May 1, 2008

Dumping A Lot Of Money In A House Losing Value

The Citizen Times reports from North Carolina. “The bursting of the real estate bubble took a big toll on the region’s homebuilding industry in the first quarter of 2008 as the number of building permits issued for homes and condominiums in Buncombe County fell by almost half. ‘In most markets, the level of production (of homes) far exceeded the capacity of the market to absorb it,’ said Dale Akins, CEO of The Market Edge.”

“The number of existing homes sold in the area has been on the decline since fall 2006. A major factor behind that decline is poor home sales in other markets like Florida that make it harder for people to sell there and move here.”

“‘We’re still getting people moving in. They just don’t seem to be coming from those areas that are hurting,’ said Cindy Hipps, VP at Asheville-based builder HomeSource Real Estate and Construction.”

“‘We’ve got some (unsold) specs on the market, as just about every builder does,’ Hipps said. The housing market ‘dropped after (the homes) were finished. It was bad timing, but who can predict the future?’ she said.”

“Builders ‘that are heavy on specs are having some problems,’ said Sean Sullivan, head of Living Stone Construction in Black Mountain.”

The Charlotte Observer from North Carolina. “Charlotte-area prices slipped slightly during the past three months, compared with the first quarter of 2007, according to Market Opportunity Research Enterprises.”

“The Rocky Mount firm’s president, Bernard Helm, says weak pricing will continue as foreclosures add to the stock of housing for sale well into next year.”

“‘Only when someone turns off the faucet, and we can reduce that inventory, will we see improvement in the market,’ he said.”

The Gazette from Maryland. “Frederick County had the third highest rate of foreclosure filings in the state in the first quarter of 2008. A total of 505 foreclosure filings were recorded from January through March, according to RealtyTrac. That was up 531 percent from the same quarter in 2007 and roughly 50 percent from the fourth quarter of last year.”

“Prince George’s County, with 3,334 foreclosures in the first quarter, had the highest rate in Maryland.”

“RealtyTrac reported 4,125 foreclosures statewide in the first quarter, up 504 percent from the same quarter last year and up 27 percent from the previous quarter.”

“Meanwhile, house sales are down from last year. The MLS directory Monday reported 2,200 active residential listings in Frederick County, said said Stephen Mackintosh, co-owner of Mackintosh Realtors of Frederick.”

“Across the county, home sales were down 35 percent in March from March 2007, according to the Frederick County Association of Realtors housing report. The county saw 197 home sales in March, compared with 268 in March 2007.”

“Grant Montgomery, VP of Delta Associates, said he has noted apartment vacancies ‘creeping up.’ The vacancy rate for upscale apartments in the Washington, D.C., region was up to 4.5 percent in the first quarter, compared with 3.4 percent the same quarter last year, Montgomery said.”

“‘We have a lot of new [apartment] supply in the Washington area,’ Montgomery said. ‘We have a lot of new projects in the market. When the condo market slowed, [developers] decided to try to rent them out. Because of that, we have an extra supply.’”

“The housing slump spurred owners who could not sell to rent their homes, adding further competition to the rental market, Montgomery said. On the other hand, the original housing boom, from which prices are just beginning to fall, pushed many would-be buyers into renting.”

“‘We’ve seen these record levels of homeownership and I don’t think we’ll be back there for a while,’ Montgomery said.”

“For 14 years, Tiny Teran and her husband, Salomon, owned a masonry business in Frederick. In September 2007, the couple shut down their business, American Made Masonry, after some clients didn’t pay or filed for bankruptcy.”

“As they continue to pay back debts and taxes, the family’s financial situation has put them four mortgage payments behind on their home on Beall Drive. The threat of foreclosure looms. Tiny hopes that by selling the home soon, the family can get out of debt before they are left homeless.”

“‘We’re living day by day,’ Tiny Teran said recently. ‘There seems there’s nothing we can do. The only thing I am worried about is where we will go when they take our house … and they will take it. That won’t be a pretty sight, I’m telling you.’”

From The Hook in Virginia. “A small crowd gathered in front of the Albemarle County Courthouse April 17 to watch two houses go on the auction block. With the number of foreclosures rising all over the country, such scenes are daily occurrences in many cities. What was unusual about these?”

“For starters, the owners of the houses were into lenders for at least half a million each, and one of them belongs– uh, belonged– to a mortgage broker.”

“‘The first six years I was doing this, it was rare to have one over $200,000,’ recalls auctioneer Phyllis White. ‘I had one in Farmington, one in Glenmore. Then the money became easier.’”

“White has been handling foreclosure auctions for eight years. She says business ‘mushroomed’ after the firm took on a few foreclosures. ‘Now it’s our main business,’ she says. ‘Now it’s a firm of over 200 people.’”

“Statewide, White has seen a rise in the number of foreclosures. ‘I think last year we had double the previous year,’ she says.”

“As for the Charlottesville area, ‘I’ve seen a couple more here, but generally it’s very minimal,’ White says, especially compared to places like Culpeper or Prince William County.” “The April 17 auction was pretty typical for White. ‘Often, no one shows up,’ she says.”

“First up was a house in Earlysville. It’s been on the market for two years, and in fact was the subject of a Hook feature in 2006 when it was listed for $739,500. By last summer, the price had dropped to $685,900. Today the 4,100-square-foot house on nearly four acres is assessed at $595,400.”

“As the clock struck 11:30, White quietly called the small crowd to attention and asked for an opening bid of $574,281. The foreclosure notice had indicated the borrower owed $547,500.”

“Phyllis White asks again, ‘Is there anyone going to bid?’ No response. The bank takes the house.”

“Next up is 5015 Meadowlark Court in northern Albemarle County. Lenders have allowed the owner to pile more than $725,000 in debt on a property assessed by the county at only $691,200. But the real shocker is the owner’s vocation: he’s Chris Prang, a mortgage broker.”

“‘It was really bad timing for us,’ says Prang. ‘We had bought a house a Wintergreen and dumped a lot money in it. Then there was the news about mortgages–’ news that affected Prang’s own business.”

“Their original loan was with American Home Mortgage, the once high-flying firm that flamed out last August with a sudden bankruptcy and put about 7,000 Americans out of work. Then things went bad for the Prangs after they used their equity– or what they thought was their equity– to finance another business venture: buying houses and fixing them up.”

“‘I had another foreclosure,’ Prang admits. ‘I had perfect credit until recently.’”

“He advises homeowners in over their heads to avoid late payments, but he admits that’s easier said than done. He suggests that people unable to keep up with their payments try something called a ‘deed in lieu of foreclosure,’ in which, with approval, they simply give the house back to the bank.”

“‘It’s not as harmful to your credit as a foreclosure,’ he says, but concedes, ‘I’m in the business, and I didn’t know about it.’”

“Another option is a listing forbearance, what Prang describes as asking the bank, ‘Can you give me a break while I try to sell it?’”

