Tuesday, January 17, 2006

Reader shares an FB story, and in IMPORTANT question!!

I have steadily been receiving more and more e-mails from readers...keep them coming! I have had several readers relay FB stories to me, and many others have offered words of encouragement or other beneficial information. I'll start with a potential FB story and finish up with an interesting question that I think will spark some good commentary. That said...let's get moving!

This particular story comes from a reader. Apparently they know a couple in Orange County who just signed to purchase a 2 bed/1 bath condo in Santa Ana for about $425K using a 2/28 I/O ARM to 100% financing (80/20). The reader assumes they had to use stated income, but didn't ask. Things get tricky as the borrowers asked the reader if they could determine if the property taxes were included in their monthly pament. They were told by the loan officer that the taxes were included in the payment. After looking through the paperwork, the reader found the loan summary where it says County/City taxes, there was N/A filling in the blank. The reader couldn't believe the situation their friends were getting into. They were buying a place with 100% financing and an interest only payment, and their taxes were not included in the payment as they had originally thought. Their friends, like many others, are/were under the impression that they can just refinance if they get in trouble down the road. The reader told them they MIGHT be able to refinance later, but there are no guarantees. The reader then asked me if there is any recourse once they sign the dotted lines? Is there a grace period in which they can get out of the loans?

It sounds like these borrowers just got in over their heads. The sad thing is that they aren't out there to flip properties, they are just looking for a place to live. It sounds like they bought so they wouldn't be 'left behind'.
Unfortunately, once they sign, they don't have much recourse on a purchase transaction. On refinances, there is a 3-day recision period where the borrower can 'get out of it'. In this case, once the docs are signed, there is very little recourse they have to get out of the transaction. It is situations like these that I want people to avoid. Hopefully things will work out for these borrowers and they will be able to afford to keep their home once they move into it AND when the loan adjusts in 2 years. I just hope they find a way to pay the $400 a month taxes that they thought was included in their 'payment'.

That said, can somebody PLEASE give me some data that suggests how property can continue to go up?!?!? I'll post some quick data why I don't think it can continue to go up:

- Yesterday I posted the stats from San Diego county. From Dec 04 to Dec 05, property went up a whopping 4.8%. BUT, the decrease in value from November to December 05 was the single largest decrease in the 18 years that they have been keeping records. If you look at the stats from 1989 and 1990 right before the last bust, here were the appreciation rates: 16.6% in 1989 to 3.3% in 1990. This time around we had 21.1% in 2004, and 7.6% in 2005. Looks pretty similar to me...

- Today, we have 2 articles that came out in the OC Register: one article states that there is an entire zip code where every purchase loan was an ARM and in Santa Ana where 86-88% of the loans were ARMs (that is where our borrower above was buying). In another article, the tax collector stated that 46,000 residences have yet to pay their taxes due on January 7th. This is a 15% jump from last year, and the highest number since 1995.

- We have inventories in San Diego that are up 10% since January 1st, and 5 times what they were a mere 18 months ago.

- Today there was this article from the USA Today that states that 46% of first time homebuyers are using 100% financing.

Let's take a moment to look at a few things. Those of you that have been reading this blog for a while know that lots of people are using ARMs and 100% financing to buy property. Take the information above, with all the other information you have heard, along with the info I posted where 82% of the purchase loans in California are either I/O or neg-am, and answer this question:

Tell me how many of the 55,366 houses that were bought by people in San Diego during 2005 are in a good spot. Sure, I don't know all the specifics. I know that many people traded up, put money down, and can afford their house. I'm asking YOU, take a guess? I don't know! If you had to put your money on the table with a bet, where would you put your money?? I think quite a few of these 55,000 people are going to be in trouble in the next few years, especially if they bought with I/O, neg-am, or 100% loans.

