November 12th, 2006 11:29 am
Larchmont Dr 1st Lender Won’t Go Below 240 on a Short Sale
On Friday, I talked to my real estate agent who is working a short sale for me on the Larchmont Sacramento house.
The realtor has been working hard on this short sale for over a two month now. She listed the house originally (Sep 4th, 2006) for a low price of 259 to attract buyers. She then started lowering the price incrementally until we got an offer at 220.
We submitted the offer with the short sale packet and hardship letter to both lenders right away. The second lender has been pretty fast to get back to my realtor. They are ready to deal as soon as we get word from the 1st.
The 2nd needs to see how much the 1st is willing to leave for them. It’s usually not much. I hear 10 cents on the dollar is typical. Sounds like the 2nd understands this and they will take whatever they can. If this house goes to the foreclosure auction the 2nd will most likely get nothing. Something is better then nothing.
The 1st lender won’t budge…
We finally got word back and they are not willing to accept any less than 240. Quick recap of the loans on the house:
1st: $264,000 (will short at 240,000)
2nd: $66,000 (will probably short at whatever)
Total Loans: 100% financing of 330,000 plus late payments/fees.
Value: I think the BPO (broker price opinion) came in at 260 or something like that, need to double check with my realtor.
So the first is willing to take a 24 thousand dollar hit and forgive the late payments and fees. If they could have discounted it another 40 grand or so (64 total) the deal would probably work. Keep in mind there is about 15K in selling costs (5-6% broker commission, title/escrow, etc) and the second is going to want something too.
From the extra 40 thousand discount you can pay the selling costs, give the second 5 and arrive at the purchase price of 220. But instead the 1st wants to play hardball like the other lenders out there and would rather take the property back through foreclosure. They will most likely loose much more then the 64 if this thing goes to the Trustee’s Sale.
That’s because the After Repair Value of this property is realistically 260 or so. I hear the cash buyers at the auction are paying on average 70-80% of value and that average is going down fast. Seventy percent of 260 is 182. That means if they sell it at 180, the 1st will loose 84 plus costs. The second of course will get nothing and loose the entire 66.
Here is another problem…
Now our 220 buyer is wanting to back out. Another similar property just sold around the corner for 190. The buyers thinks the market is really taking a dive and don’t feel safe at 220 anymore. My realtor talked to them and convinced them to hold on and just counter lower. So looks like they might change their offer to 180. We do have another offer at 150. It’s an all-cash offer from an investor. But I doubt the 1st lender is going to want to go that low.
At this point, this deal is dead in the water. My realtor told me to try to call the 1st and see if there is anything else they would be willing to do. She thinks they might go for a lower pay-off if I promise to repay the difference over time. But, I’m not sure if I want to take on any additional debt. I can’t handle the stuff I already have. I will call them anyway to see what is possible.
What else can I do at this point?
Maybe I can try to market this house on my own to see if I can get any higher offers. However, the property needs repairs and is only marketable to a handy-man or investor type - both usually want a good discount. Especially in this market.
Another solution may be to market for somebody to catch-up my loan and take-over payments. The problem is that the amount to catchup is like 15 grand right now, plus repairs. My payment is very high because it’s a high-interest 100% loan ($2,288/mo). The loan balance of 330 is also way high and it will NOT appraise for that much now either.
If I do find somebody to take over my payments I would feel bad. They will have to wait probably 5-10 years before the market recovers to refinance at 330.
Lesson…
I should have never done this deal with 100% financing and juiced up all the equity via cash-back at close. I now realize the 330 appraisal at that time was pushing it. (I didn’t know the appraiser personally and did not influence the decision). When I went for that cash-back I didn’t have a clear exit strategy. I figured I can just sell it creatively somehow, probably on a lease option, and cover the payments.
Honesty, I was just focused on the 50K-at-close carrot. That’s one big carrot! I was acting out of desperation. I needed to get that money to float my other bad deals at the time. I would use part of the cash for that and the rest I was going to save to fix this house and resell it quickly.
Doing this deal was yet another bad decision made out of desperation. I should be in some kind of hall-of-fame… err.. shame for making every mistake in the book.
So this deal is not going anywhere fast! What to do… what to do…
169 Comments
November 12th, 2006 at 11:42 am
Why don’t you move into this Sacramento house and get a job and pay the mortgage?
November 12th, 2006 at 11:47 am
Casey, you’ve made a pretty good argument here as to why the first lender should deal a bit lower than $240k - you should definitely make the same argument to the lender in person in order to try and work something out.
Also you said that this property needs some repairs and as such is only suitable to as a fixer-upper or investment property. Is it possible that the repairs required are not major and that you might be able to roll up your sleeves and do them yourself? If you can get the place in some sort of half decent shape you might get a better price from someone looking to buy the place and live there. You’ll need to know your audience, young couple ready to nest etc and tailor the property to their requirements but it may be worth it if you have time on your hands. Good luck with it anyway.
November 12th, 2006 at 11:56 am
330K to 150K (the cash offer) in a year. You really got killed on this one.
I’m sure all your lenders are having daily conference calls figuring out who has the honor of being the one that throws you in jail for fraud.
November 12th, 2006 at 12:04 pm
This is a perfect example of how trailing markets can be so deceiving for “investors.”
Here your Zillow comp shows the house to be worth 270k ( http://iamfacingforeclosure.co.....ghlands-ca )
Yet, realistically a similar house just sold for 190k which in a declining market, that means that the 190k offer made months ago is now really 170k today - again because of a declining market.
So, you bought it at 330k, you are trying to dump it for 270k, and today it’s worth around 170k and tomorrow will be worth less.
People who have played the stock market understand the meaning of Don’t try to Catch a Failing knife.
By the way Casey, you are wondering why the Bank holding the 1st note wont go for the short sale. Casey, Banks are no different than people like you - they have idiots working there too.
You have not learned any lessons here posted by so many smart and caring people giving you solid good advice, but you expect a Bank to “understand” this most basic problem.
Casey, print this out, read it every night before you sleep and I promise you that 1 day, this posting will make sense (click). It may take a few days, it make take years, but you will see the light eventually.
November 12th, 2006 at 12:15 pm
Casey,
You’re in a tough spot here. This is where the blog is a bad idea since the lenders can see everything you’re doing. Sometimes honesty isn’t the best policy. But on to a solution.
The market is against you so your choices are very limited. Lease option this to someone, pay some of your arrearages to the lenders and then negotiate a forbearance for the rest. Same story with renting it. At this point, the lenders aren’t going to be very flexible on short sales because the loan is so new, i.e. less than one year.
Your next option is the deed in lieu. If the lender isn’t going to be flexible, see how they would like to sell it at $240 in a declining market. This may get them to be more flexible, but you’ve got to be willing to go through with the DIL. At this point, you should be more flexible as well. You’ve already had a foreclosure in Texas, one or two or five more aren’t going to hurt you any more than that first one.
The third option is to start bankruptcy proceedings. This will protect you from further foreclosure proceeding or collections from any of your creditors. It will buy you time to see if the market improves in the short term - next spring. If the market doesn’t improve, then you can feel like you did the best you could before turning back the properties to the bank.
I had a question for you as well. Remember your first deal where you had to buy your purchasers home and had a negative cash flow of 1000 per month. Do you still have tenants in that home? Is it facing foreclosure as well? Just something that came to me.
Good luck finding a job this week. Take care.
Nigel
November 12th, 2006 at 12:18 pm
Casey, I know it sounds like the lender won’t work with you, but it was a successful deal for you. You got the $50K at close of the deal. That’s pretty good for living expenses since the end of March.
November 12th, 2006 at 12:23 pm
Do a market survey of rents in the area (you should have done this before you bought the place). Multiply the monthly rent by 100. This is the estimated retail “as repaired” value according to income approach. What would it cost to build a similar new house if you already owned the land for free? Take the lower number you get and subtract 30%. Then estimate the retail cost of repairs (ie what it would cost if you just called a GC from the yellow pages) and subtract this number.
Tell us what number you come up with. This a the most a smart experienced investor would pay.
BTW, unless a buyer is mentally retarded, he won’t use comparable sales in this market. They are meaningless due to the amount of mortgage fraud, cash back at closing and other shenanigans going on.
For replacement cost purposes, the land should be valued at close to zero. The reason is builders are sitting on a ton of vacant land they can’t even unload at pennies on the dollar. However, by slapping a house on it and selling at the below cost, they can at least get the dirt off their balance sheets.
November 12th, 2006 at 12:33 pm
“Lose” - NOT “Loose”. Get the definitions for those 2 DIFFERENT words tatooed on your hand so you won’t make this mistake all your life.
“She thinks they might go for a lower pay-off if I promise to repay the difference over time. But, I’m not sure if I want to take on any additional debt.” — NEW FLASH: you’ve already taken on this debt, you owe them this money already!!
“If I do find somebody to take over my payments I would feel bad. ” This is something you DON’T need to worry about, NOBODY is going to take your problem from you.
GOOD FOR YOU in your “Lesson” comments - sounds like you’re starting to learn. (Though I wouldn’t be in the least suprised to see you make the same mistakes tomorrow).
Good luck
November 12th, 2006 at 12:34 pm
Yeah, it looks like the lenders haven’t realized what the market is turning into at this point. Give them another few months and they’ll be more familiar with short sales and willing to accept lower offers just to avoid REOs and the whole foreclosure processes. This of course, doesn’t benefit you much, since you need to unload your properties pronto! I do hope they start opening their eyes and see that the market isn’t going to change…….
November 12th, 2006 at 12:36 pm
I realize English is your 2nd language, but for the love of Pete, please, please, PLEASE if you learn nothing else from this whole experience, please learn that:
LOOSE rhymes with NOOSE
LOSE rhymes with USE
November 12th, 2006 at 12:39 pm
Casey,
Who were the real estate agent and loan officer that helped you with the financing and buying this house? Have you contacted them?