“Prang is mortgage savvy, and yet he says, ‘There was nothing else I could have done.’”

“He and his wife bought their house for $650,000 in 2005 and converted the garage to boost it to 5,000 square feet, the biggest house in the neighborhood. They listed it a year ago for $800,000, then $775,000, and finally, $699,000 a few weeks ago, less than what they owe on the three mortgages.”

“‘I could have come current,’ confesses Prang. ‘I have the money. But that meant dumping a lot of money in a house losing value.’”

“And he says if he had sufficient funds, he wouldn’t pour them into buying a house now. ‘Why take the chance to buy something that a year from now could be worth a lot less?’”

“Prang isn’t in favor of current plans for the government to bail people out of bad investments. He personally didn’t want government help in avoiding foreclosure. ‘In the long run, I’m going to be okay,’ he says. ‘I know my credit has been dinged, but I know how to repair it.’”

“In front of the Courthouse, White tells the small crowd that the reserve on the Prangs’ first mortgage is $516,135. That higher number can include missed payments and the auctioneer’s fee, she explains.”

“As with the day’s first auction, there are no bids. Mortgage broker Chris Prang and his wife have just lost their home. The holder of the first mortgage gets the house, while the two other note-holders get nothing.”

“‘This is not fun for anyone to go through,’ says Prang. ‘We’re Christians, and we feel God has a plan, and it’s all going to work out.’”

“He promises they’ll leave the house in good condition. And next for the family? ‘When I get off the phone with you,’ he tells a reporter, ‘I’m going to the packing store and get some boxes.’”




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149 Comments »

Comment by NovaWatcher
2008-05-01 07:15:41

“‘This is not fun for anyone to go through,’ says Prang. ‘We’re Christians, and we feel God has a plan, and it’s all going to work out.’”

Faith-based financial planning.

Comment by Faster Pussycat, Sell Sell
2008-05-01 08:19:44

Yeah, pray to baby Jeebus, and you don’t need to plan for probable outcomes.

Comment by aladinsane
2008-05-01 08:43:09

A lot of the basis for the evang movement was based upon the notion that a supreme being wanted them to be prosperous…

Comment by Faster Pussycat, Sell Sell
2008-05-01 09:16:59

He does; he does want the fleecers to be prosperous.

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Comment by SaladSD
2008-05-01 09:28:18

Or, conversely, that your affluence (or appearance thereof) was a measure of God’s blessings upon you. God wants you to live in a McMansion and drive a Hummer. Though not sure how that works out in light of the camel quote:
“It is easier for a camel to go through the eye of a needle, than for a rich man to enter into the kingdom of God.”

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Comment by Michael Viking
2008-05-01 09:31:39

I know of a company that was founded by some people that God brought together to be rich (so they said). The funny thing was how after bringing them together, apparently God changed his mind, since their company never did IPO and it went away, none of them getting rich in the process. God’s a fickle being that way.

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Comment by In Colorado
2008-05-01 11:06:50

To be fair not all evangelicals (discalimer: I am not one) subscribe to the “prosperity gospel”. That said, it is a popular flavor of the day.

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Comment by texas rules
2008-05-01 11:23:36

Lt. Dan: “Have you found Jesus yet, Gump?”
Forrest: “I didn’t know I was supposed to be looking for him, sir!”

Comment by Renterinaz
2008-05-01 11:39:21

Why can’t god handle money? Seems pretty simple after creating this universe in seven days, money should be a no brainer. OH well back to the pulpit, baby needs new shoes.

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Comment by Jimmy Jazz
2008-05-01 08:53:17

God has a plan

I DRINK YOUR MILKSHAKE!

Comment by DinOR
2008-05-01 08:58:25

Was that a weird scene or WHAT!? Other than that I really enjoyed the movie. I was actually more uncomfortable w/ that than what immediately followed.

“Smithers, I’m finished”

( All your milkshakes are belong to Jimmy! )

 
Comment by Bub Diddley
2008-05-01 08:59:55

Ha!

 
 
Comment by crisrose
2008-05-01 09:09:46

“‘I could have come current,’ confesses Prang. ‘I have the money. But that meant dumping a lot of money in a house losing value.’”

Has the money.

Yep, why pay - something he agreed to do in writing - when he can just walk? “Christians” my a$$.

Comment by 45north
2008-05-01 11:15:52

got to agree

 
Comment by denquiry
2008-05-01 11:49:03

the banker/realtor goes to church on sunday
and throws the widow out on monday

*********roy clark*************

 
 
Comment by Ann
2008-05-01 09:12:54

So common with the mortgage brokers..who thought their “million dollar” world was going to go on for FOREVER!!!

Guess they never heard the word…”BUBBLE”

 
Comment by NoSingleOne
2008-05-01 10:07:00

I’ve heard that all evangelical religions are Ponzi schemes.

Comment by aladinsane
2008-05-01 10:52:28

The evang movement was eerily similar to McCarthyism, the difference being that instead of communists being the boogeyman, they made rational thought their mortal enemy.

 
Comment by In Colorado
2008-05-01 11:08:39

Just the megachurch ones.

Comment by aladinsane
2008-05-01 11:12:32

“A nation of sheep begets a government of wolves.”

Edward R. Murrow

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Comment by yogurt
2008-05-01 10:52:31

God has a plan all right. Looks like you missed it:

“Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal.

20″But store up for yourselves treasures in heaven, where neither moth nor rust destroys, and where thieves do not break in or steal;

24″No one can serve two masters; for either he will hate the one and love the other, or he will be devoted to one and despise the other You cannot serve God and wealth. “

 
 
Comment by NoSingleOne
2008-05-01 07:17:56

He suggests that people unable to keep up with their payments try something called a ‘deed in lieu of foreclosure,’ in which, with approval, they simply give the house back to the bank.”

“‘It’s not as harmful to your credit as a foreclosure,’ he says, but concedes, ‘I’m in the business, and I didn’t know about it.’”

“Another option is a listing forbearance, what Prang describes as asking the bank, ‘Can you give me a break while I try to sell it?’”

“Prang is mortgage savvy, and yet he says, ‘There was nothing else I could have done.’”

He wasn’t mortgage savvy as he thought because, well, real estate never goes down…right?

 
Comment by 2banana
2008-05-01 07:20:04

“‘I could have come current,’ confesses Prang. ‘I have the money. But that meant dumping a lot of money in a house losing value.’”

“And he says if he had sufficient funds, he wouldn’t pour them into buying a house now. ‘Why take the chance to buy something that a year from now could be worth a lot less?’”

Why this is not a “sub-prime” problem and why it will spread and grow for YEARS…

Comment by sfbayqt
2008-05-01 13:17:36

I’m with you on that one. If only people would just purchase their homes to live in…then there wouldn’t be so much focus on how much it is “worth”. The concentration on the value is just all wrong, but I am aware that people were blinded by the $$$$$ signs.

