See Sally fall on the way to Paradise lost!

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

In the summer of ‘04, John and Sally fell in love. Both were in their late 20's and had recently gone through difficult divorces. Life being unpredictable, as it is, put them in each other's paths about one year prior. Since they were both going through difficult times, they hit it off immediately and moved in together. They lived up north in the big city and had always dreamed of moving to beautiful sunny Florida. They both had pretty good jobs, with Sally being an LPN and John working for a medical records company, this is actually how they met, but the living expenses in their area were too high. Purchasing a home together, in the city, was out of the question.

One day, Sally received a nice brochure in the mail from a builder in Florida, Paradise Castles LLC, it was chock full of beautiful shiny pictures of Florida and had a promise that they would build you a new castle in Paradise starting in the mid 150's.

Sally was so excited! Can it be possible? Could John and I really afford to buy a home in Florida? The brochure states we don't need any money and they will pay all our closing costs! Sally could hardly contain herself and couldn't wait for John to get home, so she picked up the phone and called Paradise Castles. She got lucky and a real nice man named Mr. Needermoney answered on the second ring.

"Hello, thank you for calling Paradise Castles, this is Mr. Needermoney, how may I help you?" "Hi" said Sally "I just received a brochure from you, me and my fiancée are interested in moving to Florida. Your brochure said we didn't need any money. That sounds real good to us, since we don't have any. Our credit is a little messed up but we do have good jobs and should be able to get jobs down there pretty easily. Can you help us?"

Mr. Needermoney, is now the one who is excited, there's a live one on the phone and he has a quota to meet, "Well we do have a special going on today, in fact, we are giving Castles away to anyone that breaths. I will have our mortgage guy, Mr. Liarsloan, give you a call."

Sally is ecstatic and can't wait to tell John "We are moving to Florida!" Mr. Lairsloan calls and explains to Sally "We will have to do a stated income loan since you don't qualify on your own and John's credit....well, it sucks. But don't worry, I'll take care of everything for you. Just sign the documents I'm getting ready to send you and send them back with the fogged up mirror I'm including. No, no, no ....it's not lying, it's called a no document, no verification loan, I do them all the time. Just do what I ask and we'll get you in that Castle in beautiful sunny Florida."

Eight months later, they loaded up the truck and moved to Paradise. Life was grand! It was heaven! Their new home was beautiful and their future looked bright. Sally had found out a week before leaving the big city that her new job did not pan out but that's OK. We're moving to Paradise anyway and we will figure out what to do when we get there. Of course, when they arrived, they were surprised to find out that the jobs they were used to getting paid $25 an hour for, in the big city, only pay $15 in Paradise. Sally decided to go to work for Wally World while she waits for a better job and John.....well John just decided "I ain't working for no stinkin' $15 an hour. I'll keep looking."

They got real lucky though. They had purchased their home at the right time and by the time the construction was complete and they moved down, it had appreciated about $35,000. Not only that but they got stuff in the mail everyday from really nice folks that said they qualified for an equity loan of $35,000. WOW!! This really is Paradise. So, like any young couple in love, wanting to start a new life together, they pulled all of the equity out of their home to hold them over until Sally found a better job and John started work.

They also decided there was really no need to wait any longer for that new furniture they needed. So they bought some new furniture and really had the house looking good. The new couch was soooo comfortable John decided he would just sit there all day and play video games on the new plasma big screen. He'll have much better luck finding a good job in the spring time. After all, we have enough money in the bank to carry the house for six months and the way values are going up we can always refinance again, if we have to.

So on and on it goes.......................John left Sally in mid '06. She was too stressed out for him. The house is in her name, so what the heck...John decided to go back to the big city and move in with his parents.

Sally called me last week. She hasn't made a house payment in three months and wants to sell. She hates living in Paradise. All she has done for two years is work to try and make ends meet. She refinanced again after John left. She owes $210,000 on the house and now it's only worth $185,000 and declining rapidly. Her heaven turned into hell. And Broker Bryant can't do any thing about it. Sally's a nice person and I feel for her. But I can't help. I can't perform miracles. Her house WILL be foreclosed on. THE END

So whose fault is it? Does it really matter? All Sally ever wanted was a better life. If Mr. Needermoney and Mr. Liarsloan didn't "help" her she would have found someone else to. Would she have found you?

Posted by

 

Join Our Facebook Fan Page Check Us Out On Google+ Follow Us On Twitter

 

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

 

 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

 Copyright © 2017 http://www.brokerbryant.com/ | All Rights Reserved

Comments (56)

Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer
Thank you for this!  It is so hard to lose perspective each and every day.  We need to CONSTANTLY be reminded to be diligent in finding out WHAT our clients really NEED and make sure we qualify them with the highest of standards.  Commission check be damned!
Mar 31, 2007 07:40 PM
Laurie Manny
Long Beach CA Real Estate - Long Beach, CA
The American Dream turned into The American Nightmare.  Too common a story these days. Those dreams ought to have anchors on them.  
Mar 31, 2007 07:51 PM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Well good morning everyone. Thanks for all the great comments. This story was shared to help show how these things happen. It's not that the buyers are bad people or stupid, they just get caught up in the situations of life and before you know it BAM! they dug a hole they can't get out of.