I am confused here, because if it is a brokerage office the lender goes back to them and attempts to force them to buy back the loan. Usually the broker then contacts the agent that sold you the house and they work together on trying to help you unload the house. So I am thinking it was a loan officer that works directly for the lender?
The reason I am asking this is because both the RE agent who helped you buy this house, the loan officer and the appraiser had to help put together this type of transaction, and are equally liable. Trust me, they were a lot better informed on this transaction than you were. When someone defaults on the payments, the compliance department at the lender gets involved and reviews the transaction. All the involved parties are contacted down to the underwriter who approved the loan.
If the loan officer worked directly with the lender, then you have some leverage you should use. The publicity aspect of this blog would make any lender uncomfortable and want to negotiate. If you look at articles regarding prosecution with lenders it is usually an RE agent, broker or loan officer they go after. They understand most borrowers can’t do this without a loan officer that has done it many times who structures the loan with the help of the RE agent and the appraiser. A borrower is typically not knowledgeable enough to do this on their own.
Still reading…
C
November 12th, 2006 at 12:43 pm
Isn’t it Sunday?
November 12th, 2006 at 12:45 pm
Casey, I’ve been hooked on your blog for some time.
Your story makes me cringe, mostly because I could’ve easily gotten into your situation in So Cal. I got into the market to flip condos in Southern California, but I actually lived in the first condo I attempted to flip. I was about 1.5 years out of college when I attempted what I did. I had no money and was completely broke. All I had was my $75,000/year salary writing back-end software for a major web site. In other words, I was a web developer like you.
I figured if the value of my condo plunged, I wouldn’t mind actually living in LA for a while and I’d sit on it. After all, I did need a place to live. Anyway, right after I bought that condo, the company I worked for was taken over by another investor and he laid all of us off. So there I was without a job sitting on this condo I couldn’t afford.
So what did I do? I rented while I lived there and looked for jobs. At that time, the condo appreciated slightly. However, it wasn’t enough to offset the prepayment penalty or the closing costs. I got a roommate also and used her rent to pay off the interest on the loans.
Long story short — I sold that condo at a $53,000 profit. I was the last uptick in my area before all the prices plunged. They’ve dropped $50,000 in my old condo complex alone.
You see, I’d never owned a property before that condo. Some apartment complex in Austin, TX screwed up my credit and made a mistake saying I made a late payment. The credit agency responsible for the collection managed to get that bad mark on my credit right during the escrow process. So that crook of a loan broker I was working with talked me into taking a higher interest loan. I ended up paying more interest than I should have even though I did nothing wrong for my credit. The interest rate was something like 10% on a second loan for around $50,000. If I backed out of the condo, the seller would have been eligible to have taken some significant portion of my deposit. The truth was, in an ideal lending scenario, I should not have been allowed to borrow money. I should not have even been granted a sub-prime loan.
I don’t want people to think I’m supporting your failed real-estate moves — I’m not. But I think people also have to realize that the lending industry and real-estate has been feeding off of the hopes and dreams of people. It’s a very predatory industry. The lending industry basically just abuses people’s misunderstanding of the mathematics of rent yields, appreciatin, market dynamics, and how interest rates work. I remember my sales pitch for selling my condo: “Why rent when you can own?” After having learned more about real estate, I knew just how deceptive this statement can be. Most people understand only one very simple idea: A monthly payment they can afford for a place they can call their own.
Needless to say, I was frustrated with the lenders and the whole process of buying real estate. Sure, I ended up making $53,000 in profit for my troubles on that condo; however, I never looked back at real estate or making any more deals. Real estate seemed cool to me because it was one of the few investments at the time that offered so much leverage. The problem is that leverage is a double-edged sword. It can either work for you or against you.
Now as for why I actually sold my condo? Quite possibly the most intelligent thing I ever did with real-estate was to not be involved in it. I’d been watching the housing stocks on the stock market and used their momentum as a guage for when to exit. The stock KBH and TOL started breaking trend lines around the start of this year. I figured the public would believe there was only a brief pause. I figured they’d all hope for prices to level out and consolidate
http://finance.yahoo.com/q/bc?.....q=l&c=
Basically, I’ve been pretty angry with lenders for quite some time now. I know a lot of people in SoCal sitting on condos they can’t afford and they all have ARMs. I have friends whose marriages are getting torn apart because of their financial struggles over their homes. Their home values are dropping, and they’re very delusional and still get hope from these crooks in the SoCal real estate industry. They’re all liars and thieves.
I left SoCal and live in NYC. I’m no longer a web-developer. I speculate in the derivatives markets and work for a hedge fund. My background isn’t in finance, but man, I tell you — I am very curious to see where this country is headed when all of the abuses of the lending industry come to light. I feel bad that you’re a victim of a system without safeguards against people like you; however, I am glad you’re generating a lot of publicity. You’re going to be a part of the solution in the future to keep people from doing things like this again.
November 12th, 2006 at 12:48 pm
Does your realtor know you are publicizing the amounts of the offers you’re receiving?
November 12th, 2006 at 1:04 pm
Casey,
You are in way to deep. You really have only one choice at this point- jingle mail. Yes, just take all the house keys and mail them back to the bank and walk away. They will probably get judgments against you but, so what? What are they going to do, take your red ball? Since you have no assets you may not even have to BK. After a few years go by they may forget about you. Then again, maybe not… so I’d cash out the POS and have a good criminal attorney on retainer.
November 12th, 2006 at 1:11 pm
WoW its almost noon on sunday? so much for the family promise .
November 12th, 2006 at 1:47 pm
Hey the market really is tanking like the Titanic. Casey this is one of your better posts. This one shows people what the lenders do and what prices really are.
10 years ago that home was worth about 60k give or take 10k. I supposed it should be valued at about 100k given the rent it will take in. You can’t even buy it at 190 and have the rent cover the nut+tax/maintenance. The bubble blogs are right!
Never buy a house unless the rent covers the monthly expense. There will only be depreciation for yearrrrrrrrrs.
November 12th, 2006 at 2:00 pm
Numbers like the BPO and ARV are utterly useless. The home’s value is only what someone is willing to pay for it.
Learn from your mistakes if you can. Do a deed-in-lieu now, instead of waiting until it is too late.
November 12th, 2006 at 2:08 pm
Is the real estate market that bad?Has a $330,000 house gone down to a $170,000 house? Thats almost 50% drop if this is so,this crash will not be pretty and will affect more then we think, and what starts in California moves across the nation. Hang on for the ride to the bottom and who knows where that will be.Time to unload all the propertys at any cost.Your not alone Casey.
November 12th, 2006 at 2:45 pm
I have to vent! Do you know PRLeach had the audacity to email me???? She wanted to gloat about my obvious mistake in advocating for Casey. What a dog! The LEACH is obviously watching this blog to see how people view her. Well guess what PRLeach? My opinion of you has not changed. I still think ur scum of the earth. How’s that for meanspirited??? Wench!
November 12th, 2006 at 2:50 pm
When I think I am having a bad day, that I may be an idiot, that I am not living up to my potential, that I drew the short straw, whatever…I click on your blog. I read about what a total idiot you are. I read the comments people leave and wonder how any person could be so greedy and stupid simultaneously. Greedy is easy. You fall for the Carleton Sheets infomercial and the next thing you expect to happen to you is that you are running down a tropical beach in slow motion with a busty babe in a bikini. Right after that you should be counting hundred dollar bills and flipping through closing documents before moving on to your next “killing”. Tee Hee. To fall for that nonsense is stupid but most people only lose the cost of the CD set. They are either too lazy or the paperwork is too complicated for them to get into any REAL trouble. You, however, somehow manage to be a real sucker AND at the same time, you have finnagled mortgages for hundreds of thousands of dollars. Very impressive. Too late to buy life insurance but maybe you should consider getting sterilized. We don’t need any more morons populating this planet. You deserve everything you have coming to you. Foreclosure? Yep. Bankruptcy? Yep. IRS problems? Yep.
You should be in prison. Bonehead.
November 12th, 2006 at 2:51 pm
since he’s letting us correct his English, let me offer this:
Caey, you “fix” something that is broken. (Houses don’t usually “break.”)
You “fix up” a house that has gotten old and run-down.
November 12th, 2006 at 3:00 pm
Another correspondence from the “Leach”. I am growing tired of her. Read on.
——————————————–
LOL How so? What exactly did I gain? I received no money from him. I signed on for hard work because I saw potential to help a lot of people.
I had no agenda, no program, no mentoring etc. to sell, and my site does not make money, nor did I or do I want any “notariety”. Tell me , what exactly did I leach off him?
—- YOUROCKMETOO@aol.com wrote:
> My opinion of you has not changed. You are still a “leach” in my book.
November 12th, 2006 at 3:03 pm
My response to PRLeach after the last comment was:
—————————————————–
Is Casey still under contract with you or not?
From one female to another.
—————————————————–
Have not heard back from her. Squeezer.
November 12th, 2006 at 3:05 pm
Another email from the “Leachie-one”
———————-
We haven’t voided it if thats what you mean.
—- YOUROCKMETOO@aol.com wrote:
> Is Casey still under contract with you or not?
>
> From one female to another.
November 12th, 2006 at 3:08 pm
Casey, did you give PRLeach me email address? I still find it hard to believe that this woman has the time to email me back n forth about this. Unbelievable.
November 12th, 2006 at 3:15 pm
Another email from the “Leachie-one”
——————————–
Let me understand this- Casey has four days to look over and know the terms of the agreement. He asks us to move forward. He signs under no pressure. The one hour later changes his mind. So because I hold him to that, I am a leach?
You have no case.
—- YOUROCKMETOO@aol.com wrote:
> of course not. I rest my case.
November 12th, 2006 at 3:16 pm
My response after last comment from PRLeach:
—————-
You have to be kidding me. How did you get my email address?