But knowing that 82% of the purchase loans in Ca in 2005 were I/O or neg-am, knowing that people are NOT putting money down to buy houses, knowing that the appreciation ranged from -3% to 8% depending on when you bought last year, how many of those people do you think are in a 'good' place after buying what looks to be at or near the 'top of the market'??? How many will be in a good place when their ARM adjusts??

Again, I don't know the answers to these questions. Many of the statistics needed are nearly impossible to gather. I only know the information I read and what I see on a daily basis. I know that incomes haven't doubled in the past 3-5 years...but most property has. I know that rates are going up now...and that is bad news for ARMs. I know that massive appreciation was saving people....now it's not there. I see people not paying credit card bills, I see people not paying their taxes, I see inventories jumping, I see 'reduced' signs....so PLEASE, what am I missing. How are we going to get 10% appreciation this year?!?!?

I look forward to the answers....



Blogger need 2 leave CA said...

I have a few FB stories to tell. I have reviewed some people's mortgages, 2 that stand out. These are in the greater SF Bay area, where housing prices out of whack.

#1 - person got an 80/20 ARM for $320/80K that was a neg am 2/28 yr. 6% at time and cap of 12%, second loan much worse terms. Loan app stated borrower made 9K/month. Really made 4K. Next month, lost job. Paid mortgage for 1 year with cash advances. When I met, 1 yr into loan, no job, no income, 75K or so in cc debt. Stated house was worth $475K at time. I advised to sell and rent. Comment I got back was "I don't want to lose everything I worked for". FB was 2 months from insolvency at that time (was going to cash in a retirement acct). Don't know what happened.

#2 Couple, each earning $13 per hr each. Bought $850K house with an 80/20 3/27 loan, neg am. Borrowers thought that they had a fixed pymt of $2000 at 1% fpr the life of the loan. 2nd loan terms had cap of 18%, first loan was 11%. The worst case pymnt could be $12K/mo. The loan people lied, and I showed them the truth. They were not happy with the results.

Multiply these type of scenarios by hundreds of thousands, and this bubble will be popping loudly.

1/17/2006 11:46 PM  
Blogger SoCalMtgGuy said...

Just to clarify, if they had neg-am's they probably were not 2/28 or 3/27. 2/28 and 3/27 are the subprime designations for ARMs fixed for 2 or 3 years.

Either way, neg-am or ARM, those borrowers will be hurting in the future.


1/17/2006 11:53 PM  
Blogger Arioch said...

Couple, each earning $13 per hr each. Bought $850K house.

That tells me everything right there. I truely feel sorry for people like that being the victims of predatory behaviour.

They'll lose everything in a couple of years.

Yes, they are ultimately to blame for their actions, but those who led them down this path of insanity (and likely countless others) are morally reprehensible.

I see much rules / regulations / legistlation in the tea leaves for the future out of this mess. And it will all be paid for at closing....

1/18/2006 12:30 AM  
Blogger need 2 leave CA said...

I would have panicked that I wouldn't be able to pay their 2nd note, yet alone the first. They were both working 2 jobs. I think that the amortization table began amortizing the principle after 3 yrs, but loan rate could change before that. The neg am cap was 125% of original loan. They were nice people, and were not educated about the real facts of what they signed. The mortgage people that sold this should be held criminally liable. I expect them to lose the house after a few years, if they can even keep it that long. I couldn't sleep if I did that to someone. If I have my facts about the type of mortgage incorrect, it is unintentional. I think each reader will understand what the issue is.

1/18/2006 12:40 AM  
Blogger need 2 leave CA said...

I am now looking at property in Albuquerque to live in. They are in much better shape there. I just want to have a simple place to call home. I could pay cash if I cashed out part of my retirement accounts. Also, can put down about 10%, and have no debt.

Didn't mention that the couple #2 had also bought a new $16K car and several thousand in furniture on credit cards. They hadn't made any payments when I reviewed their documents.

1/18/2006 12:44 AM  
Blogger Arioch said...

need 2 leave:

That is truely horrific.

