The Flippers Market Gone Bust
WBUR reports from Massachusetts. “More than 9,000 homes around Massachusetts have gone into foreclosure so far this year. That’s 38% more than the same period a year ago, and according to Foreclosuresmass, the trend has spread to three quarters of the state’s communities. ‘Claudia Sierra’s condo sits in a triple-decker along the waterfront in East Boston. WBUR’s Bianca Vazquez Toness reports. ‘Sierra bought the property in March of last year. She worked then as a real estate agent making more than $80,000 a year. That’s until she got sick and couldn’t work for six months, then the real estate market started slowing down.’”
“After missing a few payments, she did what lenders say you should do if you can’t pay your mortgage: She contacted her mortgage company.”
“Sierra: ‘This is my home, I have no other where to go. So I told them, ‘Tell me the income figure that I need to be at in order to qualify. What did you consider my fixed expenses to be? And I’ll make the numbers work.’”
“Sierra made the numbers work by letting the bank repossess her car. She also sent her kids to live with relatives so they wouldn’t be counted as an expense. That way Sierra could use her now much smaller paycheck to cover three monthly payments of $3,200.”
“Virginia Pratt is a foreclosure counselor at a Boston nonprofit specializing in protecting home ownership. She says if a client is lucky enough to get a repayment plan, it’s often unrealistic for the homeowner.”
“Pratt: ‘They take it and are struggling to make their payments at the expense of everything else. I have a family who has been without heat for like six months because they decided to stick to their repayment plan, but have not been able to pay their gas bill to keep their hot water on.’”
“And she says that’s a problem since many of these loans were written based on wildly inflated incomes. Or, in Claudia Sierra’s case, on an income that didn’t last.”
“Sierra: ‘I was referred to an attorney and they advised me to file for bankruptcy. And I thought that’s not how to deal with it. I mean, I owe this money to the bank. I’m going to work with them. And I’m just going to pay it. But sometimes I feel like, especially my daughter being away from me just so I could qualify for this, I just thought it was not even worth it.’”
“It appears Sierra’s lender will foreclose. And despite a repayment plan, her home will be auctioned off on June 2.”
The Boston Globe from Massachusetts. “Three times, Thomas and Tracy Barboza found a path out of foreclosure. Three times, their lender failed to help them.”
“Unable to afford their mortgage, the Barbozas are trying to sell their home. They have received three offers since last summer. But because the offers - between $220,000 and $225,000 - are less than their $320,000 mortgage, their loan company, Countrywide Home Loans, would have to sign off on the deal and accept a loss.”
“Countrywide has either rejected or ignored the offers and foreclosure seems imminent. ‘It’s like they want things to go sour,’ Tracy Barboza said, sitting at the kitchen table of their home, stripped bare of other furniture after they moved into an apartment in anticipation of a sale.”
“The longer troubled properties languish, the more they undermine other homeowners trying to sell into a market of mushrooming inventories. ‘It’s killing the market,’ said the Barbozas’ agent, Tina Golant.”
“To move on with their lives, the Barbozas rented an apartment from a cousin. Yet they’re latched to their property, maintaining and heating it for the second-floor tenant.”
“Thomas Barboza is incredulous about their circumstance. ‘I either get extremely angry, or I start laughing,’ he said.”
The Boston Herald from Massachusetts. “These are tougher times in the real estate market, even for the super-wealthy. The number of mansions sold in some of the state’s toniest towns - Weston, Wellesley and Brookline - has plunged more than 30 percent during the first four months of the year.”
“And sellers of luxury homes are having to bargain in order to cut a deal. Just take the 20,000-square-foot, 20-room and nine-fireplace palace constructed by Dr. John Meola, a wealthy dentist. At one point, he hoped to get $18 million.”
“After years on the market, the Weston mansion is finally under agreement with the listing price at a mere $10.9 million.”
“‘At its asking price, you couldn’t replace this house,’ said one real estate executive familiar with the deal. ‘It’s a bargain.’”
“One key to the slower times on mansion row is the recent financial market turmoil. With the collapse of hedge funds and roller-coaster stock prices, even those at the top of the economic pyramid are feeling the pain. ‘I would say that end of the market is no longer escalating the way it once did in terms of price escalation,’ said Peter Casey, former president of the Massachusetts Association of Realtors.”
Hartford Business from Connecticut. “Home building permits in Connecticut dipped 15 percent in the first quarter. Bill Ferrigno, president of the Home Builders Association of Connecticut, said the state is poised to recover quicker because it avoided the traps the robust market set.”
“‘It’s not a huge bubble that burst,’ Ferrigno said. ‘The builders in Connecticut, in a nutshell, saw what was going on and adjusted accordingly.’”
“‘The permits have slowed, but that’s because a number of builders have already been approved for projects,’ said Eric Person, executive officer for the Home Builders Association of Hartford County. ‘People were watching the news and got a little nervous. It’s really more of a regional thing because the eastern part of the country, for the most part, avoided that huge run-up on real estate.’”
“‘There are signs out there, especially that we have a lot of traffic at open houses,’ Ferrigno said. ‘The buyers are out there. They’re just waiting.’”
“As the remnants of failed mortgages begin to pile up, companies are looking for opportunities beneath the wreckage. That is evident by the Real Estate Investment Road Show scheduled for May 17 — a bus tour of several foreclosed properties in New Britain.”
“In March, Connecticut had 2,126 properties with foreclosure filings, according to RealtyTrac. That figure was up 40 percent from March 2007.”
“‘There are a lot of ramifications from foreclosures, and if too many properties remain out there, it hurts the market and lowers prices,’ said Gary Kulik, VP of marketing for McCue Mortgage. ‘The hope is to get more people informed and get these properties sold as soon as possible.’”
The New York Post. “Homeowners in the some of the toniest ZIP codes in the Hamptons are facing a frightening reality - they can’t afford to foot the bill for their high-priced homes, The Post has learned.”
“In the first three months of this year, banks have launched preliminary foreclosure actions - known as lis pendens proceedings - against a record 120 borrowers in East Hampton and Southampton towns.”
“Corcoran broker Susan Breitenbach said young Wall Streeters who gobbled up trophy properties in recent years are starting to suffer. She recalled getting calls from Bear Stearns employees desperate to unload their East End homes after the company’s recent implosion.”
“‘These are people who are used to success,’ Brady said. ‘There is a level of denial and embarrassment when I have to call [people] to ask about mortgage problems.’”
Newsday from New York. “Long Island Foreclosure Tours was launched after Sheri Cambareri, an agent in Mineola, noted to her boss last month that the traditional way of house selling and buying is so inefficient. The agent takes one client to look at one house and if there’s no sale — often the case in this slower market — one takes in no money.”
“The two helped set up Foreclosure Tours International, which will start trips in New York City next month and has a north New Jersey one in the works.”
“The tour, originally $50 per person, has been reduced to $25 for the final seats.”
The Press & Sun Bulletin from New York. “Foreclosure activity affected more than double the number of Broome County properties from the second quarter of 2007 to the subsequent quarter and kept rising, according to RealtyTrac.”
“In the second quarter of 2007, there were 24 home foreclosure filings in Broome County. By the third quarter of 2007, that number had jumped to 50. In the first quarter of this year, 74 properties were in foreclosure.”
“Randy Templeman, regional VP of the New York State Association of Realtors cited one reason for the increase: homeowners who think their properties in the trichloroethylene, or TCE, plume area of Endicott have less value. He said in many cases, their attitude is, ‘Why make payments if you can’t sell?’”
“Entry-level homebuyers sometimes use various loans and other credit to buy the home and make repairs and upgrades, which can lead to a significant debt load, broker Jim Trevitt said.”
“‘Typically, you have first-time buyers with low-equity positions, and as a result they don’t have as much room to play with,’ he said. ‘They’re not as established financially in many cases. … There’s no safety net.’”
“‘This may be a long-term effect related to national, financial trends. We’re not immune to what’s going on around us,’ Trevitt said. ‘We traditionally appreciated 5 or 6 percent a year without exception. But nevertheless, we did have lenders who were making loans on very liberal terms and buyers who maybe overextended themselves in anticipation that the market would keep on rising, even at a modest rate.’”