Why don’t you post the contract terms at your website and let us see exactly what is fair about this supposed contract. Obviously, the man was under alot of stress when he signed it; and you and your partner were planning to exploit that. That is the general perception based on what I am hearing from Casey and from your own website. Why not void out the contract? You are basically kicking the man while he is down. He asked for the contract back and you and your partner refused. Even after, you had no concrete plan-of-action for helping him. He was better-off signing with the New York people. People don’t think very highly of you over at Casey’s website. Obviously, you’ve been reading.
November 12th, 2006 at 3:35 pm
She’s really pissed now…Read on
————————-
You posted mean comments on my site, that’s how I got your address.
Why would I post the contract for you to see? It was between him and us. What was on there is pretty basic: help in exchange for story. No kicking going on, I swear.
All you have is a second hand accout of the situation from someone’s point of view who is good at spinning things in his favor. Look at his track record is all I’m saying. You are entitled to your opinion, of course, it’s just too bad that you were so quick to judge when you really don’t know what went on.
Best wishes -
—- YOUROCKMETOO@aol.com wrote:
> You have to be kidding me. How did you get my email address?
>
> Why don’t you post the contract terms at your website and let us see exactly
> what is fair about this supposed contract. Obviously, the man was under alot
> of stress when he signed it; and you and your partner were planning to exploit
> that. That is the general perception based on what I am hearing from Casey
> and from your own website. Why not void out the contract? You are basically
> kicking the man while he is down. He asked for the contract back and you and
> your partner refused. Even after, you had no concrete plan-of-action for
> helping him. He was better-off signing with the New York people. People don’t
> think very highly of you over at Casey’s website. Obviously, you’ve been reading.
November 12th, 2006 at 3:53 pm
My final comments:
————————-
Of course you won’t reveal the terms of the contract. When you decide to reveal the terms of that contract and the contract is reasonable and fair to all parties involved, I will be happy to withdraw all comments about you. Until then, it-is what it-is. My opinion of you still remains.
November 12th, 2006 at 3:58 pm
yneone
Why don’t you stop answering the e-mail ? Or if you MUST continue, stop posting it here in Casey’s blog. I doubt that anyone is interested in this cat fight. I know that I’m not.
November 12th, 2006 at 4:22 pm
Honestly dude … the 5 houses you are busting your a** to sell … the moment you do … and the lenders get their $$$ (it costs them to sell, and your sorry figure and effort is just costing them the amount they are shorted by … them taking it back will make more loss for them, they know that) … they will press fraud charged against you and your a** if going to jail. That the only reason you are not behind bars yet. They want you to sell the things, then they toss you in the slammer, or garnish your wages for the rest of your life. AKA jail for fraud or pay up …
Cool.
Cow_tipping.
November 12th, 2006 at 4:25 pm
It seems like Casey is just letting any ole junk comment through, so why is there still a moderation setting?
Thanks to bloggers who dug up Casey’s associates. This thing is a lot easier to understand in light of the new information.
This is just a badly runned scam. I’m outta here.
November 12th, 2006 at 4:28 pm
The bank/seller/buyer Greed Fest is over for a while!
Woolie asked:
“Is the real estate market that bad? Has a $330,000 house gone down to a $170,000 house? Thats almost 50% drop. If this is so, this crash will not be pretty, and will affect more then we think, and what starts in California moves across the nation.”
——————
Yes. When you take out the sales of new homes that are still being propped up with give-aways, and other price-supporting incentives, you’ll find that the “coastal” market prices are “really” falling like flies. Used houses have become a dime a dozen with few buyers because they are only getting conventional fixed rate loans they can afford, and the prices are too high yet to align with the incomes of the buyers.
So the used house market will crawl slower than a turtle on valium for the next four years until prices come into line with incomes again. Be patient and you’ll not only get a good price on a house, but a much better chance of a finding a “retail” bargain, too.
November 12th, 2006 at 4:28 pm
Casey wrote:
“Another solution may be to market for somebody to catch-up my loan and take-over payments. The problem is that the amount to catchup is like 15 grand right now, plus repairs. My payment is very high because it’s a high-interest 100% loan ($2,288/mo). The loan balance of 330 is also way high and it will NOT appraise for that much now either.”
And why do you think _ANYONE_ would effectively buy this house for $330K, this being what taking over your loans means, when the apparent free market value is now south of $22oK.
I’ve said it before and I’ll say it again: you seem to have no basic understanding of markets and clearing prices. You constantly speak of how much you have put into a deal, or what you’d “like” to get. Neither are relevant for buyers.
Right now it looks like this piece of crap house is worth about $80-120K _less_ than what you owe on it. You apparently paid too much for it even before the market began its current freefall.
If all of these overpaying examples don’t convince you that you have no nose for real estate, not to mention no business sense, nothing will.
And buying properties in cities you can’t visit often enough to maintain them is even more foolish. Were you just picking from a list the “wholesalers” offered to you.
(”Hey, Fred, we’ve got another sucker here. Found him walking out of that training class at the Hyatt. He could be a candidate for that crap place in Dallas, or maybe the Modesto dump.”)
You need to get out of the real estate business ASAP.
–Tim
November 12th, 2006 at 4:29 pm
“Is the real estate market that bad?Has a $330,000 house gone down to a $170,000 house?”
You mean a house worth $170 thousand was sold for $330!
Casey,
Basic fact, you are one of many ‘investors’ sitting on multiple houses. Everyone who was going to buy, bought. This leaves a very small minority, like myself, who MAY be in the market for ONE house. I’m not, since renting is much cheaper than the interest on anything here in the DC area. That’s a problem, because why should anyone buy, when other desperate people are renting out these huge albatrosses at cut rates. Another fact, we see the trouble you are in trying to sell. I might be moving in a year or two. A house is not something I want anchoring me someplace that I am living solely for work, and certainly not five.
You should not delay in getting rid of these properties. You should also consider moving out of state, where there are jobs and a lower cost of living. I had posted on another thread the link to the mortgage fraud blog. There you can see that people like you are being charged with mortgage fraud. This house with the inflated price and cash-back seems to be a popular way to do it. You savior might be that you spread the fraud out over different states and banks.
Maybe. Maybe not. I honestly don’t believe that you’ll face any charges. Does not mean that the next couple of months is going to be a picnic.
As for his ‘engrish’, cut the kid some slack. It’s a second language and he seems to manage pretty well.
November 12th, 2006 at 4:31 pm
YNEONE,
NEWS FLASH: NOBODY CARES.
I swear you must be Mrs. Serin the way you are acting. You’re totally delusional.
Now go take your meds and put your tinfoil hat back on. Listen on your short wave radion for an important incoming message from the Imperial leader. The wookies are invading. Go to the predetermined meeting spot at the Labrea Tar pits and await further orders. That is all.
November 12th, 2006 at 4:35 pm
“What to do… what to do…”
How about for a change telling the TRUTH?
The TRUTH will come out. It’s already out there. The DA already knows the truth. Keep burying yourself with lies.
Jail awaits you.
November 12th, 2006 at 4:36 pm
yneone:
Referring to her real name in your comments will help this specific page come up higher in search results.
Then she might shut up.
Keywords: Prlinkbiz, *****, No Limits Ladies, nolimitladies.com, *****
***** edited by Casey: sorry guys but out respect for people’s privacy I will not let real names on the blog without their authorization. Publicly known aliases are OK of course.
November 12th, 2006 at 4:38 pm
Wow, I can’t wait to see what happens next. I really can’t believe how fast things are falling apart for you. Turn in the keys, give up on real estate, and pray that you don’t end up doing time.
Seriously, no one, I repeat NO ONE is going to loan you money for RE investing in a good market, much less a tanking market. You bought into it and got burned bad. Learn from your mistakes and don’t repeat them again.
By the way, does anyone else find it ironic that he owns a place in Rio Rancho? Casey, watch “Glengarry Glen Ross” when you get the chance. You’ll get the reference.
November 12th, 2006 at 4:41 pm
yneone,
Wow, you’ve got a live one!!!
Prleechbiz is a loser. She’s got nothing, and her contract is unenforceable under the circumstances. What’s worse, there was no consideration to seal the deal. Casey didn’t receive anything meaningful from her, and Casey certainly didn’t pay her anything for retaining her services.
So, she’s got nothing going for her here, except to show herself to be exactly — the media-w**** -wanna-be she is.
Exactly what story does she have to sell, if Casey doesn’t allow her and her partner to “help” him overcome these problems. Yes, you’re right. She’s got exactly, “Squat!”
But I’m loving your exchanges printed here! It’s a riot.
November 12th, 2006 at 4:50 pm
Who is this yneone character? Is she one of Casey’s split personalities?
November 12th, 2006 at 5:05 pm
mail them the keys.
November 12th, 2006 at 5:09 pm
Jill: while I do read and approve comments throughout the day (on my PDA), I don’t ever post as other people. That would be stupid. The truth is entertaining enough as it is. I don’t want to be stirring up any more controversy by making up fictional characters.
yneone: sorry for editing your comment and starring out Prlinkbiz’s real name. Like I said (I’ll say it again to make it official) I will not allow people’s real names on here unless I have gotten approval from that person. Any public aliases are OK of course. If a person reveals their real name on their public blog, then I will allow their name here as well (for example Ramit of www.IwillTeachYouToBeRich.com).
So, I will allow pretty much any comment here unless it’s OVERLY vulgar, or violates the rule above.
By the way, you can tell my official comments by seeing my picture next to it. Anything else is NOT from me. Even if somebody claims to be me.
I try to reply to comments as I have time but lately it hasn’t been happening. For now I only have time to read and approve them just to keep the conversation flowing. I *am* reading everything you guys post here. However, my response will probably come via a future posts and/or video. If you need to get a hold of me directly/urgently send me an email and give me your phone number.
I will never SPAM you.
Also, under NO circumstances will I ever share your address with any third party. I respect your privacy and will not sell your address or SPAM you. If you ever get anything from somebody who claims to be me, then it’s probably someone who is spoofing my email address. Again, I would be more then glad to talk to you over the phone and clear up any issues. I HATE SPAM as much as YOU do.
