Monday, February 26, 2007

Talk to the bank


Larchmont is toast. With no bids the 1st takes the cheese. And wow does that cheese stink. The 2nd would have been the only serious bidder in this case and even they saw nothing but pain. The spreadsheet of doom says he was carrying the Larchmont on his books at $220,000

http://spreadsheets.google.com/pub?key=pPacQAmy3C4AuHrqHYLazIQ

If no bids at $216,000 it is safe to assume something south of $190k. Looking at the pics from Oct on Flickr I'd say $130k for an experienced flipper looking for work more than for a deal. $30k repairs, $20k carrying costs, $10k sales costs, $210k sales price only to make $20k which doesn't pencil out unless you need the work. Maybe even CFC will do it under a contract. If so our little dandelion will be looking at a tax bill in addition to the non-dischargeable $50k.

Anybody out there smarter than me (and you know who you are) got anything to add?

Update:
Zillow reveals;
http://www.zillow.com/search/Search.htm?addrstrthood=6500%20Larchmont%20Dr&citystatezip=95660



How would you like to be one of the neighbors waking up to the new comps?

57 comments:

BadjerJim said...

First!?

Legion said...

They should nail Casey to a crucifix, post him in the ground as a scarecrow, and let him earn the money he owes em that way. They could also charge 1 dollar to 'Pin the Nigel on Casey's crotch" for extra income.

Jade said...

How much did he buy Larchmont for?

Ellen G. White said...

"While men slept," White wrote, "the Devil sowed houses."

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/02/26/BAG0UOB2531.DTL&feed=rss.bayarea

Legion said...

@Jade

1st: Countrywide 7.5% -$264,000.00 -$11,550.00 -$1,650.00 NOD filed 11/02/06

... 2nd: Citi 11.9% -$66,000.00 -$4,466.00 -$638.00


yep 330

Legion said...

@jade

the 2nd number is how much he needs to pay to reinstate..yeah he tried really hard there, and the third number is his monthly payment..I'm sure he tried jsut as hard there.

I'm surprised they didn't string him up by his balls at the courthouse.

BadjerJim said...

As a Realtor with some REO experience, a number of things will happen pretty quickly:

1) CFC (not to be confused with KFC, and their RatRestaurants) will pay for a current appraisal.

2) Based on the appraisal, CFC will determine a bottom-line 'threshold of pain' price for the property.

3) CFC will offer the listing to their approved REO agents in the area, with some artificicial/guesstimate bottom-line price. It's then up to their approved REO Realtor agent(s) to take the listing or not. Or suggest a different price: higher or lower.

Based on the layers of paperwork, it will be some period of weeks before this turdProperty reappears on the market. Most certainly, on the MLS.

Legion said...

@badjerjim

I betcha Casey is stupid enough to try and buy it again with a cash back deal.

Anonymous said...

Could one of the RE experts explain what Casey's liability is at this point? Is he going to get a 1099 or was that only if it sold at auction?

In other words, other than his already-toasted credit, is he really free and clear on this property now, or not?

king friday the 13th said...

so I take it everyone passed on the sweet deal at the auction, and there were no takers.

wonder if homey will have a 411 soon?

Legion said...

From what I remember, because the lender could always point to fraud, they can always go after him for whatever losses tehy incur..this would be pricey however, and with Casey's work ethic, not likely to prove fruitful. Frankly, if I was the lender, I would be totally vitriolified! It is completely vitriolic that he could get away with this, and I wish people would be more vitrioled with his actions. Casey has been allowed to run free vitriolifying everything he touches. If the lender does manage to obtain any money from him, it will be a vitriolary!
Did I tell you guys I flunked out of Navy brine shrimp training school?

segfault said...

Jesus H. Christ! 7.5% and 11.9% interest--and he had decent credit at that time??? I guess that's the premium for a no-doc, stated-income loan.

I submitted a couple of comments suggesting that he try to buy the properties a second time, but they haven't been approved yet. :)

Rob Dawg said...

Man, on the regional economy level this has got to have even the auctioneers shaking in their Doc Martens. $216k needing a quick $30k mostly cosmetic draws no bids? Sacramento is on my short list for biggest hit and this is a red flag double black diamond moment. They have officially run out of greater fools in a declining market. In my book that's called a freefall in prices.

segfault said...
This comment has been removed by the author.
Ogg The Caveman said...

anon @ 11:47:

There are several factors. Since this was a trustee foreclosure and not a slower and more expensive judicial foreclosure, the lender cannot go after Casey for the deficiency. They may very well hit him with a 1099 once the actual amount of the loss is established, which I assume happens when they sell the property. Hopefully someone more knowledgeable can comment.

