Housing Bubble, credit bubble, public planning, land use, zoning and transportation in the exurban environment. Specific criticism of smart growth, neotradtional, forms based, new urbanism and other top down planner schemes to increase urban extent and density. Ventura County, California specific examples.
Wednesday, January 31, 2007
How Many More Like Him?
The mortgage fraud blog is full of them. First payment defaults commonplace. Hummers in the driveway. Funbags in the trophy wife. RE CDs on the bookshelf 401ks in the fourplex in Compton. How many cockroaches are there?
15 comments:
Anonymous
said...
Saw this on Mish's site(http://globaleconomicanalysis.blogspot.com/)...too bad for us, it appears that there are a lot of empty "investment" properties out there.
Mish is only reporting those admitting to vaccancies. The number of boomers with vacation houses that are really speculative investments is staggering. Think Tahoe, Big Bear, Mammoth.
This may literally save CS's a** (from a date with his cellmate).
If CS kept a lower profile, the thousands of "hardcore" fraud cases (1st payment defaults w/ 6 figs back at closing) would keep the authorities busy enough, and casey would be ignored.
Now, casey is toast because he has given even an incompetent DA more than enough rope to be hung with.
Love this website. I have been following Casey's story from the beginning. This is my first post on the matter. I have been discussing his story with many people and one former mortgage broker. He said that it wasn't the "stated income" that was going to bring Casey down, but the cash back which he maintained was illegal. Can someone please comment on this?
basically it looks as if casey slacks off...realizes this and then posts one of those bait posts to get a huge increase in vists and page views. will be interesting to see if this drops significantly for him now.
Robert can I make a request for a future post--I'd really appreciate a breakdown of the Utah wrap deal, and why it appears sketchy. I read Heidi's comments from a previous post and had a hard time deciphering all of it. thanks for your willingness to wade through this much with us.
I do not know if you have seen this tripe, but Eddie Haskel posted this on his site. He compares you to Baghdad Bob.
"Remember the Iraqi Information Minister dubbed "Baghdad Bob?" Well, he's taken on a new form. I'll dub him "RE Bob," as in Robert Cote at exurban nation."
"Attorney William Bronchick offers a great article on the whole due on sale issue here.
"So in Utah, it's perfectly legal to execute an all inclusive trust deed and it's perfectly legal to not tell the lender, so long as the buyer knows the due on sale clause exists. A due on sale clause is in almost every note executed after 1982. FHA loans are the notable exception as they allow for an "assumption" which does require lender notification and usually the buyer's credit approval.
"When presented with this evidence, Robert Cote responded:
It is not illegal to wrap a mortgage. It is illegal to not notify the lender. No one is questioning the legality of wraparound contracts."
"For not disclosing to the lender to be illegal, the original premise, it does matter actually. Come on RE Bob, for the law to be broken, there needs to be a law in the first place. In Utah, where the property was wrapped, there simply isn't one."
His contention is that CS did NOT need to infomr the lender, as it was not required by Utah law, as long as the buyers were informed.
IMO, this makes no sense. It leaves the lender's ass out in th wind with no recourse except to go in and take back the house on on a due on sale clause. Please correct me if I am off base here.
Yes I saw it. I left a comment but undoubtably he deleted it. Here's what I said:
In the post Nigel says; ""Baghdad Bob?" Well, he's taken on a new form. I'll dub him "RE Bob," as in Robert Cote at exurban nation. And in the comments he also says: "I'm all for an open discussion, but I don't think personal attacks and name calling adds to it.
Twice the hypocrite. He deletes comments and he engages in namecalling.
As to the issue. He is just bakpedalling. He is wrong and he knows it but is obviously one of those personality types that cannot admit as much. He keeps harping on about how Utah law doesn't require you to inform a lender of a wrap. What he won't even touch is that the loan agreement requires the borrower to inform the lender of changes in occupancy or ownership. He then got all confused about illegal versus criminal. He's just desperate to save face and the spectacle is frankly embarrasing.
I guess when I asked if there were any more like him I wasn't sufficiently vague. I wanted people to think about Casey surely but also the John Lockwood's and Nigel Swaby's and Greg Swann's of the world.
Hi all, Casey is likely to wear the orange jumpsuit unless the upcoming housing tsunami leaves so many flippers as debris that they would overfill the jails; I assume all here would agree on that. What I'm wondering is whether Galina is likely to suffer the same fate since I seem to recall that she has cosigned for some of these houses. I may be a bit naive about this or perhaps just chauvinistic, but I prefer to think that Casey will try to shoulder all the blame for this to save her having to go to prison. Any comments?
