December 7th, 2006 11:15 pm
Utah House Unwrapped Back to Foreclosure
Bad news. I was talking to the lender for the New Mexico property asking about a short sale and some of my other options. My loans on the Utah property are with the same lender.
I found out that Utah payments are two months behind! The buyers who wrapped it were supposed to be making payments to a 3rd party servicing bank which in turn would send out the payments to my lender. Looks like they only made one payment before defaulting. The payments are two months behind with $6142 in past due amount.
After selling that house on an all inclusive trust deed I sort of put it out of my mind. It’s crossed out on my list. I guess when you let somebody wrap your payments it may come back to you. You would think if they put 10% down they will want to keep making payments and protect their investment… right?
Now if I want to save the property I will have to foreclose on the buyers to get the deed back! My underlining lender will probably try to foreclose on the house first though. I wonder if they’re aware that I no longer have the deed to the property. (Due-on-sale clause.)
When I offered the buyers seller financing I did collect their social security numbers, work location and contact info. Maybe I can use that for some kind of leverage. But why would they stop making payments? I thought they were highly qualified?
And why did the servicing company not let me know the payments aren’t being made? Somebody dropped the ball here. I need to investigate this.
Wow… I’m actually in the shoes of the lender here. Role reversal!
337 Comments
December 7th, 2006 at 11:53 pm
casy just declare bankruptcy and start over you cannot get out of this.but then again the fbi might be waiting for you to do this as it makes you culpable.you need a lawyer now.
December 7th, 2006 at 11:57 pm
Well, duh!
December 8th, 2006 at 12:05 am
How many times can you jump the shark?
I imagine the original lender is just going to treat the current occupants as tenants and run them out with the foreclosure. I imagine the current occupants will then come after you, and they may vastly accelerate whatever criminal processes are headed your way.
You are so hosed. Buy an airline ticket while you still have a passport.
December 8th, 2006 at 12:18 am
2 clicks on the adsense for you mr. casey
It’s time for you to investigate and find out what happened!
You are the lender, you have the power, you are the authority.
Make it happen sir.
Please think about filing for bankruptcy as I have mentioned before.
Food for thought.
December 8th, 2006 at 12:41 am
let me be the first to say.
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHA
There is jack squat you can do about this because you dont have any money for travel costs or attorneys nor do you have the know how to represent yourself and do this.
Please tell me you had this set up with a trust deed otherwise your looking at a judicial foreclosure (can take up to a year).
More than likely they know about your situation and have read your blog and they know there is jack squat you can do and they are going to just live there until they get their money back out for what they put down compared to paying rent somewhere else.
That is exactly what I would do because they overpaid for the house anyway……it’s losing value every day while the bubble bursts.
And if they are savvy buyers they know there isnt jack you could do to their credit (doubt you reported the loan on their credit anyway) since you did a kitchen table closing and dont want any extra work since your lazy.
And if you did decide to do something with your credit they could sue the crap out of you and you would buckle like a styrofoam cup filled with scalding hot jamba juice.
December 8th, 2006 at 1:15 am
I will tell everyone I know to buy a shirt but I don’t think that will save you
http://www.myebid.com/cgi-bin/.....ingID=2920
December 8th, 2006 at 1:47 am
“I miss Sputnick, here kitty kitty”
SPELL MY NAME RIGHT, or I’ll poop in your shoes! AAAACCkk!
Thppttt!!
December 8th, 2006 at 1:47 am
Geez, what a mess! Guess you can ask them to send you the deed-in-lieu. Nah, they’ll just squat there until the bank forecloses and then they’ll cut a deal with the bank to testify about the fraudulant conveyance. At least you got their $40 downpayment!
December 8th, 2006 at 2:07 am
“But why would they stop making payments? I thought they were highly qualified?”
Perhaps they read your blog and thought “well, it’s not as though he’s in any position to come after us”.
Just a thought.
December 8th, 2006 at 2:19 am
The Utah homeowners were pointed to this blog and were made aware that they were going to lose their home when all of your other properties got foreclosed on and the banks came after your only remaing asset. The home which you wrapped around to them. They realized they had been scammed and were going to lose every $2200 plus payment they made. They realized that they were going to lose the down payment they had put down.
The Utah AG has been on to this one for awhile now.
Remember when the early “haters” kept asking you if you had run this one by the lender and you repeatedly said you were going to call and ask them?
That was when things began to slide in a bad way for you. Somebody has pulled the trigger on you, Sunshine.
J. Whittimer Lightning
December 8th, 2006 at 2:36 am
You should have expected this sort of thing: wrap-arounds are flaky ways of buying houses. The “clean” way is for the seller to sell the house to the buyer, who buys it. Simple. Anytime the seller does a “rent to own” deal, or a wrap-around, this is a warning sign that the buyer is not really a competent buyer.
All of the houses I have bought and sold have been done with straightforward financing, albeit usuing the usual banks and mortgage companies. “Wrap-arounds” are ticking time bombs.
(I also wonder why they would put 10% down and then default so quickly, more quickly that you did on your own trouble properties. Did they _actually_ put 10% down? Has this been verified? Or did they use some kind of “funny business” scheme/scam where it looked like they put 10% down, but they were actually getting their down payment “kicked back”? I’m just idly speculating here. This world of funny loans, kickbacks, unreported side deals, is a shady world.)
I assume your comment that you checked the Social Security numbers, that you thought they were “qualified buyers,” was a subtle joke, a bit of facetiousness, right? If not, this is further reason for you to run away from the real estate business and never get near it again.
Whether it makes sense for you to try to foreclose on the defaulting wrap-arounders, with all the expenses this will entail, with the confusion about who has the deed (well, I’m sure confused who has it right now!). It may be best for you to just wait to see what happens. Spending ten grand to get the house “back,” only to see it vanish immediately from your grasp may be a poor use of ten grand, assuming you can even find someone to lend it to you.
Anyway, sorry to hear this latest bit of bad news. But it’s all part of the larger picture: you are busted flat, wiped out. Time for you to recognize this and to stop fantasizing about “bird-dogging sweet deals” and listening to more guru tapes.
–Tim from Monterey
December 8th, 2006 at 3:22 am
About time you know what it’s like.
Maybe they are property flippers as well. There is no easy money - if there was, everyone would do it.
“You do it to yourself. You do. Just you, and no one else.”
December 8th, 2006 at 3:27 am
You’re getting into the s*** deeper and deeper.
I cannot understand why you don’t do obvious thing to do here…. look at all the posts from the past days, I think the message is very clear. But all the same, you don’t seem to get it.
December 8th, 2006 at 3:48 am
Casey: Sorry to hear about this unfortunate development. You might want to change the status of that house on the right hand bar of your site from “wrapped” to “unwrapped.” Bummer.
December 8th, 2006 at 4:11 am
YAWWWWNNN….aaaackk!! Feels good to be an EARLY RISER! I usually eat some fishy treats first, then lick my butt for a while, before I’m ready to face the day.
Look out squeeky mice! Big furry beastie cat comin’ to get ya!
“I found out that Utah payments are two months behind! The buyers who wrapped it were supposed to be making payments to a 3rd party servicing bank which in turn would send out the payments to my lender. Looks like they only made one payment before defaulting.”
Didn’t several people - and at least one cat - advise you that this was a dumb idea? aaaackkk!! Thhpptt! Hairball!!
You never listen! You never learn! Hell, at least I learned not to climb up that tree again after I got trapped by those ugly doggies! And I’m just a cat!!