Casey's other problem is that Countrywide got him to sign a 50k promissory note in return for being allowed to do a short sale. It appears that the note is neither secured by the house nor contingent on the short sale actually going through, so despite what he thinks, Casey is probably still on the hook for that.

Ogg The Caveman said...

Also, presumably the 2nd position lender can 1099 him at once, since they lost everything.

BadjerJim said...

@Ogg The Caveman - 12:07pm

Methinks you are correct on all counts. Likewise on your comment about the 2nd position lender filing a 1099.

Rob Dawg said...

Ogg & Badjer,

And you can bet the 2nd has been accruing interest and penalties right up until the moment of auction. I can see many thousands added to what young dandelion thinks is in the mail.

Someone should congratulate him for having made $80,000 today. And if he doesn't believe it tell him to just wait and let the IRS explain it.

notme said...

"Someone should congratulate him for having made $80,000 today."

Oh that's funny! Mean...but funny!

Ogg The Caveman said...

It will be very interesting to see the little mop-headed, blue ball sitting, Jamba Juice sipping failure's reaction to this. Will he be depressed about it, or will it be "all good" because he's "falling forward"?

Maybe we'll even get a slick picture like last time.

Anonymous said...

@Ogg,

The kid lied on all of his URLA form 1003's.

Snowflake has eight copies of this part of the form which he and Mrs. Snowflake signed...


The undersigned specifically acknowledge(s) and agree(s) that: (1) the loan requested by this application will be secured by a first mortgage or deed of trust on the property described herein; (2) the property will not be used for any illegal or prohibited purpose or use, (3) all statements made in this application are made for the purpose of obtaining the loan indicated herein; (4) occupation of the property will be as indicated above; (5) verification or reverification of any information contained in the application may be made at any time by the lender, its agents, successors, and assigns, either directly or through a credit reporting agency, from any source named in this application, and the original copy of this application will be retained by the lender, even if the loan is not approved; (6) the lender, its agents, successors and assigns will rely on the information contained in the application and I/we have a continuing obligation to amend and/or supplement the information provided in this application if any of the material facts which I/we have represented herein should change prior to closing; (7) in the event my/our payments on the loan indicated in this application become delinquent, the lender, its agents, successors and assigns, may, in addition to all their other rights and remedies, report my/our name(s) and account information to a credit reporting agency; (8) ownership of the loan may be transferred to successor or assign of the lender without notice to me and/or the administration of the loan account may be transferred to an agent, successor or assign of the lender with prior notice to me; (9) the lender, its agents, successors and assigns make no representations or warranties, express or implied, to the Borrower(s) regarding the property, the condition of the property, or the value of the property.
Certification: I/we certify that the information provided in this application is true and correct as of the date set forth opposite my/our signature(s) on this application and acknowledge my/our understanding that any intentional or negligent misrepresentation(s) of the information contained in this application may result in civil liability and/or criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Section 1001, et seq. and liability for monetary damages to the lender, its agents, successors and assigns, insurers and any other person who may suffer any loss due to reliance upon any misrepresentation which I/we have made on this application.

Borrower's Signature Date Co-Borrower's Signature Date
X X




I/we understand that it is a Federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements concerning any of the above facts as applicable under the provisions of Title 18, United States Code, Section 1001, et seq.

king friday the 13th said...

now, as a capital gain, he's on the hook only for 20% fed + 9% CA. tee hee hee.

there's no fica, right?

Ogg The Caveman said...

"I/we understand that it is a Federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements concerning any of the above facts as applicable under the provisions of Title 18, United States Code, Section 1001, et seq."

That scuppers his whole "I didn't realize it was a crime" argument, doesn't it?

Ogg The Caveman said...

Muncy should be on the block at this moment.

Anonymous said...

I can't believe our financial system allowed this to even happen. $330,000 for that property. If this is happening across the board, then we are so in for a total economic shock.

Bill From PVB said...

2 foreclosures in one day must be some sort of a world's record. I wonder if KC can cash in on that?

Anonymous said...

As mortgage fraud headlines cross the nation in IN, MI, OH, AZ, and CA....has anyone figured out if pencil dick was in any of those states? Surely he wouldn't be involved in shady deals other than what he's "confessed" to....