Thanks for everybody’s participation once again.
November 12th, 2006 at 5:15 pm
I guess the auction can’t be too much worse for this lender, so there: Take it or leave it. If you can’t take it, I guess you get to leave it!
November 12th, 2006 at 5:32 pm
More description of the mechanics of your situation, like this please. This is fascinating anecdotal evidence of the housing market crash. There’s no bottom in sight. The buyers are pulling in their horns, and the lenders are too stubborn to take what they can get … and would rather take their chances on the future.
Casey, can you please provide more detailed information about your lenders, so I know which companies are on the road to abject failure like yourself. I know that I saw a Countrywide envelope in that picture of your mail awhile back. They may be the greater fools, since they’re not taking the money while they can. The problem for Mr and Mrs Serin is that the lenders are going to put all the liability on your backs. They can afford to be fools on your dime. Unfortunately it goes into the debit column at this point.
I don’t think a single one of your houses will sell before the end of the year, and they all appear in danger of foreclosure. Next spring is going to be a cavalcade of forced sales in the housing market, and that supposed floor is going to open a trap door. I agree with Nouriel Roubini that we’re only about 1/3 of the way in to the collapse of the housing bubble.
November 12th, 2006 at 5:35 pm
Catherine,
You are confused:
“I am confused here, because if it is a brokerage office the lender goes back to them and attempts to force them to buy back the loan. Usually the broker then contacts the agent that sold you the house and they work together on trying to help you unload the house”
The lender forces the brokerage office to buy back the loan?
The agent and the broker work together to help unload the house for no commission, because it is upside down?
You are nuts.
November 12th, 2006 at 6:14 pm
yneone,
Thanks for posting the Prleach’s emails to you. They were priceless.
PRleachy states:
“What exactly did I gain?
I had no agenda, what exactly did I leach off him?”
She states she gained nothing, but she won’t void the contract she signed with Casey. Sounds like she expects to gain something or else why not void the contract as requested?
PRleachy: if you signed on to make money fine.
But when you state “I signed on for hard work because I saw potential to help a lot of people”, and try to hide your financial agenda it smells stinky.
This blog beats any sitcom or soap opera.
Still hooked,
Cheers
November 12th, 2006 at 6:15 pm
when the housing market was going up I would say to people, “that’s not a realistic value based on cashflow return , rentals, etc.” They would always respond… “The realistic value is what somebody will pay!”. Now the market is spiraling down and you say “The realistic value is $40k more than somebody is willing to pay!”
November 12th, 2006 at 6:23 pm
So you’re not yneone…too bad. It was just starting to get interesting again.
There’s a simple way out for you now: mail the keys to your lender(s). Your credit is already trashed. There’s no other way out. Think of the relief of not worrying about it anymore.
You could sleep at night again. That is, until a phone call from your numerous credit card companies calls and wakes you up. There’s a solution for that too: declare bankruptcy, or go to a credit agency that will negotiate your bills to 10 cents on the dollar.
That leaves your tax bill. There’s no easy way to get out of that without a lawyer. You can maybe get the tax bill reduced, but some will have to be paid off.
I would guess the total you will end up paying for your credit cards =15k + taxes/write-offs from bad loans=150k. You can get the amount spread out over many years to pay off. It will be like a mortgage payment for a house you never live in. Maybe that constant bill every month will remind you to be more frugal in the future.
November 12th, 2006 at 6:28 pm
I worked Casey over with some graphs and analysis, so I did the same for TheHousingBubbleBlog.com and got a couple of surprises. Their traffic and interest is also declining -
http://www.realmeme.com/roller.....e_analysis
End result - I don’t think this market is close to bottoming yet.
November 12th, 2006 at 7:22 pm
“That’s because the After Repair Value of this property is realistically 260 or so”
How many billion dollars in ARM adjustments will happen between now and when the repairs are done?
How many more new construction homes will be completed?
May only be worth 150 by then.
November 12th, 2006 at 7:26 pm
I can’t wait to see the dead-cat bounce in housing prices, which will finally gull all those amateur “investors” into losing the rest of their money… before the REAL crash sets in. My opinion (as a potential first-time buyer who makes mid-$100k’s and is shut out of ever buying a home in SF) …. we have a long, LONG way to go down from here. I’m thinking all the way back to year 2000 prices.
Enjoy! I’ll be touring open houses starting in 2009.
Until then… I just love watching the train wreck in Sacramento unfold. Keep the good stuff coming, Casey!
What will your requiem be, come the new year when you’ve finally been foreclosed on all 4 properties and stripped of every shred of hope and dignity? (Perhaps we can help brainstorm now) … I see an image of you, out in the cold January rain, looking miserable, unshaven and soaked, still wearing that blue shirt. Perhaps your crappy car will be the backdrop, filled with what remains of your personal possessions? Perhaps you’re standing on a highway overpass, contemplating the end… or the picture is taken behind a razor-wire-topped fence, to symbolize how you’ve become a prisoner of your debts to the IRS….
What do you think?
November 12th, 2006 at 7:31 pm
“Prleechbiz is a loser. She’s got nothing, and her contract is unenforceable under the circumstances. What’s worse, there was no consideration to seal the deal. Casey didn’t receive anything meaningful from her, and Casey certainly didn’t pay her anything for retaining her services.”
If, as some here speculate, Casey offered to let her and her associates market his story in exchange for connecting him with mentors, Kiyosaki, etc., then it doesn’t matter if Casey decided to not avail himself of what they offered. A contract is not nullified if a party chooses not to partake of what it was offered. This is “1L,” folks.
And, contrary to what some here say, if something like this (we don’t know the details, so we are only hypothesizing) was the contract Casey signed, then Prlinkmtzplk, or whatever her name is (her screen name reminds me of the character in “Superman”), **does** have something of value. She has a piece of the media rights, if this speculation is correct. And the contract is very likely fully legal. (It’s a silly notion brought on by t.v. that signed contracts are worthless.)
The fact that Casey signed this deal, then got buyer’s remorse, is not something the law recognizes. If this hypothesis is correct, Prlinkmizpliktz gets a say, and presumably some bling-bling, in how this story gets sold.
If it does, of course. I sense interest is waning.
In any case, Prtmlintziplik, or whatever, merely needs to sit tight on this contract, if this scenario is correct. If Hollywood and publishers show no interest, she and her associates are out nothing. If they do, then Prlinkbizmpltplik will be obstacles to a free and clear title, and so they will get some payoff. (If nothing else, just to satisfy the “title insurance” for the book deal, the t.v. deal, whatever. Casey should’ve thought this out before signing his media rights away, even partially.)
Which is as it should be. Casey signed a contract. Whether he later decided to not cooperate does not mean that the contract is nulllified.
And I agree with some here that holding Casey to this contract, whatever it may be, is good in general. Casey needs to learn about honesty, contracts, and responsibility.
–Tim
November 12th, 2006 at 8:06 pm
Now we are getting somewhere…….
Casey, there is no doubt about it, your houses can’t float, but this blog is great entertainment and I actually have learned things over the past 6 weeks.
I have a sister that worked as a police officer for many years and she constantly told us great stories that always ended with, “I couldn’t make this stuff up.” This blog is a testament that truth really is stranger than fiction. “This stuff is gold Jerry, pure gold.”
Now that the video/webcams have been unleashed, how about a boxing match between “yneone” and “prlinkbiz”, or how about a boxing match between “rich dads son” and “screech” ( from Saved By The Bell).
I’m still hanging on for advise on how to market www.lsdblotterart.com I know you have to have some good ideas. Hang in there Casey, this blog is golden.
November 12th, 2006 at 8:28 pm
My friend,
Things are only going to get worse for you….have you thought of what your IRS 1099 is going to look like? Did you think it was so easy to make a high risk-free income as an investor with minimal skill and experience? Based on your writing and speaking skills as demonstrated on this site, I suspect you have the aptitude and background to obtain a decent full-time job which will earn you $40-50k/year. Middle-class skills, middle-class income. Save some of your money, invest it judiciously, get more education, and you can move up the economic ladder over a few decades like most other people do.
November 12th, 2006 at 8:32 pm
yneone: Jesus F– C–:::
GET A LIFE!!
IMO. prlinkbiz was trying to help our favorite idiot.
Quit obsessing about her. She’s been intelligent and professional enough to no longer blog about her well-intentioned, but ill-fated encounter with the foolish child. PLEASE don’t pollute this forum with your stupid obsessive comments!
November 12th, 2006 at 9:20 pm
I meant advice, not advise.
I actually think I have lost several IQ points from hanging out here over the past 6 weeks. Next thing I know I will be saying I don’t want to loose any money. www.lsdblotterart.com
November 12th, 2006 at 9:40 pm
Casey, how did you manage to spend all the cash back from these deals and also 140k on credit cards? That’s over 1/4 million dollars.
I’m curious where it got spent? How much was put in the homes and how much was spent on playing around(i.e. seminars and travel)?
I’m also curious what your expectations were when you started this mess. How much income did you project you’d be bringing in?
November 12th, 2006 at 9:43 pm
Jim,
“What do you think?”
I think you’re a meathead. That’s what I think.
Max
November 12th, 2006 at 9:44 pm
lsdblotterart,
Casey doesn’t owe you advice on how to market your site. You owe him for letting your free advertising go through. High marks on slipping that one through.
November 12th, 2006 at 9:47 pm
re: prLEECH
Wow, she’s more messed up than I thought. She was just trying to help out of the kindness of her heart, not wanting anything for herself? Yeah right! Is that why she rushed Casey into signing a contract and then played hardball on him?
I’m starting to believe she’s some sort of mental case. She got exposed and people rightly see right through her. No matter what kind of spin she puts on things now, the cat is out of the bag.
November 12th, 2006 at 10:26 pm
Are you dumb or just stupid?
I can’t decide. I check your blog occasionally just for the entertainment value. I predict you will stop posting soon, when the value of this blog is overwelmed by reality. Good luck fool.
