Sunday, September 30, 2007

"There's a flood on the way."

Yesterday the issue of ethnic on ethnic predation came up. The local fishwrap this morning has a classic example along with some other bits of flotsam and jetsam. The pertainent tidbit: Jorge Hernandez was approached by the real estate agent who had helped his parents buy a home. Hernandez considered him a trusted friend.

This house at 260 Bedford Place in Thousand Oaks is listed as being in default under a deed of trust. At the time of the initial publication at the notice of sale, the unpaid balance, interest and other estimated costs added up to $637,447.39.

The agent asked if Hernandez could cosign a mortgage for a family with seven children. He explained that the family was constantly being evicted for having too many children, and that the loan would help get a place of their own. Hernandez said he was told he wouldn't be financially responsible for the house. Wanting to help, Hernandez cosigned. Two years later when the loan rate adjusted up, he was notified that a notice of default was filed against him.

The same article also chronicles the "tragedy" of an eviction in Oxnard: During a recent visit to a house on F Street in Oxnard, Wilson-Bolton spoke softly to five children and two women standing by the front door. One of the young boys translated the news in Spanish to the family: The homeowner, Hector Alvarado, was way behind on mortgage payments, and the bank was foreclosing.
...Alvarado said in a follow-up meeting that he'd probably pass on the $1,000 (vacate offer) from the bank if he could stay longer to find housing for his extended household of 12 people.

what was that I was saying about the MSM attempting to put a face on the events?


Sac RE Agent said...

oh yeah, first.

Rob Dawg said...

¡Non, non! SeƱor. ¡Primero!

Lou Minatti said...

I'm turd!

Lou Minatti said...

Losing a home can happen to anyone.

Horseshit. People who plan ahead for possible trouble won't. This means buying health insurance, having a savings account and BUYING WITHIN YOUR MEANS.

I bet there is not a person here who will be foreclosed on if the SHTF. We'll just cut the price and sell. So much for "anyone."

She explains to some eligible homeowners that they have a choice: In exchange for their keys, the lender will assist them with $750 to $2,000, depending on the number and ages of residents in the house.

The so-called "cash for keys" system requires homeowners to leave the property in "broom clean" condition by a specified date.

A loser former neighbor of mine got a couple grand a few months back. He was proud of this. He lived in a house for dirt cheap for 1 1/2 years, quit paying for a few months, then ge got a nice wad of cash to walk away without taking out the copper or ripping out the A/C equipment and selling it.

Lou Minatti said...

She and her husband purchased their house nine years ago for about $200,000. They borrowed against it a couple of times for upgrades and to start a business. When the business failed about two years ago, Sylvia became a Realtor. In early 2006, they refinanced again in a subprime loan.

When the interest rate adjusted, their payments ballooned from $2,000 to $4,150 a month.

And I should feel sympathy... why, exactly? No worries! Charlie Rangel is coming to the rescue, and Sylvia the Realtor won't have to pay income taxes on the hundreds of thousands of dollars she "liberated" from her former house.

I guess I sound bitter. Think I'll go outside and mow the lawn before I puke all over my keyboard.

Sac RE Agent said...

I would love to see some honest statistics of whom is being foreclosed upon. How many have ARMS vs NegAm vs 30 yr fixed? How many have loan to income ratios below 50 when they took the loan out versus now? How many claimed they would have someone renting a room from them to meet the mortgage versus qualifying on their own income? How many went stated versus full docs? How many only own one home versus a few extra?

It's going to take a while, but it will be a nice day when there is some personal accountability for a bad financial decision. There is nothing bad or wrong about buying a home for your family. There is something wrong with buying beyond your means. Just because funding was available for $500,000 home does not mean you should buy it.

Lou, I was mistified when Sylvia became a Realtor after her business failed. Yeah, that was a great decision. Your whole life is imploding and go start a new business. I will be glad when all of these newby agents are out of the marketplace offering their services.

FlyingMonkeyWarrior said...

Said before on bubble boards and I shall say it again here.
Those of us who live below our means from the top 'invest with care wall street funds' down to the individual, are being punished. Meanwhile, the the 'devil may care' crowd are getting bailed out, from wall street gambling banks verses the 'wall street fiscal conservatives', down to me (I buy what I can afford) contrasted with the foreclosed on debttard next door.
It's all good.

Lou Minatti said...
This comment has been removed by the author.
Pleather Murse said...

LOL. Finally some GOOD news out of the RE bubble. Some muds get their walking papers. Gotta love it. And the j*wsmedia can't even blame it all on the eeevil white man (though I'm sure they'll find a way.)