Friday, October 05, 2007

'To put this in the shortest term possible, this sucks.'

From KCRA:

One of the best known properties in Granite Bay, the multimillion-dollar home belonging to movie star Eddie Murphy's ex-wife, may be the housing market's latest victim. KCRA 3 reports that Murphy's mansion is now in default...According to documents obtained exclusively by KCRA 3, Nicole Murphy is behind more than $79,000 in payments.
From the Stockton Record:
Mad owners of 26 homes in the upscale Paseo West development in Manteca got nowhere with their organized protest against Lodi-based Anderson Homes, which intends to auction off 34 homes in that partially built subdivision Oct. 13. But they hope the glare from print and television media will put on enough pressure to make the company cave in to their requests that each homeowner family receive $20,000 cash compensation for lowered home values resulting from what they call a "fire sale" auction. "Basically, they blew us off," homeowner organizer Dave Cantrell said.
...
In an e-mail letter to Cantrell, Anderson Homes owner and President Larry W. Anderson wrote that in nearly 25 years of building homes, he has never asked a homeowner to pay more for a house when the value of their Anderson Home increased. "Your request for a rebate in light of current conditions leaves me perplexed," he said.
...
Randy Brown, a Manteca construction contractor, is the newest resident of Paseo West. He got the keys on his $440,000 house in mid-August, two weeks before finding out about the planned auction. The minimum bid on an auction house such as his is $285,000. "To put this in the shortest term possible, this sucks," he said.
From the Modesto Bee:
An Anderson official...defended the auction as an appropriate way to attract interest. "You can pick up the paper every day and see what is happening in the financial and real estate markets," said Craig Barton, chief financial officer of Lodi-based Anderson Homes. "We have people coming in with some level of interest in buying a home but with no level of urgency, and we felt an auction is a very efficient and proactive way to reduce our inventory. It's as simple as that."
...
The disappointment of these homeowners is likely to be repeated in subdivisions across the region as struggling developers step up incentives to lure buyers of new homes...Kennedy Wilson Auction Group, the company conducting the Paseo West auction, has others scheduled for new homes in Los Banos, Elk Grove, Pinole and San Pablo.
...
Cantrell, who works in the development business, said developers had other options: They could have offered more upgrades or a free sports car while keeping prices higher.
From KCRA:
Frequently Asked Mortgage Questions
  • My payment just adjusted and I can't make the payment, what do I do?
  • I owe more on my home than its worth, what can I do?
  • How does a short sale work and will that negativity effect my credit?
  • I just received a Notice of Default, what does that mean and what should I do?
  • We have a sub prime loan, can we get rid of the pre payment penalty?
  • How do we go about refinancing our home?

7 comments:

AgentBubble said...

Cantrell, who works in the development business, said developers had other options: They could have offered more upgrades or a free sports car while keeping prices higher.

Yeah, just want I want....A $200 upgraded phone jack. Wonder if he realizes how stupid the part about keeping prices higher is...

Jacob said...

They already tried the free upgrades, cars, trips etc last year. But if a buyer cant afford the price it doesnt make a difference.

I mean if someone offered me a $100M home for $10M that would be a great deal, but I wouldn't be able to buy it...

And of course they want $20k, why not. They probably have 100% financing anyway so they can take that money and just walk and be pretty happy.

But if their $400k home was selling for $600k and the building wanted $20k from owners, how would they react... lol

Gwynster said...

That 20k should have been an appeal for hush money but they blew it by going to the press. The 20k was to fund their moving expenses when they walk away.

Diggin Deeper said...

Hmmmm....kind of like parking your car on the tracks while you hear the whistle blowing and the rumble of diesel engines. If you don't move it, there's a pretty good chance it gets crushed.

These "late to the party" buyers got crushed and really think that brazen stupidity will somehow sanctify their actions.

I can't believe how many blogs have shown up lately on this site depicting people looking for sympathy, or a card they can play to get themselves out this mess. Nor can I beleive those who try to make this "market" anything more than a train wreck for buyers or sellers right now.

HOUSE2008 said...

My co-worker just informed me that he to is walking away from his upside down mortgage. I never thought it would hit this close to me. Wow. Just walking away from it this weekend. We've talked about it & I'm not without sympathy, as he's willing to refinance it but not a single mortgage brker is willing to help him. With two decades on the same job making good money they said no. So he's going to rent for HALF that & save some 24k a year from walking away on a 3300 a month mortgage. Sheesh. Things are getting U-G-L-Y.

Tim said...

""""He got the keys on his $440,000 house in mid-August, two weeks before finding out about the planned auction. The minimum bid on an auction house such as his is $285,000. "To put this in the shortest term possible, this sucks," he said.""""

Said another way... I'm stupid for paying 440,000 in Aug 07 for a house in Manteca. Can you attempt to offset my stupidity by giving me 20k cash?

I don't feel sorry for these people. That guy should have gone to the builder and said, hey I'm going to walk away from my earnest money if you don't reduce my price at the closing table or if he bought it spec, he should have come in with a low offer.

Paper Boy said...

Tuesday, October 09, 2007
"KCRA 3-Triggered" FBI Mortgage Fraud Investigation Yields 5th Arrest
In Northern California, the Sacramento-area FBI mortgage fraud investigation triggered by a series of KCRA 3 television reports by Investigative Reporter Josh Bernstein has resulted in the arrest of a fifth suspect, according to a source close to the case.

25-year-old Sennett Swift was arrested Friday night at the Sacramento International Airport. In addition to his passport, he was found to have thousands of dollars in cash on his person and authorities believe he was trying to flee the country. Swift reportedly worked as a loan processor for VFM Investment Group and was trained by Jim Martin before leaving and setting up several companies on his own. Martin, along with three others, is currently under indictment for allegedly falsifying millions of dollars in mortgage loan applications so investors could qualify for loans they couldn't afford.

Swift is currently in custody and being held without bond on charges of bank fraud and money laundering. Arraignment is scheduled for today in a Sacramento Federal Court. Swift is considered a flight risk and will likely be remanded until he goes to trial. Authorities allege Swift began preying on the elderly after leaving VFM Investment Group in a similar scheme.

At least a dozen additional arrests in this investigation are expected. For KCRA 3 story, see Agents Believe Loan Officer Tried To Flee State (Man Was Former Employee Of VFM Investment Group).