Where you at Jobu?? Drinkin’ that refill? Come back!
Yneone: I pooped in your shoes again while you were asleep.
aaack!
S_t_C
December 8th, 2006 at 4:24 am
This is too complicated for me Casey. Just turn the keys in to the lender. And I guess you’ll have to find where that deed is now.
-Big Cheese
December 8th, 2006 at 4:32 am
“…I guess when you let somebody wrap your payments it may come back to you…”
Dah.
There was a reason they did not obtain conventional financing.
“..Wow… I’m actually in the shoes of the lender here. Role reversal!..”
Nope. Same shoes as you were in.
They are just smelling worse all the time.
December 8th, 2006 at 5:05 am
Casey, how did you screen your wrap buyers? I have been in the situation before where I was highly motivated to find tenants and in these situations, 9 times out of 10, the tenants turn out to be duds.
Joe
http://www.StingyFinance.com
December 8th, 2006 at 5:08 am
I am laughing too hard to comment further right now !
December 8th, 2006 at 5:14 am
wow, here is a twist that nobody saw coming…except Casey’s producer. This has to be fake
Stupid too, good luck to you, I am praying for things to work out for you.
Now where is that damn cat?
Here kitty kitty…
December 8th, 2006 at 5:32 am
dude. you need to get to utah and BEAT the $ out of those Mormons
December 8th, 2006 at 5:33 am
Good Morning Sunshine!
I am already at my desk working like a sucker…
December 8th, 2006 at 5:33 am
Casey, one of your statements from this blog that you made a couple months ago recently caught my eye, and I’d like to comment on it:
“All those haters who think I am too lazy to work - why don’t you try doing some of this stuff yourself!
I bet I’m working hard than you!”
Newton’s second law of motion states that work=mass X acceleration, or F=ma. If acceleration=0, then F(or work)=0.
What I’m trying to say here is, your current effort - waking up early, seeking more advice from “gurus”, scorning those who work a 9-5 job as idiots who are “just over broke” - is comparable to you pushing against a million-pound rock rooted in the ground and claiming that it is “hard work” to do so - yes, you’re straining, sweating, burning calories like nobody’s business, but the rock is (and will remain) completely stationary. Your actual “work” is precisely zero.
Time for a change in tactics, perhaps? Or am I just another one of those neg-head haters who you can safely ignore?
December 8th, 2006 at 5:34 am
Are you kidding me. Someone didn’t make their mortgage payment?
December 8th, 2006 at 5:37 am
Unless rates have spiked in the past (so others want your locked in rate) a wrap is mostly a vehicle used by those who can’t get a loan from a bank. Why wouldn’t you expect that someone who couldn’t get a loan from a traditional source in the most credit easy mortgage market in decades might have some pretty major caveats on their likelihood of full and total repayment?
December 8th, 2006 at 5:45 am
“But why would they stop making payments? I thought they were highly qualified?”
Why did you stop making payments?
Maybe they also bought five houses? Maybe they sublet this one and are collecting rent and keeping all of it.
December 8th, 2006 at 6:02 am
Up and at ‘em tiger! Try some frosted flakes this morning. They’re grrrreat!
December 8th, 2006 at 6:09 am
Good morning early riser!
What good are the social security numbers if they cannot make the payments? Odds are they have no job, no assets, and cannot make the payments either.
I have eleven self help audio CD roms with topics on business, real estate and personal finance all on ebay right now with the seller name “projectswest”. Three are by your hero Kiyosaki. There is also Robert Allen, Donal Trump, etc. They are at cheap prices right now. I will offer free shipping to anyone in Sacramento area.
December 8th, 2006 at 6:11 am
Casey,
When are you going to get it that a house is not an investment?
A HOUSE IS A DEPRECIATING CONSUMER GOOD.
An investment is something that creates wealth regularly, like an oil well, a copper mine, a car factory, an iron smelter, etc.
If you want to become a businessman and become wealthy, you must understand how wealth is CREATED, rather than passed from one greater fool to the next.
December 8th, 2006 at 6:19 am
PATHETIC! so you in essence have not accomplished squat the past 3 months. oh yeah…..you blew what little cash you ahd left on starbucks, jamba juice and macaroni grill(quality eh???).
Somebody dropped the ball??? jeez talk about the pot calling the kettle black. YOU NEVER EVEN GOT CONTROL OF THE BALL. all you did was attempt a catch and then chuck it out of bounds. I bet you were the kid that when you played smear the q**** you always dropped the ball b/c your a p*SSY.
December 8th, 2006 at 6:23 am
“But why would they stop making payments? I thought they were highly qualified?”
Your lenders thought you were highly qualified, Casey. That’s because you lied on your loan documents. Just like these people lied to you. How does it feel?
December 8th, 2006 at 6:24 am
Casey, what’s with all the negativity? You’re starting to sound like a hater.
I’m sure your buyers are going to pay back every dirty cent.
They’re probably putting together a plan to actualize the visualization of their payments.
Casey ~ “Now if I want to save the property I will have to foreclose on the buyers to get the deed back! My underlining lender will probably try to foreclose on the house first though. I wonder if they’re aware that I no longer have the deed to the property. (Due-on-sale clause.)”
What happened to your “no fishy business” promise?
Karma is a b**** !
December 8th, 2006 at 6:30 am
Still sleeping, huh?
Anyway, how can you use their social security and phone numbers as leverage? I’m not understanding that one.
Now that you’re in the lender role, tell us what exactly do you guys do with that information, besides running a credit check?
Do you think those people read this blog, saw you on USA Today or your other media appearances, and decided that you might be getting a better deal then they are out of it?
Stay away from the Jamba Juice today.
December 8th, 2006 at 6:34 am
Mornin’ Sleeping Beauty!!!! WOW! THE HITS JUST KEEP COMING…..ouch. Well buck up lil’ camper….look on the bright side….you will only have four more days like that….when the other four properties go into foreclosure.
WIth all this negativity, I’d have a hard time getting out of bed too. Just snooze for a few more hours…..you DESERVE it. And treat yourself to a Jamba Juice today too.
December 8th, 2006 at 6:52 am
This blog is the only one like it as far as I know. Fascinating.
Your ‘buyers’ on that house obviously FINANCED thier 10% down so they really did a 100% deal. Even if you verified it was cash and not a loan IT WAS PROBABLY A HELOC LOAN from a previous house also in default.
Get them to start a simliar blog! Sub out your domain name and you can host 1000’s of people. for example:
Sara.IamFacingForeclosure.com
You can charge hosting setup/web development fees. This site is a magnet for you failed flippers - make some money off them. I bet there are 800 lurkers facing foreclosure reading this - PIPE UP PEOPLE AND POST!
The house of cards flipping economy is crashing like dot com’s selling banner ads to each other.
December 8th, 2006 at 6:58 am
They had a large amount of money for closing, they didn’t want to get money from a bank, they made the one payment they made though a third party…
You know this was probably used as a meth house, right?
December 8th, 2006 at 6:59 am
Why don’t you help them start a blog?
Iamscrewingtheguythatisfacingforeclosure.com
Looks like the con man got conned.. Oh, boo hoo. I would send STC down there to poop in all of their shoes.
Seriously, we told you so, like a thousand times. I agree Mr. Lightning, you been punked. Time to fill up da V DUB and head towards TJ.