Sucks to be them.

BayQT~

 
 
Comment by Tim
2008-05-01 07:32:18

“He and his wife bought their house for $650,000 in 2005 and converted the garage to boost it to 5,000 square feet, the biggest house in the neighborhood. They listed it a year ago for $800,000, then $775,000, and finally, $699,000 a few weeks ago, less than what they owe on the three mortgages.”

I thought garage conversions were reserved for homes under $100k. I hope he didnt think that should count in price per square foot ratios in homes priced over $500k, but I’m sure he did. I would think anyone looking at this price point would have to factor in turning it back into a garage and deduct such amount from their offer.

Comment by Faster Pussycat, Sell Sell
2008-05-01 08:23:57

This one is headed to foreclosure unambiguously. I don’t even need to read where it is, or what neighborhood, or what city. All of these pesky little details just don’t matter.

Three mortgages? Upside down? Biggest house in neighborhood?

Well, hey-ho, hey-ho, off to the bank it doeth go! :-D

Comment by pressboardbox
2008-05-01 09:08:16

Triple-pronged mortgages prang Prang- headline

 
 
Comment by DinOR
2008-05-01 08:55:09

Tim,

Me too? My brother and I did a garage conversion in the 80’s but it was a tiny ranch and it opened up as a laundry room/shop and worked out great! ( We bought it as repo for $65k though? ) What was this guy thinking?

Sure, I’ll pay mega-bucks for a “trophy” home with no freaking garage! What was the alternative? Some 4×4 posts and corrugated plastic from Home Depot for a car port off to the side? ( Perfectly acceptable in Oregon where nobody parks their car inside anyway )

 
Comment by Pondering the Mess
2008-05-01 09:13:22

In Maryland, paying over $600K for a house is considered a “smart investment” and if it is bigger than 4,000 square feet, well, you need that for 2 adults and maybe 1 child - how else will you be able to fill it with stuff you can’t afford with money you don’t have to impress people you don’t like?

Comment by hd74man
2008-05-01 09:21:11

RE: how else will you be able to fill it with stuff you can’t afford with money you don’t have to impress people you don’t like?

The exact underlying premise of the McMansion craze!

Comment by Pondering the Mess
2008-05-01 09:23:03

And don’t forget the importance of having the McMansion take up most of the lot, squatting like an ugly temple to greed, amid a perfect, fake lawn, without any “ugly” things like trees, flowers, or nature in sight. Can’t have that - they would get in the way of comparing each other to the neighbors, and trees fail to obey HOA’s limits on growth, etc.

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Comment by sfbayqt
2008-05-01 13:30:06

Also, don’t forget that there are some who purchased these McMansions who did NOT buy furnishings, thereby rendering the house practically empty. I recall a couple of years ago when a homedebtor was highlighted in an article, and they mentioned that there is so much space that the kid(s) skate and ride bikes throughout the house.

But they had a HUGE house they could talk about. At least for a minute….

Sheesh!

BayQT~

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Comment by NoSingleOne
2008-05-01 07:32:28

“‘We have a lot of new [apartment] supply in the Washington area,’ Montgomery said. ‘We have a lot of new projects in the market. When the condo market slowed, [developers] decided to try to rent them out. Because of that, we have an extra supply.’”

“‘We’ve seen these record levels of homeownership and I don’t think we’ll be back there for a while,’ Montgomery said.”

Here’s the catch 22: record levels of ‘homeownership’, an ample supply of rentals on the market, yet there is a ‘housing crisis’.

I don’t care what anyone says, this situation is not due to the “free market”…only government intervention could screw things up this badly.

 
Comment by spike66
2008-05-01 07:34:04

This Prang is a piece of work. The arrogance coupled with a complete lack of information about the workings of his own industry. His “I had perfect credit” coupled with his missed payments,his grandiosity, his lack of scruples, his ignorance…but why go on. In the end, it’s God’s problem,and little Mr. Prang will just roll all his financial misdeeds up to His doorstep.
I bet little Mr. Prang considers himself a fine,upstanding citizen,and shows up to vote, too.

 
Comment by RE_MESS in MD
2008-05-01 07:34:50

When we are talking about Frederick-MD, what about places like Hagerstown-MD and Martinsburg-WV which were classified as DC suburbs for the past 5-6 years. I think prices are down 50% in Martinsburg-Charlestown-Kearneysville, WV and close to 40% for Hagerstown-MD. All these big house hungry folks have crammed up I-270 all the way upto I-70. Bunch of losers are now moving back to DC metro and renting.

Comment by Bye FL
2008-05-01 07:57:46

The rising cost of gas is doing just that.

Comment by Pondering the Mess
2008-05-01 09:21:00

The sooner the high price of gas breaks the back of efforts to turn Maryland into a paved-over cousin of the absurdly over-priced land of California (but with worse weather) the better.

 
 
Comment by Ben Jones
2008-05-01 08:17:34

‘Lewis “Lew” Kirby was fast running out of time to pay the mortgage on his home near Hagerstown - when the lender agreed to forgive nearly $50,000 of his loan. Angela, 34, a Hagerstown woman who doesn’t want her last name used, was about at wit’s end, too - when her lender agreed to forgive $60,000 of her debt.’

‘Definitely, believe me, it was an answer to prayer,” Angela said.’

Comment by Arizona Slim
2008-05-01 08:46:19

More faith-based financial planning.

Comment by DinOR
2008-05-01 09:05:20

Slim,

On the part of the borrower… or the lender? Just b/c there was this huge debt forgiven is no assurance they’ll keep current on the payments. It’s possible these people were just buying time and wind up walking anyway. After milking it out further of course.

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Comment by Arizona Slim
2008-05-01 09:31:19

Methinks its part of their plan to string the lender along until they get a Divine Message saying, “Walk away, my children, walk away.”

 
Comment by aladinsane
2008-05-01 09:53:30

Parting of the Red Sea, updated?

 
 
 
Comment by Mr. Drysdale
2008-05-01 09:27:00

Angela and her boyfriend bought a 4br house - WTF? Don’t 99.9% of these situations turn out badly?

Comment by John Smith
2008-05-01 09:57:48

Probably because they’re living in sin.

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Comment by DinOR
2008-05-01 11:16:32

Amen brother John.

No seriously, when these “situations” are brought to light like all of the single, professional gals that decided they needed a 3,500 s/f home, they crumble under the slightest pressure. So you don’t have to be married or Christian to have a ready excuse to walk.

 
 
 
Comment by Joe
2008-05-02 21:28:54

Fearing foreclosure, Angela - who then actually was a mortgage sales agent - agreed to let Nash seek short-sale approval.

Why, OF COURSE she was a “mortgage sales agent.”

Christ, does ANYBODY in this country do any actual WORK anymore?????

