Posted on 05/21/2008 11:33:58 AM PDT by Dawnsblood
I seem to remember that there’s also a tax hit.
In CA mortgages are no recourse by law, as they are in most states.
She bought the house in January. $350 per square ft is an outrageous price for Sacamena showing how rediculous the Greespan driven real estate bubble had gottne. $600,000 in unpaid loans and "fees" shows what the wolves have tried to tack on on top of the original mortgage less down payment.
Only villains in this story.
This is an example of what happens when banks write high LTV loans.
There should be a federal requirement that mortgages require, without exception, 20% down payment on the property. Requiring people to have their own money tied up in the property is what prevents walk-aways like this.
Now if the lender wants a taxpayer bailout, they can go aim at a rolling donut.
Yeah, it could happen to anyone...BS. She made her choice.
She made no down payment. She fell $18,000 behind in her payments by December. What do you suppose her interest and property taxes added up to each month?
Three months later, on March 19, a notice was filed with the county that Richardson's property would be sold at auction. According to the documents, the unpaid balance and other charges Richardson owed the bank was $587,384.
$535,000 plus $18,000 plus unpaid interest, insurance and property taxes thru March and you're blaming the "wolves"? LOL!
I bought a larger, nicer house in south Texas for 38,500 on 1 2/3 acres in 1989...
Half a mil for a 1600 sq ft house is ridiculous...
I blame all of them. LOL!
Where have we heard that name before. LOL! No wolves, weasels. LOL!!!!
You are I might think somebody has a lot of walking around money from that deal. Baghdad Todd thinks that the whole thing inlcuding about $60,000 in 3 months interest and "fees" is just on the up and up. It doesn't matter, since CA is no recourse and the bank gets to eat it all anyway. Wonder what the property will turn out to be worth really.
Congress: Rank-and-File Members’ Salary
The current salary (2008) for rank-and-file members of the House and Senate is $169,300 per year.
My mistake. When I saw this....
Only villains in this story.
I thought you were saying the bank was the only villain.
that house is currently listed at $600k. Zestimate puts it at $513k.
I suspect it'll still sell for $500k+, even in this market. It's a 1927 home with all the extras in a VERY desirable neighborhood, right across the street from a beautiful park.
I would have purchased there if I could have afforded it.
Let's see, jumbo mortgage, $553,000 plus late fees and penalties from 2007. Plus 3 months of interest, insurance and property taxes (what do you suppose property taxes for a newly bought $535,000 home in CA could be?)
You're right, they charged her $60,000 in fees. LOL!
>I seem to remember that there’s also a tax hit.<
You are right, Mamzelle. A forgiven (?) mortgage debt carries full tax consequences. Thanks for reminding me. :)
One of these days, perhaps civil discourse will be possible between us. It starts with the admission that a lot of folks are to blame for the financial chicanary of the last some many years, bankers, central bankers, borrowers - certainly, though not all borrowing is strictly voluntary in an inflationary economy - brokers, the real estate "industry," homebuilders homeowners and flippers thinking $100 per square foot real estate (based on land, material and cost of labor) is really worth $350 per square foot, economists, presidents looking the other way in return for license to do their own thing (whether it is wars or interns), politicians for their own perverse reasons, etc. etc. It is sytem wide, and none of this nonsense has anything to do with the business of providing money for capital projects to improve quality and quantity of goods and services to be provided in natioanl and international markets.
$535K for a 1,600 sq ft house in Sac is way overpriced, even when it was purchased. That’s $335 per foot - something is wrong here. Yes, Sac RE is high, but this is a fishy deal on its surface.
From which you subtract rents in DC (minimum about $3,000 per month) then multiply by 3 to come up with affordability and from that you subtract the outstanding mortgage on any other property. You don’t come up with the payments on a $535,000 mortgage out of that calculation. But then this was how WAMU apparently did business.
Maybe.
It starts with the admission that a lot of folks are to blame for the financial chicanary of the last some many years, bankers, central bankers, borrowers ... brokers, the real estate "industry," homebuilders homeowners and flippers ... economists, presidents ... politicians
Not just the Fed? You're making progress.
It is sytem wide, and none of this nonsense has anything to do with the business of providing money for capital projects to improve quality and quantity of goods and services to be provided in natioanl and international markets.
Yeah, people make bad investment choices.
Back to the case at hand. She borrowed $535,000. Fell behind $18,000 in 2007. Sounds like her balance is up to at least $553,000. 3 more months this year, probably at least $8,000 in interest and $1,500 in property taxes. Now we're up to $562,500. Her final balance was estimated at $578,384.52.
Yeah, maybe $16,000 in fees and penalties was close to your estimate of $60,000.
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