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Good news! Zillow says the home is worth $992,665! CHA-CHING!

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Good news! Zillow says the home is worth $992,665! CHA-CHING!

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OK, some more detail on the situation:

One (of five) of the property she owns have mortgages totalling $450K.

Check.

She is behind on all and the one I am thinking about taking over is worth about $900K-950K…

“Worth” is what you can sell it for. How much are you buying it for?

…according to a mortgage broker friend I have who ran the comps/numbers.

See above.

Also, the “mortgage broker friend” part gave me a slight shiver.

I think we are going to buy her out and have her deed the property over to us. No loans involved, just getting her out with one property not foreclosing on her.

So why hasn’t this savvy multiple-unit real-estate investor sold it? And don’t tell me she hasn’t had time…

We are going to refinance and then sell the place way below market ($750K to $800K) to get it moved.

Sounds like you’re already admitting it’s not “worth” $950K if you need to lower the price by $200K to sell it. So much for your friend’s “comps”.

We’re going to do this deal with 4 others to minimize our own risk.

Share the “joy” with 4 of your closest friends, you mean.

Look, I don’t know you from Adam, but you come here with a foggy story, asking for advice when you clearly already had a plan, and something’s shifty at the heart of this deal, and in my mind, the only question left to answer is who is going to be left holding the shaft when the music stops; that is, whether you’re the con, or the mark.

Let us know how it goes!

[DCRogers]

OK, some more detail on the situation:

One (of five) of the property she owns have mortgages totalling $450K.

Check.

She is behind on all and the one I am thinking about taking over is worth about $900K-950K…

“Worth” is what you can sell it for. How much are you buying it for?

…according to a mortgage broker friend I have who ran the comps/numbers.

See above.

Also, the “mortgage broker friend” part gave me a slight shiver.

I think we are going to buy her out and have her deed the property over to us. No loans involved, just getting her out with one property not foreclosing on her.

So why hasn’t this savvy multiple-unit real-estate investor sold it? And don’t tell me she hasn’t had time…

We are going to refinance and then sell the place way below market ($750K to $800K) to get it moved.

Sounds like you’re already admitting it’s not “worth” $950K if you need to lower the price by $200K to sell it. So much for your friend’s “comps”.

We’re going to do this deal with 4 others to minimize our own risk.

Share the “joy” with 4 of your closest friends, you mean.

Look, I don’t know you from Adam, but you come here with a foggy story, asking for advice when you clearly already had a plan, and something’s shifty at the heart of this deal, and in my mind, the only question left to answer is who is going to be left holding the shaft when the music stops; that is, whether you’re the con, or the mark.

Let us know how it goes!

[DCRogers]

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CoreClient, one small feather in the scale of justice against your cause is that while this site has been quite open to all viewpoints, an attempt to place an opposing view on your website by BuyerWillEPB (“Revenge of the Bitter Renters”) was removed. (At least, I got an error…) Whether I agree with that poster or not, this seemed a sign that postings were more to create legal momentum rather than creating a real conversation…

(All things aside, on both sides of the aisle, I bet we agree on the kinds of things that should happen to those Montecastro folks… even the most heartless folks here towards your self-proclaimed plight likely share your determination to see them do hard time!)

[DCRogers]

CoreClient, one small feather in the scale of justice against your cause is that while this site has been quite open to all viewpoints, an attempt to place an opposing view on your website by BuyerWillEPB (“Revenge of the Bitter Renters”) was removed. (At least, I got an error…) Whether I agree with that poster or not, this seemed a sign that postings were more to create legal momentum rather than creating a real conversation…

(All things aside, on both sides of the aisle, I bet we agree on the kinds of things that should happen to those Montecastro folks… even the most heartless folks here towards your self-proclaimed plight likely share your determination to see them do hard time!)

[DCRogers]

I think we need a little dose of William Burroughs to put this situation in perspective:

• “If you’re doin’ business with a religious son of a bitch, get it in writing. His word isn’t worth shit, not with the Good Lord tellin’ him how to fuck you on the deal.”