December 8th, 2006 at 7:00 am
Stop wasting money and check the book out from the library you stupid little monkey!!
December 8th, 2006 at 7:01 am
Casey’s Christmas List! Too rich…. wow.
Which maxed out credit card would you like her to put that book on? What are you planning to “buy” her? I think we’ve gone from the surreal to the sublime (but I still can’t look away)
December 8th, 2006 at 7:04 am
The buyer actually DID put down 10% of cold hard cash. What that was is they caught up my loan and paid my the 7% agent commission. After all the expenses I only got a couple of hundred bucks from it. Read the Utah property wrapped post for how it was structured.
And it was not a kitchen table closing, we used a title company and everything went just like a normal closing except for that I did not pay off my loan. But the title/deed was transferred to the new buyer. They are paying my payment for me through a 3rd party servicing company. That’s what seller financing on an all inclusive trust deed is all about.
All inclusive because my trust deed securing the seller carryback note is wrapping (or “including”) the underlining financing that I already had in place.
If you’re a real estate investor you may have heard the term “subject to”. Or “buying subject to existing financing” to say it properly.
Well that’s what happened, they bought the property from me subject-to. Except I went one step further and actually secured my note with a trust deed.
The trust deed allows me to foreclose on them if they stop making payments. If i was to simply sell it to them “subject-to” I would have no recourse if they default. So doing it this way makes it more secure.
So these guys actually brought 40K to the closing table (at the title company). They only made one payment. If myself or my lender foreclose on them, they will loose the 40K.
It’s one think to have no skin in the game (like me) with 100% financing. You’re not loosing much. But a different thing to be throwing 40K money around like that.
But then again, maybe they borrowed the 40K on some credit line or borrowed against one of their houses which they DID finance 100%.
Who knows.
December 8th, 2006 at 7:07 am
Casey,
I must admit I am a little dissapointed with the progress you have made regarding lawyers and rims. Nevertheless, I have decided to come to your aide:
SHOPPING LIST
16 x High Intensity Discharge reflective hoods
16 x 400w Metal Halide HID lamps
16 x Remote assembled ballasts
32 x special” seeds from British Colimbia
32 x pots and soil
Talk about cash flow! With a green thumb, were talking
50k per house, per quarter! Now I know this may be a step down criminally, but you need to like, “make it happen”. With a little hard work, you’ll be drivin to your lawyers office on 26 inches!
keep ballin
December 8th, 2006 at 7:11 am
You’ve got to be the biggest idiot going these days. What color’s the sky in YOUR world…
Have you met P.T. Barnum? He’d love you.
December 8th, 2006 at 7:19 am
(I’m on fire with the comments today)
Back to productivity… i have 150 unopened emails in my inbox and I have stuff I gotta do for Chris today AND I wanted to do some mass marketing of my sacramento property. Approving comments and writing responses took me an hour!
I have a dilema. I don’t think I can do all these things effectively all at once.
1) work a full time job
2) market my under-water houses
3) look for sweet deals to get me out of this mess
4) run an effective blog - writing a good post takes 1-3 hours
5) stay on top of large volume of email that comes mostly from the blog and my occasional updates to my mailing list
I can usually get to doing 2 or out of the 5 on any given day.
This blog has been a love/hate relationship. It’s taking up more time then I realize. Sometimes I wish I can just blog all day because I enjoy it and if I can spend more time responding to your questions/comments the reading experience will be even better. But I have responsibility to take care of.
After 3 months I’m finally realizing that maybe fighting the fire and writing about fighting the fire is very hard to do at the same time. Or to borrow from a prior analogy: Watching a huge tidal wave coming at me and instead of running I am taking pictures of it. The view is good for a few minutes untill I find myself at the bottom of the ocean.
Even that guy “stupid too” is doing better than I am in getting stuff done. (Congradulations by the way. Sorry I didn’t get a chance to respond to you yet. Please email me so we can talk some more.)
On the other hand, if I wasn’t blogging I would not have had all the different opportunities presented to me (and still being presented). I am meeting lots of good people and making good connections into the future.
Anyway… I’m getting off topic here…. I need to still go on my morning run, shower, breakfast and get to work on being a mean lender and calling up my flaky buyers (just like my lenders do to me).
Also maybe I will print up some flyers really quick and go down to Sacramento houses and pass them around. Also I will try to track down a store where I can get some blank coro-plast signs so I can make some hand-made road-side signs. That and craigslist should give me some quick results.
December 8th, 2006 at 7:22 am
Casey, have I told you that I think you’re great? Please go ahead and post my message now with out reading further as the rest of this will also be very complimentary of your efforts……….
Do you realize that if you had slept in until noon for the last 15 years and done nothing all day except eat boogers, you’d be further ahead than you are now?
You obviously don’t want any advice from anyone. So please, just keep doing what you’re doing and lie, cheat, borrow, and steal as much as you can. I do think that you’ll make a good looking woman in lock down. See you real soon.
Inmate #32439
December 8th, 2006 at 7:25 am
So Casey actually managed to squeeze some extra money out of a house AFTER his cash-back-at-closing. It mostly went to the real estate agents, but where did it come from? Someone here, either a bank or the so-called buyers, paid for that real-estate commission. I have a feeling it’s not the “buyers.” Does that downpayment mean that Casey’s mortgage holder has to acknowledge that 40k “equity” when it forecloses? I don’t know. If they do, sounds like the bank has a claim for another 40k against Casey. If not, sounds like the “buyers” or whoever gave them the 40k might have a claim against Casey for that 40k.
Either way, here goes an extra mail fraud count on the indictment. Maybe the prosecution is waiting for all this to settle, because Casey is obviously not done. Maybe he’ll figure out how to get cash out of the Texas house that already foreclosed. Creativity at work. No wonder he thinks the solution to his problem is to read more books rather than do actual work.
December 8th, 2006 at 7:26 am
Wow, huge setback… Let us know at the end of today what the status is on this development.
P.S. Getting Thing Done is a good book. I would recommend it to anyone looking to become more productive. When life become extremely demanding, as in your case, you can either drop the ball or become MORE productive. Unfortunately for you, David Allen has yet to write “Getting Miracles Done”. =P
December 8th, 2006 at 7:34 am
seriously casey. go to utah and BEAT the money out of these mormonians. take care of business UKRANIAN STYLE. otherwise, these punks will be coming out of the woodwork to take advantage of you
December 8th, 2006 at 7:34 am
“I have a dilema. I don’t think I can do all these things effectively all at once.
1) work a full time job
2) market my under-water houses
3) look for sweet deals to get me out of this mess
4) run an effective blog - writing a good post takes 1-3 hours
5) stay on top of large volume of email that comes mostly from the blog and my occasional updates to my mailing list”
Well, (3) is an easy one to drop, as you clearly wouldn’t recognise a sweet deal if it bit you in the a** , so best not waste time looking. And as many, many people have pointed out (again, I refer you to Tim’s lengthy comment from a few days ago - http://iamfacingforeclosure.co.....ment-10916 - as it had detailed figures), you’re in far too deep for any “sweet deals” to bail you out.
Put it like this: to make a profit of $2 million you’re going to have to be the greatest wheeler-dealer in history. Erm…
December 8th, 2006 at 7:35 am
“Believe it or not, there are people out there that have compassion.”
aaackk!! OK Nigel, I am supposed to have compassion for someone who tried to get rich quick by committing mortgage fraud??
Who else should I have compassion for?
Drug dealers?
