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lobb
37 Posts |
 Posted - 05/11/2008 : 07:05:38 AM
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California man losing nine homes in mortgage mess 8:52am EDT
LOS ANGELES (Reuters) - A California man who has defaulted on nine homes and expects banks to foreclose on all of them, forcing him into bankruptcy, says he now considers it a mistake to have invested in the real estate market. Full Article
http://www.reuters.com/article/ousiv/idUSN0952458820080511
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kellamtom
334 Posts |
Posted - 05/11/2008 : 07:14:40 AM
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| investor here in texas losing 22 condos in same complex there are only 135 total, i am trying to sell another condo in the same complex and is not warrantable because investor is delinquent on hoa dues |
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mortgagemessiah
6667 Posts |
Posted - 05/11/2008 : 08:05:57 AM
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quote:
Originally posted by lobb
California man losing nine homes in mortgage mess 8:52am EDT
LOS ANGELES (Reuters) - A California man who has defaulted on nine homes and expects banks to foreclose on all of them, forcing him into bankruptcy, says he now considers it a mistake to have invested in the real estate market. Full Article
http://www.reuters.com/article/ousiv/idUSN0952458820080511
Finally a consumer who has the balls to admit he made an error in judgment and didn't try to point the finger at someone else. |
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MisterVA
4610 Posts |
Posted - 05/11/2008 : 09:14:10 AM
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| We should all blog about the guy using key words to direct traffic to that particular article. |
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tropixman
44 Posts |
Posted - 05/11/2008 : 09:32:34 AM
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| This will get worse once Fannie and Freddie limit real estate owned to (3) properties in 08/08 and there is no more product to refinance investors who own multiple properties. |
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sheriephillips
315 Posts |
Posted - 05/11/2008 : 09:38:04 AM
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| I have respect for that guy. First, he put decent down payments on all his investments and didn't try and deceive the banks in doing them "owner occupied". He had a good job with good income and took advantage of cashing in his stock options to finance the investments. He originally thought he'd ride out the storm, which I give him a lot of credit for doing - even at the cost of losing all of his equity. But ultimately he realized he was in over his head, admits he was in over his head, and will hopefully start over and get back on his feet. He took responsibility - he will be fine! |
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ritabradley01
667 Posts |
Posted - 05/11/2008 : 09:39:47 AM
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quote:
Originally posted by tropixman
This will get worse once Fannie and Freddie limit real estate owned to (3) properties in 08/08 and there is no more product to refinance investors who own multiple properties.
Good info tropixman-do you have a link to this new regulation? |
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MisterVA
4610 Posts |
Posted - 05/11/2008 : 09:42:16 AM
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| That guy is to be commended. He bought high and sold low. But, I think he made a big gamble with the option ARMs. The combo of declining values and minimum payments that kicked in negam really worked against the guy, too. But it is an excellent illustration that much of the crisis is due to speculation and that piece seems to be lost on the media. |
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nowbroker
500 Posts |
Posted - 05/11/2008 : 10:02:21 AM
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Yep.
Boy, I still remember all those World and Wa Mu reps saying I was foolish for not getting with the program and put my borrowers into those neg am ARM's.
In my town, this year they closed both the World Savings and the Washington Mutual loan offices. Those same reps are now out of the business. |
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jcanepa
791 Posts |
Posted - 05/11/2008 : 11:32:24 AM
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quote:
Originally posted by nowbroker
Yep.
Boy, I still remember all those World and Wa Mu reps saying I was foolish for not getting with the program and put my borrowers into those neg am ARM's.
In my town, this year they closed both the World Savings and the Washington Mutual loan offices. Those same reps are now out of the business.
No matter what the hot product was back in the day... Nobody was complaining when they were making all this money. Now the hot product seems to be FHA. What if that goes south? Will we be hearing all the complaints about FHA? Probably. |
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oldmlb
69 Posts |
Posted - 05/11/2008 : 12:32:33 PM
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| If, and when, HUD foreclosure rates go up, and lenders start being returned to pre-closing review (for reeducation & training purposes only), that will be your indicator that the FHA party is on the wane. |
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CoolMtgGuy
1084 Posts |
Posted - 05/11/2008 : 2:10:54 PM
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quote:
Originally posted by jcanepa
quote:
Originally posted by nowbroker
Yep.
Boy, I still remember all those World and Wa Mu reps saying I was foolish for not getting with the program and put my borrowers into those neg am ARM's.
In my town, this year they closed both the World Savings and the Washington Mutual loan offices. Those same reps are now out of the business.
No matter what the hot product was back in the day... Nobody was complaining when they were making all this money. Now the hot product seems to be FHA. What if that goes south? Will we be hearing all the complaints about FHA? Probably.
Very well said ... and true. I also believe that some of the same people who are complaining about certain products are not being truthful. FHA lenders will continue to tighten up on their underwriting standards. You can already see the complaints as the FICO score requirements increases occur. |
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dtabar
300 Posts |
Posted - 05/11/2008 : 3:16:14 PM
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FHA has pretty solid gudielines. Principle and Interest loans, most of them 30 year fixes, and full doc only at a lower DTI. Yes you can go higher, with only compensating factors.
What got us in this mess is the no doc to 100% neg am with a 3 year PPP. |
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nowbroker
500 Posts |
Posted - 05/11/2008 : 3:17:46 PM
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I still think the neg am ARM was one of the a conduits that fed the balloon. The only reason he probably paid the inflated prices, and allowed him to buy that many rentals was that he could make the negative cash flow work with a ridiculous low payment rate.
The article said he was fine until the payments started to adjust, now he has to cry "UNCLE". |
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hmorales007
13 Posts |
Posted - 05/11/2008 : 3:55:41 PM
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I sincerely doubt it. An audit would likely reveal 2 primaries, and the rest "second homes" spread across multiple lenders. When brokers ask why MI does not exist anymore for non-owner a picture of this guy should explain it all. Guys like this are a dime a dozen in this market. Investment properties are the new mobile home in the lending world - they are dipped in shi*.
quote:
Originally posted by sheriephillips
I have respect for that guy. First, he put decent down payments on all his investments and didn't try and deceive the banks in doing them "owner occupied". He had a good job with good income and took advantage of cashing in his stock options to finance the investments. He originally thought he'd ride out the storm, which I give him a lot of credit for doing - even at the cost of losing all of his equity. But ultimately he realized he was in over his head, admits he was in over his head, and will hopefully start over and get back on his feet. He took responsibility - he will be fine!
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ML
1365 Posts |
Posted - 05/11/2008 : 8:27:25 PM
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quote:
Originally posted by dtabar
FHA has pretty solid gudielines. Principle and Interest loans, most of them 30 year fixes, and full doc only at a lower DTI. Yes you can go higher, with only compensating factors.
What got us in this mess is the no doc to 100% neg am with a 3 year PPP.
Don't forget FHA is no N/O/O! |
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homebroker@sbcgl
1513 Posts |
Posted - 05/12/2008 : 12:18:27 AM
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| Very common story, I have seen whole track block go into foreclosure, we have a 40 unit Condo development in our area in Short sale, all homes pre-approved short sale brand new with incentives and all the goodies. |
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