 
 
 
Comment by Catherine
2008-05-01 07:38:58

“‘We’re still getting people moving in. They just don’t seem to be coming from those areas that are hurting,’ said Cindy Hipps, VP at Asheville-based builder HomeSource Real Estate and Construction.”

“‘We’ve got some (unsold) specs on the market, as just about every builder does,’ Hipps said. The housing market ‘dropped after (the homes) were finished. It was bad timing, but who can predict the future?’ she said.”

One thing I look forward to in the coming years is a reduction of asshat comments from CEO’s, Presidents, VP’s, the Fed, NAR, etc. that reference phrases like “predict the future”, “who knows?”, “we didn’t see it coming”, “it’s a great time to buy”, “it’s spooky out there”…

I’d like to see these people who make 6 figures (compensation for at least reading some charts) at least put together a comment that doesn’t sound like they’re guessing and lying.

Comment by Faster Pussycat, Sell Sell
2008-05-01 09:39:32

Even Buffett does this. Everyone does. You kinda have to.

He just said, and I’m quoting from memory, “I think we’ll have a long recession but who knows?”

Does he know what’s likely? Damn straight he does, but I don’t think you have a choice in this society which treats prudent negative news, or even really negative news as the devil’s own spawn.

Comment by combotechie
2008-05-01 10:15:15

The most honest answer to questions concerning the future is “I don’t know”; That’s because so much about the future is unknowable.

But these guys get paid some very big bucks to know so an answer of “I don’t know” just wouldn’t cut it, so …

They’ll just make up sh*t as they go along.

But it doesn’t make much difference since nobody calls them on it.

Comment by Faster Pussycat, Sell Sell
2008-05-01 11:12:03

Bullsh*t, total f*cking bullsh*t.

This is that old adage — just because something is uncertain doesn’t mean that all outcomes are equally likely.

Some are far far more probable than others, and anyone who doesn’t understand that is either intellectually lazy, or in the business or spin, or both.

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Comment by JR
2008-05-01 19:52:20

You can’t predict the future, but you can observe the past and present. Such as a wave rolling. Who has seen the wind? Neither you nor I. But when the trees bow down their heads, the wind is passing by.

 
 
Comment by Lost In Utah
2008-05-01 07:48:48

“‘This is not fun for anyone to go through,’ says Prang. ‘We’re Christians, and we feel God has a plan, and it’s all going to work out.’”

Yes, God does have a plan, it’s for you to start using your God-given free will and quit being so dog-dam passive and waiting for him to always fix up your screw-ups.

Comment by Big Bubble Popper
2008-05-01 08:18:23

Seriously, there’s a reason why “God helps those who help themselves” is in the Bible. This is the perfect example of why its there.

Comment by Climber
2008-05-01 08:43:09

Actually that one isn’t in the Bible. However there are a few gems to be found.

“People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction. For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.” 1 Timothy 6:9-10

“No one can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and Money.” Matthew 6:24

Mr. Prang may need to crack open the good book a bit more.

Comment by stanislaw
2008-05-01 09:44:11

“My kingdom is not of this world.”John 18:36

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Comment by In Colorado
2008-05-01 11:11:05

Actually that one isn’t in the Bible.

IIRC, it was Benjamin Franklin who coined that phrase.

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Comment by bluto
2008-05-01 08:43:51

Except it isn’t.

 
Comment by diogenes (Tampa)
2008-05-01 09:28:20

There is no such quote in the Bible.

Comment by yogurt
2008-05-01 11:44:12

There isn’t? I suppose next you’ll be telling us that “The President of the US must be a Christian who wears a flag pin” isn’t in the Constitution, either.

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Comment by Arizona Slim
2008-05-01 08:48:15

Prang, you’d best start praying for God to clip the cosmic jumper cables to your ears to jump-start your brain. Why? Because you need to think first and then open your mouth.

 
Comment by NoSingleOne
2008-05-01 08:56:31

I wonder if God prefers sellers or buyers?

Comment by aladinsane
2008-05-01 09:01:58

Every country thinks god is on their side…

An extreme example:

http://www.ronaldbrucemeyer.com/rantpix/gott_mit_uns.jpg

 
Comment by mgnyc99
2008-05-01 09:27:33

god definately looks down on renters
we all know that

 
 
 
Comment by aladinsane
2008-05-01 07:53:13

Prang: definition… to crash or damage

“Next up is 5015 Meadowlark Court in northern Albemarle County. Lenders have allowed the owner to pile more than $725,000 in debt on a property assessed by the county at only $691,200. But the real shocker is the owner’s vocation: he’s Chris Prang, a mortgage broker.”

“‘It was really bad timing for us,’ says Prang. ‘We had bought a house a Wintergreen and dumped a lot money in it. Then there was the news about mortgages–’ news that affected Prang’s own business.”

Comment by Bub Diddley
2008-05-01 09:02:56

“Prang” sounds more like the name of one of the aliens on Star Trek…

 
Comment by DinOR
2008-05-01 09:12:33

aladinsane,

Just another case of people getting their money “up front” on a flip. This was very typical in a lot of markets, why not there? Within weeks or months of owning, the flipper would simply get appraised higher based on “improvements” that were “in work” and get the cash out from the re-fi. ( After all Mr. Prang was a MB and had a direct hand in the money stream? ) Then as the paint was drying and the stain on the deck was still being applied, stick a For Sale sign in the front yard and let the bidding war commence! I think it’s a lot of the reason we’re seeing so many problems post-peak.

 
Comment by Pondering the Mess
2008-05-01 09:30:14

I am glad I wasn’t the only one who caught “prang” = crash. I think that’s English, but whatever - crash is accurate!

 
Comment by sfbubblebuyer
2008-05-01 09:38:10

It think it should be

Prang : verb - To inflict massive damage or irreparable harm to oneself.

I.E. - Yah, I really pranged myself yesterday at the company picnic when I joked with my boss about the grossly fat lady that turned out to be his wife.

Or, My brother just closed on a house in a half finished development. he’s totally pranged.

 
 
Comment by Bill in Carolina
2008-05-01 08:00:18

Now approaching 40 finished, empty spec homes in our community, with another six to eight still being built. All built by small, local builders who will likely be losing them to the banks before the end of this year.

BTW, many of these houses are totally unsuitable for the target market here (retirees). It’s amazing how stupid most builders really are.

Comment by taxmeupthebooty
2008-05-01 08:36:39

news about these and other lots appreciated- after they go through all the BS w zoning and survey- if they sell at 100% aren’t they actually losing lots of $$$ ?

 
Comment by jetson_boy
2008-05-01 08:43:35

I was in NC a few weeks ago. I couldn’t believe all the Mcmansion developments I saw from the airplane window. I think NC is going to be in for a nice little correction because not EVERYONE wants or can afford a 5,000 sq foot home.