The general consensus on CS is that he is attempting to make his fortune in RE and the posters offer their advice with this assumption in mind. My take on CS is that RE investing is not his true goal. Being a Git-Rich-Quick Guru is his ultimate objective. All of the drama,controversy,ridicule, that CS is generating with his IAFF blog actually fits his paradigm of a gurus path to success. Comments?
The latest troll bait ( post) by the Mad Hatter ( Casey. Now you don't have to go over there.
Top 5 Advice They Say I Have Been Ignoring
Thanks to “Andrew from Canada” for putting together a master list of Top 5 Pieces of Advice I Have Been Ignoring. There are more than 5 but its all good - I will address all of them. My responses are in BOLD.
[Andrew from Canada:] I know people have been asking for to address the “top 5″ so I am reposting my summary (oh and I missed one item the last time I posted this, so I have added that in!). Ranked by the number of times it made somebody’s “Top 5″ list (number of times is in brackets), here are the top items:
1 - (22) Casey and/or wife should get 1 or more jobs that have a regular income stream
strong>As much as I want to continue working for myself and doing deals full time I do agree that I may have to go back to a stable job for a while in order to provide a stable base from which to launch my next venture(s).
I was making 50k/yr as a Programmer/Analyst at my last job at Pride Industries in Roseville and should be able to get back into something like that if I must.
I have been a little slow in looking for a W2 job last several months because I have managed to make money there and here to get by (a little bit of contract work and other stuff)
But unless I find a really sweet deal very soon, I agree that I need to think STABILITY. My marriage/friendships have been suffering due to the lack of it. I can’t just keep going like this.
My wife told me she will get a job if she must but since I have been telling her that she doesn’t have to worry about it quite yet she has been trusting me to provide.
I want her to focus on finishing school and not have to worry about the money. Besides, her earning potential is pretty low right now and it is not going to make much of a diff considering our burn rate with debt. So she would be just spinning her wheels instead of helping us move forward.
2 - (16) Declare bankruptcy I am definitely considering it but there are issues with it which I have already discussed. I would rather avoid it and find a way to pay off and/or settle the debt somehow.
I would feel better about myself too if I can find a way to get at least some of the money paid back.
But there are those days when the pressure gets to be too much and I am ready to Chapter 7 all the debt away.
3 - (12) Stop eating out and other unecessary expenses
Regardless how it looks I live pretty frugally already. And cccasional dinning out is OK, especially since most of it revolves around business meetings.
However, I think we can probably cut out some more fat from our budget… I will be tracking every single penny this year via MS Money and/or Quickbooks so I will have better control over the finances.
I also will be going through all the records from 2006 and should have a spending report to show you within a month. I need to give that report to my CPA on Feb 14 so we can do my taxes.
4 - (10) Stop going to real estate seminars and guru workshops
What is wrong with education? I agree not to over-pay for gurus anymore but quality education is what will help me succeed. I just need to be more picky about who I learn from perhaps.
And at this point I already know enough from all the seminars from last year. So instead of more seminars I need to start applying the knowledge I already have and applying it CORRECTLY.
5 - (8) Involve your wife in decisions and keep her apprised of everything
Good idea. Need to get better at that…
6 - (7) Stop taking out more loans
Good idea unless the loan has a business purpose and will make me money. But yes, I need to be more careful with leverage. It’s a double-edge sword. Leverage is a sweet thing but must be used properly.a
6 - (7) Get out of the real estate business
I am too determined to succeed in RE/business and do it with integrity. So, no turning back. (Though I need to focus on stability right now )
6 - (7) Talk to a criminal attorney
Good idea. I started putting the word out for referrals.
9 - (6) Get legal advice before making deals
Very good idea. I need some good legal advisors on my team. Been lacking on this one. Working on it…
9 - (6) Take the time to maintain/fix your properties
I have mixed feelings about spending more time and money on under-water properties…
9 - (6) Live in one of your houses
No. It sounds like good advice but there are many issues with this…
15 comments:
Saw this on Mish's site(http://globaleconomicanalysis.blogspot.com/)...too bad for us, it appears that there are a lot of empty "investment" properties out there.
http://bp2.blogger.com/_nSTO-vZpSgc/Rb6JSplgCmI/AAAAAAAAAP8/wG9E0OHpRVI/s1600-h/vacancies.png
When you see 1 cockroach you know there at least 10 you don't. Our economy is screwed.
