January 5th, 2007 7:58 pm
$50,000 Promissory Note to Makeup the Difference on a Short Sale
That’s the only way the Larchmont property first position lender will accept a short sale. Just signed it today… My super-persistent agent lady had to really fight for this one. Lets hope the buyers don’t back out.
232 Comments
January 5th, 2007 at 8:28 pm
Of course you signed it. It won’t cost you a cent. It’s not like that was actually a check or something.
January 5th, 2007 at 8:29 pm
Hi Casey,
It looks like you been active in trying to get some of those houses sold. You should keep us more up-to-date on that.
For the promissory note, do you intend to pay it? Do you think you’ll be able to sell the property before the first payment? Will it make any difference if you file for BK?
Also, how is the wrapped/unwrapped UT property going? Have you made any progress in unraveling that situation? What has the investor/flipper for that property been doing? Is he close to a sale? Have you been in contact with him?
January 5th, 2007 at 8:36 pm
Great, perhaps….except
http://www.countrywidehomeloansucks.com
and read some of the stories submitted from ex-employees and homeowners.
January 5th, 2007 at 8:37 pm
Hi Casey, Thanks for the update. Keep us up to date on the progress of the foreclosures….you’ve failed to do this in awhile which is why some of us arent visiting as frequently. You and your family are still in my thoughts.
January 5th, 2007 at 8:48 pm
I like what it says at the top of the fax header…LOSS MITIGATION…that’s what you have to do.
Did you consider Rae’s advice about “cranking up the machine”?
January 5th, 2007 at 8:50 pm
Why do I get the funny feeling that this unsecured promissory note is going by way of toilet paper?
January 5th, 2007 at 8:56 pm
Casey,
Put “Owner will Carry” in all your ads.
it means that you as owner will carry buyer’s boxes into the house.
A Broker
“I make you broke”
January 5th, 2007 at 9:01 pm
Utah?
January 5th, 2007 at 9:03 pm
Take a little advice from a hater, but kid you really need to get an attorney because you are swimming with the sharks here.
I’m certainly no legal expert, but you’ve already expressed publicly your intentions of filing for BK on this blog, so when you eventually get to BK court I think any judge worth his/her salt is going to want to know if you really had good intentions of paying this note off when you signed.
If you are going to load yourself down with debts that you are going to carry for the rest of your life, at least give $1 to a lawyer and get some advice.
January 5th, 2007 at 9:04 pm
Actually, this is one of the more intelligent decisions by Casey.
Countrywide home loan is another one of those subprime lenders who will likely close their doors shortly. Meaning they will default on their responsibilities too. I wonder who backs them. Watch the dominos.
January 5th, 2007 at 9:05 pm
How did you get it at 0%, this is all FAKE.
January 5th, 2007 at 9:21 pm
Great job! One down and just 3 or so to go! Progress!
If you end up losing $50K on each one, you should be OK. You could make $50K on a good flip and then you would only need 4 flips to make up for the loss on these homes.
So, you did a few bad ones.. learned and then can take care of them witha a couple good flips.
It is much better to get rid of themseand get back in the game than keep playing with these losers! The time you spend on them isn’t going to make you money so its best to clean it out and move on.
The lender is probably happy to have a buyer too.
25% done! Progress!
January 5th, 2007 at 9:29 pm
IT’S HOMEY TIME!!!
YO YO YO CASEY.
THIS??? BE YOUR HOUSE????
http://www.realtor.com/FindHom.....ksrc=00003
HOLY CRAP IS THIS PLACE A POS!!! Even my cuzzin Leroy who be incarcerated presently don’t wanna buy dat crack houze. IS you KIDDING ME???? I dunn see da videe of dat house, LORDY LORDY LORDY.you da craziest white boy I ever dunn seen.
You wants to gets HOW MUCH fo dat place? $239,000???
BWAHAHAHAHA.. Homey be laffin sooo much I dunn sheet my briches.
Duz you knowz you be featured here?
http://flippersintrouble.blogs.....results=28
6500 Larchmont Dr
North Highlands, CA 95660 Total Loss: $91,000
Percent Loss: 27.6%
Asking Price: $239,000
Bedrooms:3 Baths: 2 Sq. feet:1120
Asking Price Changes:
Down 7.7% from $259,000 On 09-09
Down 4.0% from $249,000 On 09-16
Previous Sales:
Sold on 2006-03-23 for $330,000
MLS# 60100568 Google Maps
Assessed Value Property Tax Bill
When youz gonna pay youz taxes? Dey pe unpaid… OOPS
http://www.eproptax.saccounty.net/BillSummary.asp
MAN, youz sho is swimmin in poop. Did Sputnik poop in yo shoozes agin?
PS.. Amy is fine. I hopes you is hittin dat fo sho.
January 5th, 2007 at 9:39 pm
http://www.realtor.com/FindHom.....ksrc=00003
Why are you asking only $229,000 on MLS? I thought you said you were approved at a higher amount? Yeah, and the 0%???? I can make up a phony document too. SURE… Countrywide will take an UNSECURED note from you. SURE.
January 5th, 2007 at 9:45 pm
Man, they really got you by the stugots. They own your nut for 10 YEARS! And you don’t give them any vig? What’s up with that? Maybe they are’nt so smart after all..So much for checking out of the rat race young man. This is just the beginning. Wait till you’re busting a $3000 nut EVERY month on garbage like this. I know you don’t listen to a word anyone tells you and you never reply but trust me on this. Move to Florida as soon as possible. Like yesterday. Take whatever you can, however you can get it and run to Florida. You can live la vida loca and drink mojitos all night long. And go heavy!
In all honesty Casey, you really need to start answering all of the questions or everyone is going to bail. Oh, and lose the blue ball. I’m sure you already have two others. I miss paying the cable bill and the Mrs. clams up tighter than Paulies cherry. I’d say you need to find yourself a goomah and take a load off but I don’t thing you have the cajones for that.
January 5th, 2007 at 9:59 pm
You paid $900+ in property tax on 12/4 - good for you, didn’t think you had any money.
January 5th, 2007 at 10:10 pm
Hi Casey,
Please help explain more details… Who signed (you or the buyer?) this $50K note to the 1st lender?
What is this $50K for? And what is the rest of the amount/numbers for this short sale?
With best regards,
January 5th, 2007 at 10:13 pm
Seriously - as a fellow Australian who has been resident in the US for 16 years and holds dual citizenship, I speak both the languages and want to let you know the silly ockerisms you pepper your posts with mean that no American understands half of what you are saying and hence, they don’t read your posts once they figure they are incomprehensible. I lived in Australia until I was 28, and I can say I never actually met someone who speaks the way you write - perhaps they’re hiding out in mining towns in the back of Burke? I’d rather like to leave people with the impression that Australians are generally an educated and civil bunch, but your posts make it hard…
January 5th, 2007 at 10:17 pm
Can someone please explain this to me? Is a promissory note like a loan? How can he get it at 0% interest when his credit is shot?
Is this really going to make any difference at all in the grand scheme of things? Like, if the buyer backs out, then what, does that just mean that he wouldn’t need the $50,000 or does he get it anyway?
Wow, that’s a lot of questions!
January 5th, 2007 at 10:19 pm
Can I tell you how much I hate Countrywide? My assistant and I shudder any time a client or the buyer of a property I have listed wants to use them. Their back office is woeful, they don’t return calls in a timely way, they don’t have consistent peopel to talk to, they don’t know where a loan is in the process. Twice I have gone to closing only to find that they changed the rate on the second trust by 1.75-2.00% - higher of course, or some other sneaky thing disguised as a clerical error. One time I recommended my clients refuse to sign anything more until we had the head of the region on the phone. It took 3 hours, but they finally sorted it out, reissued the loan papers and fired the loan officer who had been the inital cause of all the issues.
A pox on Countrywide and all who use them… though if their bad service works in your favor this time, I would regard taht as karma.
January 5th, 2007 at 10:19 pm
Homey Da Clown, this english your using…what language is that? It sounds vaguely familiar but I can’t place it. Please do tell us where you’re from and your nationality? You sound like a slave from the movie “Roots”. Does anyone speak that way anymore?
January 5th, 2007 at 10:25 pm
So Casey, have you made any referral $ from that college thing that you went to? How much did it cost?
I ask because I got an email from you where you were looking for someone to go with you for free. Did you find anyone? Just curious if you got them to sign up for the deal.
You should post some information for your readers who may be interested in such a program. It’s a win-win, they get some great REI advice and you get the referral commision.
Have a good night!
January 5th, 2007 at 10:33 pm
Casey’s A Drama Queen:
There is no way that document would survive bankruptcy. Did a Countrywide unsecured loan become child support or a tax debt somehow?
Ken:
A 0% loan is not a surprise. When you default on all sorts of debt and the creditor sets up a payment plan this sort of thing is commonly negotiated.
HOMEY DA CLOWN:
Looks like it is $229 right now, not $239. Maybe the price was dropped recently.
Casey:
Have you given up on bankruptcy? Consider that you are probably going to take this level of hit of the other properties and also have your other unsecured debts. You are going to come out of this with a $4000 a month debt nut, no job, and no real prospects in the real estate market since you have no cash and your borrowing ability is shot. How are you going to keep up with that sort of payment schedule?
Can you even make the February 1 payment of $417? February 1 is closer than you think.
January 5th, 2007 at 10:35 pm
P.S. The SOL in CA on a promissory note is only 4 years.
January 5th, 2007 at 10:36 pm
Casey,
What are you doing signing a promissory note for a property you won’t own?
You’re not negotiating here. Tell them if they don’t take the short sale you’ll either declare bankruptcy or let them foreclose.
You can’t really think this is the solution, do you? Aaron’s right about you’re debt obligation if you do this for all your remaining properties. He’s wrong about the 1099 though. Since you’re securing the shorted amount with a loan, it’s not income. You’re promising to pay it back.
Please get advice from an attorney on this. Please, please, please!
Nigel
January 5th, 2007 at 10:42 pm
Zillow estimates that house as being worth 281,042, while noting that some dumbass bought it on 03/23/2006 for $330,000
The broad guess of value is: $258,559 - $323,198
I guess it is wise to take Zillow’s estimates with a grain of salt since the Realtor (she is pretty cute) is trying to pawn this house for $229, about $30 sly of Zillow’s low estimate. I guess Zillow’s computer hasn’t seen the interior of this house!
http://www.zillow.com/HomeDeta.....p=25992882
January 5th, 2007 at 10:49 pm
I guess the old saying…
‘Owe the bank a little and the bank owns you.
Owe the bank 2.2 million and you own the bank.’
…is false.
Musta been a guru quote.
January 5th, 2007 at 10:58 pm
What are the legal ramifications if you are unable to make the payments to the promissory note? I am not a legal expert, but unless there is a specific clause listed on this contract forbidding chapter 7 bankruptcy or charging you for fraud if you reneg, this is a good deal if there are no additional 1099s involved. I’d rather owe the lenders collectively $400,000 than the IRS $200,000. If I were in your shoes, I would do this with the rest of your houses. Let’s say you end up with 8 promissory notes for $400,000 total. Starting in February 2007 your payments would be for the sake of arguement $416.67 times 8, just over $3300 a month. Now you cut your monthly cash burn rate by a sixth. You could get a job, pay the $3300 a month for say a year to show you made a good faith effort to pay back the money despite losing ground financially, then file for chapter 7, and before the judge you can say how you made a good faith effort(now getting you for fraud/ruling out debts from being dischargeable is less likely). This is only strategy, so consult legal advice, particularly a bankruptcy lawyer.
January 5th, 2007 at 10:59 pm
Ha-Ha-Ha! Good luck with Countrywide Home Loans! Maybe they will “straighten” out after they get featured on your blog! Hey, why don’t you buy some furniture from Jennifer Convertibles while you’re at it! Just Google them, trust me…
January 5th, 2007 at 11:03 pm
After seeing this…..casey might actually pull this off.
