asked me how in the world would I be able to start making payments again when my credit report shows liabilities of $15,000/month.”
Casey, why don’t you just use stated income to prove to the banks you can pay 15k a month easily? I mean, you did it before and it worked, 8x times!
If you do end up getting that 50k loan, please PLEASE tell us who it is. You now officially have a large list of people here (including myself) wanting to borrow from this source! 100k in my case and I “promise” to pay back every dirty penny as Casey would say.
November 28th, 2006 at 10:54 am
What difference does it make to stop these future foreclosure’s if you’ve already got a couple? I wouldn’t borrow more money under your own name to bring these loans current unless you are willing to continue owning this house and have some sort of plan if and when your “renters” decide to bail.
You should cut your losses on all homes…foreclose on all homes…unless you can really afford to bring them current without creating more debt that you won’t be able to pay back. Stop borrowing money just to stop the inevitable and start looking towards a fresh start.
Just my 2cents…
November 28th, 2006 at 10:56 am
CASEY, TRY THE RATTLESNAKE POISON VISION QUEST…ITS THE ONLY WAY TO GO.
CALL ME WHEN YOUR DONE @ 1-800-IM SCREWED AND ILL HELP YOU OUT.
November 28th, 2006 at 11:02 am
I’ve read this blog since right around when you started it. I cannot see that you have learned one thing from this blog. Still making the same mistakes. I make fewer and fewer comments because, really, what’s the point?
November 28th, 2006 at 11:04 am
TRY VEGAS!
November 28th, 2006 at 11:09 am
So you want to borrow your way out of debt…
You are not disappointing me in your crazy attempst to make things worse…
Just make sure to let us know when your family and friends disown you… It will bring a smile to my face
November 28th, 2006 at 11:14 am
So, uh, how has your “creative” marketing worked for you so far? Oh yeah, no takers yet. But things will be different now, if you only had $50,000 to spend, right?
November 28th, 2006 at 11:15 am
Casey,
You are already in a deep deep hole. Stop digging! Otherwise, you’re just going to go deeper. Don’t worry about repaying the banks. They deserve what they get for giving an idiot like you close to $2 mil in loans. Stop the bleeding now and think about your future. Have you ever though about how long it’s going to take you to repay them back? As for your potential buyers, they are probably as delusional as you are. Stop dragging your miserable situation on and on, end it, cut your loses, and move on. Try not to make the same mistake in the future.
November 28th, 2006 at 11:19 am
Man, the way you talk hurts my head. You should stop drinking that hallucinogenic tea ASAP.
November 28th, 2006 at 11:20 am
You seriously found somebody to lend you $50k unsecured?
Please, tell me more about this lender. I don’t need names or anything. I’d just like to know who would lend to somebody with your credit, and under what terms.
November 28th, 2006 at 11:58 am
LOL…Republican thinking cracks me up. I can’t quite figure out if Casey is Republican or Democrat.
Me, I’m an American first and, Casey, you are embarrassing us all.
November 28th, 2006 at 11:59 am
I admit that I said “what?!” when I first read Casey’s post, but the way the bankruptcy system is structured, I’m not sure that he doesn’t have a good idea.
Let’s put it this way, chances are he’ll have to declare bankruptcy even if he gets the $50,000, but there’s some small chance it might save him. So while I agree it might be good to get the bankruptcy over with now from a stress and getting-on-with-life basis, what is the real cost (other than some stress) to *Casey* if he does it later for $50K more in debt (assuming he can find someone willing to loan him that amount).
November 28th, 2006 at 12:01 pm
Casey, would you please state the foreclosure timeline dates you’re working against? Do you even know them? Go with the foreclosure flow, dude!
November 28th, 2006 at 12:05 pm
what’s another 50k? in the grand scheme of things, not much. if you can get it, *shrug* may as well give it a go, not much else is working for you.
November 28th, 2006 at 12:05 pm
Dude, let them go.
Let the houses go, get out. Having someone else pay your mortgages is not the answer.
Get out, get your life in order, get a JOB(I know you already say you have one, but take the time and search and find a really good job doing what you know, RE is not it).
