User 194013

2 Comments

    • ON: Sun May 18th 00:36 AM
      Commented on:
      How to Default on Your Mortgage and Stay in Your House
      I was fearful of taking the second on my primary from WAMU in order to close the deal for a smaller home as yet unbuilt but with an elevator - a cable winch parisian lift- offering a way for my 89 yr.old crippled m-in-l to have escape from the basement apartment.

      I signed a contract with the builder - his 9 month schedule turned out to be 2 years not completed until Feb 1 2007. I was downpayment out over $250k - I told WAMU and the builder I wouldn't close because I was afraid the new place couldn't stand the appraisal and I would be better off losing my life's savings than risking closing on a loan that would mean I would own one new home maybe underwater and still have my primary residence.

      I hired a real estate attorney - he explained my situation to all parties.
      WAMU assured my the new home appraised at more than the purchase price or they wouldn't close on the loan. The assured me my primary home inside the DC beltway with a half acre pool and spa and 3ook under their apppraisal would sell in weeks - "close on the new house - get the elevator for your crippled mother in law" they said - "WAMU will give you a second on the new house to get you through" then"sell your primary, pay off the second on the new house and everything will be fine".

      "Other wise, WAMU reminded me if you cancel you will lose your life savings deposit and be subject to a deficiency judgement if the builder can't recover their total cost." That scared me - I wasn't smart enough to see the built in mutual exclusive - if the property was worth it then the builder wouldn't have cause for a judgement. Better to lose my lifes savings and walk - this only came clear six months later.

      Ok I agreed with WAMU - you appraise and prove and I will close. WAMU appraised, and the appraisal proved the new home was woth the purchase price and WAMU even financed a wrap second for 10% as promised.

      Of course it turns out it was all a lie - WAMU and the builder were both screwed if I didn't close. They colluded - the appraisal turns out to be a fraud - the builder turned around and sold another house like mine for $400k less than the one I closed on.

      Today I owe $3million on two houses- best price combined is $2.2 million - after 47 years I am insolvent, I have lost my total life's savings, I could have canceld the second closing but believed the WAMU appraisal, and now have payments exceeding my spouse and my own total take home pay and to top it all off my mother in law fell down the first week in the new home with the elevator, broke her back, neck and shoulder ran up $170,000 in death bills and died six weeks later.

      Do I want bail out relief? Not on your life. Is the barney frank bill a travesty on Jeffersonian liberty? You bet. Shoud Ben Bernanke and friends get out of the way and let this mess find its own equilibrium as fast as possible? Absolutely.

      Should I get any special treatment? Only equal justice under the law -- what does that mean? Wipe me out - I have nothing left. Don't chase me with the IRS (remember the second house has no debt forgivness) - don't force me into bankruptcy - is that the penalty, is that the price the Limbaugh, Paulson, Bush right wingers insist on - that I have to hope my father dead these many years must see his son in bankruptcy. Thanks a lot America - is this all you have after 47 tax paying FICA contributing years that I have to go through bankruptcy to have any chance of even surviving at my age?

      I am not asking nor accepting anything from our "government" - I wouldn't even cash the rebate check. It's just more debt for my daughters and their husbands to pay. But I tell any reader of this message and that includes George Will, Rush Limbaugh, Sean Hannity, and the hundreds of others that if I can't receive equal justice under the law - at least equal to Bear Sterns - If I have to undergo the indignity of bankruptcy after a life that included 3 years as a LT. Foward Observer during Nam, an entrepreneur that created over 6ooo new jobs, a defender of civil liberties, and protector of the unprotected then I say to you right wing idealogists that the Fascist Hatred that you are going to see appear in the land of the free and home of the brave is well deserved.
      FOR ALL OTHER HOMEOWNERS: If your loan is underwater by more than 6% as of March 31, 2008, - you owe more than the property is worth and if your payments are such you cannot make them from your take home pay DO NOT SPEND ONE DIME OF YOUR IRA, 401K , ROTH IRA, SEP OR OTHER RETIREMENT TO MAKE HOUSE OR MORTGAGE PAYMENTS. You will never see a dollar of equity in your home - before your credit fails look for a nice apartment that include s utilities if possible, abandon your property, do not notify the lender as you will not be able to reach anyone except a Collection Agent, give no one your name, account number or anything else they can track you with. Move into your new home and forget the past - document your financial circumstances - pay a CPA and Attorney to sign and date your financials. If you are insolvent you will not have any farther claims against you that cannot be easily defeate at low cost in a non attendant hearing. Even if you are not insolvent you can still preserve what you have and avoid any farther liabilities.
      Best of luck to all who are living a nightmare only your parents warned you about and now you are livng it.
      BSCGOVMAN
      View article »
    • ON: Thu May 15th 12:01 PM
      Commented on:
      Get Ready to Short Homebuilders
      DCM can see his common sense logic unfolding in the US' single most often identified stable housing resale market - inside the beltway Washington, DC.
      Inside the beltway was Declared "recession proof" in 73, "job loss proof" in '81, and "resale proof" in 91 - and so it was - until now.

      For the first time inside the beltway housing resale prices are falling "across the value spectrum - $2m to $500k" -and for the most simplistic of reasons - the very ones identified by DCM. The insided the beltway realtors, Long and Foster, Weichert, etc - were at first stunned, then in denial but now at last have begun telling inside the beltway sellers "cut the price" or keep the house.
      View article »
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