Iraq insurgents?
Enron fraudsters?
People who don’t like cats??!?
Thhpptt! I poop on your shoes, fool!
S_t_C
December 8th, 2006 at 7:40 am
You stupid idiot, buyer saw your story on tv and newspaper and website. They feel cheated by you and they’re working with authorities to bring you down.
come to papa, fresh meat, you’ll be inmate# 4824
December 8th, 2006 at 7:45 am
God the Jamba Juice jokes never get old.
As for their social security numbers, you can steal their identity as leverage and recoup your losses.
December 8th, 2006 at 7:47 am
My solution to your priorities in [brackets] below. I know you’re just trolling, but I can’t resist.
I have a dilema. I don’t think I can do all these things effectively all at once. [You’re correct, so PRIORITIZE]
1) work a full time job [CONTINUE & GET A 2nd]
2) market my under-water houses [STOP - buyers don’t exist]
3) look for sweet deals to get me out of this mess [STOP - sweet deals got you INTO this mess. Stop digging the hole deeper]
4) run an effective blog - writing a good post takes 1-3 hours [REDUCE - timebox to 30 minutes per day]
5) stay on top of large volume of email that comes mostly from the blog and my occasional updates to my mailing list [SEVERELY CURTAIL - I can’t believe you’re getting anything new of value. You’ve ignored previous good advise after reading and approving. Ignore the same advise in the future by not reading. Seriously]
December 8th, 2006 at 7:47 am
Hello,
Casey! Christmas should be canceled in the Serin household this year. You dont have the money!
I dont wish you harm, I am a man of faith myself. God is not going to reward you if you do not meet him halfway. Have you really repented? It sounds to me, that you have not. Admiting your guilt is one thing and half of repentence. You then have to stop sinning and not to do the sin again.
“Again I say to you, it is easier for a camel to pass through the eye of a needle than for one who is rich to enter the kingdom of God.” Matthew 19:24
I hope that you get rich quick scheme is over Casey. Nothing in life that is worth anything is gotten easy.
December 8th, 2006 at 7:50 am
Well, on the bright side, hopefully you can see that borrowing another $50,000 and trying to sell the houses to credit challenged buyers is a very bad idea.
December 8th, 2006 at 7:57 am
Man, forget the flyers and all the funny business. Just declare bankruptcy and get it over with. Throw in the towel.
December 8th, 2006 at 8:01 am
Coro-plast Signs? Flyers?
C’mon Casey, are you selling houses or Herbalife?
http://www.cockeyed.com/workfr.....ome_s.html
“Gee, honey we don’t need another house, but this guy has an AWESOME flyer.”
“Yeah! I saw the sign at the stoplight by KMart!”
“Let’s give him $500K.”
“Maybe we could just pay his mortgage.”
“Like renting, but more stupid!!!”
“It’s FUN to be upside-down!!!”
“Sweet rims!”
December 8th, 2006 at 8:01 am
Everytime I read your blog I want to bang my head against a wall. Writing in your blog should be your LAST priority of the day. You should be doing everything else first and then setting aside time at the end of the day to write if that is what you want to do.
December 8th, 2006 at 8:05 am
Wow, who saw this coming? [raises hand]
What would my morning be without my daily Sputnik? That damn cat owes me a few keyboards; coffee, beer sprayed all over the place. Thhhhpft. Hey, I think www.dailysputnik.org is available.
Anyway, let’s play good news/bad news. Good news, your conveyance wasn’t probably legal. Bad news, lawyers cost money. Good news, the agent isn’t owed the comission. Bad news, good luck getting it back. Good news, Utah isn’t too far to drive. Bad news; uhhh Jetta. Good news; the blog has an interesting topic. Bad new, not all attention is good attention. Good news, with so many actors the pentultimate courtroom scene is liable to resemble “What’s Up Doc?” Bad news, you’ll be playing the Striesand character and the judge won’t be your daddy.
Well enough, off to “work.” Got my tea (40 bags, 99 cents Trader Joes 2 for1), got my cup (free, some healthcare client promo), got my thumbdrive ($9.99 1Gb Frys), got my new office (TuffSheds $40/sf including granite countertops), got my laughs for the day and a new story to follow. I smell a roadtrip!
December 8th, 2006 at 8:06 am
sputnik makes this blog worth reading. wish i liked cats.
December 8th, 2006 at 8:11 am
STOP calling yourself an Early Riser; you are just pissing off the rest of us. If I pay Sputnik the Cat to smack you in the head every time you do it, will you learn? Your cavalier attitude is part of the problem.
I have no sympathy for someone who blithely admits he can not accomplish his own task list and yet lies in bed until 6 AM before he arises to have a “morning run” before he works on a couple of “sweet deals”.
December 8th, 2006 at 8:11 am
Casey said: “Also maybe I will print up some flyers really quick and go down to Sacramento houses and pass them around. Also I will try to track down a store where I can get some blank coro-plast signs so I can make some hand-made road-side signs. That and craigslist should give me some quick results. ”
Casey - I have to comment on the above. If you’re just trolling, or trying to fool us, then fine. But, PLEASE, don’t fool yourself that handing out flyers and posting roadside signs for overpriced, low quality houses in December is a good use of your time and money, or will produce “quick results”.
I thought you have “stuff” to do for Chris today??
December 8th, 2006 at 8:22 am
You can usually get 2 out of the 5 things done a day? What do you do the rest of the day. Us working folks get those 5 things done before lunch. 1-3 hours to make a good post? I could write the same post as you in 20 minutes.
“looking for sweet deals” - how are you going to borrow more money? No one in their right mind would lend you money
“making great connections for the future” Unless you’re talking to other inmates or the warden, you aren’t making any future contacts.
December 8th, 2006 at 8:28 am
UncleC –
“At least you got their $40 downpayment!” — Unfortunately or hero stopped to look at a sweet deal on the way to the bank, thus incurring another $33 overdraft fee so his net on the down payment was $7.
Sweet deal!
Spaceman Spiff
December 8th, 2006 at 8:31 am
Maybe the buyers were aliens from another planet and they didn’t know that they had to make more payments (stay with me on this). They probably looked around and saw that no one else was paying their mortgages (including you) and thought that they also didn’t have to pay.
I wouldn’t be to hard on them if I were you, Case, after all everyone else is doing it so that makes it right, right?
December 8th, 2006 at 8:37 am
But then again, maybe they borrowed the 40K on some credit line or borrowed against one of their houses which they DID finance 100%. Who knows.
YOU don’t know? You didn’t run a credit check on them when they first applied and again just before you “handed them your mortgage” at closing? It might have shown up there, you know. You did run a credit check on your buyers. Right? Right?
And what’s this about “against one of their houses”? They have more than one house? Do they? What, are you insane? Wrapping your own mortgage to some idiots who want to buy a bunch of houses and then end up losing a fortune as they try to flip them? Boy was that dumb. (Sorry, but true.)
By the way, when you go get your flyer material for the Sacramento house, make sure to buy a toilet brush and other cleaning supplies as well.
You certainly are a discouraging little wastrel. Sorry again, and don’t take it as hate but more as head-shaking disgust and amazement; it’s almost unbelievable how you blunder into these situations. (I’d never believe it except for the actual county records that back up your story.)
December 8th, 2006 at 8:37 am
hey Casey, you say you are putting in hours and hours in approving posts here. why not lift the moderation so you dont have to approve each and every post? you can always delete posts that are ‘bad’ afterwards. saving time hmm?