“Homeowners lack understanding about the housing market, he said. When put in a position where they can’t make mortgage payments, they give up.”
“In some cases, ‘people don’t want other people to take advantage of their misfortune,’ Templeman said. ‘If someone is losing their house, rather than let someone else get a good deal, they’d rather be foreclosed on. They’ll even go so far as damaging or destroying the house to reduce its value.’”
“He said he’s been in foreclosed homes where the homeowner has punched holes in the walls, taken cabinets or appliances, or urinated or defecated on the floors.”
“‘Most people are in denial that they will get their job back, they will get their spouse back, they will get their health back,’ Templeman said. ‘We know that because the lender sends many notices to the borrower in default. … We end up in the houses and find the letters unopened.’”
“Templeman said the easiest way to avoid foreclosure is for the homeowner to sell the house. Most homeowners facing foreclosure opt not to sell the house, he said.”
“‘When I check foreclosures that are coming on the market, I check to see if they were on the market previously,’ he said. ‘Over 90 percent of the houses that are foreclosed on, the owners never attempted to sell the house prior to foreclosure.’”
“‘We have more homes available on the market than we do buyers,’ Trevitt said. ‘As a result, sellers need to get more realistic and more aggressive with their pricing.’”
“Last year, the average absorption rate — how long it takes to sell the house inventory — was six months, he said. Now, it’s between 10 and 10 1/2 months. ‘We may be looking at a buyer’s market,’ Trevitt said.”
The Brick Times from New Jersey. “The face of realty is changing overnight. Sales volumes and housing prices have fallen, new developments are few and buyers have become more focused. ‘It’s absolutely tougher to make a sale, there’s so much inventory,’ said Carole Kuiken, a 25-year veteran of the business.”
“Kuiken said the number of sales is down and the average price of a home sale generally is down, but she blames the media for a false sense that the industry has collapsed. ‘We tend to run in 15-year business cycles and we’re on level ground now,’ she said.”
“‘The speculators and the ‘flippers’ are long gone,’ said Donna Walesiewicz, an agent in Toms River. ‘Banks with a number of properties on their books don’t want to be in the real estate business, so they’re willing to make a deal. People make the market and this is a great time to be a buyer.’”
“Lori F. Peterson of Ann Schuld Realty in Bayville senses a pick up in interest with warmer weather, more realistic pricing and the sense that an election year brings a change in attitude.”
“‘Things were pretty slow at the beginning of the year,’ Peterson said. ‘Waterfront properties are a different animal, of course, but sellers have become more realistic. Otherwise, they might be sitting on a house for months.’”
“Walesiewicz agreed. She said Beachwood is a typical case with 73 properties listed for sale, but 14 have gone to contract and 17 have been sold this year.”
“‘It becomes an epidemic,’ she said. ‘One sign goes on a lawn and three or four get ’sell fever’ in the same neighborhood. Some already sold high and bought higher and now need a bigger home. But everyone gets nervous that they’re missing out. It is what it is.’”
“Demicco said throughout Ocean County, there are housing clusters that underscored the ‘flippers’ market’ gone bust. In Manahawkin, she said, you can get a three bedroom house never lived in before for $350,000, but there’s a catch.”
“People are resistant because they want their home to be built to their wants and needs. These houses were built on speculation and some builders learned the hard way not to anticipate the buyers’ desires,’ Demicco said.”
“‘This is typically the busy season,’ said Sonny Yannon of Beachcomber Realty in Brick. ‘The number of housing starts would seem to indicate we’re in recession, but nobody wants to declare where we’re going.’”
“He said this time last year business was brisk but it died off during the winter months. A lot of inventory has gone unsold even when sellers have reduced the asking price.”
“Yannon agreed that sellers are becoming more realistic now, and prices are settling where they were before the buying frenzy of the past few years.”
“‘Sometimes, you think, ‘Hey, my neighbor got such-and-such for his house, why can’t I get my price’ but it doesn’t work that way,’ Yannon said. ‘The lower price increases the possibility of selling right away, so you have to be realistic.’”
‘In the first three months of 2008, there were 1,091 housing permits issued in 128 Connecticut towns, compared to 1,286 in the same period last year…In March, Connecticut had 2,126 properties with foreclosure filings. ‘It’s not a huge bubble that burst,’ Ferrigno said.’
‘Sierra bought the property in March of last year. She worked then as a real estate agent making more than $80,000 a year. That’s until she got sick and couldn’t work for six months, then the real estate market started slowing down.’
March of 2007; OK, Boston Globe, I told you I would remind you of the cheer leading when the new round of FB’s starts to show up. This one’s on you and Kimberly B. too. The Massachusetts bubble has been collapsing since 2005, yet here is a single mom realtor buying a place just a little over a year ago. And she sends her kids off, bails on her car so she can try and pay the bank for a place she could probably rent for half as much.
Shame on you Boston Globe!!
From Bean town, I think we’re suffering a little from relativism. We talk about Florida, California and Michigan all the time. Things are getting bad here. But as long as there is someone worse off….
Ben,
You are so right. It was Boston that first showed stress cracks and stalled when even FL was humming along nicely back in ‘05. If you’re like me I distinctly recall bringing that fresh evidence to true believers only to be laughed at? If they have people in NE living without heat, how long will it be before FB’s in PHX live without A/C?
DinOr,
In December of 2005, I told my sister, who lives in a suburb of Boston, that her house was not really worth $450,000, and if that it was actually valued at that that she should sell immediately and move to Maine as her husband is a commercial fisherman and they have no retirement. She laughed in my face. I told her that in five years her house would be worth $200,000 if she was lucky. She sent me a text message saying, “It will never happen. Housing never goes down” and has hardly spoken to me since. Boy, am I glad I found out she was only my half-sister. Check out that great gene pool.
susanmenchey,
I live there. My in-laws are trying to in some way involve our daughter in their multiple-property-shell game. They inherited a little money and attempted to leverage into a pauper’s fortune by becoming accidental landlords that they now desperately want to get out from under! Our daughter is a total stress case trying to deal with taking on WAY more mortgage obligation than any sane newlyweds should consider.
Of course the in-laws have all these “contingency plans” that are so complex and convoluted it gives me a headache just to walk through their new “scenario of the week”. Again, they’ve always enjoyed modest successes w/ RE in the past and now that the music is stopping in Oregon they don’t have an exit strategy. I’d understand a lot better if they were truly in peril but like all exercises in mental accounting, they don’t want to sell for a penny less than what they have into it. We have repeatedly told our daughter that they aren’t obligated to do a thing!
They have a perfectly fine 3/2 in town and can’t afford the add’l expense of living 10 miles outside of town. My wife told our daughter to ask the in-laws if having grandkids any time in the next 10 years is important to them? So… I hear you.
Why focus on grandkids? That marriage has already been scuppered.
The in-laws are gonna drag your daughter down, and create stresses in that relationship.
Better have a personal bailout plan for your daughter in place.
Faster Pussycat,
I don’t know about “scuppered” ( they’ve been together since 200..2? ) but the in-laws seem to keep testing the bounds of everyone’s patience. That’s why we keep getting these “deal sweeteners” on the back end. I’m getting more candor from the dad and he’s so much as admitted they bit off more than they can chew and I think the dual mortgages are killing them.
The problem is, I can’t for the life of me see how there’s any particular advantage in their proposals? They’ve agreed to keep the kid’s PITI the same as they’re paying now. Given the schemes we’ve unearthed here, I think you can understand our reluctance. The sad part is I don’t think they HAVE a solution and this is only kicking the can a little further down the road. Why should we approve of a plot that scuttles BOTH of the kids futures just to buy them a little time “until the market improves”?
( How many times have we heard THAT before? )
Well our time here is up and I’ll see you all for our “family therapy” session next week!
Talk about in-laws from hell…
because of cape cod 1987 I thought Bashstin would be first and biggest
wrong on both this time
RE: If they have people in NE living without heat, how long will it be before FB’s in PHX live without A/C?
There was a recent blurb in the Bangor Daily Snooze noting that 32,000 of Bangor Hydro Electric Power Co.’s 64,000 total subscribers had received disconnect notices over the last month.
