Tag Archives: foreclosure

Octo- Mom Gets New House and Other Revelant Real Estate News

March 11, 2009 jd

Large building in back is Puget Automaker's Office Building in Buenos Aires (Possibe quarters for Octo-Mom?)

Nadya Suleman’s the gal that just had eight more children, along with the six she already had, is going to have to move. Seems like the house she is living in is owned by her mom, which is being foreclosed on. The news is that the family is about $20.000 behind in their mortgage payments.

So what is she to do, well, don’t worry, her father is buying her a bigger and better house. Seems like Nadya’s father is buying her a home in La Habra, south of Los Angeles for $564,000, that’s right over half of a million dollars. The home is around 2,500 square feet and features four bedrooms, three baths and a large fenced in backyard. Well one house foreclosed, another taken off the market, have to look at the bright side of things.

Let’s see, if Nadya sleeps on the couch, and you take 14 kids and divide it by four bedrooms, that’s 3.5 kids per bedroom. If she has two more, then it would be a better fit, 4 kids per bedroom. (Don’t tell her that)

Nadya gave birth to eight children in January when she already had six.

I’m not going to go into the fact that some homeowners are thinking of letting their house foreclose or just walk away because their house is worth less than their mortgage. I hear this more and more recently. So what are you going to do if you let your house foreclose? You can’t buy another house for five years, and if history is any clue, the value of the house you left behind will be more then the mortgage you walked away from. Well, I guess I did rant a little?

Real Estate, Travel

Refinancing? Be Careful

March 10, 2009 jd

Tile mural in subway at station Plaza Italia, Buenos Aires (I'm still here)

Along with scams to help you avoid foreclosure, which I talked about in the past, there are others out there trying to take money away from home owners in distress who need to refinance because they are facing foreclosure or those whom are just refinancing to get a lower interest rate on their mortgage.

Rule number one is that you never pay in advance to have someone help you get a loan. Some banks or lenders may require that you pay upfront for an appraisal, which can run between $300 to $450 at the most. However, my experience is that you are better off using your local bank, mortgage broker or credit unions before you pay for anything, which at the most would be an appraisal. Companies outside your home area are not familiar with local real estate conditions and you may spend several weeks or months until you find out they can’t make the loan. I was surfing the net, looking for some information to bring you that might be of help if you are considering refinancing and the pitfalls that I was talking about.I happened to come across Attorney General’s website, Jerry Brown, and he has prosecuted some scam artists. These scammers were taking advantage of people trying to refinance by charging upfront fees of between $1,500 to $2,500 and doing nothing. Here is part of his press release:“In November 2008, Attorney General Brown announced the break up of the First Gov scam ring. First Gov, — which also operated under such misleading names such as Foreclosure Prevention Services; Resolution Department; Reinstatement Department; and Reinstatement Processing — solicited hundreds of homeowners, offering to help them stop the foreclosure of their homes.Ring members promised victims they would renegotiate their mortgages and reduce monthly payments. They demanded an up-front fee, ranging from $1,500 to $5,000, to participate in the loan-modification program.

Victims were told to stop making mortgage payments and communicating with their lender because this would interfere with the loan modification process. After collecting their fee, ring members pocketed the money and did nothing to help victims.”

The full text of his press release is at Office of Attorney General

By the way, talk to your mortgage company if you can, but so far they have been dumb and want you to stop making payments before they will talk to you!

Real Estate, Travel

Jon Stewart Blasts CNBC

March 9, 2009 jd 1 Comment

: Another picture of a professional dog walker. Possible new occupation for some of the people on CNBC (I’m still in Buenos Aires and I love dogs)

I love comedy. Comedy takes a complex situation and makes it so easy to understand. This was so much so with the Comedy Central’s skid by Jon Stewart taking on the high and mighty prognosticators of stock market trends on CNBC. Those advisors on CNBC are always full of advice of which stocks to buy, interviewing CEO’s of large companies and glowing about their potential outcome. Jon Stewart shows several of these interviews by them. He then shows the outcome shortly afterwards where for all of their wisdom the companies fail. I love the interview shown of Sir Allen Stanford, a billionaire at the time of the interview on CNBC. Shortly after the interview, the FBI stated that they think Sir Stanford is running a Ponzi scheme.

But the most telling part of the program was when they showed Rick Santelli ranting and raving at the Obama Administration for giving a small portion of the bailout money to homeowners facing foreclosure. Wow, what a rant. (By the way, Santelli was supposed to appear on the show, but didn’t show) But Jon Stewart puts it all in perspective when he proceeded to show that these icons of prognosticators had no problem with the present and past Administrations giving billions of bailout funds to banks, General Motors, Chrysler, AGI and other large companies.

You know it’s easy to place the blame on people facing foreclosure because they should have known what they were getting into when they took out a loan to buy a house. But who set the standards for these loans? It wasn’t the Realtors or the mortgage brokers or the homeowners. Yep, it was the banks setting the lending standards, enticing people into buying a home with low interest rates. Once people bought a home, the loan was set to trigger into a higher interest rate. Don’t you think the banks knew some people could not afford the mortgage? In the old days they called that bait and switch. Now who is getting the majority of the bailout funds, hummm, of course, the banks.