[DCRogers]

I think we need a little dose of William Burroughs to put this situation in perspective:

• “If you’re doin’ business with a religious son of a bitch, get it in writing. His word isn’t worth shit, not with the Good Lord tellin’ him how to fuck you on the deal.”

[DCRogers]

I apologize for being so glib about my business rant… been stung by too many overpaid and underperforming executives who knew all the rules and none of the reasons. Your profession can be as noble as any. (If we scientists had more POWER, dare to say you’d be speaking more ill of US!)

The 60K was an insurance check, but it was issued on a lie that a family member told about how the house was damaged… so I could not cash it. Pretty clean-cut choice, really, other than the amount! *Sob*

You’ve really got your first business case-study on your hands… when does working within the bounds of what is allowed become unfairly manipulating the system? The fact that you are thinking about it so much already places you in the top quarter, as far as I can tell.

Good luck!

[DCRogers]

I apologize for being so glib about my business rant… been stung by too many overpaid and underperforming executives who knew all the rules and none of the reasons. Your profession can be as noble as any. (If we scientists had more POWER, dare to say you’d be speaking more ill of US!)

The 60K was an insurance check, but it was issued on a lie that a family member told about how the house was damaged… so I could not cash it. Pretty clean-cut choice, really, other than the amount! *Sob*

You’ve really got your first business case-study on your hands… when does working within the bounds of what is allowed become unfairly manipulating the system? The fact that you are thinking about it so much already places you in the top quarter, as far as I can tell.

Good luck!

[DCRogers]

As a former Berkeley grad, I congratulate you and wish you all the best! Your life story sounds like you will be a superb addition to their ranks.

As for hiding assets, my friend, I fear it is pay now, or pay (with your soul) later… think of it as an investment in yourself. You will not regret later on being able to think of yourself as an honorable person for paying your own way, by playing straight by the rules.

(That is, unless you’re applying to business school there… now, by the new rules, you must prove your worth by finding every shady and schemy hole you can! “Honor” is worth: negative squat. Sad to say it, but that’s the new world of the high executives, I believe… but this is just the view of a lowly scientist who once left a 60K ill-gotten check uncashed on the table, when I was unemployed… modern mileage certainly seems to vary!)

[DCRogers]

As a former Berkeley grad, I congratulate you and wish you all the best! Your life story sounds like you will be a superb addition to their ranks.

As for hiding assets, my friend, I fear it is pay now, or pay (with your soul) later… think of it as an investment in yourself. You will not regret later on being able to think of yourself as an honorable person for paying your own way, by playing straight by the rules.

(That is, unless you’re applying to business school there… now, by the new rules, you must prove your worth by finding every shady and schemy hole you can! “Honor” is worth: negative squat. Sad to say it, but that’s the new world of the high executives, I believe… but this is just the view of a lowly scientist who once left a 60K ill-gotten check uncashed on the table, when I was unemployed… modern mileage certainly seems to vary!)

[DCRogers]

Southern California is known for boom-and-bust cycles, and most see boom, followed by a slight drop, followed by years of no nominal gains (thus, a yearly shave by inflation… rougher when inflation could be high single digits).

What sets this bust apart is the must-sell caused by ARM resets. If the initial drop is big enough, many homeowners will be underwater, and not able to refinance. So, the size of the initial drop (the period we are in) has a multiplicative effect on the ultimate number of people who will be squashed by the reset.

I think it’s a close call, but reports of fraud make me think the capital markets will be pissed off enough to cut off funding, making refinancing a bitch, and pushing enough homeowners to the brink to give a double-dip drop pattern, rather than the more typical years-of-flat.

Painful as that may be, I agree that more affordable housing would be a long-term blessing for the area, and worth the short-term pain. (Due anguish to those who will lose their homes [though I don’t buy most of the “I didn’t know…” crowd… more like they didn’t want to know].) A bailout would screw us twice: once with our tax money, and once again by keeping homes unaffordable. No pain, no gain, baby.

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