Move along folks….there’s no recession here.
Every time the oil bill arrived, we lowered the thermostat a couple of more degrees. I eventually abandoned the practice when we all became very ill, strep, ear infections on top of the flu.
Then I heard that the flu virus thrives in cold, dry air. In other words a cold house can be the perfect place to breed the flu virus.
Here’s a link to an article on it:
http://www.newscientist.com/article/dn12808-cold-weather-really-does-spread-flu.html
RE: Things are getting bad here
$20.24 to fill the 5-gallon gas canister for the lawn mower.
And $10 for a 6-pack of Smirnoff Ice.
Who’da thunk…
–
With -25.22% Annual Rate during 2007Q3-2008Q1 (PPSF as per Radar Logic), Boston is right in there with AZ, CA, FL and NV.
Even though the price in Boston peaked in Aug’05 most of the decline is since July 2007.
Jas
Does anyone remember “Gillsie”, the Massachusetts poster who was strongarmed by his wife into purchasing a home last year?
When I see these reports on the MA market, I wonder how he’s doing…
“Gillsie” is probably happily driving around alone with a “WIFE IN THE TRUNK ” bumpersticker on car
My question would be how is his wife doing….
Last time anybody saw him he was busy digging a hole.
He seemed like a nice guy. Although extreme financial distress can drive a man to go the Scott Peterson route, I suppose.
We’re doing alright. good neighborhood….good house. zillow says value down 11% since our sale, so in line with boston. We were up against an expiring relocation package from wife’s employer = in value to about 5% of purchase price (moving expenses, 2 points, closing costs, etc). So it was take the 5% re-lo before June 2007 or roll the dice and hope to see another greater than 10% decline in prices and pay the 5% or so closing costs out of pocket. We took the re-lo package. (Bird in Hand). Mentally, I was prepared to see about a 10% price erosion (and our purchase in Spring of 2006 was probably 10% from peak). Similar house in neighborhood was closed in March 2008 for about 15% below our spring price (not distressed - occupants were trading up to someplace in Lexington and just wanted to close the deal and get on with their lives after having house on market for close to a year).
So it’s not a disaster. We’re making the payments and budget issues are fine. From an “I told you so” standpoint, would like to be able to say “if we just waited we could have gotten so much more or paid so much less”…but such conversations do not a happy marriage make…but we’re fine with where we are.
From a PITI standpoint, the difference between what we pay now and what we would pay, based on today’s rates and a 15% smaller transactional price, is about $200/month. So that sucks (and I hate the ‘how much a month’ game). But it’s not life threatening.
And it’s probably cheaper than marriage therapy sessions and/or divorce attorney fees.
Hi G!
Have you been lurking?
every day - just not an active poster
Even her own attorney advised her to file for bankruptcy and focus on putting her life together, and she refused not wanting to give up the closet space.
She is a Realtor. To her people, including her own family, are a a disposable means to an end. Why put her childrens’ needs ahead of her own wants? The sickest part is how she goes around telling everyone what a Saint she is when anyone with half a brain can tell she is a selfish demon.
As a proud father of two, I’m just stupefied by this person. How in God’s name can you choose a condo over your children? Sick sick sick.
In a way, I guess, this is similar to people signing up for 4-hour round trip commutes so they can have that big home.
The TV show Medium last night featured a husband who refused to move from their “haunted” house– even though the wife was freaking out– because he had poured too much money into it. Allison argued with him that it was totally wrong to favor a friggin’ house over his wife’s health. Interesting how this is seeping into mainstream TV.
I don’t know if she is a selfish demon. But the banks sure sound like it. They know foreclosure is inevitable, but they kept on squeezing and guilting their FB’s into paying “just a little more” “just a little more”—even encouraging her to abandon her own children!
She’s sick to go along with it, but I’m sure it wasn’t her idea originally.
Business are far more rational and self-interested. If they are going to go BK, they call a lawyer right away—they don’t voluntarily keep bleeding money.
Mind if I throw a few more cords of wood on the housing bubble bonfire?
“‘When I check foreclosures that are coming on the market, I check to see if they were on the market previously,’ he said. ‘Over 90 percent of the houses that are foreclosed on, the owners never attempted to sell the house prior to foreclosure.’”
That statement was kind of odd, considering that a rediculously high percentage of homes for sale were either built or purchased in the last three years.
And that might be part of the answer. Almost all of these recent loans have pre-payment penalties built in. That really adds to the cost of selling.
“In some cases, ‘people don’t want other people to take advantage of their misfortune,’ Templeman said. ‘If someone is losing their house, rather than let someone else get a good deal, they’d rather be foreclosed on. They’ll even go so far as damaging or destroying the house to reduce its value.’”
Maybe these are people with “no money down” who know that it is less hassle to walk away than to try to sell in this market.
Templeman’s comment made no sense. Bank’s cut better deals than homeowners with no equity that cant make payments and thus, have no money to bring to the closing table, especially with respect to fixer-uppers. Perhaps if he said to cut their losses and stick it to the man, it might have been a valid point.
“‘These are people who are used to success,’ Brady said. ‘There is a level of denial and embarrassment when I have to call [people] to ask about mortgage problems.’”
Housing bubble stages of grief check list:
1. Denial (check) “It can’t be happening.”
2. Anger “It’s not fair.”
3. Bargaining “Maybe the bank will let me refinance into a federally guaranteed mortgage with a reduced principle balance.”
4. Depression “It won’t let me.”
5. Acceptance “Foreclosure is not the end of the world.”
One down, four to go for the Hamptons market.
Professor Bear,
That should read:
“These people are used to EXCESS!” What’s amazing to me is the sheer level of tenacity? People shipping their kids off, ditching their car, (how does she get around?) I agree the stages of grief are at work here but whether they’re realtors or home debtors they keep regressing to former stages. What kind of mind set do you have to have when you’re cutting the rates you charge for the Foreclosure Bus but STILL ’somehow’ think your “career” has a viable future? I don’t get it.
I can’t get over the fact that they’re actually charging people to ride on the foreclosure bus tour? Who would pay for a seat?
I’d like to see who it is that’s actually paying. Why would anyone pay to go look at foreclosed properties? If I were a potential buyer, I would insist the agent either cover the cost or take me around individually to see the properties.
“I don’t get it.”
Be thankful that you don’t.
If you did “get it”, if any of this made sense to you, then your mentality would be on a par with hers.
combotechie,
True. I think though what I was clutching for was.. after the “Tech Wreck” and the collapse of the NASDAQ most retail stockbrokers tried to sell what they could from their own accounts to ride out the sell off. But when they were no longer getting any kind of a paycheck, they quickly moved on. In truth most just moved over to THIS bubble ( mostly as MORTGAGE brokers) but also in other capacities.
The point is that there wasn’t any “love lost”. Hey, I tried and it didn’t work out? So what? NEXT! I don’t think most of those guys lost a lot of sleep over it. Yet now many of that same crowd that moved over to the REIC are clinging tenaciously! Why the commitment and die-hard loyalty NOW?
Is it “the debt” that’s the difference? I STILL don’t get it.
“I love the smell of desperate, fooked Wall Streeters in the morning.”
That story means taking the Schadenfreude meter apart once again to straighten the bent needle.
if I was a Bank/lender ,I would let the houses go into foreclosure and go after the borrowers later for fraud . Why would Banks/lenders trust the real estate community to bring in a
a good short sale anyway?
We are just coming out of a situation of the biggest loan crime wave in history, in large part due to the corruption of the REIC and a absurd mania ,and as a lender would I trust that group to get me a good short sale?
Most of these borrowers don’t qualify for a short sale anyway in that short sales are reserved for people who have suffered a misfortune or lost their jobs. Since when are the grounds for short sale that your investment didn’t work out and you can’t afford the loan because you lied on your loan application ?
The lenders really don’t know what to do and at this point I’m sure the trust levels needed in business are not there .
What do you do when a loan system became so corrupt that every one closed their eyes to what was going on because of the notion that real estate going up would hide all sins .