His worst enemy is time.
I have had to read and reread this crap twice now.
I went from a casey fan to thinking he was a functional mongoloid r***** . But if he can get some type of closure on this stuff….with the knowledge he has gained he can easily get out of debt if he makes plans of actions and looks for the right deal before he commits in the future.
Your main mistake casey was not doing your due diligence.
If you set up formulas of what a deal must produce before you commit to it then you will make millions.
Tick away at these problems one at a time and make them go away while keeping your eye on any new deals that may come up..BUT DO YOUR DAMN DUE DILLIGENCE and make sure you will make money.
I think your going to pull out of this mess in the next couple months.
Remember time is your enemy on the properties you have right now…if you DO YOUR DUE DILIGENCE then time is your friend. In the flipping/real estate business time can either be your enemy or your friend…..learn to control it and make benefit you….
Oh and quit listening to the amway sharks like kiyosaki, they do nothing but encourage you with useless words while their hand is in your wallet.
January 5th, 2007 at 11:42 pm
Hey Casey, I just got a $18,000 interest-free loan from Chase bank with a balance transfer. They are so nice. Is your credit score above 750? Hmm, you might not be able to do what I did then.
January 5th, 2007 at 11:49 pm
You’ve definitely “jumped the shark.”
If you think someobody’s going to do a short sale on your junky, trashy Larchmont property AND agree to a $50K promissory note on top of this short sale, then someone is either delusional or someone is planning to set up Yet Another Meth Cooking Facility.
And if _you_ are the one committing to the promissory note, just what will enable you to pay the monthly vig?
(Saying the note is for “0.00%” does not mean it’s not a vig note.)
You are doing nothing substantive to solve your pressing problems. Call it “taking pictures of the tsunami” or “rearranging the deck chairs on the Titanic,” you are oblivious to the 200-foot wave which is fast-approaching.
–Tim from Monterey Bay Area
January 6th, 2007 at 12:15 am
What the hell was I thinking, I Wish I Could Quit You.
January 6th, 2007 at 12:40 am
I sure hope you had a lawyer review the note *and* the consequences of it before you signed it. Dollars to donuts that never occured to you that an expert ought to check it out. Something else that probably didn’t occur to you is that your “super-persistent agent lady” wasn’t really fighting for you. She was fighting for her commission.
So, if the 1st is willing to take $50K for a short sale, how much is it going to cost you to get the 2nd to agree to a short sale? Keep in mind that now that you’ve post a copy of the note on your blog, the 2nd knows what the 1st is getting. What incentive do they have to take less than what you owe them?
January 6th, 2007 at 1:20 am
Another goal squashed, take a shower and clean those nails,,,GROSS
January 6th, 2007 at 1:52 am
I believe there’s a 6 month exclusionary period for any new debts prior to BK filing, and a fraud charge may be possible. This means it could be fraud if you signed the note in anticpation of a BK filing. The BK judge would certainly exclude this in the next few months.
Good luck with that,
UncleC (not Casey’s uncle)
January 6th, 2007 at 2:00 am
Casey, Casey… *sigh*. Now why are you agreeing to sign a promissory note to take on more DEBT? I thought the idea was to PROFIT from flipping houses. How can you profit from selling at a loss?? This is NOT a “sweet” deal by any measure.
You should ignore all the jealous, negative “haters” out there and hang on to your investments until the market comes back this spring. Every real estate agent I’ve spoken to assures me this is the BOTTOM and prices have nowhere to go but UP. They aren’t making any more land now, are they? Don’t be a looser by selling now, at the worst possible time.
If you need a way to keep that mortgage monkey off your back, then try these people: http://www.12modef.com/. They are offering a 12-month MORTGAGE PAYMENT DEFERRAL program! They might even expand it to 36 months later on. Talk about a sweet deal! That should be more than enough time for you to find buyers willing to pay 200% of your asking prices –you should call them asap!
Anyway, great post –and keep ‘em coming!
January 6th, 2007 at 3:19 am
Casey must possess access to a search engine and a library card. Why waste any more time dispensing advice when he has important resources already at his fingertips? His 15 minutes of fame are a quaint sock puppet.
January 6th, 2007 at 3:42 am
Oh, I forgot to say this:
Casey, it looks like you’ve actually accomplished something. Good work.
January 6th, 2007 at 5:32 am
OMG. I just watched the visual tour. Is this indicative of ALL your properties? If so I am beginning to see why they are not selling. When a visiual tour focuses on a $1.50 Target showerhead that says something about the property.
January 6th, 2007 at 5:51 am
I know this comment screams “hater” — but please cut and clean your fingernails if you are going to post an ECU photo like this. Have you taken a shower lately? Or are you falling down on that goal thus far for 2007?
January 6th, 2007 at 6:10 am
Can somebody tell me what is going on here? Does this mean CS has borrowed *another* fifty grand?
January 6th, 2007 at 6:29 am
Casey won’t owe taxes on the forgiven debt, no matter how many creditors report him to the IRS.
He is insolvent, and as other posters have noted in that situation you don’t generate tax liabilities.
January 6th, 2007 at 6:54 am
Dude, cut your nails.
January 6th, 2007 at 7:02 am
Something that occured to me is that Casey and all of the other flippers must be realizing they have these sub-prime lenders over the barrel hard. Why else would Countrywide accept this note for ten years with no vig? My guess is Countrywide is more screwed than Casey and is trying to save their own sinking ship. Casey misses a payment, (sure as the sun rises in the east) what are they gonna do? All Casey has to say is say “STFU or I’ll BK and you’ll be history”. Can you imagine being more screwed than Casey? Here kitty kitty. Poop in my shoes and you’ll be violin strings!
So Casey, what is the plan to make some coin to pay this nut every month? Your burn rate just increased by this amount + the $50 in “office rent” so that makes about $466 in additional heat. Sheesh…
What happened to the December property tax bills? The Feds don’t take toilet paper IOU’s you know.
I’m going to bet that sometime between april and may, the house of cars will collapse. Would some of the ladies following this trainwreck please explain to young Casey how Mrs Serin is mentaly packing her bags right now. If she hasn’t talked to a lawyer yet, it’s coming very soon. Casey just put her on the line for this note too!
So far I’m a total failure at my goal of waking up after 9am every day of the year but I’m working on it.
January 6th, 2007 at 7:43 am
The first $416.67 payment is due on Feb. 1. Fat chance.
It would be much funnier if it was due on April 1st.
Casey, sign anything. Who gives a flying F? Like someone said, its just toilet paper.
January 6th, 2007 at 7:45 am
So the night watchman high up in the Empire State Building looks out the window and sees a guy coming down.
“How are you doing?” the watchman asks as the guy passes by the window.
“So far, so good”
January 6th, 2007 at 8:12 am
Guys stop flaming, this post is good news. He’s got the ball rolling (blue one as well!!11!)
January 6th, 2007 at 8:17 am
WhoooHooooo!
Good deal! That note is more worthless than the paper it is written on. Much like your other promissory notes, your mortgages and cashcall and credit lines and credit cards.
How about those Utah buyers? The ones who are paying the mortgage but to the wrong lender thanks to your fine and meticulous attention to detail.
Well, now that you have negotiated your own disorganized office space, I guess we will be seeing more of the same, zero progress on paying back your lenders.
January 6th, 2007 at 8:22 am
Good work, Casey! Glad to see that you’re making progress with unloading that property.
January 6th, 2007 at 8:24 am
Casey,
As a hater, I appreciate the fact that for the most part you don’t censor or delete our comments no matter how big of asses we’re being. That being said, I have no problem with you deleting Homey the Clown’s posts. I feel like my IQ drops every time I see his name. I’ve had enough of his MaD gOoGlE dEtEcTiNg SkIlLz!!!! FO SHO.
January 6th, 2007 at 8:49 am
1 foreclosure or 5, who the heck cares? Signing a $50k note? Tell us how you intend to make the payments? Once again you’ve deceived somebody into believing their losses will be minimized by your hollow words. You need to stop wasting time, get a real job, start generating some positive cash flow, and then do a Chapter 7 to zero everything out. People who live off their creditors are losers. I hope I didnt insult you by suggesting a way out of your problems: honesty and a 4-letter word called “work.”
January 6th, 2007 at 9:08 am
Where’d you get the $998.79 you paid in property tax on 12/4?
I thought you had no money. Something doesn’t make sense.
January 6th, 2007 at 9:11 am
I would imagine the second will also want a similar note.
You realize that you’ve set a precedent, right?
January 6th, 2007 at 9:16 am
Wow, did your real estate specialist attorney ever negotiate you a poor deal. You… did… use legal representation… didn’t you? Of course not. If you did you’d have grounds for malpractice. But everything’s turned out okay. The second lets their $75,000 position go with no complaint and no consequences to you. The first gets $239,000 immediately and $420/month for 5 years. They don’t even have to call the $420 income and you needn’t be bothered with deducting the interrest as there is none. Countrywide gets the equivalent of $270k for their $245k owed and some nice buyers gets a house. I’m just surprised that the 2nd leinholder has been so quiescent. How’d you do that Casey? Here’s where you can live up to one of your goals. Educated we unwashed masses who have no idea how to pull this off. Being able to walk away with no issues from 2nd trust deeds would save millions of people from foreclosure or worse.
January 6th, 2007 at 9:47 am
It’s 9:47 in the morning in CA there and there are still only 15 comments. Still sleeping and not moderating?
January 6th, 2007 at 10:02 am
Don’t be so quick to (appear to) be grateful to your super-agent. Hopefully, you realize she’ll do whatever she can to get her commission - your interests are secondary.
She had to ‘fight hard’ to get them to agree to let you sign a $50K note? Yeah, right! You’re naive.
January 6th, 2007 at 10:12 am
Best loan you’ve gotten to date. Zero interest rate. You are definitely making progress. As I’ve said, I really feel for your situation but I do want to see you come out OK. There’s a little bad in all of us, so I’m willing for accept that and really hope to see you clean this up.
I learned a while ago that helped me tremendously:
Suit Up
Show Up
Do the Next Right Thing and
See What Happens!
Keep it up!
January 6th, 2007 at 10:21 am
The realtor for the Larchmont property describes it thusly:
“Amazing Opportunity to own a fabulous 3 bedroom 2 bath remodel in progress” [initial caps in original]
Plus, there’s jazzy music when you take the virtual tour. Verry nice.
Really, this doesn’t even pass the straight face test. I believe it was Yogi who said that you couldn’t make this stuff up. Forget about the “Amazing Opportunity”. “[R]emodel in progress” now appears to be a term of art for a POS.
January 6th, 2007 at 10:29 am
Looks like shorting Countrywide (NYSE:CFC) might be a grand idea.
January 6th, 2007 at 10:41 am
It’s nice to have Anthony Robbins here on the BLOG.
I love your infomercials on late night TV.
I may have to buy some of the Robbins CDs if things don’t pick up soon, but all the older REALTORS tell me that things always pick up in the Spring and the flippers will be back…
January 6th, 2007 at 11:00 am
@ Don’t enhale the Serin Gas
Thanks for the reply. Very helpful, but it wasn’t the news I was expecting. I do agree with you that sub prime lending is a necessity. But the way you were pumping it up. I thought your company was just as aggressive with their lending practices as companies like Ameritheft(LOL).
And as for Casey getting that 50K. Good job!!! But the funny part is, Casey seems like he found another win-win deal. Just amazing how Casey knows how to keep digging that hole bigger. It wasn’t too long ago when Casey was gonna borrow 50K to sell 4 houses. Now he borrowed 50K to sell just 1 house. What’s another 50K of debt when you’re unloading that 330K mortgage off of your back. This is a text book “Sweet Deal” in Casey World. And this is exactly what your blog needed for more hits. I expect 300+ comments for this one.