Comment by JoJo
2008-05-01 08:47:06

I just keep thinking about the astronomical utility bills and commuting costs the poor suckers must be paying every month. I predict a lot of walk-aways and/or mysterious fires in the next year or so.

Comment by Xiaoding
2008-05-01 11:30:00

Crime is up…WAY up, in Raleigh. Armed robberies, people geting killed right and left. Therre are shopping centers I do not go to now. Denial also runs rampant. It’s different here!

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Comment by Bill in Carolina
2008-05-01 12:30:37

But we’re all going to be moving to the cities, aren’t we?

 
 
 
 
Comment by tuxedo_junction
2008-05-01 10:58:42

It’s probably the bankers who are stupid. Often these loans are non-recourse and include advances for anticipated profits. Also, loan draws may be at fixed amounts, not cost, so if labor and material prices fell then there’s a borrowed profit to the builder.

Unless the builder had equity in the project (usually not), or has other assets which the bank can get at, it’s the construction lender who takes the loss.

 
 
Comment by wmbz
2008-05-01 08:01:27

“‘This is not fun for anyone to go through,’ says Prang. ‘We’re Christians, and we feel God has a plan, and it’s all going to work out.’”

Boy oh Boy do I hate it when they use ‘God’ as their scapegoat. This turd comes right out and says ‘I have the money, I’m just not going to pay. I’m sure God is okay with that.

Comment by aladinsane
2008-05-01 08:20:30

Permit me to change just one word…

“‘This is not fun for anyone to go through,’ says Prang. ‘We’re deadbeats, and we feel God has a plan, and it’s all going to work out.’”

 
Comment by Doug in Boone, NC
2008-05-01 09:13:22

When God gave out brains, Prang thought He said “rain” and hid under a tree!

 
Comment by Xiaoding
2008-05-01 11:33:33

Well, actually, God is! Every seven years, all debts are forgiven. In the Bible.

 
 
Comment by txchick57
2008-05-01 08:05:53

I love these “God has a plan” clowns. I wish I had a nickel for everytime I’ve heard some loser say that. God must be awfully darn busy working up these “plans” for 9 billion people but maybe he’s also outsourcing that function.

Comment by Bub Diddley
2008-05-01 09:05:50

“maybe he’s also outsourcing that function”

To India?

Comment by Faster Pussycat, Sell Sell
2008-05-01 09:29:46

Well, they have 330-odd million gods, godesses, and demi-gods so capital-G-God thought about the outsourcing problem a long time ago.

Only 18-odd per god/demi-god so they should be able to squeeze it in between the three-soma lunch, and the round of golf, right?

 
 
Comment by DinOR
2008-05-01 09:21:15

Well how different is this than the “St. Joseph’s Statue” you plant in your front lawn so that “God”… will attract some other poor soul/greater fool to take your place on the chopping block?

My neighbor was confronted by the hermit across the street when he cut some overgrown and sickly trees down. “Those trees were created by God and God will “get you”!

Rally? I didn’t realize “God” was in the Evil Henchmen Score Settling business. ( There’s some sick.. people out there )

 
 
Comment by snake charmer
2008-05-01 08:11:13

“We’re Christians, and we feel God has a plan, and it’s all going to work out.”
___________________________________

Unbelievably, God’s plan might not consist of you getting rich flipping houses and then living large in a 5,000 square foot monstrosity.

Comment by phillygal
2008-05-01 08:25:27

maybe they went to one of those prosperity churches

You know the ones that say they’re Christian but in reality they’re all about fleecing your fellow churchgoers thru MLM scams, flipping houses to each other etc.

It’s the New Paradigm Gospel.

Comment by txchick57
Comment by phillygal
2008-05-01 09:07:13

oh no…
Tilton has since returned to the television airwaves via his new version of Success-N-Life airing on BET and other outlets catering to a largely African-American audience. (more)

There used to be a church in Philly called the Church of the Divine Lorraine:

A self-proclaimed deity and ardent civil rights activist, Father Divine also oversaw a real estate empire. In 1948, he acquired the Lorraine for $485,000, assigned the deed to 300 of his followers, and commissioned the two-story, neon-red Divine Lorraine Hotel sign that still stamps the North Broad skyline. His properties were looked upon as “heavens” by his followers and were considered part of the “promised land.”
Father Divine’s Church

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Comment by Pondering the Mess
2008-05-01 09:35:23

“Father Divine” Oh, come ON!

We have seen so many insane, almost surreal, names on this blog as the Bubble has unwound. Today, we’re treated to Prang (aka. “Crash”) and now I hear about “Father Divine.”

That sounds like some insane zealot general in a Sci-Fi novel. Father Divine, General of the Lord’s Hand army, or something… or, did he oversee the invasion plans of Truth, Mercy, and Regret, the Prophets in Halo?

Wow… it’s like the Matrix out there, but without the ability to fly!

 
 
 
Comment by Arizona Slim
2008-05-01 08:51:49

I had a Pittsburgh friend who got involved in one of those churches. She was quite the MLM gal before she started going there, and I wouldn’t be surprised if she hooked the church into something she was hawking.

My move away from Pittsburgh provided the golden opportunity for distancing myself from her. And, here in Tucson, whenever I meet one of those MLM-ers, the alarm bells go off. It’s best to stay away from that crew.

Comment by crisrose
2008-05-01 09:18:58

MLM-ers are users and liars. They are trying to sell you something - otherwise they don’t care or have time for you.

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Comment by NotInMontana
2008-05-01 10:13:53

They always tell you things are going “great guns” LOL

 
 
 
Comment by stanislaw
2008-05-01 10:08:30

501(c) three baaybee !

 
 
Comment by txchick57
2008-05-01 08:27:55

while you stiff your creditors despite the fact you admit you could pay

and what kind of “mortgage guy” doesn’t know what a deed in lieu?

my sense is, this idiot’s next career move may involve long skinny potatoes and hot grease.

 
 
Comment by renting till 2010
2008-05-01 08:16:17

I’ve been a lurker for a few years now. I truly appreciate this blog & all of the time & effort that Ben puts into it everyday. Things have definitely picked up steam in the last 6 months & it all seems to be unfolding exactly like everyone has said it would. So I am very confident that prices will continue to go down to where they should be.

However, I was curious if anyone has any insight on the last downturn and if some of the higher end neighborhoods were not as affected. For example, did prices in Beverly Hills go down that much or is there enough money per capita to support those prices. I have my eye on Hancock Park & it just doesn’t seem to budge, in fact it seems like prices are still going up. Do places like this come down last or is there enough money keeping it afloat to where it will just maintain and ride it out unscathed.

Comment by makeschips
2008-05-01 10:49:28

My observation of the last downturn (I’m in SoCal) was that the ‘uptick’ markets fall later, not as far, and recover sooner.

Compare the Inland Empire today to Hancock Park and you’ll see the first of my three observations in action.

