Foreclosed Family Last Goodbye to Home

[jtyangel]

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/08/10/MNUN123MP1.DTL&type=realestate

Joann Gardner sat forlornly on her living room floor, waiting for the final step in her home's foreclosure process. The lender's representative was due any moment to give her "cash for keys," a transaction in which she would deliver her family home vacant in exchange for an incentive payment.

"I'm glad it's done," Gardner said wearily. "I just want to sit down and have some Hennessy."

Only days earlier, the house had been jammed with boxes and bags holding the worldly goods her family had accumulated during 54 years in the cramped Oakland bungalow. *snip*

Most foreclosures nowadays are homes purchased just a year or two ago with no money down. But the Gardners' home is different. Joann's parents, Johnnie Gardner, 87, and Estelle, 88, bought the two-bedroom in the Sobrante Park neighborhood in 1954 for $11,500. His salary as an electrician at the Oakland naval shipyard allowed them to make the payments.

But in recent years, Joann and her brother refinanced it several times for increasingly larger amounts.

The final refinance at the end of 2006 left the family owing $454,000. The monthly payments of $3,362 exceeded the household income of $3,144.

What happened to the money from all the refinances?

Gardner can't quite say. Some went to paying off credit cards; some was eaten up in huge loan fees. What is clear is that the family has not made a mortgage payment since December 2006. *snip*

Automated property-valuation services show its worth as about $250,000 - $100,000 less than a year ago and $200,000 less than the Gardners' mortgage.

*snip*

"This is it; I can't come back here no more," she said as she walked down the front steps. "I hope it helps somebody to read about this; they won't be boo-boo the fool like I was."

Pissed away her family home. I'm assuming it was paid off when they started so her and her borther pissed away 450K on 'something'. I guess in the last sentence she at least admits it was her own fault.

Plus, it's not hard to see why banks fail when they are mortgaging homes to the tune of 2 times their value and to more then the income of the person getting the loan. Is this the famous 'no paper' loan?   

[Willow]

Gardner can't quite say. Some went to paying off credit cards; some was eaten up in huge loan fees. What is clear is that the family has not made a mortgage payment since December 2006

They made out like bandits, 454,000.00 dollars they will never pay back and 2 years rent free. 

[jtyangel]

Gardner can't quite say. Some went to paying off credit cards; some was eaten up in huge loan fees. What is clear is that the family has not made a mortgage payment since December 2006

They made out like bandits, 454,000.00 dollars they will never pay back and 2 years rent free. 

Yeah, exactly! If you look at some of the comments below the article, there are some bleeding hearts on there who think they shouldn't be evicted since the home has 'passed through a generation' Probably the same liberals who are ok with taxing wealth via inheritance that has 'passed through a generation'.

Seriously, those two made out didn't they?

ONly people I feel anything for are the aging parents who trusted their offspring. Both have dementia I think so thankfully they have no awareness that their children pissed their home away.

[JohnnyReb]

$450,000 just doesn't go far these days, a couple of Cadilac Esclades and some chrome 22's with the rubber band tires, a little gas money and it's gone.

[Jim]

"I just want to sit down and have some Hennessy."

I think I see part of where the money went.

[NHSparky]

"I just want to sit down and have some Hennessy."

I think I see part of where the money went.

Ah-yup...

From Bevmo.com's website:

Hennessy Cognac VS (1 LTR)
Price: $51.99

[Miss Mia]

I don't have any sympathy for them.  Sorry, you shouldn't piss away a probably paid for house, on stupid shit.

[DumbAss Tanker]

"I just want to sit down and have some Hennessy."

I think I see part of where the money went.

My thoughts exactly.  They literally pissed away a small fortune.

[debk]

I'm one of those "representatives" that offer cash for keys.

There are all types of situations. Sometimes, bad things just happen to good people. I have one situation now, where the wife was injured 2 years ago and not able to work. They are now in a position to pay, but unfortunately, it is too late as they waited too long to try to come to an agreement with the lender and there was also some legitamate confusion...which will probably result in a lawsuit between them and the company their original lender turned the property over too to recover it.

There are landlords who have taken money from their tenants for rent, then not paid their mortgage payments. Who knows what they did with the money from the tenant. I have one now, that's been paying $750/mo rent, and I'm having to move them out as they can't qualify for a loan, not because they don't make enough, but because their credit is too bad. I am trying to give them CFK's and their former landlord wants money from them and telling them it's all a mistake.

I don't knock on the wrong doors. By the time it get's to me, the bank has already bought back the house on the courthouse steps after it's been published in the paper for 3 weeks.

Then there are dumbasses like the ones in the article. I have a former client who I sold a condo to....got her an incredible deal....brand new, almost $40k under the new ones the builder was building in a nearby complex. This was his last one in that complex and he just wanted to be done with it. She started getting letters from a variety of sources "offering" her home equity loans. In the course of 2 years....she borrowed almost 100 thousand dollars against the property. Who's fault was it? A combination. Her's most definitely. Her boss, because he lied about her income. The bank's because they didn't fully investigate her income and debt (she knows how to hide stuff), but the lender also relied on the appraiser's report. The appraiser...yes and no. Nothing had sold in her complex for the amount of money she was boring...buy the same builder was building the same unit for well over what she ultimately borrowed....less than a quarter of a mile away...well within the guidelines for comparable properties.