January 6th, 2007 at 11:29 am
I am getting confuseder and confuseder the more I hang out reading this blog. So what’s the purpose of this promissory note? You are headed towards almost certain foreclosure, regardless. Why screw things up even more?
Actually, my best guess is that you are planning to stall and delay the foreclosure, and then include this unsecured note as a part of your BK. Is that the deal?
I have seen a lot of weird deals in the 10 years I have been doing real estate, and I have to say this note pretty much takes the cake. Some strange goings on here…
January 6th, 2007 at 11:29 am
HOMEY DA CLOWN, you are not funny, nor interesting. Please dont visit this site anymore.
January 6th, 2007 at 12:07 pm
If you just let them foreclose by trustee sale, they waive their right to seek a deficiency. If you sign an unsecured note, they could sue you later if you don’t pay. You should get a competent attorney.
Basically, you just got hustled by Countrywide. Do you really want to be paying for Angelo Mozilo’s personal Gulfstream jet???
I hope you have not sent that note back. If not, you should rip it up now. If you have, it may not be too late to rescind the transaction, but you need a badass attoney prompto.
January 6th, 2007 at 12:09 pm
@Rob
“If you end up losing $50K on each one, you should be OK. You could make $50K on a good flip and then you would only need 4 flips to make up for the loss on these homes.”
Yes, or, all he would need is to hit four $50,000 lotteries to make up for some of his losses. With his excellent credit and incredible RE skills and the booming housing market and yneone’s thoughts and prayers, the “good flips” shoud be a piece of cake.
On the other hand, you just may be even more delusional and retarded than Casey. I never thought such a thing could be possible, but apparently it is.
January 6th, 2007 at 12:13 pm
Dec tax bill was paid 12/4/06, $998.79
http://www.eproptax.saccounty......ber=183636
January 6th, 2007 at 12:17 pm
Countrywide is sleazy, but they are not totally stupid (but probably pretty desperate). They gotta be gettin banged with a lot of these right now. Getting the promissory note is just a sham on their part. They know the paper’s worthless.
But for now they don’t have to show the loss. They have a current receivable for $50,000 that they can carry for a while, run it through their collection cycle, before they finally take the hit. In the meantime their lenders don’t know about the loss. Its under the rug. Kind of a mini-Enron.
Our hero makes out on this too. There’s no way in hell he’ll even make the first payment, but its debt, not income. No tax liability.
And another $50K to Casey is meaningless. Just a bucket of water in the ocean.
No word on the second lender though. This deal wont fly
January 6th, 2007 at 12:28 pm
You are 24 now, the promissory note is for 10 years, you still have credit card debt, are you that lost? Do the math. At best you will be 34 when you clear all this debt. If you file BK within 2 years you can start building credit again. At 10 years all bad marks are off your report including the bankruptcy. The way you are going the negative accounts stay on your report 7 years from last activity. So lets look at this, best case your are 34 when all bad debt is paid, you are 41 when the negative accounts are gone from your report. Now that makes sense wait 17 years to start your life over again versus 2 if you file BK. Does someone have to hit you over the head to make you see the light? With this deal you are only throwing good money out to bad. Why would you even want to do that?
Rooting for Casey;
It is not just CountryWide it is all of them. I have not had problems in 3 years with countrywide but I have had problems with Option One Mortgage and Regions Bank. The best thing to do when you have a problem is to take 2 days off and just work up the chain. They are all publicly traded companies if you know were to look you can get contact info on the president CEO of the company. I will say this if it gets that high up the food chain before it gets resolved you will get what you want and crap will start rolling downhill in the company. The last thing a corporate officer wants to do is to talk to an unsatisfied customer. They do have to talk with you if you do not get resolve. It is not easy to get up the chain, but if you persist they have to let you speak to the officers. Big companies suck and they hide behind there corporate protection but when you break down that wall everything changes.
January 6th, 2007 at 12:35 pm
Good job Casey. Countrywide and their stockholders deserve the screwing they are going to get from you. Walk away bud, walk away. Buy an RV in someone elses name, save cash while you can, then drop off the radar. The scumbag lenders deserve everything they (don’t) get from you.
January 6th, 2007 at 12:41 pm
Yep Homie, Amy is fine. I would be all over that.
Even if Countrywide goes out of business, that will not help Casey, Falcon. When a bank or lender goes out of business, someone gets control of their assets - usually for a discounted amount. Countrywide probably has hundreds of thousands of mortgages that are performing, those people do not all get their houses free and clear when Countrywide goes BK.
So, someone will get Casey’s note, along with all of their other notes, and Casey will end up owing someone else this money.
January 6th, 2007 at 12:51 pm
Casey, do you understand why Countrywide agreed to this?
Actually pretty simple. Had you declared BK, you probably could have walked away from the original mortgage.
What you’ve done, is exchanged an old debt with a new one. You can probably argue that the old one was taken on with some reasonable plan for paying it back (by flipping the property). You can’t make the same claim for this debt. They’ve just suckered you into taking on a debt that they know you can’t get discharged in bankruptcy.
You really do need to start consulting with somebody who knows something about this stuff before you continue signing documents that do nothing other than limit your options.
-btc
January 6th, 2007 at 1:27 pm
http://www.eproptax.saccounty......ber=183636
Parcel Number: 217-0171-009-0000 Today’s Date: 1/6/2007
New Search
Print Bill Stubs
Print This Page
Tax Bill Detail
Effective Date of Ownership: 3/23/2006
Bill Number: 06183636
Bill Type: Secured Annual
Assessment Year: 2006-2007
Issued Date: 9/29/2006
Original Bill Amount: $1,997.58 View Direct Levies Total Bill Amount Due: $998.79
——————————————————————————–
First Installment Second Installment
Due Date: 12/10/2006 4/10/2007
Amount: $998.79 $998.79
Penalty: $0.00 $0.00
Installment Amount Due: $0.00 $998.79
Status: Paid 12/4/2006 Unpaid
Pay Installment
The Tax Collector cannot accept partial payments. Please make payments for the Installment Amount Due listed. Second installment payments cannot be accepted before the first installment has been paid. Click on the Pay Installment link to pay online. A convenience fee will apply to credit card and electronic check payments. Click on the Print Bill Stubs link to print a tax bill payment stub to mail in with your payment.
When the tax bill due date falls on a Saturday, Sunday or legal Holiday, the hour of delinquency is 5:00 p.m. on the next business day.
The Tax Collector accepts and processes payments based on the postmark date. Depending on the volume, payments submitted with the correct payment stubs, and/or envelopes postmarked by the due date, payments may not be credited to the tax bill for several business days. If your payment has not been posted, or you have questions regarding the tax bills, please contact the Sacramento County Tax Collector’s Office at (916) 874-6622 during regular business hours.
Please mail the appropriate tax bill stubs with your payments to the Sacramento County Tax Collector at P.O. Box 508, Sacramento, CA 95812-0508.
January 6th, 2007 at 1:32 pm
I wish that you would stop moderating this blog Ca$ey. I don’t come here to read your musings as much as I come to read the comments from your “fan club”.
January 6th, 2007 at 1:56 pm
Casey, after seeing a close-up of that picture, it looks like it’s time to clip your nails. When was the last time you had a manicure?
January 6th, 2007 at 3:34 pm
$416/ mo. is better than whatever you’re not paying now. How are you going to pay the monthly stroke?
I’d talk to a BK attorney before you dig yourself deeper into your hole. At some point you have to STOP DIGGING.
January 6th, 2007 at 4:25 pm
Casey.
You said you went to In-n-out Burger last year (or somthing like that?) because you heard the meat they use is “better”. Can you please explain? It looks the same as BK or McDonalds. So I never eat there..
January 6th, 2007 at 4:39 pm
I’m not exactly sure what this means. Can someone explain it to me? Does it help or hurt Casey? Is it more delaying the inevitable?
January 6th, 2007 at 5:31 pm
You’re doing a great job, Casey. Don’t give up! A few good flips and you will make up for this whole mess. Don’t let the haters discourage you and your inner-genius.
January 6th, 2007 at 6:25 pm
I doubt Casey will let this through, but here goes:
– This blog has become disgusting….Casey has gone from “have to sneak in time to do moderation” to days passing without even a single new post
– By the times comments _do_ make it through, so much time has passed that the meaning, and impact, is lost
– Very few updates on properties. Even the listings for his properties, where anyone interested in them would normally look, are several months out of date, with most of the financials obvious the SEPTEMBER financials.
(Hint: Spend the 5 minutes on each of them to bring them up to current status.)
Looks like the blog is dying. Probably time to move on.
–Tim from Monterey Bay Area
January 6th, 2007 at 6:35 pm
Countrywide is giving Casey a $50k interest-free loan?
I’m shorting Countrywide stock on Monday.
January 6th, 2007 at 6:47 pm
Casey, you do realize that it’s fraud to take on a debt without the intent to repay, don’t you? I don’t think any court in the country that is fully apprised of the facts would believe that you really intended to repay this debt. They’ll consider the fact that it is not feasible under any realistic scenario that you would be able to repay it, and that will be that. This means that you won’t be able to discharge this debt in your bankruptcy. Countrywide really pulled one over on you on this one. They really suckered you into signing by the 0% interest thing, when their real goal was being able to get an easy, nondischargeable judgment against you. What you must not realize is that in California lenders cannot get deficiency judgments on nonjudicial foreclosure sales and/or on purchase money mortgages on residences. Had you not signed the note, Countrywide might not have been able to come after you for the deficiency. Now, however…
January 6th, 2007 at 6:48 pm
By the way, more people are taking advantage of your notoriety now … and apparently anticipate that bad things are going to happen to you.
http://www.cafepress.com/buy/c...../x_31/y_22
January 6th, 2007 at 7:09 pm
Can it be?
So here you are signing a new commitment to pay $416 and change every month starting February 1, 2007….
Because you are responisble and have learned from your mistakes, you’ve already set aside this money or KNOW EXACTLY where it will come from by 1/20/07 so you will have time to mail it in. Right?
I sort of doubt it, but here’s hoping, I guess.
January 6th, 2007 at 7:59 pm
I’m shorting Countrywide first thing Monday morning. Those scumbags take a promissory note onto their books that they will never collect on, and pretend it’s worth it’s full value.
The friggin’ stock is at an all-time high. I bet it goes down.
January 6th, 2007 at 8:09 pm
How to Protect Your Home When the Homestead Laws Fail
Nearly every state has laws in effect to protect homeowners from losing their home to creditors. Most of these homestead statutes were enacted in the 1930s, so the limits are generally very low. Between $5,000 and $25,000 is typical.
A few states, such as New Jersey, have no homestead exemption. Other states protect your home from creditor claims with no limit to total value. States with no-dollar-limit homestead exemptions are Arkansas, Florida, Iowa, Minnesota, Oklahoma, South Dakota, and Texas.
Lots of people assume that their properties are protected from all creditors in every conceivable situation. But that’s not the case. In most states, the following obligations are excluded from protection:
* A mortgage on the home, including a home equity loan;
* Alimony or child support;
* Criminal fines and punitive damage awards; and
* Damage awards in lawsuits for fraud, libel or slander
In addition, homestead laws do not protect your residence against federal tax claims, although a few states grant homestead protection against state taxes. Nor do homestead laws apply in federal civil or criminal forfeiture proceedings.
There are also fraud exceptions to homestead laws. For instance, the Florida Supreme Court has ruled that fraudulent conversion of unprotected assets into a Florida homestead can be reversed in the case of fraud or other egregious acts.