November 28th, 2006 at 12:12 pm
Casey,
No don’t borrow any more money. Try to make more money instead of borrow more money or in your case stop loosing first. You have made mistake after mistake, each time you borrowed more money and it get you going for a few more months until now. You are at the end of rope. Just take the bitter pill and declare BK, foreclose all the property and never do it again. Work 9-5 for the rest of your life is better than spend any time in jail. You are too pretty to survive in jail.
BT
November 28th, 2006 at 12:18 pm
Tell us more about the “source of funds” so we can fully evaluate the option. It’s not that corporate credit thing is it?
November 28th, 2006 at 12:22 pm
Lease option?
I suppose you could structure a lease option in any way you choose, but as I understand it, the “buyer” is purchasing an option at a specific price.
That may be enticing to a credit-challenged buyer in a rising market, or even a steady market, but it’s not exactly the deal of the century in a market like this.
Or am I missing something here?
November 28th, 2006 at 12:23 pm
Casey, I am “pro-Casey” by the way, but at this point it is
difficult not to lean to everyone else’s advice. The entire
meaning of “Credit,” is receiving of goods or services with the intent to pay the debt in a given time period. Now, you have been unable to pay your debts regardless of the reason…so you have NO CREDITWORTHINESS. It will be next to impossible to find $50K with your credit; unless you are dealing with a mob-connected loan shark who will give you severeal months to pay them back or take drastic circumstances to collect the money.
I used to think of you as an investor; but there is a difference between a true investor and a speculator. At this point, you are several notches below speculation, which is not good for someone thinking that they are an investor. Investors rarely use their own funds, and if they do their purchases are carefully calculated..this precision takes time and research, and ALWAYS carries a risk. Why carry yourself more into debt with a “gamble” and high optimism when you can clearly see that you have no options at this point?
Before you dig yourself a deeper ditch; file Chapter 7, because you can not afford the consolidation of payment involved with Chapter 13. You need a fresh start and at your young age…your discharge of bankruptcy (eventually)
will also come at the time that you have received more wisdom based on experience and lack of impulsive decision making (”investing”)
One of the main character traits of a smart business person is knowing when to call it “quits”…and start from scratch.
November 28th, 2006 at 12:24 pm
If you guys haven’t figured it out by now. Casey doesn’t take any of your good sound advice. He’s gonna do what he’s gonna do. Even simple advice on correcting him on the use of “loose” vs “lose” and he still won’t listen. And by the looks of it, no one thinks this is a good idea for obvious reasons. But, how about trying to be more supportive…Then maybe you have a shot of him listening to you….*Clears Throat and puts on B.S. Face on*
Casey. You are brilliant!!! What a marvelous idea. You have struck gold!!! But you know what a better idea would be so that you can attract more solid buyers…Instead of borrowing 50K, you need to borrow 100K+. You can’t take the chance and screw up by letting these credit challenged buyers take over your homes. There is a reason why renters will always remain renters. So with the first 50K get all your loans current and with the 2nd 50K+ give that as a cash back bonus to your homebuyers(+/- 15K/home). So you get to unload your homes to someone who cares about their credit so that they’ll keep paying the mortgage and you get off having to only owe 50K+ more to the lenders. And what lender wouldn’t think giving you 50K more now so that they could save hundreds of thousands if they decide to go via a short sale. So it’s nothing more than a win/win/win situation for everyone…Lender/Homebuyer/You.
November 28th, 2006 at 12:27 pm
Somebody said something about what if the loan adjusts….
You’re right that’s definitely a concern because my first loans have a fixed rate for 2 or 3 years I think. Then it goes up to whatever the current interest rate is.
So I would have to put something in the lease that says the loan is going to adjust or something along the lines of “I can raise the lease by X number of dollars” the verbiage I would get right out of my loan docs. Or I can give them a “balloon” of sorts. The option to purchase will expire at the adjustment date, so they have to refinance by then.
But the next problem you were already thinking of…
What if they can’t refi? Say their credit is not up yet or the house doesn’t appraise at that time?
I definitely need to think this one through if I want to try to do this.