PS I don’t hate you, buy it is people like you who have driven California real estate prices out of the reach of the real people, people who go to work everyday to support thier families and thier children. Thats right, you are taking security from Californias children, and in your immediate future you will pay, oh yes you will pay.
November 12th, 2006 at 10:29 pm
I dunno. Yneone shares a lot of characteristics, such as obsessiveness–and spelling mistakes–with our dear lad. And what better way to trash PRMallShoppingCart and get away with it?
Look, the woman was only trying to help. You shouldn’t have signed anything unless you were absolutely sure, “yneone.”
November 12th, 2006 at 10:43 pm
“I actually think I have lost several IQ points from hanging out here over the past 6 weeks. Next thing I know I will be saying I don’t want to loose any money.’
Like, you won’t loose any money if you take education, like, classes from the mentors. They can teach you how to wholesale properties and not have to work a cube job, which is only for loosers.
Get a blue ball to bounce on, a copy of “Extra Rich Dad, Even Richer Son” (order on December 3rd…I don’t loose a commission by telling you about this), and be happy!
Like, loose your looser spirit!
–Guru Tim
November 12th, 2006 at 11:49 pm
jjr:
There is always an end in sight — it’s when other investors feel the deals are worth it. i.e., the rent pays the mortgage, the deal makes sense over the long, etc.
I attempted to construct a graph showing fair value based on rent and annualized appreciation over 100 years and the best times to buy were always when the fair market price reverted to a sort of “mean” price that was adjusted for inflation.
November 12th, 2006 at 11:52 pm
“Is the real estate market that bad?Has a $330,000 house gone down to a $170,000 house?”
$170k is actually what the house sold for in 4/03. As others have said, its likely that a correction will take prices back at least as far back as 2003, but possibly as far as 2001 (mid-1990s if the collapse of RE triggers a major recession).
Look at the pictures of that house. Aesthetically, its in horrible shape. All of the floors need to re-carpeted, the bathroom fixtures should be replaced, and the kitchen screams out 1970s era white trash (even after the remodel efforts). Beyond that, it looks like there might be foundation issues. The yard needs major landscaping work (I drove by it on Friday and it looks much worse than the pictures). The house could also use a residing. To top it off, the schools in that area are absolutely horrible. About the only thing that the home has going for it is that its not in a high risk flood area.
No way that POS should sell for anything approaching $200k. $150k seems perfectly reasonable to me (a bit high, if anything). Why on earth did you ever think it was worth $330k (or $280k if you subtract the $50k in cash that you stole at closing)?
What I’d like to see is a post where you explain the decision-making process that you undertook to decide to buy this property for $330/280k (and the others). What market inefficiency did you think that you were exploiting? What have you learned about RE since this past March that you believe will enable you from making equally foolish investments in the future?
You said that you created this blog to help people from making the same mistakes as you have made. The natural place to start is by seeing your reasoning behind buying these places in the first place.
November 13th, 2006 at 12:30 am
Casey you are a colossal loser and a specimen to laugh at. Thanks for sharing your pathetic story with the world. We all think you are one stupid jackass. I find it amusing, especially your clueless outlook on life. No wonder you are such deep debt, it is because you are stupid and you are too stupid to realize it.
November 13th, 2006 at 12:34 am
Hey Rodent, I read your post and I wondered about job opportunities in derivatives. drop me a line alianza_777 at Hotmail
November 13th, 2006 at 2:17 am
Casey says:
yneone: sorry for editing your comment and starring out Prlinkbiz’s real name. Like I said (I’ll say it again to make it official) I will not allow people’s real names on here unless I have gotten approval from that person. Any public aliases are OK of course. If a person reveals their real name on their public blog, then I will allow their name here as well (for example Ramit of www.IwillTeachYouToBeRich.com).
Does this count?
http://ezinearticles.com/?Life.....;id=288796
November 13th, 2006 at 3:31 am
As Casey admitted, he bought this house because he was able to get the $50k cash back (and did similar on some of the other properties). So he’s got $50k cash money for his trouble on this one. Mail the keys back and thank you very much Mr. Banker.
Note that the bank(s) package these mortgages and usually sell them to a federal agency like GNMA. After an early foreclosure, GNMA comes back to the bank for a refund, ie, reverse the mortgage purchase. So the bank is then stuck for the loss. Casey will have to declare BK because the bank(s) will be after him absolutely. But because the scale of his fraud is pretty small (isn’t organized crime) he probably isn’t facing jail time. Just torture by collection agencies.
November 13th, 2006 at 5:11 am
YAWN…
ooh, I just woke up from another nap in a warm spot.
This is getting better and better! Might have to skip my next nap to see what happens next… maybe a video grudge match between yneone and prlinkho - stripped down to their panties & bra for a tickle-fight!
oh, Casey… “I hear that train a-comin’…it’s runnin’ round the bend…”
November 13th, 2006 at 6:59 am
Wow.
Too lazy to even clean it up or mow the grass. Yeah, that house will move quick.
Just Wow.
November 13th, 2006 at 7:24 am
By pushing through these “short” sales you are only hastening your own demise and pissing off the lenders with your stupidity. You have a better chance of walking away unscathed if the lenders feel they are dealing with another faceless loser. Just forget about the properties altogether, stop meddling in the foreclosure process. Walk away before you make the wrong person angry.
November 13th, 2006 at 8:03 am
Panda,
“I dunno. Yneone shares a lot of characteristics, such as obsessiveness–and spelling mistakes–with our dear lad. And what better way to trash PRMallShoppingCart and get away with it?”
Yneone also means “I’m not the one” in garbled Russian/English.
Hmmmm….
November 13th, 2006 at 8:11 am
Rodent, stop blaming the industry. The problem is people who cant control their spending. People have been using their homes as ATM’s instead of learning how to save for things. While this is great and helped the economy, we went a little to far. By the way 10% on a 2nd lien(obviously fixed) for a first time borrower is a good rate. Please learn about the industry before you make idiotic posts. Stop blaming others
November 13th, 2006 at 8:59 am
This might make you feel better. Well, at least not quite as lonely !
http://tinyurl.com/ybpr3d
November 13th, 2006 at 9:08 am
Man your income taxes are going to be crazy. ::shuders::
November 13th, 2006 at 9:13 am
I have a Mac SE with a lighting fast 8mhz CPU and a whopping 40MB harddrive, originally purchased in 1990 with 2MB of RAM for $1699 plus tax
i upgraded / “fixed it up” to 4MB of RAM
I upgraded it from os6 to os 7.2
I realized now that i actually paid $200 over MSRP for the base system, but since i did some improvments, im holding out for no less than $1600.
any takers?
i dont care what people are willing to pay for it today,
i only care about what i paid for it when it was at peak price,
and Im interested in covering my costs & taxes incurred, at least can i break even, i dont understand why someone wont buy it for $1600, i tried ebay, maybe ill make a blog!?!?!?
November 13th, 2006 at 9:53 am
The people that are worth their salt in real estate investing are sitting patiently right now, waiting for prices to get where they need to be. The smart investor does not mind waiting, 1, 2, 3 years if necessary, whereas the seminar morons rush right out to get the deal going.
I have multiple properties, purchased as far back as 1995. They have low interest fixed rate mortgages and were purchased with 20% down and the rents cover the expenses. Appreciation is a bonus, and a good bonus I might add. The smart people keep their powder dry and credit scores high.
November 13th, 2006 at 10:27 am
you should check out http://www.mortgagefraudblog.com/
there are many stories similar to yours there, interesting reading….
November 13th, 2006 at 10:42 am
>By the way, does anyone else find it
>ironic that he owns a place in Rio
>Rancho? Casey, watch “Glengarry
>Glen Ross” when you get the
>chance. You’ll get the reference.
THE LEADS ARE WEAK?
YOU’RE WEAK.
November 13th, 2006 at 11:45 am
You want to know what it takes to sell real estate? It takes BRASS BALLS to sell real estate.
Casey, you do not have brass balls.
Remember - A-I-D-A. Attention, Interest, Decision, Action. Attention - Do I have you attention? Interest - Are you interested? I know you are, because it’s f*** or walk. You close or you hit the bricks. Decision - Have you made your decision for Christ? And Action.
November 13th, 2006 at 11:51 am
Casey, you should thank your lucky stars you were born WHITE.
I am looking at the http://www.mortgagefraudblog.com/ and I see many people charged with fraud doing the same things you have done.
The only difference is that they have obvious hispanic names, or african-american sounding names (Taisha, Janice). I even saw someone on there with an obvious asian name (Chen Wang).
I see a native of Guayana (South America) being charged and deported back to his country. No European or Russian immigrants though.
There are other normal anglo-saxon names, but I bet you they are so-called “rednecks” (I hate that term)… poor whites without money or connections, or blacks with those names.
Thank your lucky stars you are a WHITE MIDDLE CLASS… you won’t be seeing jail time anytime soon… although you are as guilty as the rest of them.
Do you think this is fair, Casey? Do you think you deserve special treatment?
I don’t hate you Casey, I just hate this system. You should name names, point the finger at those corrupt lenders, go to the prosecutor, and cut a deal right away.
Because the only reason why you haven’t yet been charged is either because the system really is as unfair and biased as some claim, or they are planning something REALLY special for you… a la HUGE media trial.
November 13th, 2006 at 11:53 am
what to do? panic!
November 13th, 2006 at 11:59 am
Your current mess aside, I think this latest post shows you getting closer to getting in touch with reality.
I think you really need to familiarize yourself with the concept of sunk costs:
http://en.wikipedia.org/wiki/Sunk_cost
As many responses have said, the market doesn’t care what you paid only what the current (perceived) value and trend are. If you cannot find a buyer that will satisfy the lenders, then you need to look carefully at the other options.
What do you see as the relative merits of DIL, Short sale with a personal note, and letting it go to foreclosure?
PS. Another tip on English: if “then” is a different word than “than” then it is worth knowing the difference.