December 8th, 2006 at 8:40 am
im flabbergasted, i kind of see your point in your explanation casey
maybe this is some sort of kharmic justice
you purchased houses “creatively” then sold one ‘creatively’
and ended up getting screwed over,which is what you did originally…so your in the same boat as your orig lender?
is this some sort of guru/seminar technique you used?
maybe ill never get the RE game and willalways be a wage slave.
December 8th, 2006 at 8:41 am
This is too funny. These houses sit out there, but no one has any money to pay for them. They sit as carcasses, the money sucked out of them, no one to mow their lawns. Maybe you can pay the neighbors to do that.
December 8th, 2006 at 8:42 am
Casey, you are the greatest! The greatest fool that is! You are not an investor, not a flipper. The flippers are the ones that sold you those houses. Those seminars and books that you read aren’t designed to make the person who attends or reads rich. They are designed to give a sheep courage and false hope so he can fearlessly put his finances in danger to make real investors richer.
You are that last bidder in an auction on an overpriced item who bids some astronomical amount on the item that no one else dares to challenge. You are the greatest fool! Now you are stuck with something no one will want to buy from you!
You like to read and write obviously. Why don’t you write a book instead! look at all the traffic your web site is getting! People are very interested in your life. Write a book! You can write about how you made so many bad mistakes and you will make some real money! Something you can actually be proud of! Even people that hate you will buy your book, just so they can enjoy feeling your pain. There is opportunity here, but forget about real estate, it’s not for you. Don’t waste another day, start writing, trust me, this is where the money is! It will take a good amount of time, but instead of wasting it writing this blog, you could be doing something that may actually save your a** a year from now.
December 8th, 2006 at 8:49 am
OMFG ~ “Why don’t you help them start a blog?
Iamscrewingtheguythatisfacingforeclosure.com”
BWHA! HA! HA!
Or how about iamfacingforeclosurefromtheiamfacingforclosureguy.com
Casey maybe you could turn into a pyramid,errrr I mean, MLM (multi level marketing) scheme.
Casey can’t use see the buyers are simply “Failing Forward”. They are obviously not “average” people with jobs that pay their bills.
December 8th, 2006 at 8:51 am
It was so obvious I didn’t even bother to explain previously. The Utah “buyers” were in with the agent. The agent got a few percent and the “buyers” got the rest as cash back at closing. Sweeeet. Best part is they knew the wrap wasn’t binding. They got their money, got to live there for a few months and left Casey holding a bigger bag. Hey Casey, wanna buy some sweeeet tranches from Ownit?
December 8th, 2006 at 8:52 am
Casey, you are so, SO screwed!!! Although I’m betting on 300+ comments for this gem …
New Zealand’s looking better all the time … !
December 8th, 2006 at 8:58 am
“On the other hand, if I wasn’t blogging I would not have had all the different opportunities presented to me (and still being presented). I am meeting lots of good people and making good connections into the future.”
The only reason this stupid blog is here is for adsense revenue. This is like a soap opera and you are the soap peddler. By the way your podcast was stupid. I listened to it and read the chat. i was laughing my a** off at how people were goofing on you. Go back to Uzbekistan.
December 8th, 2006 at 9:06 am
Casey Casey Casey…..
Not all out-of-the-box thinking is good. Normal In-the-box thinking would have it that cutting off your arm in a bad thing: it’s out of the box thinking. In fact MOST out-of-the-box thinking is bad.
Time to get back in the box. Set your self and everyone around you a deadline. If you have not sold ALL your homes and celared all your debt by that time, declare BK.
The only leverage you have is the threat of going BK. You got no money, got no cred, got no skills, not no buyers. All you got is debt.
Game over, man.
December 8th, 2006 at 9:09 am
We do not believe in wrapping, owner financing, etc. for this exact reason. You need to sell the property the proper way with conventional financing. Do not be the lender because the buyers may not be able to make the payments, and you will have no recourse.
Put yard signs up, craigslist ad, and put an ad in the local Greensheets (or the equivalent in your area). Lower the price sufficiently so you can sell it quickly. That may hurt, but that is what you’re going to have to do if you want results.
Good luck,
Phillip
www.gcproperties1.com
December 8th, 2006 at 9:16 am
I stopped visiting this blog about two weeks ago, but stopped in real quick to see what was happening…
Wow, you’re screwed. The idea that this house was probably used as a meth house or something else illegal probably isn’t that far off. Couple of thoughts…
Are you still carrying insurance on the house? If not, you do realize that your lender can still go after you for any uninsured loss that they suffer?
You don’t have a good recourse against these buyers. You cannot compel the “buyers” to make the payments (I don’t know what sort of leverage you think you have be knowing their SS numbers). You don’t have the time or resources to go through a foreclosure process. And even if you could get it back, what then? You can’t make the loan current or service the monthly payments. And you cannot effectively market properties 10-15 miles from Roseville, let alone even Modesto. How do you expect to do anything with the one in Utah?
You’re screwed. Game over. This entire venture is a sunk cost. Walk away from the mortgages and seek bankruptcy protection. No amount of ingenuity or creativity is going to get you out of this situation (even if you actually possessed that capacity).
December 8th, 2006 at 9:20 am
did you lift the moderation? :p or are you watching the blogposts every minute to approve them? you’d better have gone for option A, and are busy actually working.
December 8th, 2006 at 9:27 am
[…] This was posted in the open thread, but it is too good to miss, and anyway I need one of you to explain this to me. As best I can tell, Casey Serin just got ripped off: I found out that Utah payments are two months behind! The buyers who wrapped it were supposed to be making payments to a 3rd party servicing bank which in turn would send out the payments to my lender. Looks like they only made one payment before defaulting. The payments are two months behind with $6142 in past due amount. […]
December 8th, 2006 at 9:37 am
Sure feels good to be a Paul Reiser…
Oh wait, no it doesn’t.
December 8th, 2006 at 9:38 am
Lenders seem to think that people will do anything to let their primary resisdence go into foreclosure. This is a total urban myth. It only applies if buying or renting a comparable place will cost more than what they are currently paying. If (i) they can save 25 - 50% by buying or renting another house that may even be nicer than what they are in right now, and (ii) they do not expect to get any appreciation in the near future on their current home, then watch how quickly the defaults pile up EN MASSE. The only thing holding them back my be concern with ruinging their credit, but in this case not even that, since the loan is in your name not theirs. The mortgage felon is wrong with respect to primary residences being less risky than investment properties. Who would default on an investment property that truly provides positive cashflow? One would have to be an idiot. I would argue that the single biggest predictor of default is having a loan balance that exceeds the market value of the property.
December 8th, 2006 at 9:39 am
Casey,
You’re kidding right? No one is going to buy your houses.
We all know this. They’ll be foreclosed on one by one. You know this, so why are you putting such bullsh*t on your blog
about fliers and signs?
Keep blogging, you have nothing left to “loose”
December 8th, 2006 at 9:42 am
Casey,
You remind me of the guy walking around the casinos in Las Vegas pushing a shopping cart with all his worldly possessions. “If someone would just come thru with a small loan I know my luck would change and I’d run the tables.”
You call us haters but there are some very bright, successful, and wealthy people on this blog advising you how to get your life in order. One would be a fool not to listen.
invest3
December 8th, 2006 at 9:46 am
* Phillip said: “Put yard signs up, craigslist ad, and put an ad in the local Greensheets (or the equivalent in your area). ”
Phillip - the property is in Utah and Casey lives in California.