It is like going to "CashTown" for a payday loan to the tune of 3/4 million dollars.

This environment of 1/2 million dollar plus signature loans (this is basically all it is) is pure insanity.

Those people will lose everything, and soon by the sounds of it.

There should be a DVD called "Buying your first house" which people like this MUST watch (not a book since very few people read anymore) outlining mortgages, property tax, PMI, HOA's etc...

Meanwhile the scum that shoehorned them into this fiscal nightmare walks away with a bag of cash.

One problem is the view of debt has changed in the past 20 to 30 years.

1/18/2006 1:25 AM  
Blogger foreclose_me said...

Looking at it the other way, does it really matter how F'd you are?

When you're F'd, you're F'd.

The real question is who are the people holding the note? God, I hope it is rich foreigners. A housing crash will be bad enough.

1/18/2006 1:42 AM  
Anonymous Anonymous said...

But...but...real estate only goes up...less demand = higher prices...it goes to eleven.

- Nigel Tufnel, RealtorĀ®

1/18/2006 4:21 AM  
Blogger Tom Gullo said...

I'm as pro-capitalist, pro-freedom as the next guy, but the current state of housing is awful.

People need affordable housing. The fact that our government, led by Bush is doing nothing is sad.

1/18/2006 5:56 AM  
Blogger Tom Gullo said...

I see much rules / regulations / legistlation in the tea leaves for the future out of this mess.

I'm all for a small government, but we need an EFFECTIVE government body that can regulate the mortgage industry.

And there are people getting paid a lot of money in government right now, that see the problem and are doing nothing.

1/18/2006 5:59 AM  
Anonymous Anonymous said...

I was an Loan Officer (Mortgage salesperson) in the late 90's for a short period of time.

Back then I saw a great deal of fraud and decit... probably pales in comparison with today.

I had been wondering if the mortgage companies would seperate taxes out of the payment and then not really tell the borrower about it (back then we quoted the PITI to the borrower and had it collected in escrow). They would have the borrower sign that they are aware of this... but if you've been in that business you know how easy it is to get people to sign things they haven't read.

People are stretching into home values/mortgages so sight that they have moved beyond no-down-payment/100% financing, interest only/negative-amort. ...stretched to the point that they can only "afford the monthly payment" if it doesn't include any taxes.


1/18/2006 6:22 AM  
Blogger Stephanie 81 said...

Some of these FB stories I have read about, particularly this one:

"Couple, each earning $13 per hr each. Bought $850K house."

lead me to believe that in the future, there will be stories on 60 Minutes about people like this subject to possible predatory lending. But at the same time, they had no business jumping into something they didn't fully educate themselves about.

1/18/2006 7:16 AM  
Blogger MazNJ said...

#2 Couple, each earning $13 per hr each. Bought $850K house

Ok, this makes my stomach hurt.

While I'm all for personal responsibility and have been blaming the buyers, this undoubtably took two to tango to ever create such a fraudulent nightmare scenario. Yes, they should know better - heck people with incomes triple or quadruple that entire couple's would not want to enter that loan.

I'm completely perplexed on how they handled the real estate taxes AND how for instance in CA so many people have not paid their RE taxes. I always thought the RE tax was collected in escrow through the payment to prevent this. If the mortgage holder didn't forward on the RE tax to the county, the county/etc would have first claim as the tax to my knowledge supercedes the note holder for claims. Therefore, there's a good chance the note holder will loose alot more... Sorry, can anyone try and defog my mind here?

1/18/2006 7:46 AM  
Blogger need 2 leave CA said...

I agree that the $13 per hr couple and $850K loan were obviously taken advantage of. I didn't mention thst the loan doc showed "YSP of $20,000" = that stands for Yield to Spread Premium and is bascially an extra bonus paid to the broker that sells the toxic mortgage. These people previously had a smaller home with an affordable payment but somehow determined they needed a bigger home (really didn't). They had $40,000 they put into it, and it was eaten up by the closing costs.