The 2005 Bankruptcy Reform Act restricts homestead protection even more. Now, the value of any state homestead exemption is limited to US$125,000 if you have owned the residence for fewer than 1,215 days (three years and four months) before filing for bankruptcy. In this situation, the entire value of the homestead exceeding US$125,000 is subject to creditor claims.
Fortunately, there are numerous alternatives to protect the equity in your home if the homestead provisions in your state aren’t sufficient. One of the easiest ways to do this is by mortgaging the property and investing the proceeds in an asset protected form, such as an offshore variable annuity. Naturally, you need to be certain that you have sufficient income to pay off the mortgage, although if you opt for an “immediate” annuity, the income from the annuity may cover most of the mortgage payments.
There are numerous other alternatives, including limited partnerships, limited liability companies, and even offshore trusts. However, these entities must be used with caution. For instance, limited partnerships are intended to avoid disrupting the interests of non-liable partners in an ongoing business. Where the partnership holds investment assets and/or the family residence, it is difficult to argue that the partnership has a business purpose or that the interests of innocent, non-related third parties will be prejudiced.
Numerous variations on any of the techniques summarized are possible. What’s important to realize, though, is that your primary residence is a valuable asset-perhaps the most valuable one you own-and that an array of potential solutions are available to assist you in protecting it.
January 6th, 2007 at 8:13 pm
you are a failure buddy, admit it and move on (to jail).
January 6th, 2007 at 8:21 pm
So why do you all think Casey’s gone MIA again?
1. Curled up in a ball in the corner for a couple of days?
2. Celebrating Three Kings Day (Dia de los Santos Reyes)? (yes, it’s Jan. 6)
3. Family has staged an intervention?
4. Working hard on his 2007 plan?
5. At a late meeting with Chris stuffing $1 bills into garters?
6. Chasing sweet deals?
7. Posting flyers in the ghetto?
…
My money is on #1. Most unlikely IMO - #4.
??
January 6th, 2007 at 10:19 pm
No moderation for over a day. Did they finally haul your skinny a** in? Or did Tony send one of his boys over?
January 6th, 2007 at 10:26 pm
Hey Casey,
I found this on Wikipedia,
”
In 2003, Countrywide was the subject of a class-action lawsuit alleging overtime violations. Countrywide was charged with working employees 10-15 hours per day, 6 to 7 days per week without compensating them for overtime wages. “
January 6th, 2007 at 11:13 pm
Hey,
Evaluate whats best for you and personally I don’t advice you getting read of your problems by aquiring Long term debt. So maybe BK is an option to start a new/fresh day.
Think about what you do before you sign and take a step back and see if this is the right route you have to follow.
Just evaluate
January 7th, 2007 at 12:20 am
Casey,
Very interesting site. Takes guts to take risks and put it all on a blog for every person and loser to see. Don’t let the losers who try to cut you down bother you. It is interesting to see how they try to cut you down with the information you gave them on your blog. They have never taken a risk in their lives, or amounted to anything but they got all the advice for you…what losers! Keep up this great blog and all the best to you in the new year!!!
January 7th, 2007 at 2:06 am
Many of you still think I can just “mail the keys to the lender” a.k.a Deed in Lieu of Foreclosure. It’s not that simple. A lender first has to give you permission, and I already tried asking.
If you’re the first lender why would you take title to a property that is over-leveraged with a second mortgage and who knows what other liens. You will be responsible for making payments on the second and will inherit any other liens.
Or you can just wait a little and you will get a clean title to the property once it goes through foreclosure (assuming nobody buys it at the trustee sale). The foreclosure will clear all the junior liens.
I think the only time a first mortgage holder will ever want the deed in lieu is when there is a good amount of equity.
Has anybody here heard of anyone doing a successful deed in lieu in a 80/20 100% leveraged situation like mine? (actually it’s more than 100% leveraged but you get the idea)
January 7th, 2007 at 2:37 am
Woo-woo money?
That is HILARIOUS. Oh man, I am still LOL…
January 7th, 2007 at 2:40 am
“P.S. The SOL in CA on a promissory note is only 4 years.”
Your point? It’d be 4 years to obtain a judgement. Then it’s forever until it’s satisfied.
The 0% is common in loss mitigation.
January 7th, 2007 at 3:12 am
Casey says above: “I was told I will have a chance to do a final approval on the sale once we got a buyer. So I still have a way to back out of it i think.”
If an escape clause is not in writing in the note you’re probably screwed, even if the sale collapses. You made a terrible blunder signing this note. You absolutely did not have to give them this note for a short sale. You should fax them immedately to void it and pray that the short collapses.
I agree with other fans that your realtor screwed you over by foisting this horrible, unnecessary 50k note on you. And with the assessment that it’s a wonderous “cover their a** ” gift to Countrywide.
Good luck with that,
UncleC (not Casey’s uncle)
January 7th, 2007 at 4:12 am
Tim from Monterey Bay,
I (like several other people on this blog) liked what you had to say. If you decide to start your own blog, please let us know.
January 7th, 2007 at 4:15 am
Since I pay all my mortgages (all 6 of them) with rent proceeds - and my car and other bills with money earned from my other job - I never considered bankruptcy. It’s a very foreign concept.
When one files BK, how do the courts know who all the creditors are? Does the bankruptee tell them? Because if that is the case, I worry the blogger might be a little retarded (Sorry Casey but I’m wondering) and not know how to do this. Maybe he thinks some items can be bankrupt and his family can pay for the other items or something. Thanks for the education whoever replies!
January 7th, 2007 at 4:20 am
Coyote Investor –
Best. Post. Ever.
January 7th, 2007 at 4:29 am
OK, I just viewed the photos of the Larchmont property. I’ve been reading the blog for awhile and didn’t quite realize that while Casey has been out jogging, at the gym, sleeping in late, and rewarding himself with Jamba Juices — he could not be bothered to vaccuum the rugs (or even pick up the larger pieces of crap), clean the toilet, or even move the trash cans from in front of the house before he took the photos for publication??? And has not done those things since and then re-posted new photos??? I didn’t think it was possible for me to get more incensed over this whole thing, but here I am. I really need to quit the site cold turkey. This guy doesn’t deserve the time of day from us, people!
January 7th, 2007 at 4:30 am
Casey,
1.) Unless you were not telling the truth about the dallas property, you already have a foreclosure on your credit report and it will stay for the next seven years. Combined with all the deliquent payments and maxed out credit cards and lines of credit, your credit score is already in the toilet. That short sale is not going to help you. Actually a new debt will probably lower your credit score even more.
2.) You should have spoken to your
attorney(s) before you signed the Note.
January 7th, 2007 at 6:12 am
YOU PEOPLE ARE STUPID,
CASEY IS TRYING TO GET REVENGE ON THOSE LENDERS, YOU SHOULD BE HAPPY.,
CASEY IS REALLY SMART~~
HAHAHAHA
January 7th, 2007 at 6:44 am
Finally an on topic post but why so short on details? The purpose of this blog is educational, right? So now you’re doing a couple of transactions that most people would never have been involved with (short sale, promisory note).
This is your chance to educate us. Let us know exactly what each of these are doing for you and the steps that got you hear.
PS - Don’t for one minute think that the Realtor is fighting for you. She’s fighting for herself and will do whatever to you that benefits her.
January 7th, 2007 at 7:11 am
[i]I was told I will have a chance to do a final approval on the sale once we got a buyer. So I still have a way to back out of it i think.[/i]
Please tell us who told you this! Surely not those attorney(s) you still have not met with. LOL!
January 7th, 2007 at 7:17 am
Dude, are you really Casey? Those are the most cogent arguments about your financial situation that we’ve seen from you in a long time. You’re getting back to real life. Good job (so far), but you do have your work cut out for you.
January 7th, 2007 at 7:24 am
“I still have a way to back out of it i think.”
Ummmmm, no. You signed it remember? The note wasn’t contingent, you just signed an unsecured, unconditional IOU for 50 large. Come Feb 1st you’ll owe the original mortgage, the fees and penalties and now an additional $416 if the short sale doesn’t record by then. And if you think the second is going to walk on their $75k and o so within the next 2 weeks and the kind of person buying properties like this can complete escrow in two weeks… nevermind. What you believe is irrelevant.
Just so you hear it even if you don’t understand; Countrywide did not agree to a short sale. They agreed to discharge a $260k plus penalties mortgage for $240k plus your $50k note. $50k over 10 years for let’s say a $30k deficiency is the equivalent of a 12% interest bearing note. They only made it look like 0% so that they cannot be accused of usury in any future proceedings. As a special bonus they managed to move their note out from any cloud of bankruptcy discharge. Countrywide may be in deep doo-doo for even getting involved in our global credit bubble but they weren’t stupid in this case.
Based on this binding result you could expect the 2 trust deed holder to demand a similar note in the amount of $80,000 at 0%. Add it up. $240,000 purchase, $50,000 1st, $80,000 2nd equals $370,000 over the next 10 years. Just what they would have recieved had you made payments for 10 years and then sold.
You don’t have Larchmont short sale approved. Not by a long shot.
None of this matters. It’s 7:30AM. You were up past 2:00AM and now you are getting sick. This day is lost to you as are another $800 at your new burn rate. And when you get to this comment for moderator approval you’ll be so intellectually tired it won’t stick. Quick look, no swear words, no personal family information revealed… approved. Just like the prblink signing and now Countrywide signing.
January 7th, 2007 at 7:54 am
@Casey is a genius.
I have known plenty of people that have worked at Ameritheft and they treat their employees worse than their customers. I am actually enjoying this downturn right now, December was another great month for us and 2007 is going to be interesting for some companies. Ohio was just the first state to outlaw the ability to do “stated income” loans. I wouldnt be surprised to see others follow.
January 7th, 2007 at 7:58 am
@Brown Trowt
I didnt know that about World, I just remember trying to underwrite 2nds behind their firsts. They are impossible because you have to multiply the current balence by 125%. You are dead on about Option One, they have a lot of their people out where I live(Eastern PA). They are bleeding money right now. When did Wachovia buy them? Wachovia already owns most of the Money Store paper that they got when they merged with First Union.
January 7th, 2007 at 8:15 am
Casey
lots of lenders do Deed in Lieu even when it’s wildly
underwater.
As the first lender, they have the highest position.
the seconds are tail end charlie.
January 7th, 2007 at 8:53 am
Casey:
Don’t waste your time with short sales since your credit is shot.
None of your second TD holders have anything, just let the first TD holders blow them out in forclosure and move on.
The only reason that Countrywide wants your note (and the notes from the many peoplein worse shape than you) is to play Enron accounting and make their books look better.
I’m looking forward to some great BLOGs from former subprime lenders who talk about the tricks to getting 24 year old kids without jobs millions in loans…
January 7th, 2007 at 9:16 am
@ John
What’s wrong with Homey the Clown? He’s cool, and provides some needed comic relief. Same for Ozzie Tim.
For understated humor, though, nobody beats Sac Realtor.
January 7th, 2007 at 9:35 am
I love that! If it had all that equity, you wouldn’t need a “deed in lieu”, you could just simply sell it for full market price. Duh.
January 7th, 2007 at 9:43 am
Casey,
You are probably correct that mailing the keys to the first mortgage holder won’t work if there are junior liens (second mortgages etc.).
But your short sale/ prommisory note rationale, to wit, “looks better on my credit record” is insane.
The bad news is your credit record is absolutely ruined no matter what you do.
The good news is what you do in the future will be more important to future lenders than what your credit record is today.
The bad news is that there is every reason to believe your actions in the future will be every bit as misguided as the one’s you are currently making.
I continue to believe that the best first move you could make would be to immediately shut down this blog, let your name fade into the collective subconscious of the public, in favor perhaps of the next thing paris hilton, britney spears, et al. does.