This fall out from the housing mania is not only a correction on fake appreciation that was fueled by faulty demand and unqualified borrowers ,but this correction is revealing the short term thinking of the borrowers and lenders alike as well as widespread fraud . So many people bought property with a need to sell within a short time that it is frightening . I guess the two year investment program didn’t work out so well for a ton of people .
As long as Congress and the powers that be try to cover up the true nature of the reasons for this fake run-up in real estate prices ,we as taxpayers are getting our pockets picked as the government attempts to cover up this fake run-up in RE prices .
As I predicted a long time ago ,the powers now want to provide easier underwriting for government backed loans and become the new sub-prime lender of choice . Does it make any sense to repeat the errors of the Lenders in the last 5 years just because the taxpayers will foot the bill for defaults if such loan programs come about ? All moves by the powers in charge are for the benefit of passing on the risk of bad loans to the taxpayers and to continue with the easy money market ,to create a market .So people who said that the government backed loans would be underwritten in a prudent manner ,just didn’t understand what the game-plan was.
“So many people bought property with a need to sell in a short time it is frightening. I guess the two year investment program didn’t work out so well for a ton of people”
Housing Wizard, you’ve had a great number of spot on posts over the years but this just may be your finest! You’ve somehow managed to encapsulate the most important aspects of the bubble all within a few short paragraphs. Well done.
And you’re right. That’s exactly why the bank isn’t accepting very many of these “short sales”. Just more Realtor (TM) manipulated BS where they’re concerned. So… what!? Commission-starved realtwhore, sucking for income, sees bottom-feeding opportunity (insert straw buyer here___) makes ridiculously low offer and flips for a quick “The Morning After” profit/fraud. (Which have come to mean the same thing in the realtwhore’s world)
Thanks DinOr . Its going to take some time to go from a totally corrupt market to a market that is based on good business practice . Funny, I hesitated in posting that above post ,so I’m glad someone agreed with it .
RE: As I predicted a long time ago ,the powers now want to provide easier underwriting for government backed loans and become the new sub-prime lender of choice .
Pretty much sums up where we’re at now, Wiz.
Did you see the post where the Justice Dept. is gonna just sit on their hands relevant to prosecutions? Seems going after the fraudsters will undermine confidence in the banking system.
What a fookin’ crock ‘o shinola.
hd74man ……”What a fookin’ crock ‘o shinola.”
I could not agree more .The problem with unjust situations is that they beget five more unjust situations to cover up the original unjust situation being covered up .
There is something about a lack of Justice , or common sense prevailing ,that crushes the soul and minds of people on a deep level and is the root of many evils that end up coming after .
The very fact that you had all these cheerleaders rooting for higher prices was a example of very strange behavior that
was really a group of people involved in a Ponzi-scheme wanting the next round of fools to buy in .
Often times I think about the people that suffered after the 1929 stock market crash when they never even invested in a stock in their lives .Could the decent people living in that time stop what was to come and what was to follow?
Sometimes I think about that passage in the Bible that talks about Justice being in the hands of the Lord (or something like that ).
“‘These are people who are used to success,’ Brady said.”
I suppose if you segued straight from a cushy Ivy League education into a $160K job it would be hard to know how to actually make a living.
Sending her kids away. That’s bad. Sierra, come on.
This is that kind of story that feeds the Barney Frank sympathy machine.
That really disgusted me. Rather than letting her house go and moving into a much cheaper rental with her children, she decided to give her kids away to try to keep the granite countertops. Really shows where this _____’s priorities are. Sympathy? Rage is more appropriate.
Well said.
The dingbat is no question the puke of pukes. This one deserves a spot next to Pinocchio Lereah and (fun)Yun on the wall of shame.
It is sad. But I compare it to our family’s situation and I am grateful. I now work from home in a rental that including utilities costs less than the rent of our previous rental. I feel secure because our landlord is breaking even on us every month and doesn’t seem to be in need of money. I get to spend an extra 20 hours a week with the kids, compared with my last job as an employee. We are truely blessed, and it’s all because we saw what was coming, sold our house off and got out of debt.
Even with an “affordable” mortgage of about 2x my annual, I always worried and felt like I was getting screwed over (not looking forward to paying 3x original purchase price by end of loan term). But now the wife is on-board with renting and enjoying it. When we finally get our home, I’ll build it myself using cash we’ve saved. And when we ship the kids off, it’ll be to college, not to relatives.
Absolutely my first thought. I’d live in anywhere WITH my kids than live in a nice place without them. She is a bad mom, plain and simple.
This also reminds me of a friend you bought a place out in the boonies last year. He has a three-hour commute to work to he spends the night at his mom a few times a week. I mean, people have this stubborn vision that having a house is better that not having a house. At some point, you have to take in everything. Finances withstanding, am I better off now with a house than before?
And it also implied the relatives are picking up the tab for the kids, so that her paycheck could cover three payments. I wonder how the kids and relatives feel about this arrangement, and how long they’ll put up with it. Just 29 years to go on that mortgage!
Why is a box of lumber and sheetrock more important that your own kids? (I’m not sure I want to hear the answer.)
Boy, are this woman’s priorities messed up. Oh well, the kids won’t forget and you reap what you sow.
She is a realtor, after all. I imagine after calling her kids collect, she spends her evenings sending emails and letters to “leads”, signing them with “It’s a good life” and adding her business card that proudly boasts the Real Estate award she won in 2005. And then she reminds herself that the market is at it’s bottom, and things are going up up up from here. And as she takes a Paxil before going to bed she hopes that the world soon realizes that it’s a good time to buy.
My mom fell on hard times when I was a kid (nasty divorce). All four of us packed into a 2 br 1 bath duplex owned by my track coach. It really wasn’t so bad being poor because we were all together.
After my mom’s divorce and failure to recieve child support payments (not to mention being out of the work force for 6 years during the marriage preventing her from finding a high pay job right away) we lived in ppl’s unfinished basements. We turned out ok. Poverty doesnt usually create monsters. The association is that usually monsters end up in poverty.
“Sierra: ‘This is my home, I have no other where to go.
So I told them, ‘Tell me the income figure that I need to be at in order to qualify.
Looks like you ‘be at’ the curb now.
Didn’t “telling the income figure needed to qualify” get here into this whole mess in the first place when she got the liar loan?
Absolutely. As a RE, this was one of the scripts they learned so in her own case, I guess she decided to apply it to see if it would work. It did….very temporarily. The same way it worked, very temporarily, for most who went that route.
(Hi Housing Wizard! Glad to see your name pop up from time to time.
Loved your commentary above. )
BayQT~
“Sierra made the numbers work by letting the bank repossess her car. She also sent her kids to live with relatives so they wouldn’t be counted as an expense. That way Sierra could use her now much smaller paycheck to cover three monthly payments of $3,200.”
That’s almost like selling off her kid to keep her house. What is it about our culture that puts such a high premium on home ‘ownership’? Why couldn’t this lady just rent and keep her kids at home? I’m astounded…
And the tone of the article is that we should sympathize with this woman. Rather than taking a reasonable route of being foreclosed on and renting she sends her child away. Unbelievable. This mania has really caused people to completely lose their minds.
Actually….i read it as the kids were lucky (and/or smart) to rid themselves of an insane parent. Maybe the relatives were sympathetic towards the children. “Realitives” may include the father, who somehow doesnt appear in the story.
After all, if he was a stand up guy all along and sending in his child support checks, not a deadbeat dad, and is now taking care of the kids…….it doesnt exactly pull on the sympathy strings, does it?
My brother gave up his cat, who adored him (and supposedly vice versa) of many years to move into a “luxury” condo that didn’t allow pets. For some people, impressing others, whose pinions don’t matter in the least, is more important than caring for loved ones whose opinions actually do. Dumping kids or pets for live-in boyfriends or girlfriends is especially loathsome. If someone ever said to me, “It’s me or the dog,” the number of homeless humans in America would instantly increase by one.
Disgusting. People are so deluded to think they should ever “buy” a condo, when they never actually own it. If someone can tell you you can’t have a cat in your residence, then I’ve got news for you: You don’t own it! You’re just renting from the bank and the condo association.
I am as likely to ever give up my cat as I am my daughter. Never. Not that I’m putting the cat ahead or on the same level as my little girl, but you can’t go lower than zero, and that’s the odds anyone could make me give up either.