Mish is only reporting those admitting to vaccancies. The number of boomers with vacation houses that are really speculative investments is staggering. Think Tahoe, Big Bear, Mammoth.
This may literally save CS's a** (from a date with his cellmate).
If CS kept a lower profile,
the thousands of "hardcore" fraud cases (1st payment defaults w/ 6 figs back at closing) would keep the authorities busy enough, and casey would be ignored.
Now, casey is toast because he has given even an incompetent DA more than enough rope to be hung with.
Love this website. I have been following Casey's story from the beginning. This is my first post on the matter. I have been discussing his story with many people and one former mortgage broker. He said that it wasn't the "stated income" that was going to bring Casey down, but the cash back which he maintained was illegal. Can someone please comment on this?
oops, meant to sat This may HAVE literally..
cause Casey's already blown it.
check out casey's visits/hits on his blog over the past month. interesting pattern going on every 7 days.
http://www.sitemeter.com/?a=stats&s=s27iamfacingforeclosurecom&r=12
basically it looks as if casey slacks off...realizes this and then posts one of those bait posts to get a huge increase in vists and page views. will be interesting to see if this drops significantly for him now.
Robert can I make a request for a future post--I'd really appreciate a breakdown of the Utah wrap deal, and why it appears sketchy. I read Heidi's comments from a previous post and had a hard time deciphering all of it. thanks for your willingness to wade through this much with us.
Very good point Robert,
I suppose Casey's houses all fall under owner occupied because that is how he bought them.
add 8 more to the pile * X other dumb@sses that did the same thing.
Kind of makes me want to cry. Or move to Mars.
@ Robert,
I do not know if you have seen this tripe, but Eddie Haskel posted this on his site. He compares you to Baghdad Bob.
"Remember the Iraqi Information Minister dubbed "Baghdad Bob?" Well, he's taken on a new form. I'll dub him "RE Bob," as in Robert Cote at exurban nation."
"Attorney William Bronchick offers a great article on the whole due on sale issue here.
"So in Utah, it's perfectly legal to execute an all inclusive trust deed and it's perfectly legal to not tell the lender, so long as the buyer knows the due on sale clause exists. A due on sale clause is in almost every note executed after 1982. FHA loans are the notable exception as they allow for an "assumption" which does require lender notification and usually the buyer's credit approval.
"When presented with this evidence, Robert Cote responded:
It is not illegal to wrap a mortgage. It is illegal to not notify the lender. No one is questioning the legality of wraparound contracts."
"For not disclosing to the lender to be illegal, the original premise, it does matter actually. Come on RE Bob, for the law to be broken, there needs to be a law in the first place. In Utah, where the property was wrapped, there simply isn't one."
His contention is that CS did NOT need to infomr the lender, as it was not required by Utah law, as long as the buyers were informed.
IMO, this makes no sense. It leaves the lender's ass out in th wind with no recourse except to go in and take back the house on on a due on sale clause. Please correct me if I am off base here.
Anon 9:57,
Yes I saw it. I left a comment but undoubtably he deleted it. Here's what I said:
In the post Nigel says;
""Baghdad Bob?" Well, he's taken on a new form. I'll dub him "RE Bob," as in Robert Cote at exurban nation.
And in the comments he also says:
"I'm all for an open discussion, but I don't think personal attacks and name calling adds to it.
Twice the hypocrite. He deletes comments and he engages in namecalling.
As to the issue. He is just bakpedalling. He is wrong and he knows it but is obviously one of those personality types that cannot admit as much. He keeps harping on about how Utah law doesn't require you to inform a lender of a wrap. What he won't even touch is that the loan agreement requires the borrower to inform the lender of changes in occupancy or ownership. He then got all confused about illegal versus criminal. He's just desperate to save face and the spectacle is frankly embarrasing.
I guess when I asked if there were any more like him I wasn't sufficiently vague. I wanted people to think about Casey surely but also the John Lockwood's and Nigel Swaby's and Greg Swann's of the world.
http://forum.freeadvice.com/showthread.php?t=351742
How many more Caseys?
Quite a few, I'd bet.