Had you not flaunted your situation, I have no doubt that you would have escaped criminal penalties. Besides the Banks, who really cares? (and they don’t really care that much). Your blog is like waving your middle finger in front of the face of every fraud investigator in the US.
1. Shut it down.
2. Hire an experienced bankruptcy attorney
3. Listen to his/her advice (Yes, he or she is probably much smarter and more knowledgeable than you despite the fact that he/she works for a living)
Willyboy
ps to Coyote Investor:
I love that “woo woo money” and your insight with respect thereto.
January 7th, 2007 at 10:54 am
I was hoping someone knowledgeable could settle a bet. I would think that Casey isnt eligible for bankruptcy because he acquired the debts fraudulently (misleading lenders on loan apps). Is this the case, or is this type of fraud not considered criminal enough.
January 7th, 2007 at 10:56 am
WHY YOU DELETE OGG POST?
January 7th, 2007 at 11:36 am
Well seems to me that someone is going to be getting some great discounts on your properties. You’ve in the shoes of the guy who all the gurus say you should be looking for.
It really does seem like a mess at this point. As for your attempting to make some payment instead of foreclosing, I don’t know that it makes much difference from one foreclosure to several. You already have a foreclosure on your record. It’s not the worst thing in the world once you’ve gone BK, which is what you’ll do eventually anyway.
I would let all the propertie go foreclosure unless someone buys them first and then regroup. But to try to save your record….not a chance.
Funny, if you bought in San Francisco you’d have many buyers for you properties. We’re still experience good demand for homes. No excess inventory here.
January 7th, 2007 at 11:42 am
Several people have posted the record of payment of $998.79 that was paid on 12/4/2006 as the first half of the Secured Annual on bill number 06183636.
Can someone explain what the two Secured Supplemental tax bills 06488163 and 06019647 are? It appears as though $825.81 and $206.05 were due on 12/31/06 and 12/10/06, respectively, and are still unpaid, leading to penalties of $82.85 and $20.60.
So, it seems that Casey still owes $1135.31 of some mysterious “secured supplemental” tax, including penalties.
Also, another $998.79 + $825.81 + $206.05 is coming due in April.
Oh… this explains it. “If you have an impound account with your mortgage company, supplemental, additional, escaped, and corrected assessment tax bills are not mailed to your lender.”
The main tax bill, the Secured Annual one of $998.79, must have been sent to, and paid by, the lender. The Secured Supplementary bills are probably in that huge pile of unopened mail on Casey’s kitchen table.
January 7th, 2007 at 11:55 am
As best as I can tell, this note is in the best interest of Countrywide (CFC), and to the detriment of our tragicomic hero. This says much more about CW than about CS.
I’m sure that the purchaser of the mortgage backed security into which this was bundled has dropped this baby at Countrywide’s doorstep and asked for their money back. Essentially CFC owns the house, along with many many others. Whatever is CFC to do?
One answer is to get it off their books as quickly as possible. If CS has a buyer, and is willing to accept a note, CFC comes out whole (using Enron-based accounting) on this particular transaction, the second lender takes it in the shorts, and the house is gone from their books.
The only problem for CFC is getting CS to pay the 50k. Even if he does not pay, at least this is one fewer property that they will have to deal with in 2007. And it’s a new loan, do it does not look so bad, plus they don’t start a precident.
January 7th, 2007 at 11:59 am
I guess the sad thing about this is that CS still has not learned that you can’t get out of debt using more debt…..Or…..
has he outfoxed us all? Is he going to sell all these homes getting silly notes from lenders, then file BK on the new notes where no fraud exists, simplifying the process and decreasing the possibility of jail time?
January 7th, 2007 at 12:17 pm
@Nadia Belemy
“5. Now, heres where I do some speculation. Lets say Casey finds a buyer for $220K. If my estimation in 3 is correct, hell use $41.6K from the promissory to clinch the deal, leaving $8.4K in his pocket.
6. So, what to do with the excess money?
a. Casey can use some of the money to add to the minimum the 2nd lender will accept. After all theyre taking a major hit on this short sale and way back in the beginning of this blog, Casey said he wanted to pay back every dirty penny.”
Zero chance on this.
b. Hell earmark the remainder for repaying this $50K note. If he does this, itll cover the first 8 months of payments.
Your math is a bit off. The remaining $8.4K will cover 20 months of payments on the note. That is, *if* he were to make any such payments - not likely.
If your scenario comes to pass, this is how I think it’ll get spent:
Payment on $3,000 personal loan: $200 (low probability)
Guru seminars: $5,000
Travel cost to guru seminars: $700
Best Buy/Circuit City/etc. : $500
Bird-dogging mailman: $500
Jamba Juice: $1,500 (remember, Casey’s cost for a single Juice is about $40)
SWEET!
January 7th, 2007 at 12:25 pm
I thought that both you and G. signed the loan for Larchmont? Are you saying that both of you signed the Promossory note? I assume that you did NOT inform the lender on the 2nd about this note. *ouch*
Did David do this loan for you? Who paid your taxes in December?
BTW, you are a terrible property owner/manager. Try picking up some trash and cleaning a toilet. Those properties aren’t worth anywhere near what you are asking.
When are the Utah buyers going to file suit against you? You sold them a property under false and misleading pretenses.
I noticed that “Rich Dad” and Dustin have dropped from existence. That scam didn’t work out huh?
Man, you are a walking disaster. Don’t touch your willie when you pee cause like everything else you touch, it may turn to crap.
January 7th, 2007 at 12:37 pm
notice how the fax came from “loss mitigation” department,
i assume youve done them some sort of favor and created an indebtedness that cannot be discharged by bankrupty?!
January 7th, 2007 at 1:03 pm
People
this entire story is obviously FAKE! You can’t possibly be this stupid and lazy and pull of all these purchases.
I challenge anyone to prove the veracity of the entire situation of casey serin.
January 7th, 2007 at 1:28 pm
Casey,
Compare your Larchmont property
to this property, and see what a completely different outcome you could have had by buying the right property in the right city.
In Houston and Dallas, the market is littered with houses like this. All you have to do is know how to buy the right properties. But I don’t think you are learning real estate from the right people.
After you purchase several of these houses and rent them out, you’ll have increased your equity and gained cash flow to live off of. I think this is what you should have been doing earlier.
Phillip
January 7th, 2007 at 1:46 pm
Yes, you should seek out a competent attorney (probably not a BK guy, who will push for that). This is a requirement for any business or contract. You should expect to pay, but don’t pay too much. A trip to the library NOLO section is required beforehand.
January 7th, 2007 at 2:10 pm
“How did you get it at 0%, this is all FAKE. ”
Is not a $50K promissory note for 10 years at 0% for a $24K debt equivalent to a 7.62% interest rate?
January 7th, 2007 at 3:18 pm
I can’t read all this!
January 7th, 2007 at 3:24 pm
I’ve been reading this blog for several months, and just took a couple of days to catch up.
I have to admit that I’m stunned that you continue to dig a hole for yourself. Every day it seems you are able to make the *exact* wrong decisions. It’s like all of your instincts are 180 degrees backward.
You also seem to be either a born procrastinator or perhaps you have been stunned into inaction. I find it constantly amazing that you could do things like sign a 50K promissory note and then ‘think’ that maybe you can get out of it, and plan to talk to your lawyers *after* you’ve already signed it!
You seem to have a distinct propensity for making snap decisions about things that you should sleep on/consult professionals about and languish and remain indecisive about things you should just do. Like I said, 180 degrees wrong on all instincts.
Plus, I should echo the others here. This post alone will probably prevent you from ever declaring backruptcy.
January 7th, 2007 at 4:24 pm
There are something like 4 Robs posting here so I will post as Rob BBB instead of just Rob.
As I said before, Casey is doing pretty well right now. He is cleaning up his problem properties so he can get back to flipping good ones. This promisory note will be able to be paid off pretty easily in the future because he will be able to keep his credit score reasonable for future deals (even with the one foreclosure).
With that and with a few good property flips in the future, he should be fine. He just has to get there by cleaning out the rest of his existing inventory.
For all the haters.. this is just how things work. You have to crawl before you can walk. You learn as you go along. Casey is doing a great job learning and then fixing issues as they come along (witness this deal and the previous sale).
He is moving forward. Continue to hate.. you all want him to fail because you don’t want it to be possible for someone to make a living in a non-traditional way.
And Tim, your posts aren’t useful because you have never been in this business. Why are you posting? If you had made money by investing non-traditionally yourself, you would know that the first time you do something, you aren’t a raging success.
You have to fail a few times before you make it big. Casey stuck his neck out, got hit a bit and is cleaning things up for the second round.
He’ll be back in the game within 4 months and then the haters will all be thinking about what could have been if they had just had the guts to step outside their 9 to 5 life and risked enough so they could retire early and wealthy.
I know what will happen in 6 months… the haters will all say “he got lucky” or “I can’t believe it” when he is making money flipping again. But it’s not luck that create success, it is risk taking and hard work.
January 7th, 2007 at 4:35 pm
“Many of you still think I can just mail the keys to the lender a.k.a Deed in Lieu of Foreclosure. Its not that simple. A lender first has to give you permission, and I already tried asking.”
Jingle mail is the term. Did the lender give you permission to stop paying the mortgage? Since when did you start playing by the rules? Forget about the properties- they are toast! You need to start generating some cash and packing it away. Figure out how you will start earning a living and then Chapter 7. Your goal should be how do I get back up to zero.
January 7th, 2007 at 4:56 pm
Countrywide probabaly won’t sue you if you dont pay this note. What they may do is sell the note (for anywhere from $500 to $2,500) to a buyer of bad debt (which tend to be entrepreneurial small businesses). They may sue you. If you come into some money in the next 4 years before the SOL runs out (inheritance?) and do something stupid (like buy a house free & clear in your own name) you will have a problem, and they will make a huge return on their investment at your expense. If you simply let Countrywide foreclose you would not have to worry about this. And regarding your credit, are you not like in the lowest 1% of population? Well if you get yourself up to the 10th percentile will this help you at all?
January 7th, 2007 at 4:58 pm
Coyote Investor, your writing style reminds me of a certain author, perhaps only because I’m reading that author’s work right now.
Casey, looking for an update other than pointless comments (such as this very one.)
January 7th, 2007 at 5:12 pm
“Wrong Way Casey”
Lurker wrote:
“You also seem to be either a born procrastinator or perhaps you have been stunned into inaction. I find it constantly amazing that you could do things like sign a 50K promissory note and then think that maybe you can get out of it, and plan to talk to your lawyers *after* youve already signed it!
“You seem to have a distinct propensity for making snap decisions about things that you should sleep on/consult professionals about and languish and remain indecisive about things you should just do. Like I said, 180 degrees wrong on all instincts.”
This has been Casey’s M.O. for several months:
– the contract he signed with PRLINKBIZ and then told us he was hoping she would ignore, or let him out of, or something….he never told us what the contract entailed, but he told us she should be “helping” him by tearing up the contract
– after he got back from this same trip, to get education from the guru, and to talk to PRBLINKBLITZ, he tried to get the “Hard Money Lender” on the Angleridge property to relent, to let Casey do a DIL even though it was Casey who dropped the ball, who dawdled, who went off to schmooze with Kiyosaki and NO LIMITS LADIES when he should have been taking care of what he had AGREED TO DO.
“Why won’t they help me?”
– now he is openly talking about getting out of the contract he signed with Countrywide for the Promissory Note. Gee, why didn’t he consult with a lawyer BEFORE signing?
(Hint to Casey: On all of these deals, consult with an attorney BEFORE, not AFTER.)
On the other wrong decisions, yes, it appears that he is a kind of “Wrong Way Casey” (reference to Wrong Way Corrigan).
