Los Angeles Times: Foreclosure Story

By
Real Estate Broker/Owner with Cheryl Johnson, Bob Taylor Properties, Inc., Los Angeles, CA

Please take a minute to read this story in today's Los Angeles Times:

http://www.latimes.com/business/la-me-foreclose24dec24,1,1124539.story?track=rss

Part of the story line goes:  A real estate agent told the family "They were wasting their money (on rent),  they could combine their paychecks to buy a home with no down payment." 

And .......... "They were advised to get two loans on the home, for which they paid $340,000. The first required a monthly interest-only payment of $1,436, and the second $655. Maria Debora said she asked whether two loans was a good idea, but the agent told them not to worry because they could refinance in just six months."

I find myself wondering if the agent has read the story......  And what he is thinking...........

 

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Rainmaker
41,229
Tom McEvoy
RE/MAX Santa Clara Valley - Sunnyvale, CA

Cheryl,

Good post.  After reading the story, I thought that these situations are with those people who place a great deal of trust in so-called professionals they really don't know!  It's unfortunate but it still comes down to knowing who you're dealing with.  Almost a year ago my gardener showed me a flyer that was given to by an agent that could have developed into a similar situation.  I met with him and his wife and invited a Spanish-speaking loan officer to join us.  Bottom line: we advised no such purchase, especially with the crazy loan described in the flyer.  Luckily, they didn't take the bait.  He has been smiling big time!  They've side-stepped something that they know many of their relatives and friends have gotten into because I took great care of them and looked at what was in their best interests.

December 24, 2007 01:14 PM #1
Rainer
15,689
Scott Schang
Broadview Mortgage Corporation - Long Beach Team - Long Beach, CA
Educating & Empowering Consumers

Cheryl,

This is a very common story in southern California.  An unfortunate byproduct of that market was the greed and "anything for a buck" mentality of many so called professionals and thier organizations. 

It is good to get these stories out so home buyers are aware that things are not always as they seem.  Unfortunately, i still run into this on an almost daily basis when speaking with buyers shopping thier current loan.

Articles like this give the rest of us an opportunity educate home buyers and to seperate ourselves from these types of criminal activities.

Good post!  Thank you.

December 24, 2007 01:30 PM #2
Rainmaker
374,933
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!
Wow, what's sad is that I suspect the agent who facilitated this fiasco has not read the story.  I don't think he was thinking at all...certainly not about his clients.
December 24, 2007 07:31 PM #3
Rainer
138,958
Jay McGillicuddy
Berkshire Hathaway HomeServices Verani Realty - Exeter, NH
Real Estate Broker
What a shame there is no need for this type of behavior. I feel bad for people that rely soley on the word of unscrupulous agents.
December 24, 2007 07:34 PM #4
Rainmaker
182,553
Irina Netchaev
Pasadena Views Real Estate Team, Inc. - Pasadena, CA
Pasadena CA Real Estate
Unfortunately, there are a lot of unscrupulous agents and lenders that are only thinking about making a quick buck.  Too sad...
December 24, 2007 08:11 PM #5
Rainer
12,597
Larry Hammelman
Mel Foster Co. - Sterling, IL
Sterling, Illinois Real Estate
Boy this family got taken by several people it sounds like. The real estate agent, and the person that wrote the loan. It never should have happeded. Someone needs to retake their ethics class.  
December 24, 2007 11:59 PM #6
Rainmaker
355,143
Miriam Bernstein, CRS
RE/MAX N.O. Properties - New Orleans, LA
New Orleans and Surrounding Suburbs Real Estate
I feel badly for this family, they are hard working and responsible.  In retrospect we see what happened but at the time were the agent and the mortgage broker unethical, did they know then what we know now?  Did they believe that a refinance would be possible.  Did they get caught up in what happened or were they so smart that they knew what would happen.  Yes, I wonder what they think now.
December 25, 2007 05:24 AM #7
Rainmaker
563,671
Cheryl Johnson
Cheryl Johnson, Bob Taylor Properties, Inc., Los Angeles, CA - Highland Park, CA
I understand what Miriam is thinking --It's possible  the agent and loan broker may have been newer in the business ... may never have experienced the up and down cycles.
December 25, 2007 05:38 AM #8
Rainmaker
307,323
Maggie Dokic
Special Miami Homes - Miami, FL
CDPE, SFR, Pinecrest | Palmetto Bay |

Stories like these are what keep the realtor bashing going strong.  This agent ought to be ashamed of himself!  Selling a pig's ear off as a silk purse is wrong.  People come to us for our knowledge and expertise and I could not sleep at night if I ever took advantage of that trust they place in us.  Even if the market had not changed, they would still be refinancing the same amount of money.  How much lower could the payments have gone?  Add to that the cost of a refi and it looks even worse.