November 28th, 2006 at 12:28 pm
Casey - in the event that
(1) someone loans you $50K, and
(2) you find buyers
How do you
(3) service your credit card debt?
(4) pay back the $50K?
(5) pay back $2K to your friend?
November 28th, 2006 at 12:36 pm
nah casey don’t think it through. thats not your style. just DO IT! lol.
November 28th, 2006 at 12:37 pm
test
November 28th, 2006 at 12:45 pm
Casey,
(this turned out long)
IF you can borrow $50,000…use that to jump start your NEW RE business, not bail out the old one. The old one is DEAD… dead as in “dirt nap”.
—————–
My income comes mostly from buying and seller-financing houses, so I can share from experience the following:
1) Buyers ONLY care about 2 things:
a. The payments?
b. The down payment?
2) Buyers don’t care what the price is.
Even if you decided to do a “no down” sale, if the payments are not in line with the neighborhood affordability, the only buyers you’ll get are the ones that aren’t going to pay you anyway.
——————-
The due on sale clause is absolutely NOT an issue with these houses. No bank in its right mind would call these loans due when they find that a title were transferred. By the way, it takes the major banks about four months to be informed by their subscription services that the title has changed on any of their houses. To my knowledge, unless the loan rate was 4% fixed for 30 years with a 60% LTV, would a bank even consider forcing the new title holder to refinance the loan.
Banks rarely call loans unless the payments get late, and even then, will ignore high LTV loans on a subject to sale, if they are brought current.
——————
Casey, if you can really tap $50k, then you should borrow it, put the proceeds into an interest bearing account, and pay the difference in interest rates. Then when you find a real deal, you are prepared to move on it.
—————–
Your seller-financing plan would be excellent, if your houses weren’t so FAR under water (not including the back payments). However, the payments you could offer are grossly more than market value, and the houses you offer are not “magnets” for pride of ownership, credit challenged buyers.
If these houses were brand new, I might say you had a chance at unloading them with over-retail terms, but they are used houses, in secondary markets…not a big draw.
If my experience is any indication, you are simply delaying the inevitable by bailing the loans out, and trying to resell on grossly inflated terms.
———————
If you can’t sell on with P.I. payment to match a 100% financed house in your price range, on a 30-year loan at say 8.0%, then the prospects of finding a worthy buyer diminishes exponentially.
———————
My motto when seller-financing is, “It’s all about the payment, stupid!”
I’m basically a “used car dealer” only with houses instead. Notice that used car dealers only talk in terms of the payment he can get for you, not the price. Price is never mentioned, if at all possible in negotiations. That’s the same approach you must take in selling those houses, if this is possible.
Stash the 50 grand!
November 28th, 2006 at 12:48 pm
Casey Serin and Thinking are an oxymoron. Come to think of it I have never seen anyone as ignorant as yourself. You are truly as Thick as a Brick. I feel bad for all the well meaning persons that take the time to comment and want to give you advice. If stupidity would hurt, Casey, you would be screaming all day long.
November 28th, 2006 at 12:54 pm
Why stop at 50k? Why not borrow another 500k?
THEN, you can buy some more properties!!
Do IT !!! Do IT NOW!!!!
I know whom I am voting for in this year’s Darwin awards.
November 28th, 2006 at 12:56 pm
Hey, here is a new idea, one that Carlton Cheats would love …
Borrow the 50K from whomever will lend it to you at whatever they would charge for it in fees and interest. Then you can be on Mr. Cheats imfomercial about how you walked away with “cash in your pocket”.
Stop being a moron, you’re begining to bore me with the “consistent lack of sense” You are in enough trouble as is, but none of these lenders will actually cut off body bits (I think) to collect. Let it all go to bankruptcy court and the judgements and garnishments are going to eat your life for the next 8-10 years. But then inflation will be working in your favor (unless you keep dabbling with RE and never get a real job) … I’d move into one of the houses, bring it current with money from your job if you can, let the rest go and do as the judge says when you go to bankruptcy court. or lose all the houses, and same thing and get a IT job before your name becomes synonymous with failure … and your face becomes plastered on the front pages of news papers and you become un hireable. BTW - the bay area has the largest numbers of small IT firms who hire wihtout credit checks. They also pay a lot more than sac. Shack up with someone during the week, pay your damn bills and share of rent and utilities and stop being a leech.