Foreclosure Partay said...

I sincerely hope he's only involved in what he's confessed to. He's done enough damage already.

walt526 said...

I live about 15 minutes from that house and have driven by it once and have a decent feel for the area. In response to his first "balance sheet" I told him that I would be surprised if the thing wound up selling as an REO for more than $160-180k. At the time (early Jan), he was claiming its worth at $260k or something (my memory could be off slightly). Assuming that the bank gets the house on the market ASAP, that looks to be just about right.

The home is in a mediocre neighborhood (not the worst in Sacramento, but not a place you'd want to raise a family) with really crappy schools. If the house was in great shape, it would probably top out at $240k in the present market. But its not in great shape (in fact, probably not even livable in its current condition). Conservatively (and just judging from the pictures), if the future owner hires a contractor, he's looking at $25-30k just to install basic appliances, floors, etc. Easily twice that if there are any major structural issues or the new owner wants to do more than just the basics.

Factor in the funky garage conversion, and its decreases the value by about $10-15k (and it would probably cost that much just to undo the conversion). So, the market value of the house needs to be discounted by at least $35k (conservatively) and possibly as much as $90k (if one really wanted to go all out, or there are significant repair issues). So I'd say that the fair market value is $205k under the most optimistic circumstances.

But now given its terrible he only potential buyers for the home will be other flippers, the successful ones usually won't bite until the price dips below 85% of FMV, i.e. ~$175. So there's an outside possibility that the home will sell for less than HALF ($165k) of the $330k that Looser Boy bought it for in March 2006.

So... congrats to Casey for failing forward?

-walt526

LOL said...

Muncy is on the block right now, any word from peeps in Modesto?

BJ said...

I believe that the 1099 will not be for LTCG.. it will be STCG.. ie: Taxed at income levels.. what is the tax bracket for that??? a bit more than 20%/9% for 80k offset. Would he also need to pay SS tax on this?(self employed.. such as it is).

This is California, seconds are recourse.. which means:
1) They can go after him, and try to squeeze jamba juice from a stone.
2) They can go after him, racking up penalties and higher interest rates.. then 1099ing the higher number
3) The can 1099 their current loss.

The loan companies can use his 'carcass' to play the tax offset game (corporate tax - income vs losses). Firsts can only go for current loss, but now I could guess that the bank is asking for a low appraisal (vs. ever higher appraisals of a year or two back).

Foreclosure Partay said...

Well, you've got to give it to the boy, when he fails, he fails BIG. He didn't just fail forward, he made the jump into failure hyperspace.

Anonymous said...

Haters,

Obviously you haven't looked at my finacials lately (neither have I). I decided I didn't owe Countrywide the $50k as I didn't really know what I was signing and they took advantage of me. It's all good though. In between foreclosures, I'm meeting with my team on some sweet deals.

YFIF (Your friend in foreclosure)

BJ said...

Obviously you haven't looked at my finacials lately (neither have I). I decided I didn't owe Countrywide the $50k as I didn't really know what I was signing and they took advantage of me.

Gotta be a troll... The real problem here is.. does Countrywide think you owe the money.

-- Tango-Sierra...

Ogg The Caveman said...

Just when I thought nothing could horrify me more about our anti-hero, I misread "YFIF" as "YIFF" in the comment above.

Jim, From Monterrey Bay Proper said...

"Someone should congratulate him for having made $80,000 today."

You know when I read that it made me think of those tools on the 'work from home commercials' that boast 'I made 12K last month, and only worked 3 days, next month I'm gonna try to double that!'.

I was always wondering how they can make those claims, but I never considered the 1099 factor.

crazy-larry said...

Casey's motto "At Least I Tried" needs to be modified to:

"At Least I Lied"


I wonder why Galina wasn't off to school today at 6.00 am ?

Nicole said...

Oh, the things you will learn when you have the day off work (and after working 12 hour days since the beginning of January, I think its deserved).

At any rate, I poked around his site meter today, as I was waiting for news on foreclosurepalooza. He's got several hits from Washington Mutual on there (wamu.com) that last about 5 minutes each.

As Rob so genially (how's that for a two-dollar word? What's that in Canadian currency?) posted the link for Snowflake's spreadsheet, I took a look at that too.

It looks like Snowflake is somewhat overdrawn on his line of credit from Providian/WAMU.

Now, being Canadian and all, I don't claim to understand US credit systems. All I really know is that he has a line of credit (or something) of $5500 from WAMU, and actually owes approx $6700 on it. I am assuming that is interest.