1/18/2006 7:50 AM  
Blogger arizonadude said...

People are desperate for a home!
These numbers are staggering. We all know they will be the first to walk away from house in downturn. No equity, what do we have to lose. We played the gambleing game and came up short. Our credit has a forclosure but we can get another loan in a couple years, what the h*ll.
The local and state govt's are fat dumb and happy with all the bucks that are flowing in. They are part of the problem for sure. Building regulations and permit fees are adding @ least 20% to home costs in california in my mind.

All these people taking out risky loans and inflating home prices are going to bring us all down unfortunately. As long as they have access to easy money they will continue to borrow away.

1/18/2006 8:04 AM  
Anonymous Anonymous said...

regarding case #1, I know someone like this. He is a major drug addict. He has been laid off (fired), and is now spending his home equity and retirement accounts.

When someone who is an obvious drug addict can get a 100% IO loan, credit is definitly too loose.

1/18/2006 8:41 AM  
Blogger Pointlines said...


Multiply these scenarios by the thousands and you have the potential timebomb to be many times worse than Enron.

I blame it on the lax regulation on mortgage brokers, lenders, realtors, appraisers, and the greed and stupidity of the person signing the loan papers.

Like you I have my series 7 and there is no way the securities industry would ever ever ever allow this to continue in the manner that it has..................there has GOT to be huge repurcussions and regulation coming down once this whole Ponzi scheme blows up.


1/18/2006 8:48 AM  
Blogger Tyler Durden said...

I agree.

People will have fond memory of the dot com bust once this housing bubble burst.

1/18/2006 9:01 AM  
Blogger AZgolfer said...

I was wondering about the tax issue also. I have owned my house for 12 years and both the insurance and taxes is included in the payment I make to the Credit Union. Has this changed in recent history?

1/18/2006 9:28 AM  
Blogger SoCalMtgGuy said...

Bubble butt...

I agree. I don't think the mortgage industry will be the same after this mess is uncovered.


People have a choice with doing IMPOUNDS. An impound account is where you make one payment a month that includes your mortgage along with taxes and/or HOA's mello roos, etc. The escrow account takes these monthly payments and makes the big payments 1-3 times per year when they are due. THe escrow account is NOT part of the mortgage.

Instead of paying 6000 in taxes in one lump some, many borrowers will set up an escrow account and pay $500 a month the whole year.

I hope this makes some sense, and clears some of the confusion.


1/18/2006 9:52 AM  
Blogger David said...

"How are we going to get 10% appreciation this year?!?!?"

[start sarcasm] Wealthy foriegners. The Chinese have a trillion in currency reserves. The could buy and price appreciation could go up another 10% [ end sarcaasm ]

In all reality 10% price appreciation is out of the question for 2006.

Bubble Meter Blog

1/18/2006 10:03 AM  
Blogger synchro9898 said...

I think you can choose to have escrow for insurance and property tax at time of closing -- there was some regulation a couple years ago where people are given option to have escrow or not. One reason people may choose not to have escrow is that the mortgage servicing company basically had free float of the escrow cash before payment.

1/18/2006 10:19 AM  
Blogger SoCalMtgGuy said...


Yes, most select it at closing, or you can start one anytime.

You might lose a little 'interest' along the way, but most like the piece of mind of not having a 4000-10,000 lump some tax payment due.

It all depends on the person and their financial situation.


1/18/2006 10:26 AM  
Blogger LtnTechie67 said...

How sad. What is wromg with these people? This is probably the biggest transaction you will make in your life so why not educate yourself at leas with the basics of what you are getting into? There are tons of mortgage/RE for dummies books.

As far as the property taxes snafu. I highly recommend buyers to pay the taxes themselves when due. I made the wrong choice of letting my lender handle it. I just found out they failed to pay my taxes last month. A-holes. Now I have to pay the late fee.
But, from what I know, some lenders make it a requirement to setup impounds if you are a high risk borrower so these FBs have no choice.