I don’t know what CNBC’s qualifications are to hire Rick Stanletlli or any of the other interviewers. Is it that they are highly educated to help people lose their money, or are they poorly trained psychics? So Rick and his cohorts are hired by CNBC to advise people of the best stocks to buy, and they are almost always 100 percent wrong, so why are they picking on people who are losing their homes? Is it because the homeowners are not as educated in financial matters as they are and should have never bought a home? (Or their stock recommendations)

Like Jon Stewart said, “If I had listened to them, I would be a millionaire, that is, if I had started out with $100 million.” Their coding is screwed up so here’s the best i could do here’s the link to the video.

Real Estate

For Some, Foreclosed Homes Equals Gold.

February 23, 2009 jd 1 Comment

gold

Foreclosed homes are a buying opportunity if you have the cash. For some investors, speculators and first time home buyers are thinking big and finding opportunities in plummeting home prices. A gold lining in the Golden State’s housing crash.

According to the The News

“For many young couples, plummeting prices and near record-low interest rates make it possible to own a home in California for the first time.

Investors and real estate speculators, meanwhile, can snap up foreclosed properties on the cheap to sell during the next boom in California’s boom and bust real estate cycle, a boom they believe is inevitable and possibly not far off”

“This is a buying opportunity of our lifetime,” said Bruce Norris, who heads an investment group that expects to purchase 100 homes in Southern California.”

The article mentions the group buying a home for $55,000 that originally was worth $360,000 at the top of the market, putting $30,000 into it for repairs and renting it $1,200 a month. I would say that’s a fantastic investment.

I know an investor who bought homes during the last real estate downturn. He bought thirteen homes and turned them all into rentals. When his company told him three years ago that they were moving to Texas and if he wanted a job, he would have to move there. He’s still here, doing well living off of the income from his rentals and building a new home in Lake Tahoe.

Yes, now is the time to buy, if you have a secure job or money to invest, if you want an investment that has proven time and again that you can become wealthy buying real estate.

Real Estate

Facing Foreclosure, Hire an Attorney?

February 20, 2009 jd 1 Comment

The Golden Rule, He who has the gold Rules

Hiring an attorney is usually the last thing I tell a client to do. It’s expensive and normally you can work things out with the party in question if both sides are willing to talk and negotiate.

However, the more I hear from friends and clients, it seems that the only way to get a bank or mortgage company to listen to you is to hire an attorney.

I just heard two more stories of people approaching their bank and was told, you’re making the payments, we don’t want to talk to you until you quit making your payments. In another case, the person tried for two months to modify their loan and finally gave up.

However, the person then hired an attorney and the bank immediately started modifying the loan. I don’t get it, why force a home owner who is under stress to spend an additional $1,500 to $5,000 to get their attention.

In spite of article I recently read, the banks are not cooperating. The article went on to say that a client hired an attorney to represent them and the bank insisted on having a three way conversation with the bank, the client and the attorney. The bank said there was no need for legal representation; they would do all the work for free. Right, maybe you just need to hit the banks over the head to get their attention.

Real Estate

Angel & I on Real Estate

February 19, 2009 jd 2 Comments

Angel, she hates to have her picture taken.

If Angel and I could talk to each other, the conversation might go something like this.

Angel to me, why are people so upset because the government might save their neighbors house who is facing foreclosure. After all, they’re saying I make my payments on time, I don’t want or need a government handout, why should they get one?

Well, Angel, it’s not that simple. I remember when I took a law class, the instructor (who was an attorney) said, there is right and wrong, then there’s the law. Now I say, in these times there is right and wrong and then there is real estate. Real estate needs help now, and it may not be exactly the right or wrong way to do it, but something has to be done.

Helping our neighbor to avoid foreclosure helps all of us. It keeps housing inventory from increasing, it helps prevent our home values from dropping and it keeps the neighborhood from deteriorating. There are vast neighborhoods that have just fallen apart, one home after another being foreclose on, vandals tearing the house apart, or homeowners selling parts of their home before they move. (See my previous blog “Rip off a House, Go to Jail”)

Now some people have further said, what kind of an example are we giving our children? Are we teaching them that if they get in trouble the government will bail them out. I don’t think so; I think you need to educate your children as to the realities of the times. Sometimes, government just has to get involved for the good of the Nation.

What do you think Angel? I think that makes a lot of sense, can I have a cookie now?

Real Estate

President Obama’s Help For Homeowners

February 18, 2009 jd

: The White House

President Obama will be in Phoenix today, to unveil his “Homeowner Affordability and Stability Plan” to help bring relief to homeowners and bring some order to the housing market.

A portion of his blog reads:

“The President’s strategy for economic recovery is a stool with several legs, as he’s said, and one of them is solving the foreclosure crisis.