I've been there. I know. I had a bankruptcy before I was 30 and had lost 2 properties(rentals) before I was 30. I too got caught up in life's circumstances and made foolish decisions. Fortunately I learned from my failures and was able to build upon them. Hopefully going through this will make Sally a stronger person.

Apr 01, 2007 12:20 AM
Robert Hammerstein -
Christie's International Real Estate - Hillsdale, NJ
Bergen County NJ Real Estate
Read me another story BB - please........  This is a good one and we probably all have had similar things happen to customers.  Sometimes there's only so much you can do to enlighten people. We had a gal that was selling her childhood home due to a divorce.  She allowed her ex-husband to buy her out, a month later called us to tell us she was engaged and wanting to go look at homes.  We took her and her new beau out and bam they bought a little creampuff at the height of the market.  Two months later they broke up and wanted to sell the place.  Unfortunately they thought the public should pay for the furniture they bought to furnish their new love nest.  She also smoked like a feind and had two large dogs.  It was a creampuff when she bought it but, well, let your imagination run wild.  Needless to say, she's on her third listing agent.  We felt very bad for her situation but told her from the start the facts but she chose to keep her tinted (rose) glasses on.  Sorry.  Didn't mean to tell a whole other story.  Got carried away.  Loved your story and picture.  Thanks for sharing.
Apr 01, 2007 02:46 AM
Ken Stampe
iBrandPlan.com - Grow your e-Profile & Brand - Dallas, TX
iBrandPlan

So they bought the home in early 2005 and made the payments until early 2006 when John left or at least once their relationship started coming apart. I'm not defending a lender who uses stated documentation programs incorrectly and/or illegally. However, their fate has more to do with John sitting on the sofa playing playstation on his plasma instead of working. As your story puts it, they had 6 months of payments in savings to afford the move and to look for new jobs.

Why are lenders or realtors for that matter responsible for people's stupidity in life decisions? When loans default in the first 4 months....there's no doubt it was a bad loan. But I don't care if you use full documentation of income and assets, if people don't pay the loan, quit their jobs and sit on their duff....how is that the mortgage or real estate professionals fault?

Are we to be psychic? Should we have somehow seen Sally's future for her? Last time I checked, pre-marital counseling wasn't a mortgage qualifier. I have to agree with an earlier comment that said these stories are just getting tiresome. For those of us that care dearly for our profession, do you expect us to apologize for something here? What response do you hope for from a mortgage professional reading this? 

Apr 01, 2007 10:30 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Ken, Let me ask you this. These folks got 100% financing on a no doc loan on a house in another state when they didn't even have jobs there. Does that sound legally doable? I'm not blaming anyone. But I can assure you that loan fraud was rampant in my market in 2004 and 2005. And frankly it pisses me off. My market is currently paying big time for all the greed of LOs, Realtors, builders and the stupidity of disillusioned buyers and so called "investors" that spent too much time watching late night info commercials. Mix all these together in a booming market and chaos results.

I agree with you 100% that these stories are getting tiresome. I hear them everyday. Tiresome or not it's reality. I'm not placing blame, I'm presenting fact. The ones who are guilty know who they are and they don't need me to point it out to them.

Actually I don't feel sorry for Sally or John in any way. But I do feel sorry for my 80 year old sellers who can't sell their house, that they have owned for 10 years, right now, because the market is satiated with flips that flopped and foreclosures that are have brought the values crashing down. Out of the 1700 homes on the market in Poinciana, 700 are less than 2 years old.  I feel sorry when an 80 year old man has to go to work every night to try and stay on top his mortgage payment because his house won't sell. Not because it's over priced but because you can't sell a 10 year old house in my market. Too many brand new foreclosures on the market. So really it doesn't matter who's to blame. It is what it is. And it still pisses me off. 

Apr 01, 2007 10:56 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

BTW, "What response do I want from a mortgage professional reading this?" How about an admission that there are many mortgage professionals that are ripping people off, just as there are REALTORS(R) doing the same thing. How about suggestions on what can be done to tighten up licensing laws or educational requirements? In fact in Florida I don't even think you have to have a license to originate mortgages. 

Ken, I know you don't conduct your business this way BUT there are many that do. Hopefully the consumer will read posts like this and maybe just maybe it will prompt them to do their homework and to take purchasing a home more serious. That why I write these posts. 

Apr 01, 2007 11:04 AM
Jeff Link
Asheville, NC
"Your Asheville Real Estate Link"
Shauna: Jeff we don't do short sales. Then you post hinting at a short sale. You are clear as mud.
Apr 01, 2007 02:42 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Sad story, Bryan, and one we continue to see repeated over and over. Lots of folks have gotten in over their heads because of unscrupulous loan officers, builders, and agents. And, yes, some buyers just made poor decisions, armed with little to no information and, perhaps, not knowing who to turn to to get advice.