1/18/2006 10:30 AM  
Blogger Silver Lightning said...

$26 hour combined? It seems like a $200,000 house is more in line. Well once the lenders start losing their butts things will tighten in a hurry.

1/18/2006 11:07 AM  
Blogger peterbob said...

If you don't pay your property taxes, what is the government recourse? What happens if a lien is put on the property?

This may be an important issue. People who are strapped by large mortgage payments will put off paying creditors who can do the least harm. If the government doesn't adequately pursue these people, then the popping of the bubble may be delayed.

Of course, I fully expect governments to wimp out and not take the hard line. That's a shame.

1/18/2006 11:34 AM  
Blogger boulder bo said...

so cal,

excellent blog. from a broker's viewpoint, happy to report that today i have jettisoned my last loan officer at my company (she went onto bigger and better things at a 18 month old mortgage reit, yikes). my partner and i have successfully lightened our load (read: liability) of 12 unseasoned white-out slapping, scissor wielding loan "professionals" over the last year. we are out! when we realized last december that over three quarters of their (read our) business was stated and more than half of that was 100% leveraged or investor, we said enough. i know you're in wholesale, so there's very little liability there for you, but i don't think the borrowers, brokers, lenders, agents and title companies have a clue as to how messy this will get down the road. best of luck with your current investor and keep up the good work on this blog.

1/18/2006 11:34 AM  
Blogger SoCalMtgGuy said...

Thanks Boulder Bo...

If you get a chance...shoot me an e-mail.




1/18/2006 11:47 AM  
Blogger Rob Dawg said...

Boulder Bo has the right idea. I also wonder if the game of "hot potato" will catch a bunch of FOs (F@#ked Originators) holding some really bad paper. I also wonder about some of the front line brokers if they decided to get into the mortgage holding business on the side. You know, keep a few loans and live off the float. Then I wonder if there's been a little bit of "private placement" for either the very best or very worst paper. No way to tell but given the general ethics I suspect this will make a lot of these front line lenders risky business.

1/18/2006 12:31 PM  
Blogger boulder bo said...

for the broker, there are buyback provisions from the investor on all loans if there is any "material misrepresentation". further the pmi and credit enhancement/default swap/hedgefund firms will not cover "material respresentation" on loans in the pool. well, i'll just ask what a liar loan is? this whole feeding chain is perched on a fragile house of cards. lot a work for the lawyers, imho.

1/18/2006 1:13 PM  
Blogger VirtualChris-OC said...

I was a first time home buyer in 1993. I bought a condo in orange county (placentia) for $150K (mortgage ~$1100/mo inc property taxes). I have watched this market explode over the past few years. I packed up my bags 60 days ago, moved into a hotel while I was looking for a place to rent, through about $15K into my condo (paint, carpet, fixtures), and sold it for $415 two weeks later.

60 days later, I am now renting a house in Anaheim Hills for $2100/mo, and have ~$300K in the bank.

I am just waiting to upgrade to a nice home for the same money with a little help from the FB's in the coming months!

1/18/2006 2:01 PM  
Blogger Mike said...

I have a friend at work that just became on big MFB. 15 year on home in Irvine. Decides on a whim to buy a brand new town home in Newport for 900k on a 10 year arm and rent out the Irvine home. He empties his savings, stocks, everything he has for a down payment on the second home. Fast forward to today and his renters are becoming a big pain in the butt to him requesting everything get fixed...

Wait it even gets better, Monthly payments are in the 3500 range and to make ends meet now he is working part time as a mortgage broker. He's not licensed so the leads he brings in net him a 40% cut. But he does all the customer service work for the company. What a joke it has become.

Housing Bubble Forums

1/18/2006 2:10 PM  
Anonymous Anonymous said...

>>If you don't pay your property taxes, what is the government recourse? What happens if a lien is put on the property?