I’d like to write a whole mini-essay on this “personal” touch Casey always seems to think is crucial, about how this or that person is “really trying to help me” (or “Why are they not helping me and talking about this contract instead?”. Where I come from, numbers are numbers, deals are deals, contracts are contracts, and people get the best overall transation (”win win”) when they carefully analyze deals and then honor the contracts they sign.
Casey overpersonalizes what various agents, loan officers, and buyers are doing for him. If he thinks in terms of black and white financial numbers, without personalizing things, more clarity is gained.
This loosey-goosey idea that contracts are trumped by second thoughts is one of Casey’s biggest business errors.
–Tim from Monterey Bay Area
January 7th, 2007 at 5:28 pm
Are you going to give us something “new” today Ca$ey ? I’d like to see a post from you covering in detail all of the questions your readers have been asking. I know, I know………..wish in one hand, s*** in the other, see which hand fills up first !
January 7th, 2007 at 5:32 pm
With apologies to Beck - I’m sorry when I see Casey’s pix, he reminds me of Beck…
“…DIL’s make me want to smoke crack
Fly out the window and I’m never coming back
Doin short sales makes me want to get high as a moon
Like a big blue rubber balloon
Ah get that juicee!
Everything’s win-win
Everything’s grand
Everything’s sweet
All across the land, you know it!
Bust out the biscuits
Strike up the band
Sign those notes
Every woman and man…”
January 7th, 2007 at 6:04 pm
I know why this whole thing seems like a fake. It is difficult for people to believe that someone can be so dumb. However, the fact that you showed the addresses to the properties tells me that maybe you are for real. However, I believe that many of your blogs are just troll bait to keep your audience entertained.
January 7th, 2007 at 6:39 pm
@ What a Fake
January 7th, 2007 at 1:03 pm
People
this entire story is obviously FAKE! You cant possibly be this stupid and lazy and pull of all these purchases.
It is not entirely fake, but there is no way yo determine what is fake, what is true, and what is trolling.
Casey is in this position because he has no instincts for the business he is in. He can follow other’s directions, but now that he is in uncharted waters he’s lost.
He does own the properties, and has some monkey business pulled on the titles, so that part is not fake. The rest of it…..well….. I read it for the tragicomic entertainment value. Real or not, there is value to this show.
January 7th, 2007 at 7:37 pm
So you:
1. ‘Think’ you have a buyer?
2. ‘Think’ the second will roll over and play dead?
3. ‘Think’ you can get out of it the note?
4. Therefore have signed a promissory note?
5. But haven’t yet talked to an attorney?
OOOOOOOKAY!! Sounds like a Sweet deal to me!
It’s all good!
January 7th, 2007 at 7:39 pm
Casey said:
“Utah update: I am still trying to track down why my original lender cashed two payments AFTER my loan was transferred. They are supposed to have forwarded those to the new lender. I got copies of canceled checks from my escrow company servicing the payments on the wrap. So now I got some ammunition when talking to them. ”
BUT, didn’t you get those cancelled checks while at “college” in Phoenix - like 3 (4?) weeks ago?!?!
SO - you’ve basically done nothing in 3 weeks? … thought so.
January 7th, 2007 at 7:45 pm
Casey, perhaps you should write about these plans you hatch before actually signing anything. You have many educated people here that would have told you not to sign anything…
And isnt is surprising that the foreclosing of Casey’s properties are moving so slowly. From JH’s post above, it seems the lenders are dragging their feet in respect to new foreclosures, trying to buy their time in hoping that home prices will rebound.
I think we are headed for a deep depression. Housing is going to collapse, and hopefully we wont take other countries with us.
January 7th, 2007 at 7:46 pm
==> Nadia Belemi, and
==> damn_the _torpedoes
You’re both missing a key point - Casey is not GETTING $50K to spend and then payback (and therefore has some left to put in his pocket, or spend on what he wants).
He is promissing to PAY $50K - ALL out of his pocket.
January 7th, 2007 at 8:11 pm
Phillip said
“Casey,
Compare your Larchmont property
to this property, and see what a completely different outcome you could have had by buying the right property in the right city.
In Houston and Dallas, the market is littered with houses like this. All you have to do is know how to buy the right properties. But I dont think you are learning real estate from the right people.”
Not sure if I agree with you on your cash flow calculator…Where in that formula did you account for maintenance, advertising, vacancy.. ect ect ect….
January 7th, 2007 at 8:14 pm
Shouldn’t Casey move into one of the houses? That way he can forestall the bankruptcy procedure and the legal ramifications of intent to occupy?
January 7th, 2007 at 8:49 pm
At least you’re getting a reasonable interest rate on the note.
Assume: Short of $24K + back interest, taxes and penalties = let’s say $30K.
NPV of $30K, 10 years, NFV of $50K = compounded interest rate of 5.2%.
(Different assumptions, of course, produce different %)
January 7th, 2007 at 8:58 pm
How much is your “super-persistent agent lady” going to make on this deal? Round numbers: 6 or 7% of $200K to $250 K = around $15K?
Worth being persistent for - especially with a client who’ll sign $50K notes with only a very little bit of arm twisting.
And where’s her piece of the action coming from? Your note?
She’ll be “your agent for life” and you have to pay for only 10 years!
SWEET!!
January 7th, 2007 at 9:03 pm
I just got back from having drinks with a client. So this is like where you promise to pay the bank the difference on a short sale right? So they will accept the short sale? Sorry I’m not too good at Real Estate details.
January 7th, 2007 at 9:07 pm
Oh, come on. He’s agreeing to pay $50,000 to them for what exactly?? He received nothing. This agreement is unenforceable.
THIS BLOG IS FAKE
January 7th, 2007 at 9:08 pm
A lot of people on this site are misled about the bankruptcy eligibility question. Just because you committed fraud doesn’t make you ineligible for bankruptcy. However, your lender can file a lawsuit against you in your bankruptcy case to have its debt (or all debts) declared nondischargeable. In addition, if the bankruptcy is considered abusive, the United States Trustee, a creditor or (I believe) any party can file a motion asking the judge to dismiss the bankruptcy case. This is different from the eligibility question. As long as Casey’s income is below the California median for his family size ($57,237), he will not be subject to the means test and should be able to file Chapter 7. If his income is above that, he might be forced to file a Chapter 11 case instead.
Before more people go on spouting off about what can and cannot happen in a bankruptcy or what bankruptcy law provides, please look at an online summary of BK law:
http://www.uscourts.gov/bankru.....asics.html
January 7th, 2007 at 9:11 pm
It looks like Phillip the guy at:
http://retirein6years.gcproperties1.com/
is even dumber than Casey and is buying in TX.
I wonder if he will change the name of his BLOG to ithoughtiwouldretirein6yearsbutnowiamfacingforclosurelikecasey1.com
As bad as some of the areas Casey bough in they are garden spots compared to the armpit (and home to more forclosures than any other state in US history) that is called TX.
January 7th, 2007 at 9:27 pm
Casey, you will have to be less vague when you say you are “facing foreclosure”. Is every property in “foreclosure”? Are there deadlines to sell the properties before they go into foreclosure? If you want our help, we can help you prioritize, but we will need additional information on the properties.
January 7th, 2007 at 11:01 pm
This is silly, no steps in the stories of the properties or the overall picture, just random snippets of activity out of the blue. I had no recollection that Larchmont even had a pending sale. In the 7 days of this year you’ve put bubkis up here. Now gonna meet with your attorneys, of which we’ve heard nada. Can you not do anything right, not even a stupid blog?
January 7th, 2007 at 11:24 pm
For those of you with the question - the property tax bill paid in December probably came from the Escrow account with the lender…. This money was likely collected at the time of closing in March.
This property tax bill was based upon the tax rate established prior to the purchase of the property. The two additional tax bills currently listed as not being paid represent the increase of the tax liability for the property that resulted from the sale price of the property. The reason these were not paid is probably because Casey stopped paying the mortgage so there were no funds in the escrow account for the tax payment.
January 8th, 2007 at 2:16 am
Casey,
Not sure how you did it, but you definitely did.
The liability here has always been the potential for criminal charges and not the debt itself. By reaching a modified agreement that settles any and all claims with Countrywide, I think you may have side-stepped that issue completely.
And to do it with a promissory note that in all likelihood will not see more than a payment or two, you’ve completely outplayed them.
It seems to me the moment they settle with you by accepting your new note, they abandon all claims of fraud associated with the earlier loan, and that’s absolutely brilliant.
You have a very clever lawyer or dumb luck was on your side last week. Which was it?
January 8th, 2007 at 2:48 am
Well I have been reading the comments on thip page for a while now and have discovered that they are rather funny. I mean look at this situation. Here is a man who is in a bind and is admiting that he screwed up, and all the majority of you can do is bash him and insult his inteligance. You people dont sound inteligant at all. Instead you sounds bitter and childish. I mean crap one guy instead of giving advice on what Casey can do with his money to help him get out of his situation, this guy desides to belittle him by making some dumb Jamba Juice comment. Come on people have some class. Help the guy out. But the truth of the matter is that the verry people bashing Casey for what he did are probably no better off then he is. In fact they are probably lazy a** people who do nothing with their lives but play video games and talk crap on the internet. But I guess the best way to build up your self of steam is to bash others so you feel better about not accomplishing anything in life. Any way Casey if I had a way to help you I would but I just dont have the knowledge for you situation. I hope it all works out for you and that one day your goals will be accomplished. As for these nay sayers. Pay no attention to their attempts to keep you from succeeding. Youll figure it out.
January 8th, 2007 at 2:54 am
@ damn_the_torpedos
&
@Nadia Belemy
It seems that you both think that CS is getting some money out of this deal, that he will get $50k and have it to spend somewhere. That’s not the way this works!
CS is selling the home for less than he owes CFC. He is agreeing to make up the difference over 10 years. He won’t see a dirty penny. He’s doing a short sale, screwing the second lender, and agreeing to make CFC whole on the deal by creating a new loan.
It clears the house off CS’s and CFC’s books, lets the home go at market value.
I wonder how the second lender feels about this. I’d foreclose the instant I heard about this just to be a prick.
If we were getting all the facts, we’d next hear about the negotiations wiht the second lender. But Mr. CS has a habit of showing us only part of the story, like the UT house.
January 8th, 2007 at 2:56 am
Casey hasn’t declared BK because he wants to be wealthy so badly, he will hold it off until it is forced upon him. This is his dream. It’s black and white thinking patterns. He believes that if he does not achieve this dream now, there is no other chance. He is a desperate man that will try ANYTHING for a miracle that proves that he too, will fail forward like “the greats”.
What he doesn’t realize is that the conman is being taken by the con artists. The lenders of the world are essentially the ultimate con artists. Their entire reason for being is to restrict the flow of capital, keep it rare, so that they can charge as much interest to get away with. The conmen, like Casey, who are taken for a ride aren’t even aware that they are in the amusement park. They believe that they will be that one in a million who can “hit a homer” and make a lot of easy money with very little effort. Instead, they are ensnared by the wiser, more experienced con artists (countrywide) who outcons their con.
Countrywide’s purpose for existence now is for the executives and shareholders to keep their positions of power. By selling this note to Casey, they get to book revenue and mask the loss. By masking their loss, (along with the thousands of other caseys out there), they can continue for awhile getting the same rates on borrowing from their lender. What a circular system this is.
All of the behavior of the above groups in the chain is linked together, almost in a Jungian, archetypal sense. Each group, from Casey to Countrywide to their lender to HSBC to the federal reserve is based on paranoia. Casey sees his window of opportunity to make money shrinking. Countrywide sees their opportunities falling away like dominos. The big secret here is that every subsystem (casey, countrywide) within the system (u.s. economy) has a subconscious realization that everything is close to failing. Everybody owes money to everyone else, and the ability to generate revenue that exceeds expenses is collapsing.