December 8th, 2006 at 9:56 am
I think we’re gonna hit a new record for posts here.
December 8th, 2006 at 9:58 am
A reader posted:
“More than likely they know about your situation and have read your blog and they know there is jack squat you can do and they are going to just live there until they get their money back out for what they put down compared to paying rent somewhere else.”
This was the perfect crime
A smarted crook stealing from a dumb crook (aka Casey).
As they say in the business, if you are going to be a crook, you better be a SMART crook.
What would be great is if the new crooks started their own blog “IStoleFromCasey.com” to see how they can avoid paying Casey. That would be priceless!
December 8th, 2006 at 9:58 am
Your utah house is probably your best prospect. The utah market is just about the only market in the country where prices are still going up. You might be able to sell it for more than you did the wraparound for.
Hurry up and evict them and sell the house to a real buyer.
December 8th, 2006 at 10:00 am
“Why don’t you help them start a blog?
Iamscrewingtheguythatisfacingforeclosure.com”
Bwaahhahahahaahahahahahahahahahahaha
ahahahahahahahahahahahahahahaahhahaha
hahahahahahahahahahahahahahahahahahaha
hahahahahahahahahaahahahahahhahahhaahah
Damn that was funny!
December 8th, 2006 at 10:04 am
Casey,
For the wrap around mortgage, did you kbueep your title in escrow conditional upon some number of payments from the people in the house? Wouldn’t that make more sense?
I have an idea - why don’t you make an Amazon wish list and post it on your blog? I’m sure your readers (including me) will buy the books for you in exchange for your blog and entertainment value… good idea right?
-Big Cheese
December 8th, 2006 at 10:19 am
whaaaaaaaaaaaaaa
December 8th, 2006 at 10:21 am
And all the dude wanted - was his rug back.
December 8th, 2006 at 10:25 am
Umm..
What RE Professional pay 7% real estate commission on a house sale? Is this some special thing people do when they are Facing Foreclosure?
You keep saying you want to make a career in RE Investing but it seems like just about EVERY transaction you make is a HUGE hit. The only exception is your very first condo where you bought it and held it for a year or two while fixing it up (I think you said daddy fixed it up) and this was during the biggest RE Bull Market in CA history.
You need to cut your losses and get out. Work a full time job earning as much as you can in web development because you will earn more there than anywhere else. Send all the keys back to the lenders and do deed in leiu or let them foreclose… at this point it doesn’t matter. Start the process of BK counseling and get your life in order.
December 8th, 2006 at 10:33 am
I finally figured it out, your ego is preventing you from making the right decisions. I know, when I was 26 I had a successful business and hired some managers to take it to the next level. But I thought I was smarter than they and their 30 years of experience. Long story short, they left and became my competitor and buried me as my customers walked. Had I listened to these seasoned professionals, I would have built a great company. Failure was not an option as sales diminished and expenses continued. I tried in vain to hold on. The day I checked my ego and walked away, was the biggest relief for both my family and my finances. I didn’t wait until the point of bankruptcy, however. Had I listened to those that had more experience (hint hint), I would have been way ahead.
Now I am one of those drones that sits at a desk with a J O B with a fantastic company, debt free and on my way to an early retirement. Yes, some of us that actually drive into the office and work, have been successful at it.
I listened to the 2 hour interview and see there is a community that has tried in vain to help you. You acknowledge their insight, but then do nothing. Three months of blogging has not helped you move the houses. Imagine what three months of cleaning, fixing and maintenance would have done to move these? Again, notoriety and the spotlight seems to be the driving force. Next we’ll hear that you are working on a screenplay and marketing your story to hollywood.
Failure will be a good teacher to you, but your ego is keeping your from making rational decisions. Been there, done that.
December 8th, 2006 at 10:33 am
Yes dumbass, they put 10% down and still walked away. Guess what that means. It is currently less than what they owe on it and they know it. Better to cut their losses with you on the hook than pay for it. I know of people walking away from a 25,000 deposit on a just completed house, then the builder slashes 120K off the price and they waltz back in and use their deposit and buy their same house for that 120K lower $$$ … not bad for a few months patience. This was in a Dr Horton development in Lincoln.
Cool.
Cow_tipping.
December 8th, 2006 at 10:35 am
THIS WHOLE blog is a joke, does anyone believe this kid.
December 8th, 2006 at 10:35 am
“Sputnik? Heeere, kitty, kitty!”
[grabs spray bottle]
“There you are!”
[Spray, spray, spray]
“Bad kitty!”
“Stop pooping in my shoes!”
[Spray]
December 8th, 2006 at 10:40 am
I have no sympathy for Mrs. Casey. She started all this “investing” by watching late night television and Carlton Cheats.
So instead of buying the Carlton Cheats program for 2 bucks off Ebay, they shell out $300. Genius!
Infomercials!!! I know, Casey do an informercial!!!
December 8th, 2006 at 10:55 am
@ Casey Serin
“3) look for sweet deals to get me out of this mess”
By my calculations, you need 7 or 8 “sweet deals” per month (assuming you gross $5k on each one you’ll net around $3k each after taxes, FICA and self-employment tax - the IRS gets really upset if you don’t pay them) just to stop from getting any further behind. If you could make that kind of income from “sweet deals” why would you even bother trying to do anything else?
Then again, in over 2 months of talking about said “sweet deals” you have yet to make one.
Face it! BK is your only way out of this.
December 8th, 2006 at 10:57 am
I hope everyone knows this site is most likely a fraud to draw thousands of daily page views and reap the ad sales that already draw in a few thousand a month. This character is a con artist. Has anyone actually checked up on these ghost properties that he talks about?
December 8th, 2006 at 11:00 am
Casey - do you know if they will let you continue to blog from prison? That could really boost traffic plus you could help even more people out by letting them know where they DON’T want to end up. You might also be able to use the spare time to plan your next career or teach the other inmates how to invest in real estate. As a bonus you will be able to clear your conscience and move on with life. All in all it should be a pretty positive thing.
December 8th, 2006 at 11:00 am
This post made my day, I still cant believe the following:
1) there is Christmas in the Serin household
2) you still think there are “sweet deels”. Please stop using those two words together, you arent talking about a new skateboard you got. When are you going to act like an adult?
Sputnik-sorry to mis-spell your name, I am merely a looser. Please dont crap in my shoes.
December 8th, 2006 at 11:01 am
” millions in debt and facing foreclosure on 6, now 4 houses. ”
Shouldn’t you go ahead and cross out the 4 now and make it a 5?
December 8th, 2006 at 11:02 am
Casey,
From your tone, you don’t seem to be too afraid. Your lack of emotion or so called thick skin does not bolt well with your situation. Even I feel sad and despare just reading today’s development. You should feel absolute horror. Maybe your feel is numb right now. But it could get much worse.
Your lack of fear is what get you to this mess. The gurus have posioned your mind as to ignore your basic instinct which is the fear–fight or flight. You are now like a robot, loosing an arm and a leg, but still fight on like nothing had happened, because you don’t feel anything.
Get your fear back along with common sense. You need to get out, foreclose, bk. Find stable job, get away from Real estate for good. Your friend Gerome has the sense to quit Real Estate even when he had been sucessful before he went to jail because it left him “a bad tast in his mouth.” He has basic instinc, human feelings, and common sense. You are lacking them all. When did you loose it, were you always like this?