* * *

Of course, I fully expect governments to wimp out and not take the hard line. That's a shame.<<

Generally speaking, the government has first priority to foreclose on your house if you don't pay the taxes. The process is usually quick and unforgiving. They may take a while to get around to it, but they always get around to it eventually.

If the lender forecloses, the government gets paid first out of the sale proceeds. That's why lenders require escrow holdbacks. I don't know about California, but in Arizona they mostly still do, even for conservative loans.

1/18/2006 3:00 PM  
Blogger ChillinIntheOC said...

Here in So. Cal (Orange County to be specific), a lot of "investors" are discovering the pain of RE taxes, Mello Roos, and special tax assessments (Ladera Ranch calls it a "Lifestyle Premium").

Most that I've seen DO NOT IMPOUND since that would have added at least an additional $ 800 to $ 1500 per month just in taxes to the total payment. Remember we're talking SO. Orange county where a $ million dollar home ain't that uncommon.

Anyway, now you've got people like my neighbor whose trying to cover one half of his $ 12,458 annual nut - this on a property that was built 27 years ago.

1/18/2006 3:31 PM  
Blogger Stephanie 81 said...

This could potentially turn into a FB story.

Someone I know was a gov't contractor in DC and just got laid off as of today. It turns out she just started a new business. What is it? Investing in real estate.

I want to tell her so bad that she is in for a double whammy, but I don't want to say that to a person who just lost their job a few hours ago.

1/18/2006 4:06 PM  
Blogger LtnTechie67 said...

Funny, I called the County yesterday because my F-Tard lender failed to pay them my property taxes out of my excrow acct. in December. Out of curiosity, I asked the lady how long does it take before the govt. decides to foreclose on a property due to not paying. She said approximately 5 years. Wtf???

1/18/2006 5:02 PM  
Blogger SoCalMtgGuy said...

I don't think it was your lender that failed to pay the taxes. The impound account disburses your money and pays the mortgage, taxes and insurance.


1/18/2006 5:14 PM  
Blogger LtnTechie67 said...

So who holds the impound account? I was under the assumption the lender did. That's who I send my principal, taxes and ins. to.
When I called the lender ,they admitted they failed to send the taxes blaming it on a computer glich even after I faxed them my tax bill as instructed. However, I did get a check for that money they collected in impound so far so I will go ahead and pay the tax bill myself. Screw them.

1/18/2006 6:06 PM  
Blogger SoCalMtgGuy said...

Yeah, you are right. I'm so used to being on the 'sales' side of the business that I forget sometimes about the 'servicing' side of the lender.

Been one of those days...my bad.


1/18/2006 6:14 PM  
Blogger breakthespeculators said...

SCMG - any idea who ends up owning the really stupid loans? surely it can't be Fannie or Freddie. is it hedge funds?

1/18/2006 6:39 PM  
Blogger mtnrunner2 said...

Who's holding the MBSs? Isn't it hedge funds and pension funds, eager to earn higher rates of return? What will happen when borrowers default on these loans?

What about the international central banks, i.e. China? I think most bank reserves are in securitized collateral, CSOs and MBSs. Does anyone on this board have any knowledge of this?

1/18/2006 6:59 PM  
Blogger bitter_renter said...

Funny, I called the County yesterday because my F-Tard lender failed to pay them my property taxes out of my excrow acct. in December. Out of curiosity, I asked the lady how long does it take before the govt. decides to foreclose on a property due to not paying. She said approximately 5 years. Wtf???

Sure...they'll let it ride for a while. But ultimately they will collect in full...with interest and penalties. You can't fight city hall.

1/18/2006 7:22 PM  
Blogger SoCalMtgGuy said...

I have seen lots of properties with tax liens. Usually the lein just sits there if it is not a huge amount until the property is refinanced or sold.


1/18/2006 7:32 PM  
Anonymous Anonymous said...

