American Crybabies

By
Real Estate Broker/Owner with Lazarus Realty

Here’s what’s wrong with America.

Watch this video about a couple who lost their home to foreclosure and are now living in a campground and tell me if you hear what I hear.

recap:

The gal says they walked into that home and said “…. we can get this for $265,000 - NO MONEY DOWN? OMG!!!”

I’m going to make an assumption here. I will assume that they did, in fact, purchase the home with NO MONEY DOWN. Given that they bought the home during the height of loose lending that means their investment may have been no more than just the closing costs, BUT, the way they were making loans they may have been able to make the purchase with the closing costs rolled into the loan.

After they move in the home doubles in price and what do they do? Remember they had approx $265,000 in equity.

Are you following what I’m trying to say? Assuming they purchased the home with NO MONEY DOWN - they had little to NOTHING invested - and now they are cashing in on the equity.

OK - then the gal loses her job and they don’t have money to pay their bills ( including their house payment ).They try to sell the home and the sale falls through, so what do they do? They suck out more equity via an emergency loan from lenders who obviously realize these guys are up sh*t creek so its not like they are going to get great rates: THESE ARE HIGH RISK CUSTOMERS. In case you don’t know, lenders who make loans to people in their financial condition ASSUME they are going to be getting the home.

They way I see all they did was TAKE. What are they crying about? I mean if this guy worked all his life to make the down payment and/or put up his life savings to buy the home, that would be one thing, but I don’t see it that way. Everything that I saw/heard leads me to believe they got the home for no money down and used their home like ATM to take money out. Then when times got tough, they took MORE money out.

It ends with the guy crying and saying “it hurts, I didnt cause this to happen…other’s caused it, nobody cared, everybody just walked away.” I say HE IS THE ONE WHO WALKED AWAY. I have absolutely NO SYMPATHY for these crybabies. If anybody got screwed here, I think its the lenders. Folks, THIS is what’s wrong with America!

He NEVER really owned that home in Vegas, he just had legal title to the property. Miss 3 payments and you find out real quick who REALLY owns your home. I’m sure he does OWN that trailer.

_______

I have had this blog as a draft for a several weeks because before I posted it I wanted to know that I actually had the information correct. I email CNN and asked them to verify what I believed I heard and never received a reply. I did detect a discrepancy in the report regarding their payment. Bottom Line: If I am wrong as to my interpretation of events I will gladly stand corrected. If anyone has information to prove that these people actually made a down payment please let me know.

© R. "Lazarus" McAtee
Broker: Lazarus Realty

 

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Rainmaker
656,032
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes
There are so many people who are similiar stories to this one. People who never really should have gotten a loan, then used the home like an ATM and now do not understand why they are in the position they are in.
May 01, 2008 07:29 PM #1
Ambassador
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Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com
Yes some people should have never bought a home, did.  Now it is somebody elses fault.  Sure they lost their job.  But did they take any "job" to make extra money.  Did they work 2 jobs.  Times are tough.  You have to do what you have never done before to make it.  Sometimes you have to cut back and work 2 jobs.  Sometimes you have to give up the cable.  Our parents and grandparents did it.  We might have to too!  I feel sorry for people who have medical conditions that lost their jobs and homes.  Now that is tough.  A medical condition that causes financial hardships trumps everything.
May 01, 2008 09:38 PM #2
Rainer
34,814
L. Wayne Denton
Denton Properties, Inc. - Loganville, GA
I have a handle on your market!!!
My first wife and I both had sever medical conditions yet we were able to purchase homes and enjoy earning the right to live in them by staying current with the payments.  When she died of the disease, her last hospital stay cost us $250,000 and it took a while on a government salary to pay it all back.  I did it and remarried without bringing the debt into the new relationship.  If we "ponkeyderms" are true to our nature, we will never be the victum like a lot of so called Americans are.  Thanks for the good post.
May 01, 2008 10:55 PM #3
Rainer
12,363
Shaun Wren
AGENTFORLIFE - Lakeland, FL

It is sad that these people lost their home. But, instead of realizing that they could not afford the home, they incurred more debt to continue living like the Jones's. They should have Tried to sell the property as soon as she lost her job.

May 01, 2008 11:48 PM #4
Ambassador
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Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer
Randy, I cannot even begin to explain how common this is.  People have used their homes like ATMs, "Investors" bought multiple owner occupied "investments", many have moved on to another home after extracting a ton of cash to buy that other home and then let home "a" go back to the bank.  I am seriously crying foul on what is going on here.  It's a shame and a pity.  Yes, there are some that REALLY tried to do what they could, I am completely convinced that is not the norm.
May 02, 2008 12:59 AM #5
Rainmaker
188,843
Christina ONeal
At Home Real Estate Group - Ripon, CA
Realtor - Ripon California

Hi Randy,  Very sad, isn't it?  Many people do this & it does seem wrong.  I do work on short sales with people but I am selective of which ones I take.  I want to believe they have a true hardship & are not taking advantage of the lenders in this tough time for them.  Short/Long sales are everywhere but not necessarily the true hardship cases.  Thank you for sharing this story.  I hope you find some good stories of what is right in America, because I feel there are a lot of good things happening too.

May 09, 2008 05:50 AM #6
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Rainmaker
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Randy "Lazarus" McAtee

Owner/Broker, Lazarus Realty, Fresno California
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