Cool.
Cow_tipping.
November 28th, 2006 at 12:58 pm
I did a quick analysis. Out of 109 comments at this time, about 5 are positive (1 or 2 of those are likely in jest), the other 3 or 4 seem to be just as deluded as you are.
The remaining 104 comments are advising you to forget about the idea. These are not haters, they are well-meaning, exasperated people, some of whom are still trying to give you advice.
Who are you going to listen to?
November 28th, 2006 at 1:09 pm
Casey, with the current state of the real estate market; which includes but is not limited to property value decreases..you would be creating much more difficult problems to fix if you rent the homes. Since your loans are
ARMs, are really looking for disaster:
1.) If your renters pay the minimum each month, the equity of the homes will erode; negating your purpose for renting the home to secure more equity in the first place.
2.) When the loans adjust, you have to consider the current rate and the margin of adjustment and use the highest possible scenario when disclosing to your renters…that will most likely scare them away; once again..with the market and decreasing values…owing more on a loan than the home is worth will not fix your troubles.
3.) Once you have allowed your balance to creep up to a certain point (past due payments) the lender’s can recast your balances based on the amount owed and that will cause a higher mortgage payment with much less room for payment options.
November 28th, 2006 at 1:09 pm
GET A REAL JOB!!!!!!!
November 28th, 2006 at 1:11 pm
If your idea is so great, maybe Rich Dad (RK) or Rich Dad (local) will help out?
Or your new boss Chris? Maybe all three can go in?
Also, please define “creative marketing”. Does it involve dressing up in a clown suit and standing on a street corner wearing a sandwich board? How does it compare to the marketing you’ve done in the past, was none of that creative?
November 28th, 2006 at 1:16 pm
http://www.msnbc.msn.com/id/15933474/
Sales of existing homes posted a tiny increase in October, the first gain in eight months, but the median price of homes sold fell by a record amount.
…
However, the median, or midpoint, price for a home sold dropped to $221,000 in October, a decline of 3.5 percent from a year ago. That was the biggest year-over-year price decline on record. It marked the third straight month that home prices have fallen compared to the same period a year ago, the longest stretch of such declines on record.
…
“The housing market is far from the bottom,” Naroff said in a research note. “Sellers will have to overcome their state of denial and start dropping prices even more to clear this market. And once that happens, we will then have to convince buyers that prices have stopped falling. We are a long way from that point.”
November 28th, 2006 at 1:22 pm
That’s great Casey.
So now, you are willing to place others in financial jeopardy just to save your own skin. (Hint: there is a reason these people are financial challenged)
Once again, very Christian of you.
November 28th, 2006 at 1:27 pm
Fred Knott: OK - I’m in. If Casey writes and posts a sentence or two demonstrating his understanding and correct usage of ‘lose’ and ‘loose’, I’ll kick-in $10.
Casey: Here’s an idea. Answer this question - “What do you lose when you’re too loose with other people’s money?”
November 28th, 2006 at 1:32 pm
It seems you are avoiding BK because of the federal tax on the forgiven debt. If you could go BK, do you have a guess on how much you would owe in federal tax, legal fees and other debt?
November 28th, 2006 at 1:32 pm
You are simply trying to solve an unresolvable problem. Your only solution is to go bankrupt.
Unless you see that, you are still day-dreaming.
Sad.
November 28th, 2006 at 1:36 pm
I’m done with this blog. Its no longer interesting or even amusing. Its just plain sad.
November 28th, 2006 at 1:37 pm
Hey Casey -
You are obviously a master player when it comes to hype, bubbles, blogging and buzzwords. Isn’t it obvious where to get that 50K, and possible much more?
The VCs!
Whether or not your site is fake is not even as issue. It doesn’t matter. You have:
1) readers - probably a growing number
2) advertisers - hopefully a growing number (and, hopefully you are charging the re gurus and ‘RE agents’ that use the comment section for self-promotion, including links to their own sites)
3) the potential to go mainstream with a publishing deal. You can decide later if you want to be &#