 
Comment by tuxedo_junction
2008-05-01 11:06:29

I think it depends on the locality and what transpired during the price runup. During the last housing price downturn in the Washington, DC area the big dollar homes in expensive neighborhoods had the biggest percentage price drop. Condo apartments in solid, middle income areas lost very little. In the DC area it could be different this time. This time around there were plenty of homes built in the exurbs and they will probably be the biggest losers. Last time the exurban losses were on raw and developed land (the bust occured before many homes could be built in the outback).

 
Comment by ejguillot
2008-05-01 11:14:02

I have also been a lurker here for the last 2 years. I’m in the Tampa area (new tampa) and there’s still a high level of denial out here.

Thank you Ben for this great blog!

 
Comment by Santa Bubblicious
2008-05-01 12:55:47

Here in Santa Barbara, at the last downturn our high-end neighborhoods did go down, not as much, and not as fast, but certainly down.

Also, can you get data that carves out the individual sales? Here in SB, someone puts out the “CORT Report” which lists individual sales for each region (e.g., Hope Ranch, Summerland, Montecito, Santa Barbara, Goleta -these are all south Santa Barbara County, which is doing ok, =North Santa Barbara County (Santa Maria, etc.) is getting destroyed IE style).

The dirty little secret here is that prices have been going down in the best neighborhoods for awhile. A few outlier sales each month ($15-$20 million +) keeps propping up the median, which lets the SBAR talk about how resilient the market is. Pull out those stupendous, one-of-a-kind properties, where the purchase price is always cash anyway, and we’re down just like everyone else (not as much yet, but I’m trying to be patient).

 
 
Comment by Jas Jain
2008-05-01 08:16:17


“Dumping A Lot Of Money In A House Losing Value”

And our benevolent govt wants to help people keep the homes that are losing value…

David Rosenberg; 04/30/08:

“A mortgage proposal out of the FDIC — Take a look at the front page of today’s Financial Times (“Watchdog Presses For Mortgage Rescues”), which outlines a proposal by the chairman of the FDIC to help borrowers pay down unaffordable mortgages. The proposal involves new government loans that cover up to 20% of an existing mortgage and would be interest free for the first five years. And, in return for the cash, lenders would reduce payments on the remaining part of the mortgage to more affordable levels. The FT points out that this could be used by the Bush administration as an
alternative to the Frank/Dodd bill.”

Frikin Crooks. Who are they helping and at whose expense? The US political system is engaged in helping the bad (irresponsible part of the general population and the financial Crooks) and punishing the good (responsible segment of the population). That makes it a criminal enterprise worse than the Mafia and at much bigger scale. What is Right and what is Wrong has no place in such a system.

Jas

Comment by Bye FL
2008-05-01 08:26:28

Yea it really upsets me.

What also upsets me is half the posts aren’t going thru. Whats the point typing up long comments?

Comment by Mr. Drysdale
2008-05-01 08:55:58

you’re getting good exercise . . . stop complaining

Comment by Faster Pussycat, Sell Sell
2008-05-01 09:32:22

LOL

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Comment by Betamax
2008-05-01 09:09:17

What upsets me is how some of my posts are getting cut off when

 
 
Comment by Jimmy B
2008-05-01 08:39:40

I don’t know, Jas. The mafia is pretty bad when they want to be. Why don’t you go to a bookie, place a losing bet, and not pay? Perhaps, then, you’ll have new found respect for the mafia.

BTW, if this bill were passed, there would be reason to complain, but right now it is just political noise.

Comment by spike66
2008-05-01 12:57:16

” Why don’t you go to a bookie, place a losing bet, and not pay? Perhaps, then, you’ll have new found respect for the mafia.”

Not pay? Not an option. And if you think they’re just going to bust your knees, think again. And you still have to pay. Plus additional charges for causing aggravation.

 
 
Comment by tuxedo_junction
2008-05-01 11:13:36

In effect the FDIC is proposing to be the loan insurer after the loss already occurred. The lender gets back 20% of the loan balance and the FDIC gets a second with no payments for five years. This simply moves the loss from the privately-held bank to the government.

I suspect the FDIC staff fudged the analysis to show the FDIC would lose less money this way than by putting the lender into receivership. Also, this proposal, if implemented would keep sickly banks in business to the benefit of their shareholders and executive management.

 
 
Comment by hondje
2008-05-01 08:50:47

Picked up a dead-tree copy of the Washington City Paper this morning at my coffee shop. Page 6 has an article on foreclosures with this interesting little nugget, which btw does not appear in the online version of the same article (washingtoncitypaper.com):

“Trending Upwards: A comparison of Washington Times classified sections on Tuesdays and Thursdays the first week of May suggest a trend: Trustee ads made up an average of 9.4 percent of the ads in 1998, 17 percent in 2003 and 37 percent last year. Last week, it was 63 percent.” Hmm….sounds like a parabolic rise in those trustee-owned properties to me….wonder if we’ll get to 80%+ in a couple of years…?

Comment by Jimmy B
2008-05-01 08:54:34

That is an interesting little nugget. I bet the same is true for ads on family heirlooms.

Comment by txchick57
2008-05-01 10:50:07

After the mkt closes, I’m going to pick up a nice sapphire and diamond band in platinum from a FB who needs to sell to make her mortgage payment. Brutal price too - 25% of what she paid at Le Fancy Jewel Emporium here in Big Dump.

 
 
 
Comment by Pondering the Mess
2008-05-01 09:07:39

YES!!!!

Another Maryland post - I love these! This place is so screwed up, with plenty of government drones, DINKS, and pretend-rich running around, buying “affordable” $300K to $400K “starter” townhouses, and so on. Renters are considered scum here since “anyone can get into a house thanks to plenty of affordability products” and so on.

It is “different here” because: DC makes us all rich, BRAC will save us, Maryland is wonderful, etc.

Nevermind the absurd cost of living, the insane taxes - highest increase in Maryland’s history thanks to governor “Owe Money” - and other additions, such as today we find the BWI corridor near the top of the list in most polluted metro areas in the US. Go team!

And still the absurdity continues: I know a guy who just closed on a townhouse this week who had to compete with “another offer” - probably a phantom bidder that doesn’t exist - so he had to raise his offer. I am sure he overpaid grossly for the place and I can safely say that without even asking the price since everything in this region is overpriced by about 40% or so.

The beat goes on… they can’t “give the houses away” lest somebody who makes close to the median household income be able to BUY a house vs. renting it from the bank until foreclosure. No doubt “Owe Money” will come up with a way to delay the cleansing of the system via foreclosures as well… Sigh…

 
Comment by hd74man
2008-05-01 09:16:18

RE: “For 14 years, Tiny Teran and her husband, Salomon, owned a masonry business in Frederick. In September 2007, the couple shut down their business, American Made Masonry, after some clients didn’t pay or filed for bankruptcy.”

