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Old 12-11-2009, 12:30 PM
 
2,866 posts, read 5,168,610 times
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Lingering joblessness puts new face on foreclosure crisis - CharlotteObserver.com (http://www.charlotteobserver.com/business/story/1117317.html - broken link)

Very interested in hearing thoughts on this article.... I mean really...a $500,000.00 home for 4 people....I think their priorities were in the wrong place. Does it really take that much house for 4 people?
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Old 12-11-2009, 01:53 PM
 
28,461 posts, read 75,193,176 times
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Not to criticize westcoastbabe, but MANY parts of the country STILL have LOTS of housing that is probably quite cramped for much more than the $500k that the California transplants profiled in that article lost.

The article DOES leave lots to poke out though...

Sounds like two guys with a lot more optimism than they should have had about having all their eggs if not in one basket than in several closely related baskets should have been a heckuva lot conscientious about moving cross country and taking on big debt.

"Gregg was an owner of a California auto auction. He said he and Drew, who worked with him, had income of nearly $200,000."

Hmm, lots of money coming from ONE source is NEVER good. When that source is fickle / tied strongly to the vagaries of the economy it is smart to diversify, where these guys try to "branch out"?

"He was an investor in a startup firm selling credit lines to help dealers finance cars"...

Whoops, another layer of the house of cards!

So what sorts of "skill based employment" was either fella capable of?

"Drew found work as a manager at a Charlotte retirement community, but he made less than one-third of the couple's previous income."

Huh, sorta living above their "skill level" don't ya think? I mean MAYBE if they had deep connections to the auto business (which given the melt down that the Unions foisted on GM & Chrysler would not have been ideal, but at least based on SOMETHING) or a record of entrepreneurial success (as opposed to one hit wonders that crash and burn on their second try) or maybe ANY KIND of professional background (MBA, Law, IT, RN...) they could have MAYBE toughed it out...

So when did things REALLY get bad???

"...it folded in February 2008, a casualty of the credit crunch. ... By March, they were tapped out and started the modification process. Gregg went through cycles of submitting paperwork, calling to follow up and being told he had to resubmit. As time went by, he had to resend documents because they'd expired or become outdated.
Over several weeks in September, more than five months after starting the process, the Londons received four rejection letters"

HMM, did the contact the lender as soon as it became apparent they were not going to make ends meet? Does not sound that way to me. In fact, at some point Gregg and Drew must have MADE A DECISION to not pay their mortgage and the LENDER TOOK THE ACTIONS THAT ONE WOULD EXPECT:

"Unexpectedly, an Oct. 30 IndyMac letter ... asked the Londons ... about a modification. Within weeks came the foreclosure notice."

Well that sounds PRETTY BAD, and as you expect the boys thought that the next steps would be:

"...a dreary holiday spent hunting an apartment."

BUT ALAS, the lender does not want their overpriced home. Why no indeed, this is a looking like a Silver Lining:

"a trial modification had been approved, lowering their payment by about $1,000. If they make payments on time, the Londons will be eligible for a permanent modification. The bank said foreclosure is "postponed."

Happy ending? Oh, not in the eyes of the intrepid reporter:

" the Londons' case, some fees and past-due amounts might not have been incurred if the modification had been processed more quickly. OneWest declined to say why the modification took more than eight months.
The bank said it typically waives late fees, but not other charges such as attorney's fees for foreclosure proceedings. Pearce, the N.C. regulator, said "that doesn't seem fair" in this case "because of the servicer's inability to process effectively." "


He said vs they said, if you ask me. These knuckleheads moved cross country with shaky plans, lost their not very stable livelihood, but STILL LIVE in their house at a MUCH more favorable payment than before AND THEY HAVE SOB STORY?!?


Only in America...
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