Don’t be like the musician on Titanic playing ’til their death. At least they were honorable. There is no honor in fraud. Jump the sinking ship now. You are still young and there are still time to fix your life.
BT
December 8th, 2006 at 11:03 am
Just a quick update that Jeffrey Skilling has 5 days left of freedom before he reports to Prison on the 12th for the next 24 years.
This slow turtore for Jeffrey is amazinly creative - who ever thougth of it? Jeffrey is confined to home arrest wearing an ankle bracelet just waiting and waiting for the 12th
Casey, the DA will not move in on you just yet, they need a couple of years for the dust to settle first. This is normal and creative as it gives crooks a false sense of “I got away with it”.
Casey: Tic Toc, Tic Toc…
December 8th, 2006 at 11:06 am
Casey,
In my experience with the tech bubble of the late 90s, I believed, along with many people working around me, that the bubble was sustainable and couldn’t burst, even when the world was crashing down around us. There were quite a few dunces in my presence, but some very smart people too. There were individuals who worked hard, working successfully for decades, who got suckered into the tech crunch. Some of these people were very good at what they did, with college degrees out the wazoo. They still made errors in judgment.
After the crash, most of them recognized their mistakes and learned from them. Casey, you need to wake up and realize what is going on around you. You are in too deep for any magic deal to sweep you out of the hole you are in. I’ve been in some pretty bad financial situations myself, and I have an inkling of how you must feel. You’re waiting for that tiny, tiny window of opportunity that will allow you to escape your problems.
Unfortunately, Casey, your problems are so big that the chances of you getting away scott free are roughly the same as the chance that the earth will suddenly disappear in a giant quantum fluctuation. You need to stop getting in any deeper and consult experts (i.e., lawyers) in order to figure out how to get out of this mess without making any more deals and wasting more time.
Please take this the right way, not as an insult, but as a caring suggestion: consider Gambler’s Anonymous. Perhaps this is not the right group for you, since your situation might stem from other issues in your life. I do suspect, however, that your predilection for high-risk deals is something that you need to control.
Wishing you the best,
Kevin
December 8th, 2006 at 11:27 am
Yes, follow the advise.
December 8th, 2006 at 11:32 am
The cat thing is really stupid.
Really.
December 8th, 2006 at 11:39 am
casey,
was the forty thou at close a fake check? Maybe they have
also now somehow taken money out of that house (i.e. with more fraud loans) that you will be responsible for.
why else would a rational buyer take over the mortgage you already had?
could be worse than you thought
December 8th, 2006 at 11:39 am
3) look for sweet deals to get me out of this mess
4) run an effective blog - writing a good post takes 1-3 hours
Casey, forget about #3 you cannot play investor anymore and #4 you appear to be wasting time blogging. I say appear because I don’t know how much your links bring in. I guess it also gives you something to do while you pretend to not be in trouble.
This train wreck is becoming too painful to watch.
December 8th, 2006 at 11:58 am
Hey fool, have you seen a dime of pay from Chris? I didn’t think so. How’s the 4K you borrowed lasting? How much was that jamba juice anyways?
I have a real job, get real pay, and am debt free. try it someday after you get out of prison. Maybe you can get a college degree while you are in.
December 8th, 2006 at 12:01 pm
Now we’re back in my territory again…
Putting on my 20/20 hindsight glasses I have to say the only mistake here was transferring the deed. Utah may require a deed transfer? In that case, an AITD is a standard way to “wrap” notes.
However, a buyer walking away from 40K and one payment is an indication that the buyer probably borrowed the down from credit cards; bought the house; only to realize they couldn’t service 100% financing, with 27% interest being paid on their $40,000 down payment.
——————
When I finance sellers, I get around $10,000 from them up front. I use a land contract (Illinois Land Contract), and DO NOT give my buyer the deed until they finance me out of the existing mortgage(s). It works great. If my buyer fails to pay me on time, (or at all) then I just evict them. Easy. Then I resell the house for another $10,000 down and do the same thing all over. Sweet.
If I can find at least four deadbeats a year to pay me $10,000 each. That nets me about $30,000 a year after expenses. Not bad for dealing with flakey deadbeats, huh?
Casey, you’ll find somebody with 10k to bail you out on the Utah property. Just don’t give them the deed. And price? My buyers never ask about the price for some reason….so your’s won’t either I’m sure. They never plan to buy you out anyway, “So what’s the difference?”, I ask.
Email me and I’ll give you some real deal feedback on how to save the Utah situation (and maybe make a profit on it after all is said and done).
December 8th, 2006 at 12:03 pm
What a moronic simpleminded meathead.
This place is a real rib tickler. I can’t stay away.
December 8th, 2006 at 12:11 pm
Holy crap Casey. You want a stupid BOOK for Xmas? You can’t think for yourself can you?
I listened to the podcast. C’mon now. It was a waste.
Now I should go back to my loser 9-5 job working for myself. Booo-yah.
December 8th, 2006 at 12:12 pm
From Wikipedia:
wraparound mortgage
A wraparound is a way of lowering the barriers of entry to a junior lien or subordinate mortgage; it also expedites process of purchasing a home. A junior lien or subordinate mortgage is a second mortgage that generally sits behind larger first mortgage. Here is an example of wraparound:
The seller, who has the original mortgage sells his home with the existing first mortgage in place and a second mortgage which he “carries back” from the buyer. The mortgage he takes from the buyer is for the amount of the first mortgage, plus a negotiated amount less than or up to the sales price minus the down payment and closing costs. The seller then continues to pay the first mortgage with the proceeds of the second. Once the second mortgage is satisfied, the seller is out, but this is rarely the case.
Typically, the seller also charges a “middle” on the first mortgage. For example, one has a first mortgage at 6% and sell the whole property with a rate of 8% on a wraparound mortgage. He/she make a 2% middle on the first mortgage amount, using other people’s money to make money. So, it is in the best interests of a seller to keep the wrap, rather than allow the buyer to assume the first mortgage.
There are relatively few wraparounds today because the first mortgage must be assumable, or the mortgagee must permit this type of assumption to occur on the loan. Today, only the FHA writes assumable loans, as most mortgage bankers have found that the main expenses (and profits) of a transaction occur at origination. Most mortgages have a due on sale clause to prevent the use of wraparounds.
Casey, did you ever check with the lender to see whether a wraparound was allowable? Per your recent podcast, wasn’t that an ethical responsibility to inform your lender?
Jozsibacsi
December 8th, 2006 at 12:38 pm
If you would have listened, instead of dreaming, you would have realized several people warned you this happens quite often. 3rd party wraps are normally a scam.
The 3rd party trick is used quite frequently. 3rd party tells you want you want to hear, then he collects the mortgage from the “new owner” and doesn’t pay your mortgage. Yes, it’s still YOUR mortgage. Banks don’t allow wrapped mortgages. It’s called a “due on sale” clause. Now wait for the 1099 from the bank after they sell your debt for pennies on the dollar. You’ll have an unearned income statement for $$$’s in 2007. Yes, you have to pay tax on those proceeds. No way around that one.
For the 4th time, you need PROFESSIONAL help! Call a BK attorney and stop digging your hole deeper. You passed the point of no return months ago. You can’t fix this one.