“We must stem the spread of foreclosures and falling home values for all Americans, and do everything we can to help responsible homeowners stay in their homes,” he said yesterday as he signed the American Recovery and Reinvestment Act into law

To read the full text and explanation of what is proposed read the White House Blog at The Briefing Room

Real Estate

Rip off a House, go to Jail

February 12, 2009 jd

Just as we get a high when we purchase a new home, it must be an equal low when you are losing your home to foreclosure and for some people it brings out their dark side.

For example, browsing on the Internet, I read where someone was having a “Demolition Sale” on their soon-to-be foreclosed home. According to the article anything and everything in the house was for sale!

Here’s another one from a house that once sold for $630,000 that was published on Voice of Sandiego.org

“The kitchen cabinets were gone from the yellow, 1960s-era four-bedroom, two-bathroom house. So were ceiling fans, blinds, light switches, outlet covers, interior doors, closet doors, the toilet, a vanity, the stove and marble counters. The kitchen walls had jagged lines of marble tile, marking the perimeter where the cabinets once were. Gaps showed in the paint, inside and out, the job stopped in mid-refurbishment. The former owner had stripped the house and taken nearly everything with her.”

According to an article from the California Association of Realtor®

“The report said, in summary, damages intentionally caused by the mortgage holder can be subject to criminal and civil penalties. In fact, removal of fixtures valued more than $100 constitutes a felony in the State of California and can result in a state prison sentence for a year or more.

“Even fixtures totaling less than $100 can result in a misdemeanor and could include county jail up to one year and/or a fine up to $1,000.”

The problem of course is that the foreclosed owner of the house has no assets. So pursuing them would not get the banks any money. However, I think they should pursue them. Why? Because twenty percent of the people foreclosed on do just that, rip the house apart. This hurts you and I, because it reduces the value of the home when it goes back on the market and it lowers the value of your home and everyone else’s too.

Real Estate

Only a $500,000 Salary?

February 6, 2009 jd

John Thain after leaving Bank of America

Geez, I can’t get by with $500,000 if I have to run a big corporation like GM, or Bank of America into bankruptcy, woops, I mean run these companies!

Here is what some of the CEO‘s of these large companies made as they ran their companies into the ground according to The New Times

First a little update.

“Executives at companies that have already received money from the Treasury Department would not have to make any changes. But analysts and administration officials are bracing for a huge wave of new losses, largely because of the deepening recession, and many companies that have already received federal money may well be coming back”

Crucial details remained unclear on Tuesday night, including whether the restrictions would apply to all companies that receive money under the so-called Troubled Asset Relief Program, or TARP, or whether they would apply only to the “exceptional” companies that were being rescued from collapse.”

The Times went on to list some executives from severely troubled companies and their current salaries.

The chief executive of Bank of America Kenneth D. Lewis, , took home more than $20 million in 2007. Of that, $5.75 million was in salary and bonuses.

Vikram Pandit, who became chief executive of Citigroup in December of 2007 and previously held other senior positions at the bank, made $3.1 million.

The chief executive of General Motors, Richard Wagoner, made $14.4 million, much of it in stock, options and other non-cash benefits. He earned a $1.6 million salary.

Then there’s John Thain CEO of Merrill Lynch who gave billions of dollars to his employees just before his company went under and was taken over by Bank of America. He spent 1.2 million remodeling his office including a $1,450 parchment waste basket.

Darn, at $500,000 a year, the top dogs will not be able to buy parchment waste baskets for $1,450. How about they use a paper bag from the grocery store instead, that’s parchment, sort of.

By the way, in 2004, Bill Gates of Microsoft received a pay raise and with bonus made $901,667. The rest of his wealth came from the company making money and receiving his wealth from stock growth and dividends. What a concept, company makes money, CEO makes money.

Real Estate

How Not to Face Foreclosure!

February 2, 2009 jd

From a scene that could have come out of a movie, a husband and wife loaded up with guns, ammunition, and homemade bombs and fought off Otero County, New Mexico, Sheriff Deputies that initially tried to serve the foreclosure notice.

Then they got into a battle with the New Mexico State Police SWAT team comprised of nearly 100 officers. At the end, the wife was dragged out of the home by a bomb robot and the husband was found dead with a rifle at his side.

According to Alamogordon Daily News

“Sgt. Andrew Tingwall said the woman, whom police would not identify, was heavily armed and wearing a bulletproof vest. She was arrested and charged with assault with intent to commit a violent felony on a police officer.

He said officers decided to use the robot to grasp her ankle and pull her out of the house.

Officers pulled her away from where she was lying face down,” Tingwall said. “She had two pistols in her pockets and (was) lying on a shotgun.” Police medical members rendered first aid to the woman. Tingwall said she was taken immediately to a hospital.

“At approximately 2 a.m., SWAT officers made an approach of the residence behind a Dona Ana County bomb robot. The approaching officers discovered that there was a male subject with a rifle lying deceased behind a vehicle.”

The wife is facing felony charges with assault with intent to commit a violent felony on a police officer. She may face additional charges according to the police.

So the score, husband dead, wife in jail, house foreclosed. Facing foreclosure is not easy, but this is not the way to go!