…I am as likely to ever give up my cat..
Three cheers! I have a adopted cat that I love with all my
heart and just the thought of giving up a pet
for something material hurts my soul.
I wonder which solar system these people come from?
We’re still early in this mess - it hasn’t even started to get bad yet. The people who sacrifice their families, especially at this early date are ensuring their own demise. Reading personal account of adversity in this country in the past, people drew together and help each other out, even strangers.
People throwing their family under the bus is not a good harbinger for things to come.
She paid, what? About $500,000 for a condo? In Eastie?
On 80k….commission based income. And she’s a “Realtor”.
This is yet another (including the Barboza family) in an endless skein of stories I’ve read that have NOTHING to do with “misfortune” and everything to do with simple greed and laziness.
Please, someone post a genuine “misfortune” story here. It would be nice to know that someone, somewhere actually got screwed (somehow) by something other than themselves in this era.
“Please, someone post a genuine “misfortune” story here. It would be nice to know that someone, somewhere actually got screwed (somehow) by something other than themselves in this era.”
Speaking of the East coast….i know a little story which should qualify:
“There once was this man from Nantucket…..
,
nevermind that one also ends with him screwing himself…guess you’re right jag
SNORT!!
The truth that those supporting bailout plans do not want us to know is that there are no misfortune stories. While there is some sympathy for those that lost their job even though they worked hard, or for those that get sick, these issues have been causing foreclosures for years and I view them as a constant and thus not relevant to this particular problem. To bring them up seems questionable when the elephant in the room is affordability and questionable loans. In fact, the bubble in many instances actually helped many in this situation because if they brought pre-bubble they had access to a credit line that historically people were never given in the past. Greed and stupidity are the only reason for the spike in foreclosures.
Tim,
Agreed. That is the whole reason that most state’s contract’s on home loans are non-recourse and the same reason that most states (mabye all) have some form of homesteading.
Both of these rules / laws already on the books, and incorporated into home loan contracts. They are designed to protect the unfortunate from total ruin. For years banks have lent money against these rules and must take into account the risks of non-recourse and homestead laws.
Our society has long ago built in sympathy for those who deserve it. Non recourse basically says, ‘if i default on the house, you can only take my house,’ whilst homesteading laws state that ‘if i default on everything but my house, you cant take my (reasonable) house’
Bailouts are for the greedy. Non-recourse and homestead laws are for the unfortunate.
I have to say that Ben shaming the Globe, jag’s remarks about “simple greed and laziness” and Tim’s thoughts about the bailout crowd… are, taken together, three of the better comments I’ve seen ’round here in quite some time.
Add them all up and one may see a pretty good picture of the complicity (and ridiculous behaviors and/or positions) of at least the media, some of the individuals and the government in this incredible mess.
I’m trying to figure this out, is it 3 payments of $3200, meaning 9600 a month, or is it three payments adding up to $3200 a month?
Either way, that’s insane. $80k a year will get you $4400 a month after taxes. That means that she had $1000 to eat, clothe and raise her and her family. assuming her house doesn’t ever need any work. Plus taxes, utilities, god. I make around that salary and live in MA and I’ll tell you that I definitely do NOT understand how you would pay that mortgage. I have about $1400 in housing costs (mortgage, taxes, HOA fee), and I definitely feel like I’m stretching it even with $4400 a month to work with. I mean, I have utilities, car payments, gas payments, and contributions to my IRA, maintaining an emergency fund, eating, etc. What are people thinking? Are brazillian hardwood floors and ubatuba countertops really worth being broke for?
I have a six-figure income and $1100.00 a month in housing costs. I could not imagine either spending this much money as this selfish bimbo on housing or spending my capital on this stuff. It’s impossible. Even is you lived on Kraft macaroni and cheese some year the car will break down or someone will get sick or need dental work. I could not sleep at night, if I were her. As far as her kids go they are better off, believe me, without her. Maybe they will live with relatives who will teach them the facts of life, such as not buying things you can’t pay for.
The title should have been “Flippers gone wild”
Its just pathetic. There must be more to the story, because what mother would choose to send her 8 year old to live in Colombia just to live in a particular house? Something is not adding up for me.
–
Does anyone have data on how many homes and condos are still owned by flippers?
Jas
sure. I can tell you exactly what it is, just not right now
Inv still owned by flippers May08 = (REO inventory July2010) - (REO inventory May2008)
anyone have an idea what % of foreclosures have already happened ?
20%
40%
what % of total may happen this year ?
Not sure, but there must be a critical mass level of foreclosures beyond which they simply can’t take place - they become impossible to process. In a worst-case depression scenario, there will likely be squatters’ rights.
…the Brick Times from New Jersey. “The face of realty is changing overnight. Sales volumes and housing prices have fallen, new developments are few and buyers have become more focused. ‘It’s absolutely tougher to make a sale, there’s so much inventory,’ said Carole Kuiken, a 25-year veteran of the business.”
“Kuiken said the number of sales is down and the average price of a home sale generally is down, but she blames the media for a false sense that the industry has collapsed. ‘We tend to run in 15-year business cycles and we’re on level ground now,’ she said.”
I don’t get it. Either it’s “tougher to make a sale, there’s so much inventory” or “we’re on level ground now”; so which is it? I’m just right fed up with all of this. This is too large, and it can’t be fixed. The interest rate reset graphs (we have all seen them) for subprime, alt-a, and prime, imply the foreclosure blow up is actually next year and late this year. Note that there will be a HUGE spike in credit card usage before this happens. I think that the gov’t knows this and is trying to delay the real mess until after the election by sending everyone a check. Fine.
Anyway, this Realtor (Kuiken) in the piece is not comprehending ANY analysis or data, so she blames the media. This is just as well since MSM did nothing to inform or educate their readers on the danger. The irony is not lost on me nor the bloggers here.
BTW, take a look at Stephen Colbert’s roast of Bush year before last. You can still find it on Google Video I think. He said that the MSM also did not inform the public about the dangers of Iraq involvement. He was caustic, funny, and truthful.
Ok, my basic question is this: When did the MSM become so impotent and credulous about what the gov’t and business tells them? The 80’s? 90’s? We were supposed to be worried about flag burning, blow jobs, and family values in the 90’s. Maybe that was it.
Roidy
I think the term is “lazy”. They take what the government tells them and simply repeat it back to us. They don’t check facts or ask questions any more.
It’s ironic, I watch Colbert and Stewart for factual information and the ‘real’ news shows for a laugh.
I was channel flipping the other day and stopped on Lou Dobbs on CNN. He had some Congressman on and would ask the guy a question and then halfway through the answer Dobbs would interrupt the guy to interject his opinion about something and then ask a new question. This went on and on until the end of the interview. No questions were answered and Dobbs talked 85% of the time. How useful is that?
On the other hand, last night Stewart had Doug Feith on the show and it was very clear that the two had some MAJOR differences of opinion. Yet the two rarely interrupted each other and Stewart allowed Feith to answer questions no matter how much Stewart disagreed with what was being said. At the end of the show, Stewart says that the interview went on twice as long as intended and they had to cut parts out to fit on TV. And that you could go to their website and watch the whole interview in its entirety.
It’s really sad that a comedy channel does interviews better than a news channel.
Yeah, I watched Doug Feith try to claim that it wasn’t the Iraq Invasion policy that went awry, it was that the Administration didn’t do a good enough job with the American people explaining it. WTF? How would a better “message” change the outcome? As Stewart pointed out, just because your propaganda was poorly executed doesn’t mean it wasn’t propaganda.
Yes, Lou Dobbs is as creditable as Larry Kudlow or Jim Cramer. I mean idiots are idiots, and it really doesn’t matter if they are liberal, conservative, or “for the middle class.”
All of this really makes my behind itch at times.
Roidy
I am so glad I did not buy a house in MA circa 2003-2006. I lived there and I could have, but did not (thanks Ben!).
