San Diego Housing Bubble News and Analysis

you dont seem to have the facts straight as that is not how it typically happens.

What can be done?....Help them pack....

Call Turko. He had a similar case on last week where GMAC was involved. I thought there was a moratorium on foreclosures temporarily ....

I think the friend is not giving you proper info. likely playing up their victimhood to gain sympathy. foreclosure remains a 4-6 months process in California, they have likely been living mortgage-free and rent-free for some time now.

This should be an Amen post. Thankfully the banks are doing the right thing! No more f-ing around for months on end!

I'm sorry your friend has to move.

But I'm also sorry they took their 20 year old house they bought for dirt cheap and then used it as an ATM machine, then robbed the bank for 6-9 months of free rent, then refinanced (robbing both the bank and the US tax payers), then missed the first payment. This makes me cry.

This makes me sound mean. Really, I'm a nice guy. I'm just mad at dunder heads like your friend.

Tru dat.

I don't buy that tale at all.

trust me, i know how you feel...

they made stupid decisions; i still can not believe how they got to this point...

it's just hard to see a friend pack and move out of a house they lived for 20 years with no where to go!

what a clusterfu*k!

I got a great idea! Let them live with you and see what a true friend they really are!! Give them $100 and tell them you want a 5% return in one month and watch what happens.

There are plenty of places for them to go. They can stand in line like the rest of our irresponsible citizens and hold out their hand. Obama and the gang are there with freshly printed bills to hand them so they can continue the demise of America!!!

Compassion can almost be looked at as a disease in this country!! Nothing wrong with empathizing but feel free to patronize the neighbor/friend that steals your tax dollars!!!

I agree with sdr and ocr. I don't quite buy that they missed a single payment and the home went to trustee sale. Sorry about that. Even if the home was sold at trustee sale there are some steps that your friend can take to stay a bit longer but not much longer.

Urban, Did you want me to tell him to hug his neighbor and praise him for his greediness? I am glad you are here to hold me accountable. Once again you seem to be mindlessly wandering around to find a place for your thoughtless comments! And you found one!!! Thanks for that tidbit.

I will admit going back and reading that post seemed to be a bit harsh especially because I was more being cynical than anything else!!! Urban, was it my Obama comment that set you off?

1. They will need to arrange a place to rent, preferably one with a landlord that makes their payments on time, seriously, they should check up on this before renting.

2. They will need to arrange to rent a moving truck, or arrange with a moving company for moving services.

3. They will need to file a change of address with the post office and notify their various utilities that they wish to keep of their change of address.

That's about it. I may have missed something, but I think those are the major points.

Oh, and I welcome them to the world of renting, it isn't that bad.

Have they been served the 3 day notice to quit yet?

If not, they have at least 3 days.

If they have and have gone past 3 days they'll be eviction proceedings and all that.

It really depends where they are in the process.

The home didn't get sold with no notice btw, they would have had a NTS filed and the lender was postponing. Then once they missed the loan mod payment (!) the lender took the next sale date and foreclosed. The lenders give people a LOT of chances.. your friend just used them all up.

That actually seems reasonable... If they had kept their original 30 year loan and paid it off - they'd have a whole lot of equity and not small amount of debt. I'm assuming they refi'd, probably took cash out, somewhere along the way. And then got behind and eventually went to the loan modification process. They were fortunate to actually get a loan mod through.

And then they failed to take advantage of the new reduced payment - they missed it.

My limited understanding is that loan mods have caveats that the payments MUST be made in full and on time or the house goes straight into foreclosure. After all - you don't get to do a loan mod unless you're already in some stage of foreclosure to begin with.

It's a hassle your friends have to deal with moving, but they should have made the payments on their modified loan. Period.

If friends told me this tale, I'd be offended that they took me for an idiot.

You can go to the County Recorder's office and look up their NOD and NOT. You can also see the Deed of Trust (refinancing) that caused them to lose their house.

You'll get more accurate information than what your friends are telling you.

It'll probably be good learning experience for you on the foreclosure process as well.

Trust but verify. If you can't trust a friend to be straight with you, then who can you trust?

Pretty harsh statement suggesting that the friend took him for an idiot. Perhaps the friend is mortified about the situation he's in and doesn't want (or need) to fully disclose everything regarding his personal finances. Also, I would never go snooping at the Recorders office to investigate a friend's NOD status. They are friends, and telling him that he "can't trust" him as a friend is nonsense.