Ultimately, it was her's. She was making more than enough money...when she originally bought the condo (acutally a detached unit looking like a single residence)....to pay for what she eventually borrowed against the property. The problem.....she basically stopped working.....and figured the married man she's been having an affair with for years would pick up the payments.

If she was interviewed....it would be all my fault and the lender's....but mostly mine as I "talked" her into something she couldn't afford. (yes...she is really telling people this )

Too many people just won't take responsibility for their actions.

Oh yeah....and she's a Republican, college educated....but very dum-b.

[DixieBelle]

you hit it deb - people don't want to take responsibility.

There's a reason the state of Texas used to forbid home equity loans. They didn't allow them when I lived there. I believe that changed when the money spigot was turned on though. Maybe someone in Texas can verfiy that?

I've always believed it's wrong to put your house on the line. It would have to be for a VERY compelling reason in my case.

[debk]

People just don't realize.....you can miss a credit card payment....the worst that will happen is you just can't charge on it anymore.

You can miss a phone bill.....your phone gets cut off until you can pay it.

You DO NOT miss a house payment!!!! If you do.....call them immediately. Mortgage companies will work with people....they do not want these houses back in many cases.

I know....this is what I do. Most of the time....the mortgage company takes a tremendous loss on the property. I have a house right now in pre-marketing stage......it's should be worth around 260-275k.....it will most likely be closer to 190k when it goes on the market. Mostly due to damage. Plus the expenses incurred in selling the property: cleanup, lawn care, closing costs, a 6% sales commission to me and/or split with another agent if another represents the buyer.

Eventually, the mortgage company is forced to foreclose.

Yes....there are many "bad" loans out there.

I'm caught in the middle, because I believe, the mortgage companies kept the country from going into a total recession after 9/11 and Greenspan screwing with the interest rates.

But they also made people believe they could afford more than perhaps they should have. However, at the time the buyer got the loan they truly did qualify for it....it's what the "now" owner has done since.

If people would just talk to their lenders when a crisis first hits....instead of ignoring it and sticking their heads in the sand.....they would be so much better off. As I said.....bad things sometimes happen to good people.

Those who have done stupid things...they have no excuse. They put themselves into the circumstances they are in.

[DumbAss Tanker]

I've always believed it's wrong to put your house on the line. It would have to be for a VERY compelling reason in my case.

You said it, kiddo!

 

[MrsSmith]

you hit it deb - people don't want to take responsibility.

There's a reason the state of Texas used to forbid home equity loans. They didn't allow them when I lived there. I believe that changed when the money spigot was turned on though. Maybe someone in Texas can verfiy that?

I've always believed it's wrong to put your house on the line. It would have to be for a VERY compelling reason in my case.

I'm glad they allow them here.  Of course, our home equity loan is for the siding we put on the house...not for something we'll literally piss away.   

In the OP, the mortgage company is getting royally screwed.  Yes, they were stupid enough to lend the money, but what are they losing on the deal...a couple hundred thousand dollars?  Who made out like a bandit in that deal, anyway?  Certainly not the "evil" company that foreclosed.

[Zeus]

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/08/10/MNUN123MP1.DTL&type=realestate

Joann Gardner sat forlornly on her living room floor, waiting for the final step in her home's foreclosure process. The lender's representative was due any moment to give her "cash for keys," a transaction in which she would deliver her family home vacant in exchange for an incentive payment.

"I'm glad it's done," Gardner said wearily. "I just want to sit down and have some Hennessy."

Only days earlier, the house had been jammed with boxes and bags holding the worldly goods her family had accumulated during 54 years in the cramped Oakland bungalow. *snip*

Most foreclosures nowadays are homes purchased just a year or two ago with no money down. But the Gardners' home is different. Joann's parents, Johnnie Gardner, 87, and Estelle, 88, bought the two-bedroom in the Sobrante Park neighborhood in 1954 for $11,500. His salary as an electrician at the Oakland naval shipyard allowed them to make the payments.

But in recent years, Joann and her brother refinanced it several times for increasingly larger amounts.

The final refinance at the end of 2006 left the family owing $454,000. The monthly payments of $3,362 exceeded the household income of $3,144.

What happened to the money from all the refinances?

Gardner can't quite say. Some went to paying off credit cards; some was eaten up in huge loan fees. What is clear is that the family has not made a mortgage payment since December 2006. *snip*

Automated property-valuation services show its worth as about $250,000 - $100,000 less than a year ago and $200,000 less than the Gardners' mortgage.

*snip*

"This is it; I can't come back here no more," she said as she walked down the front steps. "I hope it helps somebody to read about this; they won't be boo-boo the fool like I was."

Pissed away her family home. I'm assuming it was paid off when they started so her and her borther pissed away 450K on 'something'. I guess in the last sentence she at least admits it was her own fault.

Plus, it's not hard to see why banks fail when they are mortgaging homes to the tune of 2 times their value and to more then the income of the person getting the loan. Is this the famous 'no paper' loan?   

Not on a refi or equity loan.