Merry Christmas Cheryl! 

December 25, 2007 08:00 AM #9
Rainmaker
453,538
Jeff&Grace Safrin
F.C.Tucker 1st Team Real Estate - Valparaiso, IN
SpousesSellingHousesTM

Sad Articl - we never give that kind of advice......We just met with clients we advised 7 years ago to make double payments to pay down their principle amount on their mortgage as much as possible - three children and only one income now 7 years later it is more than 1/2 gone - they liked our advice and despite having new friends and also knowing a neighbor who are both REALTORS they choosed us again to help them "move up" to a biggger home!

What happened to that kind of advice?

December 26, 2007 02:47 PM #10
Anonymous
Anonymous
Tommi Lou Carosella

I felt so strongly about the nature of the foorelosures taking place here in the Central Valley, that I wrote a song about it, called the Foreclosure Blues. Perhaps listening to it will make people feel a little less isolated, and maybe encourage people to act on the issue.

Here's the link to the song. 

The Foreclosure Blues by TL and John Carosella

The web page with more info :

http://arnica.csustan.edu/carosella/New-York/foreclosure_blues.htm 

March 13, 2008 10:39 PM #11
Anonymous
Anonymous
Jon Loren

In the 21st Century walking down the Red Carpet, all the way realty executives commented on how to

receive the "max".  One even remaxed that bankers with that Coldwell look actually understood that

in the reality world one must be commissioned to receive www. MLSPrintouts.com and do

http://www.homesearches.com/  for listings to show and know how to do   LoansandHomes.com   

in this new era and the "best" way was to act was in a  prudential manner and know homevalues in

 neighborhoods with  internet real estate  and watch out for lending trees that lean too hard &  that

are not 100%  reliable; so the "best" position to take was with a  local  real estate broker  on an  Old

Wells Fargo  "stage"  or  better yet in a new  "GMAC"  to impress the buyers and sellers  you really

were    " A Real Estate SuperStore,Inc".    out to professionally help from the  1st American  to the

last whether online or personally to serve the "real estate industry" ; which,  from the builders to the

Lenders to the Real Estate Agents & Brokers that have created the "finest" housing  for the average

person ever seen in the "history of the "world" in a country only a few  100yrs., old  with liberty and

justice and opportunity for one and all if only the "citizens" wake-up to it "all"( Before, the "BANKERS"

sich the "DOGS" (FTC) to kill the (Industry) so they can start hiring and mak clerks of the

Agents/Home & Loan Brokers and  CONTROLL THE REAL ESTATE<SECURTIES, & BANKING as they did

in the "Depressionb" piror to the    Glass/Stegall Bill  Thank You ,Jon Loren -Pproud to be

a "American" from sea to shining sea~~~God bless~~~and keep us  "one"  and "all"~~~that's why

this was created as a  "republic"~~~and not  any other form of government; If, only "we"  can

remember ~~~better to "die "Free" than "live"   a  "life" as a "serf(Slave)".(please, add comments)

The above was taken from Thomas Jefferson *&* Benjamin Franklin : Who said the "BIGGEST

THREAT to "FREEDOM" would come from the "BANKERS" nerver a "FOREIGN POWER" (READ the

"HOUSE of  ROTHCHILD"  Amazon.com   or Barnes and Noble or other leading "BOOKSTORE"  

And Author Anthony Sutton (Who just passed(God Bless this "GOOD" Man) a West Virginia Professor)

This is why we have a Consitution *&* Bill of Rights and a clause to "KEEP *&* BEAR ARMS" to

protect and keep our "Little Republic" -The Beacon of Light to the Whole "World"

*****************America this is but a "POEM" -It is "TIME" to wake -up and form Tea Parties

(With a KICK) and FORM "NEW" Political Parties-And start over adhering to the "Consitution *&* And

the Bill of Rights and    "BEAR ARMS together to overthrow "THE $$$$Money$$$$ Changers(BANKERS

*&* POLITICANS)  from their "GREED" *&* Control of the Media using as a Guiding "LIGHT" our

Consitution and -Bill of Rights and the Books *&* Booklets by our Founders and pass this information

thru "My Space"  "Facebrook"  "U-Tube" and All the "Blogs of "AMERICA" as they did in "1776"

Please ,someone put tis on

U-Tube-FaceBook-MySpace -As I am "OLD" and do not for the most part know "HOW" to use the

"MODERN" strength of communication -Thank You ,Jon Loren

April 11, 2009 05:57 PM #12
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Rainmaker
563,671

Cheryl Johnson

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