I work for a nonprofit that assists clients throughout the country to avoid foreclosures. In many instances I find that, outside the SF Bay Area, homebuyers are getting in too deep by purchasing the second home believing they can cash in on the "boom."

For people in the SF Bay Area, I find that those who are desperate to buy their first property are utilizing methods that are clearly detrimental but the belief is that "we/I can manage on ramen and PB&J for a while."

It is really sad to see people who, probably were in the stock market tech train wreck, are now possibly in the real estate typhoon.

1/18/2006 9:16 PM  
Anonymous Anonymous said...

I'm all for a small government, but we need an EFFECTIVE government body that can regulate the mortgage industry.

You want an effective government body? Oooh, oooh. There it is! Over there between the unicorn and the centaur!

1/18/2006 9:18 PM  
Blogger moonvalley said...

need 2 leave.....
I shouldn't be reading these posts before bedtime, even if I am planning onstaying up for several more hours...they're waaaay too scarey for me..makes me want to shut off the computer and go watch Freddy Kreuger

1/18/2006 10:08 PM  
Blogger need 2 leave CA said...

Moon Valley, if you think reading my post, you should have been with me when I was going over the loan with these folks. I wish they would have called me before taking on that mortgage, but didn't. I had taken care of some insurance needs, and was planning on beginning some retirement accounts at that time. The new house took me by surprise. I have seen too many others like that also, and I know there are hundreds of thousands similiar to these folks.

1/18/2006 11:53 PM  
Blogger need 2 leave CA said...

One more FB - but not as bad. Another person (50's yrs age), had 12 yrs left on a fixed loan to own home outright. Money tight, refinances to a new 30 yr loan IO for first 2 years, ARM to lower pymt by $500/mo. When the ARM resets, the paymnt will be higher. At least it was only $300K, but the monthly income was only $4K per mo, combined for h/w.

Another FB with a 2 yr IO, where there was no income for the entire family. Not sure where they were getting money from.

1/18/2006 11:57 PM  
Blogger moonvalley said...

need to leave ca.....
Ahhhhhhh!!!! Scarey strories..lalalalalalala...
actually I just heard a horrible one myself on the phone.
I was talking to an old friend in LA, who just sold her house and is doing incredibly stupid things with the money seeing as she's out of work, getting divorced etc...anyway, sems as though her neighbors' sons have bitten big on LV real estate and have sold their business and bought lots and lots of Vegas investment properties. She got very quiet when I told her about what's happening with Vegas RE.

1/19/2006 12:35 AM  
Blogger need 2 leave CA said...

MoonValley - we are both too addicted to this thing. Show your LV friend the movie, "Planes, Trains, and Automobiles" - where Steve Martin's character gets to the car rental window to discuss no car in the parking lot, and the clerk says in such a smirky face "You're FUCKED". I guess that will sum up all of the the FB (or MFB)'ers out there

1/19/2006 1:16 AM  
Blogger moonvalley said...

we are both too addicted to this thing.
Alas, you are correct sir! I can't seem to tear myself away from this and the other RE blogs. I looove Planes Trains and Automobiles!! I followed the link on the story in the Charlotte paper about all the homes in one subdivision that have been foreclosed and so I decided
to check out what they're renting for....
I was stunned as to why anyone would bother to stress and buy when they could have o ne of these save money and rent!!!

1/19/2006 1:25 PM  
Blogger Sensible Lender said...

Peterbob said: "if you don't pay your property taxes, what is the government recourse? What happens if a lien is put on the property?"

More important in the short term is what your lender can do. He can demand that you pay the taxes and if you do not, the lender can pay them. This is because they form a lien in priority over the mortgage/home loan.

At this point you are in default and your lender (or if the lender sold your loan, the company servicing your loan) can demand you pay all the costs they paid to the government to satisfy the lien. If you do not pay this amount they can demand that the loan to be paid off. If you do not pay it off they can foreclose.

1/19/2006 5:56 PM  

Another story

3/08/2013 7:42 PM  

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