“As they continue to pay back debts and taxes, the family’s financial situation has put them four mortgage payments behind on their home on Beall Drive. The threat of foreclosure looms. Tiny hopes that by selling the home soon, the family can get out of debt before they are left homeless.”

“‘We’re living day by day,’ Tiny Teran said recently. ‘There seems there’s nothing we can do. The only thing I am worried about is where we will go when they take our house … and they will take it. That won’t be a pretty sight, I’m telling you.’”

14 years of life funneled right down the crapper.

This guy’s wife files for divorce, he’s really gonna be goin’ for his guns.

WTF?

No pension, no house, no wife, no business-no nothin’.

Loads of these scenario’s out there at the moment.

Full blame goes to the politico’s who have sold out their productive middle class constituents at every level.

Comment by Pondering the Mess
2008-05-01 09:40:17

This is all part of the plan.

Remember, to the elite, it is not enough for them to be obscenely wealthy, often for little effort - you must also be poor. To them, being rich is no fun if there aren’t poor people to run over in your limo or laugh at on the way to some important event.

Comment by SLC
2008-05-01 11:18:53

Read Eckhart Tolle’s “A New Earth.” In his dissection of ego, he points out this and many other brilliant points. Name brand things are only “valuable” when not everyone has one. If everyone drove a Mercedes, it would no longer be luxury. Its value would be diminished to only the transportational purpose it serves.

I have a set of the “Return To Tiffany” silver jewelry, which I cherish for sentimental value. A flight attendant had a Tiffany bracelet and my husband complimented it. She mentioned that people used to compliment it a lot but now that “everyone has one” it doesn’t get the same reaction.

It looks cute and I wear mine everyday with jeans, but even I can acknowledge that it was an image-based indulgence on my part. Awareness of the ego is the first step in conquering it.

 
Comment by grubner
2008-05-01 11:19:38

As a member of the elite, I don’t really appreciate you blabbing to the general masses (a.k.a the peasants) about our plans. Us elites like to drive crazy and need a good laugh every now and then too. Could you just cut us some slack?

 
 
Comment by Xiaoding
2008-05-01 12:47:17

“Full blame goes to the politico’s who have sold out their productive middle class constituents at every level. ”

BS! Where did all the money go? 14 years of business, one bad year and it all go’s poof? BS! I smell heloc up the ying yang!

 
 
Comment by jinwnc
2008-05-01 09:37:13

So, what’s driving the market up?

Comment by txchick57
2008-05-01 10:47:10

Rotation. Trying to “break it out”. You know, everything’s okay now. Remember I said when it got to be time to short again, nobody would want to?

 
Comment by tuxedo_junction
2008-05-01 11:27:37

Wishful thinking and speculative pools switching from commodities to equities, especially financials. Fund managers saw that GDP was up (but didn’t see the price deflator was 2.4% annualized) and consumer spending was up (but didn’t see that it was all through price increases). Fund managers also got excited over desperate bankers raising capital with preferred and common stock sales (but didn’t see the dividend rates on the preferred nor the dilution from the issuances). The economic news is consistently bad (one of the reasons the Fed has been cutting the FFs target rate), banks are highly-leveraged and loaded with junk loans, and we recently had a double top in the S&P 500. We’re in a bear equity market but that doesn’t mean there won’t be rallies, some of significant duration and extent. Just look at all of the “corrections” that the S&P 500 went through on its first trip to 1500+.

Comment by txchick57
2008-05-01 11:36:41

Yep. Glad I only went half way in yesterday.

Comment by tuxedo_junction
2008-05-01 12:16:24

You have bigger balls than I have. I generally won’t go in more than 25% at a time.

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Comment by txchick57
2008-05-01 14:32:27

If it’s a real rotation out of commodities and into stocks, it could be very powerful. I’m sitting on my wallet for now until I see how the indices behave at the 200 dma.

 
 
 
 
 
Comment by exeter
2008-05-01 09:40:23

“‘This is not fun for anyone to go through,’ says Prang. ‘We’re Christians, and we feel God has a plan, and it’s all going to work out.’”

I guess Mr. Prang left out those persistent biblical references to good financial stewardship.

Another prosperity Christian. Christianity was cool from 2001-2006 when times were good (for them). Now they ain’t so good and that Christian stuff doesn’t seem to be working to their advantage. ;)

Comment by Faster Pussycat, Sell Sell
2008-05-01 10:00:36

It’s shocking how closely the whole Christian prosperity thing seems to be tied to the basic credit cycle.

I’m shocked, I tell ya, shocked.

Comment by txchick57
2008-05-01 10:45:22

Oh come on. At least we don’t run around with our entire net worth around our necks.

. . . just kidding.

Comment by Faster Pussycat, Sell Sell
2008-05-01 11:17:36

This one’s just for you, txchick.

http://news.bbc.co.uk/2/hi/south_asia/7126459.stm

Make sure you click on the “enlarge image”, and note what he’s wearing around his neck.

(Work-safe everyone else; it’s the BBC!)

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Comment by txchick57
2008-05-01 11:43:41

Don’t let watcher see that. He’ll rip it right off the boy’s neck. LOL

 
 
 
 
Comment by Arizona Slim
2008-05-01 10:14:47

Especially since the rest of us can spot their “We’re Christians” BS a mile away.

Comment by In Colorado
2008-05-01 11:18:45

What really gets me is when they badger me with the BS line: “Do you think that God wants you to be poor?” to which I reply “I’ld like to think that He is more concerned with my salvation”. That usually shuts them up.

Comment by exeter
2008-05-01 11:51:42

Spot on Colorado.

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Comment by phillygal
2008-05-01 12:06:25

somewhere in time Mother Teresa is kicking herself for wasting all her time with those lepers, thinking it was God’s will…

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Comment by Santa Bubblicious
2008-05-01 12:46:08

Amen.

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Comment by KeithOK
2008-05-01 09:48:03

The holder of the first mortgage gets the house, while the two other note-holders get nothing.

Aren’t second and third mortgages usually recourse loans? Can’t the lenders come back after him, and get some of the money he claims he has and says he could use to get current on his loans, but doesn’t want to waste by “dumping a lot of money in a house losing value”?

Comment by txchick57
2008-05-01 10:57:29

Don’t know - that’s state law - but that was an exceptionally stupid thing for this bozo to say for publication. If I were the lawyer for these lenders, I’d go after him.

 
Comment by Willyboy
2008-05-01 11:16:19

Yes, those debts are still out there, but now there is no collateral behind them. (Even unsecured these loans should be as collectible as any credit card debt on its best day)

It keeps amazing me how people talk about walking away and their biggest fear is the hit on their credit rating.