I know its a drop in the bucket, but still.

notme said...

"I wonder why Galina wasn't off to school today at 6.00 am ?"

She and Casey were schooled at the Courthouse today.

Ogg The Caveman said...

@ Nicole:

The extra $1200 is presumably interest, late fees, and overlimit fees.

Anonymous said...

Hey Guys,

Rob BBB here

I've been to these things before. It will just for for the first mortgage amount.

The banks almost (99.9% of the time) take it for the first mortgage amount and then sell it.

Unless the property is worth more than that, then you get other bidders

but this isn't one of those cases.

So, the auction will be quick. The guy will just say the first mortgage amount, nobody will bid and it will be over.

If Casey does have a discharged debt liability (I don't know anything about that stuff because I've never been involved)

then it would have to be for the amount of debt minus the foreclosure price which would most likely be the first mortgage

so, the second mortgage would be his discharged debt amount

TK said...

Any word on Modesto yet?

Nicole said...

@Ogg

Thanks, I assumed as much. I imagine the same thing happens on Canadian accounts.

Not that I would know as I have this terrible habit of paying bills as they come in, with a resulting credit rating of almost 800.

Miguel said...

RobBBB, you tease - you threatened me with a legal smackdown several weeks ago and I STILL haven't heard anything! Did the subpoena get lost in the post? Did anyone else get theirs?

Foreclosure Partay said...

Hey Ogg-
I thought the same thing. I think that probably reflects poorly on us for even recognizing that. I blame Something Awful for exposing me to that horror.

For those blissfully not in the know, Yiff means furry sex. As in, those freakos in animal suits on the internets.

Ogg The Caveman said...

@ Nicole

Not that I would know as I have this terrible habit of paying bills as they come in

You probably have a job too, huh? What a looser.

mycroft said...

TK said... Any word on Modesto yet?

Apparently Countrywide is still giving him a shot at a short sale. They postponed the sale a month until 3/28/2007. I'll bet they don't realize that he was also the owner on the Larchmont house that they are now the proud owner of.

Subsonic22 said...

I noticed that the title company for Larchmont and Muncy were the same, Alliance Title. Most likely one of these homes had cash back to Casey. If there was, did the title company inform the lender. Here in Tampa, there is a title company that just went out of business for doing the same type of deal.

tbo.com/news/metro/MGBXTU3SKTE.html

Hopefully, Casey isn't the only one who sees jail time in this scam.

Nicole said...

@Ogg

You probably have a job too, huh? What a looser.

I know, its terrible. Not only do I have a job that pays the mortgage and bills, but I do a bit of moonlighting to add to my income by about $10K-$20K/year, which contribute to a vacation fund for 3 cruises a year to warm and tropical locations where I can drink pina coladas and take walks in the rain.

Hey! Maybe I should switch to Jamba Juice! Although I'm not sure we have one here. There is a Jugo Juice at the train station and they have wheatgrass...do you think that would do?

bemused guy said...

@ Ogg & Partay.

Oh that's just great guys!!

Now I have to re-write my notes to try and find a way to work YIFF into tomorrow's staff meeting and see if anyone reacts.

@#%$&^&@ or maybe just..Grrrrr

JimBobJoeBobJim said...

Nicole-
There is a Jugo Juice at the train station and they have wheatgrass...do you think that would do?

That will do just fine. Wheat grass tastes like...

..wait for it...


GRASS!

Rob Dawg said...

bemused guy,
If they catch you will you become fursona non grata?

Sprezzatura said...

Casey will probably label the fact that one of the auctions was postponed as big, positive news and a sign that it's all good!

Craven Moorehead said...

I thought I knew everything perverted. You know, donkey kick, rusty trumpet, dirty sanchez, etc.

Now YIFF comes along and I realize..... I really am Naive compared to Ogg and Partay.

Foreclosure Partay said...

Don't feel bad Craven, I just had to go look up rusty trumpet.

Nicole said...

@JimBob

So maybe I should just wait until the gardener comes by and mows the lawn?

Stephanie J. said...

@Craven
Yeah, I just educated myself on that word and the community that uses it and EW!

I remember now they did a CSI ep on that furry stuff.

But the grossest sexual fetish CSI showed; that guy who wanted to be a big baby and be changed and nurse and run around in nappies.... ::gags::

People are f*cked up. No wonder I live in the middle of nowhere.