So they brag about the eastern part of the country avoiding the huge run-up and therefore being less vulnerable. Well, here’s what: in downtown Stonington Maine, there used to be three real estate offices. Now one of the buildings that housed a RE office is itself for sale, and another has converted to administering vacation rentals only. Let’s see how long the town can support two vacation rental offices. My friends who own vacation rental properties tell me business is awful. Right here gas is $3.75/gallon.
We still see the odd American on their way to the Sierra Nevada and National Parks, but mostly it’s Europeans this spring.
For them, $4.00 a gallon gas is 60% off of what they normally pay, back in the old country.
For many of them, this is their 1st trip to our country.
I went back down to Capitol Reef Sunday and didn’t see hardly anyone, though the campground was full. It was pretty empty in terms of car traffic. I think the little town of Torrey will be seeing real estate values drop before too long, although there’s not much for sale there. Great restaurant there called Capitol Reef Inn.
I liked Torrey and it’s technicolor dreamscape surroundings…
I LOVE Torrey. A wonderful combination of mountain and redrock. Candycane land.
I loved our trip to Moab from a couple of years ago. It was wonderful waking up in the morning and seeing all the brilliant colors on the cliffs. Now that we’re in NC the trip to Moab would appear unlikely (especially with two kids in the back of the Jeep).
Have fun out there
Add another “I love that area.”
My favorite memory of our couple days in that area? Walking with my wife around the orchard at Fruita as the sun was starting to set, the vibrant colors of the rocks, the peacefulness. I feel like I’m there again.
“Kuiken said the number of sales is down and the average price of a home sale generally is down, but she blames the media for a FALSE sense that the industry has collapsed. ‘We tend to run in 15-year business cycles and we’re on level ground now,’ she said.”
“You keep using that word. I do not think it means what you think it means.” Inigo Montoya, Princess Bride
You killed my father. Prepare to die.
Stop saying that!!!
The Hamptons are in for some serious doses of reality. The smaer money started quietly getting out some time ago. Want to buy a BMW cheap?
Home prices continue sharp descent
http://biz.yahoo.com/cnnm/080513/051208_q12008_home_prices.html
The median sales price fell to $196,300, down 4.8% compared with the last three months of 2007.
“These are highly unusual results because there were very few jumbo loan originations in the latest quarter,” he said. “So sales are much slower in high-cost areas.”
Sun-Belt cities were among the biggest losers. In California, Sacramento prices plummeted 29.2% to $258,500 compared with last year and Riverside prices fell 27.7% to $287,100. Prices in Las Vegas fell 20.2% to $247,600 and those in Phoenix dropped 15.4% to $222,200.
From the original post:
“The tour, originally $50 per person, has been reduced to $25 for the final seats.”
Translation: That’s a 50% haircut for a ride on the short bus.
Why would anyone pay even $25 to go look at foreclosed properties, much less $50?
Californians pay but everybody else rides for free.
“‘There are a lot of ramifications from foreclosures, and if too many properties remain out there, it hurts the market and lowers prices,’ said Gary Kulik, VP of marketing for McCue Mortgage. ‘The hope is to get more people informed and get these properties sold as soon as possible.’”
I wonder what he means by ‘informed’? Run out and buy properties now or they’ll be cheaper for you to buy tomorrow.
Translation: “The hope is to get more people informed^H^H^H^H^H^H^H^Hmisled and get these properties sold as soon as possible.’”
F’ing East Boston! She paid $285,000 for this POS on 03-08-07!
“BIANCA VAZQUEZ TONESS: Claudia Sierra’s condo sits in a triple-decker along the waterfront in East Boston. Sierra opens the living- room blinds and sees the Tobin Bridge.”
CLAUDIA SIERRA: You know, the sunset is very good. Whenever people come here, they say, “Wow, you have a very nice view.”
I live in East Boston, (when not at work), her waterfront view is, - lets see, directly to her left and almost adjoining her condo) one of the worst projects in the Northeast! Straight out in front of her, the Tobin Bridge and also the Mystic river recycling plant (Huge!). To the right Chelsea Creek, home to the largest tank farm in the Northeast and the jet fuel tanks for Logan airport, which launches its planes right over her roof! Yup, great waterfront view. By the way, your condo looks North, so good luck watching that sun setting behind the projects! Google her at 5 Condor Street, Unit No. 2, 5 (East Boston), Boston.
Incidentally, it is estimated that East Boston is made up of 300,000 citizens and another 300,000 ILLEGALS (due to its proximity to Downtown Boston office cleaning and kitchen jobs - (sorry no link but that comes from the local chamber of commerce). Which camp do you belong to Claudia?
Oh yes, according to the Boston assessors office, as of 14th December 07 the building was in Juan VELASQUEZ’s name, so whats up Claudia?
Oh By the way, your city taxes are past due!
http://www.cityofboston.gov/assessing/paymentinfo.asp?parcelid=0103582010
I believe this knucklehead has got me into a lather! I live in the Jefferies Point area of Eastie BTW, that area is OK, Sailing centre and views of downtown and no airport noise!
Not only are her city taxes past due, on April 1, 2008, a Federal Tax Lien was placed against Ms. Sierra and the condo for a total of $15318.57.
This is just one bit of information omitted. The others are that the intial foreclosure filing occured on November 28, 2007 (she purchased the condo on March 8, 2007 purchase).
I’m in the process of digging through the Massachusetts land records, but this wasn’t her first real estate purchase, and there is some very fishy activity under her name in East Boston.
HBB detectives, you’re the best. Here’s the contact info for the WBUR reporter whose story is mentioned in the original post:
http://www.wbur.org/inside/personality/detail58586.asp
Bet she’d be quite interested in what you’ve turned up.
Yes, very shady character! Perhaps a follow up investigation by the journalist is in order to see how much fraud she has perpetrated. It is amazing that we on this blog can delve deeper than the so called “professional” journalist from the radio station. anyone have an email address for her? Ben?
Here it is:
btoness (at) wbur.bu.edu
My email to Bianca…
Good Afternoon Bianca.
I listened with great interest on your article on Claudia Sierra, a resident of East Boston who has problems keeping up with her mortgage on her condo.
After some elementary digging, there appears to be more to her story than appears, you may want to look a little deeper for a more interesting broadcast…
According to the Boston assessors office, as of 14th December 07 the building was in Juan VELASQUEZ’s name, so whats up with Claudia?
Her city taxes are past due! http://www.cityofboston.gov/assessing/paymentinfo.asp?parcelid=0103582010
Not only are her city taxes past due, on April 1, 2008, a Federal Tax Lien was placed against Ms. Sierra and the condo for a total of $15318.57.
This is just one bit of information omitted. The others are that the intial foreclosure filing occured on November 28, 2007 (she purchased the condo on March 8, 2007 purchase). This suggests that after “purchasing” the condo, she has probably not paid ONE SINGLE MORTGAGE PAYMENT as it takes this long for foreclosure proceedings to close.
Perhaps I can suggest that she has sent the children home to relatives in preparation for her to walk to Logan airport and head back to her native country, leaving yet another defaulted mortgage and unpaid income tax for this Country and State to deal with …
Furthermore, a Google search of Claudia Sierra, realtor, east boston, produces no search results Hmmmmmmmm.
Bianca, enquiring minds wish to know the real deal, can you dig deeper than a fluff piece on yet another poor homeowner that falls behind on the mortgage and dig up the good stuff that is angering honest people who did not buy too much house and pay their bills!
If you go to this Blog you will find willing hands that have done a lot of the heavy lifting for you.
Sincerely.
John, East Boston resident
copy of my email to Bianca…
Good Afternoon Bianca.
I listened with great interest on your article on Claudia Sierra, a resident of East Boston who has problems keeping up with her mortgage on her condo.
After some elementary digging, there appears to be more to her story than appears, you may want to look a little deeper for a more interesting broadcast…
According to the Boston assessors office, as of 14th December 07 the building was in Juan VELASQUEZ’s name, so whats up with Claudia?
Her city taxes are past due! http://www.cityofboston.gov/assessing/paymentinfo.asp?parcelid=0103582010
Not only are her city taxes past due, on April 1, 2008, a Federal Tax Lien was placed against Ms. Sierra and the condo for a total of $15318.57.