November 13th, 2006 at 12:13 pm
THE BROWN GRASS AND GUTTED ROOMS MADE ME THINK OF THIS ARTICLE
http://www.csmonitor.com/2006/.....-wmgn.html
1. Price it right.
Even in today’s climate, a home can generate quick interest, even a bidding war, if it’s a bit of a bargain.
“It’s all pricing,” says Kenneth Hawkins, who has seen four real estate downturns in his four decades selling homes in Milford, Conn. “The new ones on the market draw the most attention, and if they’re priced competitively - maybe even a little bit below [the market] - that’s the incentive for people to buy.”
Don’t “test the market” with a high price, experts advise. If the home languishes on the market, you’ve lost time and a price reduction may become essential. Too high a price also will lose the added foot traffic that usually comes with a new listing.
2. Use incentives with discretion.
Sometimes special enticements do draw traffic to your home. But many brokers say they’re a peripheral factor. It’s the home itself and the price that will be most important for buyers. Incentives for brokers, such as adding a bonus to their commission, may help, but it’s the buyer who calls the final shot.
3. Aim for pristine condition.
Some flaking paint or clutter might have been OK to buyers in 2004, but not now. “They won’t accept odors and they won’t accept dirty carpet,” says Warren Robinson of Robinson Group Realtors in Durham, N.C. “This year, it is a big deal.”
Calling in professional “stagers” to redecorate key rooms is one option, but sellers can take many common-sense steps on their own, such as giving rooms a fresh coat of paint and removing excess furniture.
4. Beware of flying solo.
A “For Sale by Owner” listing allows sellers to avoid the hefty commissions that real estate agents charge. But an agent can provide help with pricing, advertising, negotiating, and even courting other brokers to bring in additional potential buyers.
“Networking becomes much more of an asset” in this market, says Wasielewski in Medway, Mass.
5. Take a deep breath … and negotiate.
Even after sellers have made the wrenching decision to lower the listing price and offer other incentives, buyers are likely to ask for even more concessions in negotiations.
“It’s a very emotional process,” says Wasielewski. Many sellers “believe when they get to the negotiating table that they have already lost” and don’t want to give up more money.
Even so, having an interested buyer is a precious thing in today’s market. You don’t want to concede everything, but some flexibility may keep the buyer from walking away.
November 13th, 2006 at 12:35 pm
http://flickr.com/photos/serca.....282224078/
Something looks very off here…like not only is the floor cracked, but it looks like either the window is crooked or the floor is sloping.
Why didn’t you use 10K out of the 50K that you got back for some repairs? At least some carpet and a good clean…did you buy it in this condition or tear up some of it on your own?
November 13th, 2006 at 12:37 pm
What did you do with all that money you pulled out of these various house deals (cash back deals) ?
November 13th, 2006 at 12:54 pm
ABLE AND FINCH.
COME CLEAN CASEY.
You have NO problem “bearing your soul” on everything ELSE.
November 13th, 2006 at 12:56 pm
fijirobe:
It’s a good rate now, but it wasn’t a good rate then. And the industry is screwy and to blame. What’s my reasoning? Casey! He should never have been able to buy as much as he did.
Quit defending your moronic industry. You’re basically going to bring more regulation upon yourself and screw everyone in the process. If the industry were more self-regulating and more judicious about lending, everyone wouldn’t have to worry so much. Really, it was “creative financing” that caused that run up in real estate in California.
November 13th, 2006 at 1:03 pm
What you are missing is that in this day and age, sadly, almost no frauds get prosecuted. They just don’t have the resources to go after them unless it is $100M or more stolen. The crooks win. It must be a huge, systemic fraud, to get anyone to care. The system is set up, similar to our health care system, that those who pay their bills make up for those who don’t. We all pay. Therefore, playing it straight doesn’t pay as much as being a crook.
November 13th, 2006 at 1:06 pm
You might as well walk away from all these houses, turn in the keys to the bank. I guess you have to wait for the forclosure process on each property and all the way you will be responisble for more and more taxes to the govt as i understand things. You are hosed on these properties, you bought at the all time highs, just like fools did in 2000 for the stock market. just move on you are not a good investor…maybe you should invest next time in something at 20 year lows….then you might have a chance! better yet, go back to your IT and file bankruptcy!
November 13th, 2006 at 1:08 pm
Panda - I’ve been using the nickname “yneone” which began innocently as my first & last named combined. Seriously. I am not Casey.
I’ve been blogging (here) for a few weeks now because i’m interested in real estate (we own our home) and I am interested in this story. There is obviously a lesson one can learn here, so I’m staying to see how it all unfolds. I’m still hopeful that Casey will be okay, but am also concerned about his health (as I said in previous post).
PRLeech (am now spelling this correctly), contacted me. She reached out to me sending me an email to my personal address. I did leave a message at her blog but was invited to do so. I did not expect to hear back from her and since she has been a topic of discussion, I felt it was necessary to let everyone know. It sounds as if she does have a conscience afterall and I hope I succeeded in making her think about the consequences of her actions. And, believe me…there are consequences. Women (unfortunately) cannot do business with di*** between their legs. For women, business has to be conducted thoughtfully and without much fanfare. Otherwise, we are “labeled” and people will fail to want to do business with us. Its the way of the world. This is why we, as women, have to be extra careful about the way we do business. Unfortunately for PRLeech, she’s been heavily influenced by RK and his cronies.
November 13th, 2006 at 1:32 pm
Abigail asks:
“Why didn’t you use 10K out of the 50K that you got back for some repairs?”
According to Casey, the money is gone……………………
What exactly did you spend all that money on ????????
November 13th, 2006 at 1:44 pm
Rodent,
The condo you lived in was not an investment for you. You are confused by the difference between and asset and a liability.
———-
Your blog makes sense insofar as you stayed out of real estate investing, but blaming the banks and mortgage companies for not regulating themselves and making victims out of Casey at the same time is absurd. Everyone is responsible for their own actions — even banks.
The point you should have made is that you are not a real estate investor. Your personal residence was not a true investment.
Just add up all the principal / interest / taxes / insurance / upkeep you paid over the course of your ownership and subtract that from return you really received. At best you got “free rent.”
No, you were not an investor. You were a homeowner with enough appreciation in your home to cover some of your living expenses. That’s not what investors do.
A true inevestor is someone who owns something being paid for by someone else. The test question for a successful investor then is how much money is left over after the renter pays for all the expenses, and the taxes are paid?
That sum is what separates the sheep from the goats.
The house you lived in was the BANKS ASSET, not yours. THEY were INVESTORS in YOUR house so THEY can make a PROFIT off of YOU!!!!!!!
Amateurs get confused by this.
November 13th, 2006 at 2:07 pm
This is my first visit to this guy’s blog.I am familiar with his story from other sources.I suspect that Mr.Serin is a true con at heart, and is using this blog to parlay his way into a future payday with a book,or made for TV or cable movie……
If he is ever charged and convicted of mortgage fraud then his citizenship should be stripped, and he and his family should be deported back to his country of origin.
aguho
November 13th, 2006 at 3:18 pm
Joseph:
What you’re missing is that cases need witnesses. If lenders are not complaining about being defrauded, then not much will happen.
I can see many lenders, especially those who ended up selling too much “D” paper to investors who expected “A paper,” not exactly stepping up to the plate to get on that witness stand.
Did anyone call the cops? While prosecutors don’t require that a case be “handed to them” by the police, that means they have a whole pile of work to do investigating their own case.
That means research, subpoenas, etc. A lender who fights turning over evidence or fights a summons because it might be embarrassing to them just makes the whole thing even more complicated.
You all can go on and on and on about, “Hey! He admitted it on his blog!” But a blog is just an “exhibit.”
Or, look at it this way.
Day 1 of trial:
Prosecution makes opening statement.
Defense makes opening statement.
Judge: “Mr. Prosecutor, you may proceed. Call your first witness.”
Prosecutor: “Your honor, the prosecution rests.”
No complaining witnesses = damned weak case.
November 13th, 2006 at 3:22 pm
“Honesty, I was just focused on the 50K-at-close carrot. That’s one big carrot! ”
If this is really the case, and you really can make a case of it … and your foreign background etc will probably come in very very useful at your araignment … You can sorta deflect blame on to Charlaton S**** … he always in the dman infomercials I have seen talks about how you walk away from the closing table with cash in your pocket … That seems to be the basic proof that his ‘System” works. Like WTF … its no freaking use if you have 50,000 in your pocket at closing if you owe 3,500 bucks a month for the next 30 years, dumbass. As much as you’re going to end up in the slammer … I almost believe you’d never make a high security house like pelican bay … but your testimony combined with the testimony of other failed flippers (believe me there are a few 1000 just in CA) … may just land that a$$hole in the big house. Its Country club white collar for you … hard boiled max security for him … I hope.
Cool.
Cow_tipping.
November 13th, 2006 at 4:36 pm
Casey,
“Investors” don’t buy assets that depreciate -50% + in less than a year.
You’re a failure at American-style capitalism.
Maybe you should flee back to your homeland.
November 13th, 2006 at 5:03 pm
Walt526 wrote:
“This blog and subsequent media interviews were a tremendously stupid idea because he freely admitted to all sorts of knowingly fraudulent activity.”
Yes! When I saw that interview video which Casey openly declares to the world that he knowinly comitted fraud, my jaw dropped to the floor.
I could not help but notice the reaction of the news lady interviewing him.
Amazing!
November 13th, 2006 at 6:55 pm
MrCFO2U said:
“As far as lying on the loan documents…as wrong as this was and it was wrong, the lender still has the burden of doing due diligence and finding any indiscretions. It sounds like they did not do this.”
If the loans were ‘timed’ to hide one from another,(as appears to be the case here) ie; made simultaeneously, the lenders aren’t culpable. The applicant is.
This is akin to applying for a dozen credit cards at once and implying, technically, you have no outstanding credit.
November 13th, 2006 at 7:01 pm
MrCFO2U:
Sorry, didn’t mean to say debt; rather pending credit lines.