Most people see that a global financial collapse is imminent.
January 8th, 2007 at 3:43 am
Casey,
You really need to stop blogging and get some help. You’re way out of your league here.
January 8th, 2007 at 6:51 am
Why doesn’t he buy reefer instead of the Jumba Juice? He’d be further ahead!
:)
January 8th, 2007 at 7:13 am
Well, I did it. Shorted CFC @ $41.935 this morning. Let’s hope their predatory lending practices come back to haunt them with a vengeance.
And Casey, I’ll be seriously pissed if you pay them anything on that note.
January 8th, 2007 at 7:45 am
Good luck Casey. This doesn’t appear to be a great development, but hey, atleast your doing something… I keep checking your block daily for the annoucement of BK, and I am truely amazed you have lasted this long.
January 8th, 2007 at 7:53 am
Casey - you wrote:
“So why did I sign a personal note to get the short sale through? Well for one, because a short sale is much better than a foreclosure on my credit record for the purposes of applying for mortgages in the future. It shows that I tried to pay back at least some of the loan as apposed to just throwing in the towel.”
Dude - you credit is in the hole already, and you said that one house was already foreclosed upon, no, or got notice of it? Whether you have one or two on your credit report doesn’t really matter at this point. Don’t waste time & energy on such things - declare BK now & start a new life.
January 8th, 2007 at 8:24 am
@Yneone
I took you for a complete idiot, which I believe is true, but I never thought you were a racist too.
January 8th, 2007 at 8:30 am
Well, well.
That’s another $416.67 more per month added to the bills you already don’t pay.
How are you going to float that, babycakes?
Signed
The Cat’s Meow
January 8th, 2007 at 8:32 am
Casey, Do you speak Spanish? Why not rent your houses to 20 Mexicans each? Charge em’ $150 each per month…. Then, don’t pay any of it for the mortgages… let them go to foreclosure. And, just wait…
When property values in these neighborhoods drop like a stone with all the Mexicans littering up the place, you’ll be able to buy it back for pennies on the dollar.
You’ve got the think and act creatively!
H
January 8th, 2007 at 9:04 am
Casey says…..”Well for one, because a short sale is much better than a foreclosure on my credit record for the purposes of applying for mortgages in the future. It shows that I tried to pay back at least some of the loan as apposed to just throwing in the towel.”
You showed us your FICO a while back and it was already in the 500s and it was going down like a Catholic School alter boy. I doubt there is much difference between a 450 and a 500 FICO when it comes to interest rates.
Casey said…..”Except for today (sickness) I have been doing pretty good with 5AM risings. And she hasnt failed once so far.”
Ummmm, you just reaffirmed that goal on January 3rd and you didn’t do that post until close to lunch. Your last post was yesterday so that means we are only talking about Thur, Fri and Saturday, THREE DAYS. Ummmm…congratulations!
Casey, I will keep coming back as long as you continue this wreck. I’m hooked. Some of the folks on here that have really tried to help you (I’m not one of them) are slowly turning into “haters.”
January 8th, 2007 at 9:10 am
Casey,
It’s time to do one of the following:
- Stop moderating comments
- Stop blogging
- Get someone else to moderate
- Filter offensive stuff
If you want this blog to continue, there needs to be fresh meat. The posts are already pretty bad. Go several days without a post or a day without posting new comments and we will move onto other sites.
January 8th, 2007 at 10:49 am
wait im not a lawyer or anything…
but where does it say that you will pay this only if the house is sold.
it looks
January 8th, 2007 at 11:09 am
Nadia pretty much already said all this, but here it is again:
Larchmont -
Value of home (after repairs): $260k
Cost of repairs: $10k-$25k
Current value of home: $235k-$250k
Loans -
1st loan: $264k
2nd loan: $66k
Total: $330k
Costs to sell -
Short on 1st loan: $240k
Short on 2nd loan: $6.6k
Broker fee / closing cost: $15k
Total: $261.6k
Offers:
$225k (backed out)
$159k cash
There you see the ~$40k difference between your highest offer and what the banks will take that you posted about in October.
So the banks are offering to forgive
1st lender: $24k
2nd lender: $59.4k
Now considering that the $225k buyer got cold feet, and that the market is in decline, let’s say that the house can sell for $200k (ball park) as is . To make the deal work, the first lender needs to forgive an additional $61.6k for a total hit of $85.6k.
Selling price: $200k
- closing costs: $15k
- 2nd lender’s cut: $6.6k
Total: $178.4k
1st lender debt forgiven: $264k - $178.4k = $85.6k
Now consider if the house goes to a trustee sale. The 2nd lender loses (looses) everything ($66k). The first lender effectively gains the $6.6k that would have gone to the second lender in the short sale, but has to pay additional costs due to the legal costs of the foreclosure process. So if these costs exceed $6600, the bank is better off doing the short sale.
The key here is to estimate the bank’s costs due to the trustee sale process to determine how low of a price they will accept. To me, it seems that the bank is estimating the costs to be around $24k - $6.6k = $18.6k.
Of course, if the house goes through judicial foreclosure, the bank’s costs go up. Considering that it’s painfully obvious that Casey will eventually have to BK, I think the threat of judicial foreclosure proceedings would be an effective tool to get the bank to accept a short sale. Casey should move into the house to lend some weight to the threat. He might even clean the toilet and cut the grass that way.
Another minor bargaining point would be to get the bank to consider the loan payments you’ve made as payments on the principal. Although, considering you bought the place on March 23, and your October 1 post says you were already 3 or 4 payments behind (which in Casey math probably means 6), that’s not much money anyway. But it still knocks a little bit off of the loss for the bank. At 2 months x 80% of your monthly payment of $2288, that’s $3660. Sounds like the bank may have already waived all interest and fees though.
I’m a little confused why people think the promissory note is a new loan. I don’t think the bank intends to give Casey another $50k cash to squander. I’m under the impression that it’s basically an agreement for Casey to swap his current ~$61.6k of debt on a short sale for the $50k note, meaning that the bank is only forgiving $11.6k. I noticed that Casey’s post doesn’t say what the current acceptable short sale price is. I assume it’s less than the $240k the bank agreed to earlier. Also, keep in mind that $50k paid over 10 years equates to significantly less than $50k in present worth (today dollars). Also also, I don’t see why Casey would on the hook for the note if a short sale doesn’t go through. I’m under the impression that the “value” mentioned in the note is forebearance on Casey’s debt.
I agree with the folks who call Enron BS on the note though. Country Wide pretty much is dividing up the hit into two chunks to keep their stock from plummeting. Plus, the added benefit that the debt may not be dischargable when Casey BKs. SWEET!
I really don’t see why this note is such a good deal for Casey though. His debt drops from $61.6k to $50k. His monthly payment drops from $2288 to $416.67, however that money will essentially be going down the toilet rather than into building equity, and it’s not like he was paying it anyway. He’s already got a foreclosure on his credit report. Even if he keeps the Utah house wrapped and negotiates a similar deal on the other three properties, he’ll still be paying about $416.67 x 4 = $1666.68 / month just to service these debts.
In addition, he will also have to deal with his credit card debts, plus the loans with the outrageous interest rates that he’s been taking out lately. If there’s no plan to take care of all of his responsibilities, it still leaves no real option other than BK.
Thus, I don’t see the point of signing the note. His credit is just as screwed with one foreclosure as it is with five. Now, the note may not be dischargeable at all, and even if it is, Casey has to wait 6 months to file. The note can only possibly be considered good from Casey’s standpoint if he does not file for bankruptcy. From what I see, that is still inevitable.
January 8th, 2007 at 12:07 pm
Casey, I repeat: you do NOT need to sign a promissory note, agree to any short sales or file BK (yet). This is all you need:
http://www.12modef.com/. C’mon –a 12-MONTH MORTGAGE PAYMENT DEFERRAL program! ZERO payments and no harrassment from lenders for a sweet year (and possibly longer if they expand program to 36 months). What more could you want??
Disclaimer: I am not employed by nor affiliated in any way with 12modef.com.
January 8th, 2007 at 1:17 pm
wow, homey the clown, you’re so smart and clever. give it a rest, or in other words, stfu.
January 8th, 2007 at 1:43 pm
what in the hell is the the problem with you some of you hipocrites? you guys never make mistakes before? im not directing this to the people who are offering constructive crtitiscm. im directing it to the people who become angry and spew off their own insecurities on casey. the p***y a** ‘I got a 9 to 5 job i absolutley f***ing can’t stand miserable piece of sh** that was to p**** to ever try anything else that didnt require getting bent over and a** raped by ‘the man’ day in and day out.’ i don’t think any of these cu*** have enough hair on their balls to do anything else than sit by there comps and b**ch about someone breaking out of line. nope, i don’t think i would been the least bit afraid of the threats that come from those wankers. you’re going above and beyond what most would do to get out of this mess. good job sir. when it’s past you….do it again! only this time with due dilligence. then come back and start another blog with snapshots of the huge checks you have rolling in while mr. and ms. 9 to 5 lube thier a**holes up for ‘the man’.
January 8th, 2007 at 1:51 pm
ITS HOMEY TIME!!!
YO YO YO CASEY
YO, AMY BE A SALESPERSON. WHAT BE UP WITH SOUTH HALL INVESTORS, Casey? Huh? Yah, and Melcher what’s up with him too. I got mad google skillz and all kinDA bizzatch info. Why don’t you be telling the peeps about res com huh?
Yo fo sho the FBI got yo info. Chris ain’t happy wich you.
YO, did the FBI call yet?
January 8th, 2007 at 1:56 pm
Update: There’s still no way I’m reading all this. I will check in from time to time to see if there is any dirty pictures of a certain Missus. Holla.
January 8th, 2007 at 2:31 pm
ITS HOMEY TIME!!!
YO YO YO CASEY.
Er, I mean, let me change my name so I can continue to name drop under a new pseudonym that people don’t seem to be annoyed with yet.
January 8th, 2007 at 2:42 pm
@ Lurker
“You seem to have a distinct propensity for making snap decisions about things that you should sleep on/consult professionals about and languish and remain indecisive about things you should just do.”
This is the most *accurate* and *concise* assessment yet.
January 8th, 2007 at 2:42 pm
1) Good, it’s tiring for us to keep hearing the words “Early Riser Here” like it’s a badge of honor. Thank goodness you will be POSTING the nitty gritty and not this fluffy new age-y crapola.
2) Learn to use a spellcheck. It’s annoying to see you misspell so many words that a chimp could spell.
3) Wow, I can’t criticize you for this move. I must say even though it’s a bad deal, you made the bed and now you get to sleep in it, as they say. You took money upfront and it made the house that much more unaffordable for potential buyers. As such, you now accept (except in Casey’s spelling style) the loss. Good job. Now the question is how does an unemployed, wanna-be investor with ZERO passive income make those payments?
4) Stop with the hater crap. It’s old and it’s not a correct assessment of the people posting here. One can’t hate you as that would imply we were somehow jealous of your situation. Trust us, and I can speak for the majority here, we don’t.
5) Take some advice once in awhile, dude. You DO NOT know it all, not many folks do. Some people here are quite brilliant with their knowledge of things relating to RE. We’d all stop “hating” on you if you’d be smarter about things. At least, again, this is a step in the right direction.
6) And lastly, YOU dug this hole (whole in Casey spelling) and it’s a shame you don’t do a better job owning up to it.
January 8th, 2007 at 2:50 pm
#
Casey Serin
September 23rd, 2006 at 2:25 pm
Casey said……Im am getting ready to talk to a bankruptcy lawyer and a RE lawyer. I do need to do that very soon.
Do you know what’s better than reading your recent posts? Reading the ones from the beginning. Solid gold.