This is just one bit of information omitted. The others are that the intial foreclosure filing occured on November 28, 2007 (she purchased the condo on March 8, 2007 purchase). This suggests that after “purchasing” the condo, she has probably not paid ONE SINGLE MORTGAGE PAYMENT as it takes this long for foreclosure proceedings to close.
Perhaps I can suggest that she has sent the children home to relatives in preparation for her to walk to Logan airport and head back to her native country, leaving yet another defaulted mortgage and unpaid income tax for this Country and State to deal with …
Furthermore, a Google search of Claudia Sierra, realtor, east boston, produces no search results Hmmmmmmmm.
Bianca, enquiring minds wish to know the real deal, can you dig deeper than a fluff piece on yet another poor homeowner that falls behind on the mortgage and dig up the good stuff that is angering honest people who did not buy too much house and pay their bills!
If you go to this Blog you will find willing hands that have done a lot of the heavy lifting for you.
Sincerely.
John, East Boston resident
OK, two replies from Bianca from NPR…
Hi John, I think you raise some very good points, particularly the issue of people facing foreclosure neglecting to pay property taxes. That’s a problem for the cities and towns.
I’ll ask Claudia about Juan VELASQUEZ.
And thanks for alerting me to the Housing Bubble blog, it looks worth reading.
I will disagree with your comment about Claudia’s immigration status. She’s a U.S. Citizen, born in New York.
Are you noticing a lot of foreclosures in East Boston? Are you affected in some way?
Best,
Bianca
Hi John, A few more things…
I couldn’t find the federal tax lien for a Claudia Sierra in Massachusetts.
Claudia has a real estate license that is listed as “active”.
Best,
Bianca
Yes, very shady character! Perhaps a follow up investigation by the journalist is in order to see how much fraud she has perpetrated.
————————————————————–
but,but,but…that’s the way we do things where I come from.
Who was it that said “there must be more to this story”?
Well there you have it! (Thanks guys, much more clear)
Great work, guys. It all just goes to show that what Ben Franklin said was true- “You can’t cheat an honest man” Or in this case, unfit mother.
RIP SUSAN MENCHEY!
Fishy, such as…?
The fishiness is that the mortgage (and tax lien, and foreclosure notice, and judgement against her from the credit union for the car that ended up attached to the condo) are filed under Claudia P. Sierria. But the land records for Suffolk county (in which Boston & Eastie is included) also include over 20 records of activity credited to Claudia Sierria. This includes five instances in a six month period in which individuals granted Ms. Sierria Power of Attorney for real estate transactions; and purchases of other property.
The massachusetts’ land records are a blast to search - our friend (under both entries) is here. You can correlate, for example, that the notices from the Feds were sent to the Elanor street residence.
http://www.masslandrecords.com/malr/controller;jsessionid=199292E0B9CEC9ACCD194C8F25D49693.tomcat1
Oh yeah, and she used 100% financing on the one condo the subject of the article, with 20% of that tied into a single ballon loan. The primary mortgage is an Option ARM that isn’t due to reset until April 2009.
I’m digging through one of those Power of Attorney cases where it appears that an individual in Florida, using our friend as a PoA, purchased two properties in East Bostin. Our friend then took a mortgage against one of those properties for $488,000. Those two properties are now in foreclosure, but our friend is not listed as a party of the foreclosure process.
As you can see, this is complicated, I need to dig through the records and track everything she’s done later tonight.
B Chile,
I have a reply from my email. She seems on the ball. Can you send her what you know? I will post her responses below.
J
[Note that I have tried to include the actual dates from the documents and not the dates filed with Massachusetts Land Court: unfortunately, I may be inconsistent – any users of this information are responsible for its content and should double check anything written.]
On May 13, 2008, the Boston Globe featured one Claudia Sierra, a mother so desperate to keep her condo at 5 Condor Street, Unit 2 in East Boston she purchased in March of 2007 that she allowed her car to be repossessed and sent her children to live with their Grandparents.
Unfortunately for Ms. Sierra, and for the Boston Globe, this is only part of the story.
Ms. Sierra purchased the property on March 8, 2007 at a price of $285,000. She financed the entire amount bringing no money to the table – despite, according to the Globe, making nearly $80,000 a year. The two mortgages are
• Primary: $228,000 through First Franklin Financial Corporation is a 30-year option ARM/Balloon Mortgage. The interest rate is 8.15%, not due to reset until April, 2009. Minimum payment is calculated based upon a 40-year cycle, with a balloon payment for unpaid principal due on April 1, 2037.
• Secondary: $57,000 through First Franklin Financial Corporation with a single Ballon Payment due April 1, 2022.
On October 15, 2007, Winthrop Federal Credit Unit filed an attachment to the property for $4,500.
On November 28, 2007 (not entered into records until December 17, 2007), the first foreclosure notice was filed with Land Court.
On March 11, 2008, Winthrop Federal Credit Union obtained a judgment against Ms. Sierra for $6679.10.
On March 13, 2008 (not filed until May 1, 2008) St. Jeans Credit Union obtained a judgment again Ms. Sierra for $6813.70. It can be reasonably assumed this is a transfer from Winthrop Federal Credit Union, however, it is not clear.
On April 1, 2008, a Federal Tax Lien was placed against Ms. Sierra and the condo for a total of $15318.57. The cause was for “1040” taxes due for calendar year 2006.
On April 24, 2008, Ms. Sierra’s first mortgage was assigned from First Franklin Financial Corporation to LaSalle Bank National Association as Trustee for First Franklin Mortgage Loan Trust.
This would be the extent of the issue and the end of our story. Notice that Ms. Sierra has not yet “lost her home”. Except one small detail – Claudia P. Sierra also known as Claudia Sierra in the Massachusetts Land Records. And it is at this point the story takes an interesting turn.
[Note: I am not a real estate expert – I do not know if it is normal to for a buyer to assign power of attorney to another individual and allow that individual to piggyback on a mortgage.]
On July 29, 2005, Claudia Sierra purchased a condo at 55 Eleanor Street (Unit 10) for $191,000 with one Diana Sierra. Two mortgages were obtained – a primary of $152,800 and a secondary of $38,200. On January 6, 2006, they sold that unit for $231,000 to Conrad Jaliz. The two mortgages for the Sierra’s were discharged shortly thereafter. Important to note in this transaction is who represented Conrad Jaliaz: on December 29, 2006, Mr. Jaliz assigned power of attorney to Claudia Sierra.
Unfortunately for Mr. Jaliz, his property was taken on July 20, 2007 for failure to pay property taxes. At the time of the taking, the property also had a lien attached due to failure to pay condo fees. He also did one “cash-out” refinancing during the time he had the condo, for $44,000, apparently some of the proceeds were used to discharge his secondary mortgage of $33,000.
Ms. Sierra continued her adventures in real estate: on June 30, 2006, as power of attorney for Marta Rosell (aka Marta Roseu) of Aventura, Florida, Ms. Sierra obtained a mortgage for $88,000 against a property located at 239 Chestnut Street in Chelsea. There is no further mention of Ms. Sierra’s name following the mortgage in which she was a co-signer. The property that Ms. Rosell/Roseu purchased was previously owned by Edward D. Jorge and Natalie D. Morais.
On June 22, 2006 (a week prior to the events with Marta Rosell) Ms. Sierra helped Ramon Lopez obtain a mortgage for a property at 237 Chestnut Street for the same amount as Marta Rosell’s mortgage: $88,000. Mr. Lopez’s property currently has a foreclosure notice as of March 21, 2008. There is no further mention of Ms. Sierra’s name following the mortgage in which she was a co-signer. The property that Mr. Lopez purchased was also previously owned by Edward D. Jorge and Natalie D. Morais.
On July 12, 2006 Ms. Sierra helped, as power of attorney, Maribel Gonzalez obtain a mortgage against a property at 102 London Street in East Boston (or Dorchester – there appears to be some confusion in the location). This mortgage is for $488,000 against a $610,000 property. February 1, 2008, a foreclosure notice was filed against that property. There is no further mention of Ms. Sierra’s name following the mortgage in which she was a co-signer. The property that Ms. Gonzalexzpurchased was previously owned by Issam Bahloul.