November 13th, 2006 at 7:55 pm
Joseph:
Since you don’t know the case you’re talking about, this is still theoretical, but I think you’re confusing a confession with a blog entry.
If someone confesses to someone else, say a cop, then the policeman becomes a witness at the trial. Or if someone confesses to his brother, then his brother is the witness. Then the defense can cross examine that witness. You can’t cross examine a blog post.
What is the prosecution supposed to do? Call Sir Corn Holeo to the stand? Rodent? Mr. Flipper?
Sure, if the prosecutor can find Rodent — and foot the bill for a few plane tickets for a deposition and then trial.
So the prosecutor needs to look for other witnesses to the crime. I know! The lender!
But if the lender is not forthcoming, that’s not a strong case.
I can see it now. “Ladies and Gentlemen of the Jury: I ask you, if Casey did defraud DiBlech Lending, why are they not here to testify to it in court?”
That’s reasonable doubt. Maybe not for you, but it would probably convince 8.33% of the people. That’s 1 in 12. And that’s all you need for a hung jury.
Legally speaking, you’re correct (maybe). Practically speaking, you’re not (probably)
November 13th, 2006 at 8:02 pm
Uh, Joseph,
…murder? You are equating somebody taking out a “liar loan” as tantamount to a murder confession…
Can you say, “Pull your head out!”
November 13th, 2006 at 8:46 pm
They are letting casey spin his wheels, they are his wheels and he might get somewhere … if not, its his wheels. As to the lying on No doc loans, they aren’t supposed to check, after all that is why its a no doc. This year you may make 30K, last year you may have made 230K, those types of people will never get a fully documented loan. That is what they have no doc loans. He lied and abused that. Essentially he has stolen a little from every genuine business owner who may have a legitimate variable income. AKA - mortgage fraud. I’d like to see what happens when the last house is off his books. I’ll bet he’s going to have a judgement awarded for all the shorts … or have a jail sentence for fraud or have it forgiven and have that 200+K he’s shorted them+the back interest payments etc reported as forgiven loans to the IRS. Watch as they bite him for 100K fraud conviction or not.
Cool.
Cow_tipping.
November 13th, 2006 at 9:38 pm
I’m sure there’s at least one creative AG out there who could make a pretty convincing case against these cash-back-at-closing gurus and all the money they will have cost stockholders, lenders, and the government by the time the dust settles - can you imagine a Carleton Sheets (sic) and RK perp walk?????? It would be an all-time classic.
November 13th, 2006 at 9:52 pm
Sorry Cheers .., I have been busy with a life here, but to explain how mortgage back shop operations work is: we do go after the broker or the loan officer when there is fraud. We force the loan problem back on them to help solve. It is this or we work with the DRE to suspend their license. Those of us out here working the backside of the mortgage business appreciate your “nut” reference and are laughing over beers. I know the lawyer from Santa Rosa … we are in the same small town…
C
November 13th, 2006 at 10:25 pm
Well that proves it Catherine. If you know a lawyer from Santa Rosa, you must be the expert.
November 13th, 2006 at 10:28 pm
Just so you meatheads know, Casey is not a criminal and it is highly unlikely he will ever go to jail. Yes, he broke the law, but mortgage fraud is an infrequently prosecuted crime.
Consider the case of Robert Palano, a real scumbag who purposely inflated the value of homes he refinanced, took the money and ran to Florida while leaving dozens of families evicted when he stopped paying the loans. He had 104 properties and his actions blighted neighborhoods throughout Buffalo, NY.
So after an investigation by Elliot Spitzer’s office this jerk pleaded guilty and was sentenced to….1 year in prison.
Now, what do you meatheads think is going to happen to Casey…if anybody bothers to prosecute?
http://www.flippingfrenzy.com/.....raud-case/
November 14th, 2006 at 2:41 am
Young Casey! There is hope for you!
Not only did Palano get two years running concurrently as part of his plea agreement, he also had some priors.
Now Palano at least had the God-given sense to restrict his deeds to one state, which limits the number of prosecutors wanting to take a swipe at him.
Still, he’ll end up serving about eight months after stealing $3.5 million.
The moral of this story: if you are going to steal, steal big.
November 14th, 2006 at 6:35 am
This blog is about your best bet. It seems to generates a ton of traffic and soon or later somebody with $$ will want a piece of this site, offer a book deal or show some interest in helping you with the homes.
Best of luck.
November 14th, 2006 at 8:27 am
there is a good article on the illegality of undisclosed to the lender cash back at closing schemes at…
http://realtytimes.com/rtapage.....ckscam.htm
November 14th, 2006 at 10:50 am
yneone, please save the drama for your mama. We already know Prlnkbiz is a shyster. If she was so altruistic, she would not be holding Casey to a contract he wants out of. We don’t need to see 20 petty emails to prove it though. All it does is make you look like as much of a nutjob as her.
So to sum it up: Prlnkbiz is a looser. yneone, you are a lose cannon. Also, Casey is correct in his grammar, he is merely trying to indicate he and his lenders’ preference to not associate with any sexually promiscuous money.
Casey, excellent job on your blog, not so excellent job on your life.
November 14th, 2006 at 11:40 am
Mr. Flipper, my profit stated was after subtracting everything. Your “investment” distinction is purely arbitrary and meaningless. The only purpose that distinction has is that it allows those of you with more cash on hand than I had to hold extra properties. The advantage of a RE investment is that you can live in it to offset costs if things go awry.
November 14th, 2006 at 2:24 pm
To “Free advice”
You said “think you’re confusing a confession with a blog entry.”.
Casey has done live broadcast saying that he basically LIED to get the loans (liar loans). That’s not a blog
Why do you think that the news media ran that taping? Sure, Casey case is interesting, but it’a a dime a dozen in the news world.
In my opinion what stood out of this story was that here is someone who is in debt 2.2M (no biggy) while stating how he LIED to get that money (BIG EYES OPEN, JAW ON THE GROUND). This caught everyones attention!
Now, you are correct that if banks/lenders don’t press criminal charges, then who will or will it stand in court?
What Casey did has affected lots of people: His loan approval meant someone else got *rejected* (big one); Property values were artificially inflated for entire communities. The lending institutions who lost money becasue of Casey will now have charge more for loans to cover Casey criminal act. The list is endless.
There is much more here than just a “blog”.
November 14th, 2006 at 2:44 pm
Some were asking where the money went. From a post in September:
http://iamfacingforeclosure.co.....age-fraud/
Casey said:
I used the cash for:
Doing the deals - travel costs, fix up costs, mortgage payments, utilities, etc.
Living expenses - since I quite my full-time job in January and didn’t have any other income
Additional RE education - real estate conferences, seminars, home study courses
November 14th, 2006 at 2:56 pm
***Prlnkbiz is a looser. yneone, you are a lose cannon. Also, Casey is correct in his grammar, he is merely trying to indicate he and his lenders’ preference to not associate with any sexually promiscuous money.
Casey, excellent job on your blog, not so excellent job on your life.***
Huh?
Wow, this real “looser” is betraying himself, calling someone a “lose” cannon. Can’t help it, can you?
November 14th, 2006 at 3:42 pm
Rodent,
If you live in it and pay for it; its a liability to you, and an assett to the bank.
If someone else lives in it and pays for it; its an asset of both you AND the bank.
“Investing” in your own home is at best just a notch better than a forced savings acount.
For instance, paying $900k over 30-years, for a $300k house that will be worth $900k IN 30 years, IS no more than a forced savings plan, not an investment strategy.
However, I suggest you keep “investing” in your personal residence, because that’s certainly better than renting. At least you can deduct the some of the costs of ownership from your income taxes, and nobody can kick you out or “raise” your rent.
November 14th, 2006 at 5:34 pm
Joseph:
Fine,
I suggest that whoever got rejected for a loan because Casey got approved file a lawsuit in civil court or file charges.
I suggest that “entire communities” sue Casey or bring charges for inflating their home values. Though they should also charge the sellers because, after all, they took part in this grand conspiracy, too.
And I suggest the lending institutions sue or charge Casey for their losses, even though they’ve passed their losses along to those who were willing to take the risk on Casey.
If you feel so strongly, go to your precinct and file a complaint. Even though it’s probably not in your jurisdiction, they’ll put you in touch with the right jurisdiction.
Then report back to us with the results. I’m betting you’ll find that most people’s jaws are solidly in place. Yours will, too … in time.
November 14th, 2006 at 5:36 pm
Mr. Flipper:
I’m curious.
I’ll accept your notion of what a “good” real estate investment is, but it would seem to me that the best real estate investment is probably a house one wouldn’t want to live in (at least for long).
Do you own your home? If so, why would you? Wouldn’t that money best be invested in something with a higher return?
November 14th, 2006 at 5:39 pm
To Vortex: Thanks for pointing that out - where Casey says he spent all that money he aquired from Banks through fradulant means.
I am totally hook to this web site. Not a day goes by that my Jaw does not drop to the ground.
November 14th, 2006 at 6:49 pm
re: Vortex reply to where Casey spent the money.
I recall that but after considering the total sum of the credit cards and cash-back, it doesn’t seem possible, especially with nothing to show for it.
November 15th, 2006 at 8:47 am
Found this on http://thehousingbubbleblog.com/
Its in the Topic:- Slowdown More Intense Than Anticipated”: Florida
Posted:- Nov 15 2006
“Steven Bartlett, president and owner of the Spring Hill-based Coral Bay Homes, has turned himself into the Hernando County Jail after a warrant was issued for his arrest last week. With more than $1,000,000 in claims from 134 victims, investigators say Coral Bay Homes could be the largest home building scheme in Florida.”
So anyone claiming Casey isn’t going to jail for defrauding 6 banks out of more than $2,200,000 - here is your sign. However I dont quite know the details of that guy, but neither do I know the exact details of casey, but I think its evidence that you can get tossed in jail for making a promise, taking $$ and flaking out.