Jeff

Apr 01, 2007 03:08 PM
Art Blanchet
On the Outside Lookin' In - Sebastian, FL
Stranger in a Warm Land

I'd comment on why people are so irresponsible with their lives and finances, but I've got to go - only 167 miles to the state line so I can get my twenty-five Super Ultra Mega-Bucks Lottery Tickets.  That 320 Million is mine!

Oops, I'm on "E" - got any gas money? 

Apr 02, 2007 04:23 AM
Anonymous
Stan

BB, I know another pissed off Realtor.....the seller's agent for the house I just bought.  :)  We entered into contract today.  I gave on closing date to accomodate his needs and the seller, reluctantly conceded price.  Don't worry, both agent and seller are still alive after the negotiations.....a bit bruised, but breathing.  We countered and countered and countered late into the night.  Keep 'em up and wear 'em down!

Once the agents I've been working with in other states find out, I'll get a thank you note for ending their torture and not moving to their community.

 

Apr 02, 2007 07:35 AM
#47
Ken Stampe
iBrandPlan.com - Grow your e-Profile & Brand - Dallas, TX
iBrandPlan

I feel sorry when an 80 year old man has to go to work every night to try and stay on top his mortgage payment because his house won't sell. Not because it's over priced but because you can't sell a 10 year old house in my market.

On that point, you and I agree fully. The true victims are Sally and John's neighbors.

How about an admission that there are many mortgage professionals that are ripping people off, just as there are REALTORS(R) doing the same thing. How about suggestions on what can be done to tighten up licensing laws or educational requirements? In fact in Florida I don't even think you have to have a license to originate mortgages. 

I can't make that admission because I don't believe it to be true. There just aren't "many" mortgage professionals ripping people off. It's just that the bad story always gets more publicity then the ones where everything goes according to plan. If John had gotten off the couch, gotten a job and stayed with Sally they wouldn't be behind on the mortgage and Sally wouldn't be trying to sell before the foreclosure happens. Who would be writing about the loan program or loan officer then?

BB, we more often agree then disagree and perhaps I'm just being too specific about this one scenario.  

Apr 02, 2007 07:51 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Stan, Congrats man!!!! I know this has been quite the journey for you. Let me now when it closes:)

Ken, I think it's more of a case of different perspectives from different markets. Your area and my area are definitely different. I know you are one of the good guys. Want to move to Florida? We could use more guys like you here. OK a little later this week I'm going to write a positive story on mortgage brokers. I'm just going to have to dig through my closed files to find one:)   

 

Apr 02, 2007 08:13 AM
Anonymous
Caligal

I was one of those consumers who called on an ad that said....Own a home for the price of rent...only $350 down.  I purchased my home in 2002 and I did in fact only pay $350 and $51 at closing. Wow!!! I read and read my loan documents, made sure that I knew every little detail.  Then in 2004, I refinanced. Being a smart consumer, I only refinance the original amount plus 13,500 in equity. I got a great rate and pay my mortgage faithfully. In fact both my husband and I work two jobs to pay the mortgage. The part that is hard for me is that I am one of the sellers that really needs to sell...but because of all the foreclosures in my area, I can't sell!  Or people read that the market is soooo bad they think that I will give my house away.....well that is not going to happen. I agree that the consumer needs to educate themselves, but they also need to know who they are working with. I did a lot of research before I decided that Broker Bryant was the man that would be honest and help me sell in this difficult market.

 

Apr 02, 2007 11:06 AM
#50
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Hey CaliGal, Do you want to just keep hanging out on my Blog and saying good things about me?? I might just have to give you a commission dis..........OUCH! That was TLW slapping me upside the head!!!! OK OK just kidding honey....man that was painful:)
Apr 03, 2007 03:23 AM
"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

Cali...

I put a hurtin' on him. LOL. Do you know his head was swollen before you came in here?

Know what I did? I stuck a pin in his head. POP. It was gross. LOL.

TLW...ROAR!

Apr 03, 2007 07:18 AM
Jeff Link
Asheville, NC
"Your Asheville Real Estate Link"
You are so mean.
Apr 03, 2007 07:26 AM
"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

...And that's one of the reasons you love me :)

TLW...ROAR!

Apr 03, 2007 07:36 AM
"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

Cali...

Blog Boy (Broker Bryant) asked me to share this you tube video with you. Why?

He wants you to have an idea of what he has to deal with every day :)

<Want To Do This To Someone You Know>

TLW...ROAR!

Apr 03, 2007 07:50 AM
Nick M.
Certified Residential Appraiser- West Palm Beach Real Estate - West Palm Beach, FL
Realtor-Appraiser in West Palm-South Florida Real Estate Appraiser
enjoyed this post and the thread of comments to follow. its good stuff through and through, on many levels. enjoyed the night time story (as Lisa puts it), enjoyed the underlying points (and Jay mentions), enjoyed the mortgage brokers getting riled up or was that BB?..even a testimonial in there somewhere. :) Florida was an animal all in itself in those years.. but appraisal orders were rampant. ahh yes. now i'm reminiscing.. Bryant.. great post! (can i still say that and mean it). only to wrap it up and come back to reality with TLW's vid of a squashed head! yikes!
Apr 03, 2007 09:47 AM