Even in California, which I understand is no-recourse on purchase money mortgages, a lot of these loans being “walked away” from are re-fi’s or after purchase equity loans. And where a house goes to trustee sale on a first mortgage and the second non-purchase money lender doesn’t get paid from the sale, that debt is still owed. I just don’t get why this isn’t getting talked about more, but I have a hunch that it will be in the near future.

Even in California, on a re-fi first morgage foreclosure you can get a deficiency judgment for the shortfall if you proceed by judicial foreclosure (which I understand is almost never done — but probably should be with those borrowers who have other assets) I don’t wish anybody bad, it just bothers the heck out of me to hear people talking in terms I can’t quite grasp. ( I always understood that if I borrowed money, I had to pay it back, or else they would take all my things from me, except to the extent some could be saved by bankruptcy)

What am I missing here? Does it just make more sense for the Bank to write it off and settle for the tax benefit? Oh by the way, even if the bank does write it off, there seems to be many, many situations (investment houses, certain refi’s) where the write off will still result in tax liability to the borrower despite the recent change in the law. Finally, even if there is no tax liability to a borrower where a lender that doesn’t get paid today “writes off” the loan, it is unclear to me what the legal effect of that unilateral write off by the bank (which is basically tax accounting) vis a vis the borrower still being liable for the debt. Couldn’t a lender “write off a loan” today and take a look at the borrower a couple of years later (within any applicable statute of limitations) and then pursue that debt again?

If I were considering “walking away”, I would be concerned with all those things.

Having said all that, it probably makes all the sense in the world to walk, I just wish these folks were talking about more than just the credit rating hit. My god, even Dean Baker, my personal hero and one of the few people who has been warning about the bubble since 2002, only talked about the credit hit, in suggesting people walk!

Comment by txchick57
2008-05-01 11:39:21

their biggest fear is the hit on their credit rating.

You know why, don’t you? They all want to get back in the game! None of them have even considered that the game is over. They just had bad luck but the next one will be a winner!

Comment by holytrainwreck
2008-05-01 12:27:57

That’s right, a gambling junkie only cares about the NEXT HAND.

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Comment by KOK
2008-05-01 13:29:17

Even if the bank doesn’t want the hassle of trying to collect, why don’t they just sell the debt to a debt collector for pennies on the dollar. That way, they can get back some of the money, and take a write-off for the rest. And the borrower has to deal with a debt collector, or a series of debt collectors as the debt gets resold several times.
I can’t see where doing nothing is in the bank’s (or other mortgage holder’s) interest.

 
 
 
Comment by smiling_in_SD
2008-05-01 10:09:22

“As with the day’s first auction, there are no bids. Mortgage broker Chris Prang and his wife have just lost their home. The holder of the first mortgage gets the house, while the two other note-holders get nothing.”

“‘This is not fun for anyone to go through,’ says Prang. ‘We’re Christians, and we feel God has a plan, and it’s all going to work out.’”

These are the worst type of hypocrites. No personal responsibility..”God has a plan” OK, so putting your own $$ in the house to pay it down wasn’t in “Gods plan”? Sticking 2 other banks with your debt…thats all part of the “plan”.

What a scumbag

Comment by jinwnc
2008-05-01 10:22:41

“judge not……….”

Comment by aladinsane
2008-05-01 10:34:08

His judgement day came and went already…

 
 
 
Comment by aladinsane
2008-05-01 10:37:58

Mission acCOMPlished

“Next up is 5015 Meadowlark Court in northern Albemarle County. Lenders have allowed the owner to pile more than $725,000 in debt on a property assessed by the county at only $691,200. But the real shocker is the owner’s vocation: he’s Chris Prang, a mortgage broker.”

Comment by jinwnc
2008-05-01 10:48:34

I believe today is the 5 year anniversary of the “Mission Accomplished” speach.

 
 
Comment by Michael LittleBig
2008-05-01 10:55:47

On 3-17-08 the Sheriff in Cleveland OH sold my house
of 7 years in a foreclosure auction on the basis of a foreclosure action bought by Federally Chartered Savings Bank headquartered in Cleveland OH. I never missed a payment nor had a late charge on this mortgage or the 4 houses I previously owned over a period of 40 years. I tried in 2003 & 2005 to refinance my mortgage to lower payments with”no new money”to be advanced to me. Under federal regulations I qualified
for both refinance requests with a wavior of appraisal since I met all the federal criteria.Both times the bank denied my refinance stating that the value of my property exceeded my mortgage balance of $181k.
I purchased the property at 145k & put 100K in improvements. The bank in essence stated that my property was a depreciating asset and a bankruptcy court agreed. After filing Bankruptcy I spent $23k trying to fight my foreclosure. The Bank Violated State Appraisal laws, and Federal regulations in my case.
The Bank threatened my me with a frivolous lawsuit for filing a counter claim lawsuit against them.The State of Ohio mad a deal with the Bank concerning the appraisal violations.The Office of Thrift Supervision and the IG of the Treasury Dept after a year refused to do anything stating that the are NO Federal Consumer Banking regulations. In otherwards Federally Chartered Banks
that harm there mortgages borrowers violate no laws because there are none.

Comment by denquiry
2008-05-01 12:37:14

from the bank*** you can’t refi if you don’t qualify (and no one ever qualifies)

 
Comment by holytrainwreck
2008-05-01 12:49:35

Homes ARE a depreciating asset. No different than your car. Don’t buy in to the NAR lie of “home prices always go up” bull$hit.

 
 
Comment by Matt_In_TX
2008-05-01 11:46:54

We arranged for fence replacement yesterday. The contractor and I split the risk: paid half up front via CC. We are both probably scared.

 
Comment by holytrainwreck
2008-05-01 12:29:18

Testing 1 2 3

 
Comment by Ria Rhodes
2008-05-01 13:49:11

“This is not fun for anyone to go through,” says Prang. “We’re Christians, and we feel God has a plan, and it’s all going to work out.”

Excuse me while I laugh my as_ off.

 
Comment by Crazed Opossum
2008-05-02 12:43:43

My favorite part was where he used all that HELOC money to start a business…and the business was…buying and flipping houses!! LOLOLOL. You CANNOT make this stuff up.

“The sooner the high price of gas breaks the back of efforts to turn Maryland into a paved-over cousin of the absurdly over-priced land of California (but with worse weather) the better.”

Hear, hear. I still love this state but holy merciful Jeebus…

Years ago my landlord had big plans to “develop” the 3-4 acres of woodland that are my backyard, a plan that struck terror into my heart. He couldn’t do it because it is a wetlands protection area, and by some miracle, Maryland actually enforced one of its environmental protection laws (somebody in the Dept of Nat Resources must have been asleep), but looking at it now, I wonder if he feels he dodged a bullet. The other alternative is — he’s a smart guy — might have seemed the bust coming and said “hold on a minute, I better wait on this idea…” Yeah, on second thought that actually makes more sense than Maryland enforcing any environmental protections.

Sigh.

 
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