Cool.
Cow_tipping.
November 15th, 2006 at 12:32 pm
“Free advice” wrote:
“Mr. Flipper: I’m curious. I’ll accept your notion of what a “good” real estate investment is, but it would seem to me that the best real estate investment is probably a house one wouldn’t want to live in (at least for long).
1) Do you own your home? 2) If so, why would you? 3) Wouldn’t that money best be invested in something with a higher return?”
—————-
Answer….
1) Yes, I own my home. 2) I’ve got to live somewhere. 3) Yes, of course I could be invested in something with a higher return, and I am, but since I do have to live somewhere, I have to accept the trade off.
My point is that nearly everyone thinks their home is an “asset” investment. No, its not. My personal residence is a “liability” by defintion; apart from what “Radical” would us believe.
I am 100% for home ownership. I just won’t confuse it as an asset vs. liability.
November 15th, 2006 at 12:41 pm
Mr. Flipper,
How do you feel about RK (Rich Dad)? Because the your definition, “A true inevestor is someone who owns something being paid for by someone else.” sounds just like RK’s “asset is something that puts money in your pocket… house is not an asset…” kind of twristed logic, don’t you agree? By your definition, robbers and thiefs can qualify as investors because they also tend to own things paid for by someone else…kidding of course.
I kind of get your point here. real estate investor buy house with borrowed money (mortgage), mortgage is paid by renter (someone else), and the investor own the property (something).
So clearer definition should be:
Real Estate investor is someone who own a real estate property being paid by renters who is using that property.
i.e. a landlord.
so the short definition is:
Real Estate investor is a landlord.
Let’s assume that the axiom for now. Casey’s mistakes are very clear, 1) He did not buy the property for the purpose of renting them out. 2) He didn’t try to rent them out when he got stuck. 3) He has no other financial means to live.
Casey’s solution is simple, rent them out or walk away and get a real good paying job (not a realty job, pay sucks)
There is no short cuts in life, even if web traffic are huge on your website unless you are going into entertainment or ad industry
November 15th, 2006 at 1:23 pm
Radical,
Where to start?
“Superior mentally…financially…”
————-Uh, no, not necessarily.
“Insulting and belittle(ing)”
————-I think fighting fire with fire is appropriate in each case, especially in the defense of someone else.
“So what? He’s a speculator, not an investor.”
————-That’s been my point in several blog entries; knowing the difference. In my case I do both, I invest, AND I speculate.
”Just say ‘No!’ to drugs!’ Is this comment really necessary?”
————-Yup. Only a person on drugs would be suspect of a “professional” investor/speculator whom actually establishes a corporation/company to do business under. That’s a no-brainer. But now that I think about it, maybe instead, he’s a retard? Or maybe he’s a retard on drugs? I’ll go with either, or both.
“Can you say, ‘Pull your head out!’ [For a self proclaimed successful businessman, I must say I find some of your language and statements rather…low class.]”
————-Sometimes ya just have to communicate at the level of whom you are talking to.
“I know you really couldn’t care less what I think, but I believe a lot more people would respect you.”
Repect is a fleeting and relative thing. Those who don’t get my points won’t offer me any more or less respect. But the ones that get my points respect me for my points, not my style.
Meantime, I respect your well-stated comments.
November 15th, 2006 at 5:14 pm
BT98,
Yeah, RK agrees with me on the point that “assets put money in my pocket”, liabilities take money out! (ha!)
You didn’t ask about this, but apart from the fact that John T. Reed leads many astray, and grossly misses the point surrounding Robert Kiyosaki’s “mechanisms” for communicating his ideas about financial literacy, and tries to undermine his credibility regarding his background, I find RK an invaluable source of information; and I find John Reed to be a neanderthol(sp?) in regard to RK.
RK isn’t the best writer, and even says that about himself. However, throwing the baby out with the bathwater as Reed does, is unfortunate, short-sighted, and again misses the point of RK’s books.
—————
You didn’t ask me about this either, but let me make a finer point on “investing” vs “ownership” of RE.
The government and financial instituations of every stripe and nature keep propping up the myth among people like you and me that our houses are “assets”, because they know that we’ll take better care of what we think we “own” and are more willing to cough up tax money in return for letting us think we “OWN” a peice of the rock, as it were.
Unfortunately real estate ownership is a myth! Yep. NO REAL ESTATE BELONGS TO US — EVEN IF ITS FREE AND CLEAR OF LOANS. We only control it temporarily. And I don’t mean “until death”.
No, we only “RENT” our property from the government. What’s that mean, you might ask?
Our “rents” come in the form of property taxes. And these rents never stop. Ever. And they always goes up! And you’ll always pay them — or else!
Let’s say you stop paying “rent” to the government for a period of time. They will auction their property off to someone else who is willing to pay the rent. This happens all over the United States every single day. What’s worse is that govts. sell these beauties at a reduced price in order to entice “investors” to buy them in return for a hefty guaranteed returns. So if the rent isn’t paid, the government holds an auction and sells unpaid recievables (tax/rents) at a discount to investors who just have to wait til the property is sold or foreclosed on by the govt. What a racket!
Does this make sense? Property taxes are rent payments that we must continue paying in return for the govt. allowing us to believe that we “own” the property. Nobody owns land. We can only “rent” it.
Finally, the rub is that people will borrow hundreds of thousands of dollars in return the “priviledge” of “renting” land from the government for endless years, all while propping up the myth among the unsophisticated that they are somehow “home owners.”
What’s even worse, if you think about it, is that the BANK may temporarilty OWN the building, but the GOVT. always OWNS the land! So if/when you finally get a “clear title” to the building, you never get “clear title” to the land.
I hope that is helpful in strengthening my point about “ownership” vs “investment” and your point about “RK”.
November 15th, 2006 at 9:04 pm
Mr. Flipper:
Let’s say a state decided to increase income or consumption taxes and stop levying property taxes.
Would that make real estate in that state an “asset” again?
November 16th, 2006 at 1:15 am
Free advice asked:
“Mr. Flipper:
Let’s say a state decided to increase income or consumption taxes and stop levying property taxes.
Would that make real estate in that state an “asset” again?”
Yes, potentially. I’m praying for either of those scenarios you outlined would happen, instead of property taxes! I hate the idea that I can never really own a peice of property in the true sense of the word.
November 16th, 2006 at 1:25 am
Do they have myspace in prison??
November 16th, 2006 at 2:41 am
Sir Cornholeo:
I googled “Finch Properties” and “Able Buyer” w/w/o “Serin” and “real estate” and nothing interesting came up.
Got any links to the action?
November 16th, 2006 at 8:22 am
Who was the appraiser? He should be barred from the industry for life.
November 16th, 2006 at 9:24 am
Sid,
Go to the Placer County, California Clerk’s website and look under Fictitious Names. You will find it there under “Serin.”
November 16th, 2006 at 3:25 pm
i just read all the comments in this area from top to bottom. i think the best appellation for mr. serin is “blithe spirit” — good for him!
and i would like to continue with the observation that a 330k sale with 50k cash back of what is at arithmetically best a house with a value of 280k (obviously not, even at the peak) is fraud perpetrated by the buyer, the seller, the appraiser, the loan officer, and probably the settlement agent. and let’s throw in the listing and selling agents as probables too.
what i’d like know is who is the counterparty of the credit default swaps on the securitized pools of 2nds in 100% loans. every foreclosure i see the 2nd is wiped, bar none.
and, this is all fiction, right?
November 16th, 2006 at 9:38 pm
“DCREAL”
I think I can answer your question about the seconds being wiped out….
Many, (all?) of the 100% financing, 80/20 mortgage packages are being offered by the same institution. For instance, Countrywide sells 80/20 loans in which they are the first and second lien, but they typically re-sell their loans to various entities, of course depending on various requirements of the buyers. So, really the original lender has most (all) of the money back plus a small profit - including the seconds they made.
This fact alone is one reason I believe we see statistically zero prosecutions for fraud, because the original lender is out of the deal by the time it goes bad; the loan buyers already calculated their risks and accepted the qualifications/procedures with which the originating bank loaned the money; and finally have nobody to blame, but themselves if the loan goes belly up.
This doesn’t take into consideration the insurance that covers these 100% financing loan in the first place — taking the risk completely out of the equation for any of the lenders. It’s a racket. That’s the main reason these banks make these stupid loans; the risk has been greatly, if not completely removed.
November 17th, 2006 at 3:07 pm
i wnt to see the girls fight more…..and prlinkbz..i wouldnt show the contract either its no ones business …Casey has a knack of finding saviours …but quite frankly he dosent deserve or need them ..i hoe the contract will have a few juicy bits that will teach him a lesson for many years to come ..
November 17th, 2006 at 3:12 pm
why are people complaining about the contract ..if he signed well his responsible,it seems to me casey has this idea that he can talk his way out of anything and as such never takes anything as serious as he should and he is still not learning …a contract is a contract and why should it be ripped up..if he signed with me ..i wouldnt tear it up becuase he changed his mind “after signing” i would ensure a return on my investment ..whatever resources i may have put in it.
November 18th, 2006 at 12:03 pm
Maybe this guy has some ideas: http://www.stop-foreclosure-manual.com
December 11th, 2006 at 8:59 am
They will have to wait probably 5-10 years before the market recovers to refinance at 330. Lesson… I should have never done this deal with 100% financing and juiced up all the equity via cash… Post by: Larchmont Sacramento 1st Lender Won’t Go Below 240 on a Short Sale Pages: Start 1 2 3
March 18th, 2007 at 8:51 pm
Funny thing is that when I got there I thought maybe some of the “fans” might show up. Well, actually one of the people who tried to buy Larchmont during the short sale was there. He is the guy who offered 220k but the bank wasn’t willing to go down that low on a short sale at that point. My agent eventually got the bank to accept that price (as long as I sign a 50K note) but the buyer got tired of waiting and moved on. He has been reading my blog too. He saw a newspaper article about me shortly after he made that short