Hi all,
Casey is likely to wear the orange jumpsuit unless the upcoming housing tsunami leaves so many flippers as debris that they would overfill the jails; I assume all here would agree on that. What I'm wondering is whether Galina is likely to suffer the same fate since I seem to recall that she has cosigned for some of these houses. I may be a bit naive about this or perhaps just chauvinistic, but I prefer to think that Casey will try to shoulder all the blame for this to save her having to go to prison. Any comments?
Northern Renter
The general consensus on CS is that he is attempting to make his fortune in RE and the posters offer their advice with this assumption in mind.
My take on CS is that RE investing is not his true goal. Being a Git-Rich-Quick Guru is his ultimate objective.
All of the drama,controversy,ridicule, that CS is generating with his IAFF blog actually fits his paradigm of a gurus path to success. Comments?
@ everyone
The latest troll bait ( post) by the Mad Hatter ( Casey. Now you don't have to go over there.
Top 5 Advice They Say I Have Been Ignoring
Thanks to “Andrew from Canada” for putting together a master list of Top 5 Pieces of Advice I Have Been Ignoring. There are more than 5 but its all good - I will address all of them. My responses are in BOLD.
[Andrew from Canada:] I know people have been asking for to address the “top 5″ so I am reposting my summary (oh and I missed one item the last time I posted this, so I have added that in!).
Ranked by the number of times it made somebody’s “Top 5″ list (number of times is in brackets), here are the top items:
1 - (22) Casey and/or wife should get 1 or more jobs that have a regular income stream
strong>As much as I want to continue working for myself and doing deals full time I do agree that I may have to go back to a stable job for a while in order to provide a stable base from which to launch my next venture(s).
I was making 50k/yr as a Programmer/Analyst at my last job at Pride Industries in Roseville and should be able to get back into something like that if I must.
I have been a little slow in looking for a W2 job last several months because I have managed to make money there and here to get by (a little bit of contract work and other stuff)
But unless I find a really sweet deal very soon, I agree that I need to think STABILITY. My marriage/friendships have been suffering due to the lack of it. I can’t just keep going like this.
My wife told me she will get a job if she must but since I have been telling her that she doesn’t have to worry about it quite yet she has been trusting me to provide.
I want her to focus on finishing school and not have to worry about the money. Besides, her earning potential is pretty low right now and it is not going to make much of a diff considering our burn rate with debt. So she would be just spinning her wheels instead of helping us move forward.
2 - (16) Declare bankruptcy
I am definitely considering it but there are issues with it which I have already discussed. I would rather avoid it and find a way to pay off and/or settle the debt somehow.
I would feel better about myself too if I can find a way to get at least some of the money paid back.
But there are those days when the pressure gets to be too much and I am ready to Chapter 7 all the debt away.
3 - (12) Stop eating out and other unecessary expenses
Regardless how it looks I live pretty frugally already. And cccasional dinning out is OK, especially since most of it revolves around business meetings.
However, I think we can probably cut out some more fat from our budget… I will be tracking every single penny this year via MS Money and/or Quickbooks so I will have better control over the finances.
I also will be going through all the records from 2006 and should have a spending report to show you within a month. I need to give that report to my CPA on Feb 14 so we can do my taxes.
4 - (10) Stop going to real estate seminars and guru workshops
What is wrong with education? I agree not to over-pay for gurus anymore but quality education is what will help me succeed. I just need to be more picky about who I learn from perhaps.
And at this point I already know enough from all the seminars from last year. So instead of more seminars I need to start applying the knowledge I already have and applying it CORRECTLY.
5 - (8) Involve your wife in decisions and keep her apprised of everything
Good idea. Need to get better at that…
6 - (7) Stop taking out more loans
Good idea unless the loan has a business purpose and will make me money. But yes, I need to be more careful with leverage. It’s a double-edge sword. Leverage is a sweet thing but must be used properly.a
6 - (7) Get out of the real estate business
I am too determined to succeed in RE/business and do it with integrity. So, no turning back. (Though I need to focus on stability right now )
6 - (7) Talk to a criminal attorney
Good idea. I started putting the word out for referrals.
9 - (6) Get legal advice before making deals
Very good idea. I need some good legal advisors on my team. Been lacking on this one. Working on it…
9 - (6) Take the time to maintain/fix your properties
I have mixed feelings about spending more time and money on under-water properties…
9 - (6) Live in one of your houses
No. It sounds like good advice but there are many issues with this…
12 - (5) Seek out a medical health professional
Haha… Is this a joke?
Same old story.
Lather.
Rinse.
Repeat.
Casey.... YAWN.
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