On the other hand, some folks have a lot of time on their hands and get some kind of malicious glee by exposing random people who got in over their heads during this real estate run-up.

The above is probably what happened. The lender never canceled the trustee sale and instead had been postponing it. When they missed that payment, the lender let the trustee sale happen.

Well, I don't mind those people blowing off steam. They are the ones living within their means and having to pay for these peoples mistakes.

Being mad at people who "got in over their heads" is a natural reaction. Many didn't, many are renting, many bought less house, many moved out of state. The "victims" of the housing bubble simply were greedy. They could be ignorant too, but they all were greedy in some way.

For the OP friend, nobody in CA should have a house purchased over 20 yrs being foreclosed on.

Newspapers love to point out the grandma being thrown out onto the street but routinely ignore the hundreds of thousands of dollars they bilked the banks and will never pay back. Yet if you point that out you are a heartless bastard instead of them being the stupid criminal.

not totally random people....
1) prominent Realtors who told us that prices always go up.

2) Buyers in area who vociferously claimed to have hit lifetime opportunities when they bought.

Think about it, if we lived in a wholesome town in early America where everybody had "good" values and everyone attended the two churches in town, then everyone would know everyone's business.

The foundation of real estate ownership in America is based upon public records without which there can be no protection of property rights.

Not only is it in your own interest to know the neighbors in your building or on your street, but it's also your civic duty to know who owns what in your neighborhood so that a stranger cannot come in and perpetrate fraud.

If I'm interested in buying in an area, wouldn't it be smart of me to look into the public property records of the neighborhood?

In co-op buildings (mostly in NYC), the board reviews the financial statements of potential buyers before they are allowed to buy.

The public records are there for the community to peruse. We'd have a better society if people spent time knowing their government and community rather than watching TV.

Trust but verify.

GMAC will file an eviction against the previous owners to vacate the property, this will take at least 60 days, 90 days for tenants, so depending on when the the trustee sale was then they have time. Did anyone show up yet to offer cash for keys? That is the first step from the bank's playbook. If you don't want to play then they proceed to evict but even then the 5 day notice is posted before the sheriff shows up. Just did one today where we got the asset after the sale in February and the tenants stayed until yesterday and we took possession this morning.

I’ve been following a house in Murrieta that was sold to the bank at auction in Feb 2008 (not a typo) and the former owners (and others) are still in the house. They have used every legal maneuver known to avoid eviction. The bank at one point even had a writ of possession but when they went to serve it someone else was there with a claim of possession form so there going back to court again later this month. Sad but true.

That brings up a good point. Does everybody in the house have to be named in the eviction?Roomates?Couldn't someone just invite a roomate to stay during foreclosure. What if the house was being rented and the tenants had no idea of the foreclosure?Squatting?Adverse possession?OK now everybody let's play musical house.

I had the same question so I did some research and found the following
In some cases when the Sheriff attempts to perform a lockout, a third party will hand a Claim of Right to Possession form to the deputy. This individual will claim to be an occupant of the Premises but was not named in the Unlawful Detainer lawsuit. The Sheriff will immediately stop the lockout until the Court holds a hearing on whether or not the alleged occupant should have been named as a defendant in the lawsuit. The hearing will take place within a week or later if the individual posts 15 days rent.
If the Court decides that the claim is valid, the Court will allow the occupant to become a Defendant in the lawsuit and raise any defenses that could have been raised by the other named Defendants. If the Court decides that the claim is invalid, it will be denied and the Sheriff will be ordered to continue with the lockout as soon as possible. Very often such claims are denied because the "claimant" does not appear at the hearing but there is enough of a delay to buy the Tenants extra time in the Premises.
Tip: The only way to prevent this type of delay is to serve a form with the Unlawful Detainer lawsuit known as a Pre-judgment Claim of Right to Possession. This form gives any unnamed occupant the right to identify himself or herself so that they can be added to the lawsuit before the lockout. The drawback of serving this form is that it delays the case by an additional five days since the unknown occupant has ten days to respond to the Court instead of only five.

Looks like that question has been answered. All of our orders say "any and all occupants".

I was told that an unlawful detainer complaint could name "Does 1-10" which would take care of unknown occupants. (I'd imagine this wouldn't work if there were more than 10 unknown occupants sleeping in the living room, which would've been the case for one of my erstwhile neighbors.)