I don’t know what all this means: what I do know is there are some serious questions that Ms. Sierra has to respond to prior to any sympathy being generated.
By the way - apologies for consistenly blaming the Globe and not WBUR; and the Federal Tax Lien is under the Mass Land Records serach for Ms. Sierra’s name.
Continuing to dig, the reporter is incorrect about Claudia Sierra’s license: it expiered on November 21, 2007. I sure hope she isn’t working in real estate right now while trying to pay the bills.
http://license.reg.state.ma.us/public/pubLicenseQ.asp?board_code=RE&type_class=_S&license_number=009044382&color=red&lb=RE
Well at least you looked it up, the Globe has been known to make up stories every now and then.
on my mothers street in RI they have turned 200 year old colonials into 4x condos
WTF !!!!!!!
guess next years condo fees will be 2000000000000000 $
That is so maddening taxme!
People cut up way too many Portsmouth, NH beauties doing the same. Guess that’s the only way the locals could afford to live in them anymore.
I live in a neighborhood that has had most large homes converted to triples and quads. But the codes are strict - the homes retain the classic look of the neighborhood. The densification has been good for the neighborhood. Densification and urban in-filling can be a great way to build a community and re-invigorate an area.
“When did the MSM become so impotent and credulous about what the gov’t and business tells them? The 80’s? 90’s?”
The MSM used to challenge people on the effects of their policy decisions, but it used to ignore their personal imperfections.
If you want to know who has been sleeping with who, the press is tougher than ever — on politicians, business people, Britney Spears. If you want to know now what they are doing now and how it will probably affect you later, forget it.
It happened when you had fewer and fewer independent owners of newspapers and television stations, and when journalism jobs became a job for the upper middle class. Many papers and television stations want a masters degree now for entry level jobs. Reporting used to be a working/middle class job, now it’s upper middle class. Makes a huge difference in perceptions.
As I read more of the clips; I just think quick and simple forclosures work out the best.
Kind of like a mercy killing vs drawing every last dime from the person in an untenable situation.
Not saying its great but it seems like the best way to go.
“Countrywide has either rejected or ignored the offers and foreclosure seems imminent. ‘It’s like they want things to go sour,’ …………
Well, let’s see? You borrowed $320,000 from Countrywide and promised you would pay it back on the terms agreed in the loan. The Bank wants their money back, with interest, for their investors.
You are offering a short-sale for them to recover about $230,000………..so the bank loses over $100,000 that you owe them.
Yes, I would say, that want this deal to go sour. They are not interested in bailing you out. They want what you promised to deliver……….timely payments of principal and interest.
Get busy and start paying! You owe it. They don’t owe you anything. Why should their loss be your gain???
Bank: “You owe us $300,000″
FB: “How about this $20 bill and we’ll call it quits?”
Bank: “No”
FB: “They won’t work with me! I’m a victim!”
I laughed out loud when I read that “go sour” statement. Also, these folks probably lied on their mortgage application. They’re lucky our government coddles “homeowners”
PS: she only borrowed $288,000, but the seconday mortgage is a single balloon payment due in 15 years, the primary is an option ARM.
“The tour, originally $50 per person, has been reduced to $25 for the final seats.”
The fact that people will pay for this truly amazes me–clearly we aren’t at the bottom yet. Let me get this straight: I should _pay_ you in order to be a captive audience while you try to sell me houses all day long?? WTF?
And I can’t wait to sit next to someone who paid $50 when I only paid $25.
I can’t wait to sit next to someone who paid $25 when the tour paid ME $25…
Seriously, pay me a bit, throw in a free lunch, and maybe I’ll take your tour for entertainment/schadenfreude value… 
anyone getting response from bugging pols w “NO BAIL ” message
I have some from locals
Yes I did, a week or two after my email. Of course it was a form reply about this terrible situation and how people are losing their homes etc. One size fits all.
Despite increasing foreclosure, prices are still nowhere near attractive inside 128 (MA). I have a coworker that’s been looking for quite some time (wife just got her Phd) and he tells me what he’s seeing on the weekends and he’s disappointed with how little you get for your money.
There are more and more anecdotal articles about economic stress hitting the news and most people that I know are either cutting back a little or getting worried about inflation in food and energy. There are tons of people still not affected by current gasoline, food and other prices. I think that this is going to take several more years to play out.
We know what the top states for foreclosures and price drops are. How about the biggest States of Denial? (1) MA.
http://www.bloomberg.com/apps/news?pid=20601087&sid=ajW2LgcbYw2o&refer=worldwide
Housing Prices Tumble in Two-Thirds of U.S. Cities (Update3)
Euphemisms: ‘As a result, sellers need to get more realistic and more aggressive with their pricing.’
Just like Wall Street touts don’t like to say stock prices are falling (they speak of “volatility” and “correcting” price) real estate agents don’t like to say sellers should lower their price. I wonder if they ever say “lower the price” to their principals? Maybe that’s why asking prices are so high. The agent talks about “agressiveness” and “realism” and the owner doesn’t know what the agent is saying.
Reporting used to be a working/middle class job, now it’s upper middle class.
What? Do you know what reporters actually make? Average starting salary is around $25,000.
…And Mommy and Daddy provide you with the rest. That’s how it always worked in the publishing industry. The Editorial Assistants made a salary that was equivalent to minimum wage, they all relied on trust funds to supply the rest.
Where are you getting your information from, anyway? I’ve worked as a reporter as do many of my friends; we’re not rich and we don’t have trust funds.
I was suggesting that the same thing has happened to journalism that has been happening in the book publishing industry for many years. Look at the salaries of the editorial assistants in places like Random House, etc.
Lived in Boston 15 years…through the ’80’s boom…then the bust…then came the Bubble Boom…tiny houses for 500K…by 1999 had a kid and had enough. Moved to Cleveland (wife’s hometown). For just over $155K found a 2,000+ SF 1915 Craftsman Colonial in Lakewood with all natural wood inside, picture-frame mahogany inlay wood floors, stained glass, fireplace, huge front porch, 2-car garage with attic on tree-lined street. We have good schools, it’s the safest place I’ve ever lived, a short commute, can walk/bike to everything in our town including the park on the lake, and it’s a GREAT place to live. I shudder to think what that woudl have cost on Boston in 2000…we do miss our friends (those who have not come back here, or moved to NC) and the T. Sure, our economy is tough - we actually still MAKE THINGS here - but we have been able to live on one income while kids are young, and the pace of life is just a bit slower here. Boston is a great city, but we were driven out by the ridiculous price of housing. Even rents were more than our mortgage is now! And the “Get Rich Overnight By Buying and Selling Houses Because It’s Different Here” attitude of realtors and people who got lucky. (It is also a relief to go to parties and talk about something besides Real Estate!) Our home hasn’t appreciated beyond inflation, but it hasn’t gone down, and we don’t plan on going anywhere. In truth, we were priced out of Boston starting in 1995 and just stayed in denial; even a return to 2000 prices can’t make it feasible for ordinary people to live there. So reading about “Eastie Claudia” not only made me mad (hell, we gave up OUR LIVES for our kids, and would do it again) but brought back a lot of bad memories of the late ’90’s, going to open houses in lousy areas with a half-hour wait to get in. And prices doubled again after we left! There is something to be said for not being in a Boomtown like Beantown. Hats off to you intrepid Bubble Bloggers for getting at the deeper story…may the god or goddess of your choice bless you, and, as we say here in the Great Lakes:
Got Water?
We’ll keep the light on for ya!
Thanks for the cheers - I was in the city by the lake a few weeks ago to visit a friend (who moved from Boston). I’m not originally from here, and I’m seriously thinking of moving to cleveland after my visit: great city, friendly people, welcoming to outsiders.
Thanks for leaving the lights on for us!
In the article about Claudia Sierra’s condo repayment plan, it really sounds like the repayment plan is really the bank’s last effort to squeeze every last nickel possible out of someone who will clearly be filing bankruptcy soon. From the bank’s point of view, that’s a good move, but the poor borrower — who feels like they’ve gotten a reprieve — doesn’t get it until it’s too late. The bank just walks them into the water slowly until they drown.
–Chet
RIP SUSAN MENCHY