January 8th, 2007 at 2:54 pm
From September 30th. “And I AM looking for a job (I have a job offer right now I am considering). The problem is that any job I get right now will not allow me to float the negative on so many mortgages and credit lines.”
This is great stuff! I could spend all day on this site. Too bad I have to work like most folks.
January 8th, 2007 at 3:59 pm
Man, turn off moderation or openly advertise an RSS feed.
January 8th, 2007 at 4:03 pm
Casey - please consider having someone help you moderate messages here. The length of time between site updates is getting longer and will kill this blog.
Of course, you have to have moderation based on the experience during your “fast”.
January 8th, 2007 at 4:23 pm
24 hours and no moderation. CS must be working really hard…at something.
January 8th, 2007 at 7:14 pm
IT’S HOMEY TIME!!!
YO YO YO CASEY
DID DA FBI CALL YOUZ YET?
Check yo sitemeter log…. Dem peeps dunn be on too yo punk azz likes stink on a skunk’s hiney.
FO SHO.
Wut did dem high priced bankrepcy lawyas dat yo bin seein tells yu?
PS. yur lender frend David at Countrwide be sayin hello. You knows Countrywide, da place dat you owes all dat moneys too?
Love,
Homey
January 8th, 2007 at 7:43 pm
yep, casey just isn’t cut out to play in the adult world. Schedule appointments to see attorney(s) after the fact!?!? that’s like closing the gate after the horses got out or checking a used car over before you buy it(oops casey did this one too). oh well he just doesn’t seem to learn from his endless, endless multitude of mistakes. Casey you only have a HS education and even that education seems more like an 8th grader. Must be those cali public schools.
January 8th, 2007 at 7:52 pm
This blog is BORING
January 9th, 2007 at 2:11 am
Does the note have an acceleration clause? That is make you pay it off faster or in full if you miss a payment?
January 9th, 2007 at 7:51 am
@Sac Realtor
“It looks like Phillip the guy at:
http://retirein6years.gcproperties1.com/
is even dumber than Casey and is buying in TX.
I wonder if he will change the name of his BLOG to ithoughtiwouldretirein6yearsbutnowiamfacingforclosurelikecasey1.com
As bad as some of the areas Casey bough in they are garden spots compared to the armpit (and home to more forclosures than any other state in US history) that is called TX.”
You keep thinking that loser. My house in Dripping Springs appreciated 16% in 06. I have a vacation house on the lake in Marble falls that did 23%, and a two condos I rent in downtown austin that appreciated 26%.
There are more foreclosures in TX because we don’t let deadbeats like CS lounge around on tax payer dollars, we kick their lame asses out and send them to California. Enjoy your over inflated property taxes, state income taxes, and highest sales tax in the country fool. I will be just fine making a higer salary then you and keeping all my money thank you.
TX is the best state in the country, with some of the best and most well funded schools. We had a $100B budget surplus last year, and we have the money to invest in infrastructure unlike that crap hole 115 degree in the summer 30 degrees in the winter swelter/freeze pit you call Sacramento.
LOL, TX is an armpit…you idiots in CA have no idea, but thats ok, you just stay there, hug your trees and eat your granola. Enjoy your 100 mile traffic jams and pay through the nose to breath your smoggy air, frigging losers.
January 9th, 2007 at 8:05 am
What makes anyone think this Countrywide fax actually pertains to anything? I don’t see any name or address.
January 9th, 2007 at 10:40 am
@ Time Will Tell
Okay, thanks for clearing that up for me. Am I correct in thinking the $50K is to make up the difference between the selling price and the selling cost (short sale), then?
I guess they gave him the note just to allow him to get rid of the property. They’ll certainly take a hit on it, as there’s no chance Casey can afford to make even a scent of payments on it. I guess not paying $416.67 a month is better than not paying $2,700 (I’m not motivated enough to look up the exact monthly payment) a month.
@ Homey
It’s awfully difficult to winnow the wheat from the chaff in your posts. Sorry. Perhaps you would consider creating an easier to understand persona for this blog?
@ RH
The spellchecker is your friend. So is punctuation. Use them. They won’t mind at all.
January 9th, 2007 at 1:15 pm
so casey you seem to be able to sign contracts with the mental clause “i hope i can get out of this later”
would you be so forgiving if and when a tenant doesnt pay the rent of a specified amount & on the due date mentioned on the lease (CONTRACT) and complaining when his blog says “my landlord old man casey aint hooking me up or being very helpful???”
casey you seem to think that if you crossed your fingers behind your back then it doesnt count, so youll sign or say anything!
January 9th, 2007 at 4:40 pm
To Phillip:
You are a fine one to give Casey advice about owning property. How do you explain not returning your good tenant’s security deposit, even though the place was in fine condition, because you think it is the trend? You sicken me!
Here’s where you admit to stealing this poor guy’s money:
http://retirein6years.gcproper.....condo.aspx
January 9th, 2007 at 6:29 pm
@Nadia
You are exactly right about the use of the note.
I guess they gave him the note just to allow him to get rid of the property. Theyll certainly take a hit on it, as theres no chance Casey can afford to make even a scent of payments on it.
The only thing I can think of is that they know how far gone CS is…..how close to BK. If he signs the note within 6 months of BK it won’t be discharged, so CFCis made pretty much whole and won’t have to take the house.
OTOH, What does CS have to lose by just ignoring the letters and calls from the lenders for another 6 months then discharging all the debt. They can’t take anything from him.
January 10th, 2007 at 7:44 am
Man, I can’t beleive Philip is not returning a SD just because everyone else is doing it, he claims. Well, no, not everyone elese is doing it. And it’s illegal to hold a security deposit when there is nothing legally allowing you to (i.e., damage).
What an a** .
__________________________________
@mejustme
January 9th, 2007 at 4:40 pm
To Phillip:
You are a fine one to give Casey advice about owning property. How do you explain not returning your good tenants security deposit, even though the place was in fine condition, because you think it is the trend? You sicken me!
Heres where you admit to stealing this poor guys money:
http://retirein6years.gcproper…..condo.aspx
January 11th, 2007 at 7:32 am
Ha ha, it looks like this clown Philip took down that page. The link is not coming up any longer.
January 11th, 2007 at 2:18 pm
Dude, from your picture, can I be of any assistance?
January 12th, 2007 at 1:38 pm
[…] I think a portfolio loan only “works” when a bank needs one to work.These can be any type of loan.The interest rates are all over the map, including Zero interest for 10 years! Check out Casey Serin’s zero interest portfolio loan that Countrywide just gave him to facilitate his short sale. That is a classic example of a portfolio loan in my opinion. Check out this link: http://iamfacingforeclosure.co.....;Obstacles are those frightful things you see when you take your eyes off your goals”. — Henry Ford […]
January 14th, 2007 at 7:53 am
Casey,
Hats off to you for facing your situation and attempting to resolve it the honorable way. 99.9% of your critics would have taken the BK route. Best of luck to you!
Chris
January 17th, 2007 at 8:07 am
[…] Shorting Countrywide I shorted Countrywide (CFC). They are a sleazy subprime lender, one of the biggest promoters of toxic option ARMs, and highly vulnerable if the housing bubble really bursts.Pros to shorting:- missing earnings estimates, analysts revising numbers downward- president and CEO are cashing out like madmen- pushers of option ARMs, AKA Darwinian euthanasia. Darwinian euthanasia is fine, except when Dr. Kevorkian is stuck by the deceased with an underwater house.- they take unsecured promissory notes from broke and unemployed 24-year-olds to avoid foreclosing on bad loans- still near an all-time high despite evidence that the housing bubble is beginning to burstCons to shorting:- relatively cheap at 9x or 10x earnings- Helicopter Ben and the Easy Fed will bail these bastards outIf snotty bullet points don’t pass for analysis where you live, too bad. They do here. […]
January 18th, 2007 at 5:27 pm
99.9% of the critics aren’t in the same position as Casey. I see Casey isn’t the only one who has trouble with math.
January 29th, 2007 at 7:10 am
My question to you is this - How will this report on your credit? Will it show as a mortgage collection/deliquency or a regular installment account?
Is Countrywide the only one that will do that? It really does benefit the lender as their foreclosure loss would have been $50k + foreclosure costs. They are of course HOPING you will pay it back. Who is this agent of yours that could work that deal $50 k loss? I mean wow, does she live in Georgia?
February 7th, 2007 at 11:05 am
Casey,
Zillow says that this property went DOWN over $6,000.00 in the past 30 days. Oh my!
The housing market fallout is just starting
Imagine when you bought those properties, the sellers must have been thinking WHAT AN IDIOT this kid is as you were saying “sweet deal”.
Oh my, this is classic.
February 16th, 2007 at 5:45 pm
Hi
Been reading this thing and I been in RE business 20 years. Been Realtor, Mortgage banker, Investor and developer.
Countrywide is playing you as piano. If I am correct properties is in CA. If not this works for most states.
Purchase Money loans in CA they can not go after you if the forclouser sale does not pay off the whole note. Other states like Arizona holds ture even if you refi, if it’s house on less than 2 arces.
Promissory note is illegal because you are benefiting one creditor over another one. They are beating on you will not be filing BK within 90days where note can be killed.
Your options.
1. Short sale and you walk with zero and no promissory note to no one.
2. Let them have even go deed house back to them. Make note 80% ownership to 1st and 20% to second.
There lawyer will enjoy the mess you will see them deed house back super fast or keep it.
People you talk to at bank are just collection agents for them. They will lie to get max out of you. The 50K note is proof of this.
Your Credit is Fxxxed will be for some time but in 24 months you will be ready for another A paper loan.
Only place you can be under 8 ball if you committed fraud in obtaining the loan. And it’s under 24 months seasoned. Because the loan has to go to QC and if they find something fishy it goes to FBI fraud unit.
So if you going for broke do it all in a short frame of time and fast so clock starts ticking for your new life.
HOPE IT HELPS.
March 18th, 2007 at 8:51 pm
the people who tried to buy Larchmont during the short sale was there. He is the guy who offered 220k but the bank wasnt 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 sale offer and has been following my blog since. We exchanged business cards and talked about
April 2nd, 2007 at 12:23 am
The only way he got 0% pro missionary note if the mortgage is FHA INSURED. Check out http://www.hud.gov/foreclosure/index.cfm
Partial Claim. Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current.
You may qualify if:
your loan is at least 4 months delinquent but no more than 12 months delinquent;
you are able to begin making full mortgage payments.
When your lender files a Partial Claim, the U.S. Department of Housing and Urban Development will pay your lender the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full.
The Promissory Note is interest-free and is due when you pay off the first mortgage or when you sell the property.
April 13th, 2007 at 9:47 pm
Casey, I saw your interview on the news tonight. What a story. If anything you received 15 minutes of fame! Keep your head up and stick on the ice! We all make mistakes.
If I can offer any advice it would be to slow down, take one deal at a time. This will reduce your risk, stress levels and overall debt. You can do it Casey. My thought is that if you are working on one deal at a time, you can put more effort into it and do a better job.
Don’t be discouraged. I also would not feel one ounce of guilt for the debt that you created. At the end of the day this is 100% the fault of the lenders. Stated income loans are an invitation for people to take advantage of the system. The entire credit rating system was developed to assess risk and make credit worthiness decisions. As a business owner if I extend credit without doing my homework, then shame on me if a customer does not pay their debt!
Did you ever think about leasing any of these properties to help cover the mortgage?
P.S. I read Rick (211)’s comments. Loser! I too live in Texas but I was unaware that we bread such moron’s. What Rick failed to mention was that TX has one of the highest property taxes in the country. Texas is also home of the late Enron! Need I say more!
Casey “It requires a very unusual mind to undertake the analysis of the obvious”. A.N. Whitehead.
P.S.S. You seem like a go getter. If the real estate thing does not work out let me know. We are hiring outside sales reps in the state of California.