December 8th, 2006 at 12:50 pm
Man Bro, I am sorry to hear that, it sucks how when you think things are getting a bit better, something comes up and smashes you right in the face. Hopefully everything will get better for you and will be able to fix things up.
http://www.happy-mind.blogspot.com
December 8th, 2006 at 12:53 pm
Casey,
Could your helpful agents in utah, the title co, and the buyers have been in cahoots to defraud you. Was the $40K check real or just a prop used to close the deal. They might have taken more money out of the house with the help of a handy dandy loan broker/salesman and now you are on the hook for that too.
Courage
December 8th, 2006 at 12:58 pm
Casey,
You do realize that when you (or your lender) finally get that Utah house back, it’s gonna be trashed. Right? Your scumbag “tenant” will probably submit a lowball bid and buy it for real.
December 8th, 2006 at 12:59 pm
Here’s an idea. Join the Army and do something for your country. The soldiers/sailors act might prevent banks from foreclosing on your properties.
Your best option remains BK’ing. What’s the delay? You’re only making things worse.
December 8th, 2006 at 1:05 pm
Casey:
Ogg not surprised about Utah cave. Buyer couldn’t get own cave loan, why you expect buyer make cave payments? Ogg only a caveman but know better. Cave maybe in bad shape now. Is caveowner’s insurance paid up?
Evict buyer. Ogg lend you club. Sell Utah cave.
Sputnik the Cat:
Ogg like cat. Ogg save meat for Sputnik. Here, kitty kitty kitty.
December 8th, 2006 at 1:16 pm
You’ll have an unearned income statement for $$$’s in 2007. Yes, you have to pay tax on those proceeds. No way around that one.
Yeah, actually there is — at least for Federal. See section 108 of the tax code. Several exclusions exist.
December 8th, 2006 at 1:23 pm
You’d mentioned before that you would consider having someone else moderate the comments.
Email me if you’re still serious about that.
December 8th, 2006 at 1:29 pm
“You would think if they put 10% down they will want to keep making payments and protect their investment… right?”
Huh? Why would they want to keep making payments? You don’t seem to care whether you make payments on your loans. It wasn’t your hard-earned money, and maybe it wasn’t their own money either. Maybe they borrowed the 10% elsewhere too, just like you. Can you not see that this is a screwed-up system and that it’s only a matter of time before it all comes crashing down?
Even if you “just” borrowed the money, it’s still your debt. The money came from somewhere. Why do people like you think it’s OK to just borrow and not pay back? There is a cost to society resulting from this unethical, and yes, downright criminal behavior. This is what you don’t understand.
I am just talking to myself here. I know. I know.
December 8th, 2006 at 1:36 pm
Casey:
Listen to Mr. Flipper and just wrap the house again this year and gat more cash to hold you over until you can flip out in the Spring.
December 8th, 2006 at 1:42 pm
Casey, Just curious. What kind of support system do you have around you? You continue to be positive in light of your situation. You must have an amazing group of people shielding you from the madness. What is their take on this situation? Anyway Casey. As always, hang tough.
December 8th, 2006 at 1:50 pm
Casey,
I’m Ok, you’re Ok and we all foreclose together.
I love you…you love me…
Great lesson that Real Estate is not for amatures. Unfortunately for the whole industry there are too many people holding on to real estate that don’t know what they are doing or what they’ve gotten themselves into…it’s going to get worse before it gets better.
Casey should get help from the seminar “gurus” to get out of this mess. I know they love him and will help.
December 8th, 2006 at 1:52 pm
Out of the box thinking!!!
The only out of the box thinking you will be getting soon is when you are out in the exercise yard for your 1 hr. HA HA WHAT A PUTZ
December 8th, 2006 at 2:03 pm
Casey,
Here’s a good resource for your situation: http://www.frascona.com/resource/kjr1005wrap.htm
Highlights:
It is not illegal to breach a deed of trust by selling the property without paying off the underlying mortgage (although it’s not recommended for FHA- or VA-insured loans referenced above) - it’s simply a breach of that “contract” which then allows that lender to foreclose.
It is not illegal to breach a deed of trust by selling the property without paying off the underlying mortgage (although it’s not recommended for FHA- or VA-insured loans referenced above) - it’s simply a breach of that “contract” which then allows that lender to foreclose.
Also check to make sure your third party service is performing their duties. It could be that your buyers are paying, but your escrow service isn’t. If it’s your buyers not paying, initiate foreclosure proceedings immediately.
Note to Mr. Flipper: Utah has two deeds that are recorded at closing, a warranty deed and a trust deed.
December 8th, 2006 at 2:16 pm
Poor, clueless Casey. I really feel for you, having clearly been taken advantage of by sharpies and deadbeats. How can our economic system possibly survive if unqualified people are allowed to take out massive debts without any ability to repay, and dodgy records indicating they have had previous problems dealing with credit?
The only solution I see is to file for foreclosure as soon as possible _ and pray fervently that in the months they have owned the property (and the coming weeks they will continue to own it), they have not stripped it of the “improvements” made before they bought it. I can’t imagine the difficulties running around Utah’s pawn shops trying to recover refrigerators, furnaces, fireplace mantels, marble kitchen counters, etc. to put this house back in shape for selling once again.
December 8th, 2006 at 2:25 pm
Mr Flipper welcome back. You and Nigel are awesome. I always endup printing your advice for future reference.
December 8th, 2006 at 2:41 pm
If my buyer fails to pay me on time, (or at all) then I just evict them. Easy.
How easy is it to evict someone in California — or does it depend on the specific county/town?
If I can find at least four deadbeats a year to pay me $10,000 each. That nets me about $30,000 a year after expenses. Not bad for dealing with flakey deadbeats, huh?
I wonder how strict you are. If someone misses a payment by one day, is that a great day at the Mr. Flipper office because you collect another $10,000? That may not be bad financially, though ethically I’m not so sure.
Casey, you’ll find somebody with 10k to bail you out on the Utah property. Just don’t give them the deed. And price? My buyers never ask about the price for some reason….so your’s won’t either I’m sure. They never plan to buy you out anyway, “So what’s the difference?”, I ask.
From the “buyer’s” standpoint, what’s the upside to doing this? I don’t mean a real upside. I mean what value do they perceive for their $10,000 if they never plan to go through with a purchase? Is there some quirky tax advantage — or is just being dumb? (Not that there’s any shortage of dumb people out there).
December 8th, 2006 at 2:42 pm
I like to poop on people
December 8th, 2006 at 2:50 pm
Sputnik?
Here kitty kitty.
Hobbes wants to play in the transmogrifier. He says if you turn it upside down it’s a time machine. Hobbes says that he want to go to next Winter and see if Casey has been indicted. He promised my he’d be back by dinner.
Please don’t crap in my shoes. Mom will get steamed.
Calvin
December 8th, 2006 at 2:53 pm
Folks,
Think for a moment. Casey says he cannot pay the Banks because he is broke, yet, he has money to pay his ISP, phone and electrical bill to keep the bloggin.
What Casey is not telling you is all the money he is making from this blog from the ad clicks.
Casey if Fraud all around.
December 8th, 2006 at 2:58 pm
“Has anyone actually checked up on these ghost properties that he talks about?”
I’ve driven by the two in Sacramento. They’re dumps with no curb appeal. Judging from the pictures, the interior isn’t much to look at either. The Burdett one in particular is in a pretty crappy neighborhood. You’d have to pay me $2000/month to live there. I can’t believe the premiums that Casey paid for those two crapholes in terrible locations.
December 8th, 2006 at 3:05 pm
Blah, I concur.
D