Your participation through comments has been very good from the start of this blog. I appreciate your feedback on my foreclosure situation, bankruptcy, selling my houses, getting a job, etc. I am learning a bunch from it.
Most comments are brutal and critical. That’s OK. Because as long as it’s reasonable and constructive I can learn from it. Other people facing foreclosure reading this blog can also learn from it.
Getting out of Hand.
The negativity is getting to be a little too much lately. People are cussing me out, belittling me, using very vulgar language, posting inappropriate links, and basically, kicking me when I’m down. Worse yet, these “haters” are also attacking other commenters.
I’ve been a little bit loose on moderation - letting some of these comments slip through. Just trying to keep everything as organic as possible. But now I need to do a little bit more filtering.
I may need to recruit some moderators too, or implement some kind of system. Approving comments is starting to take a lot of time. On the other hand, I still want to read every comment myself. This way I can learn from your feedback.
Keep it Organic But Be Reasonable!
It’s OK to laugh at me, criticize me, be negative… just do it with a little bit of human courtesy and respect!
No swearing, no illegal/unethical/sexual/inappropriate stuff and no attacking other commenters.
Let’s keep it PG - PG13, or something like that.
And Thank You!
Again, thank you very much for your participation. Your feedback is what keeps this blog alive and interesting. It gives me reason to check my email every 2 minutes.
I’m glued. In fact, my wife has had to walk over and forcefully shut my laptop screen on me several times. Especially when I tell her: “just another minute, honey!”
But seriously, thanks to the “haters” for showing me how big of a “screw-up” I am. (I try not to take it personally). And thanks to the few and far-in-between encouraging comments. Those make my day!
69 Comments
October 14th, 2006 at 10:49 am
Hey Bird dogger,
How’s the weather in sacto today brother? Getting a little rain here in the desert.
Is the 3k going to help you survive a couple more weeks? Does your old lady have a job that is putting grub on the table? What do you think of the roseville area? Flippers invaded that area big time. Git R done buddy.
October 14th, 2006 at 10:57 am
I just read someone in a much bigger hole than yours with some 10 houses and $5.2M debt. Look like you are not alone.
Pay attention to Sac Realtor and the likes. Those are jokers and I think their intention is very clear in digging you a bigger hole.
October 14th, 2006 at 1:26 pm
Casey,
Worse yet, these “haters” are also attacking other commenters.
Disagreement, even harsh disagreement, is core to this type of an open blog forum. If you wanted stately debate then you should have created a non-anonymous, moderated, verified-registration blog.
And people who disagree in such a fashion are not “haters”. Labeling all critics with a pejorative only further shows that you have little intention of actually learning anything from this experience.
When other commentators make ignorant, illogical, or false statements I and others will continue to “attack” them. The blogosphere is about calling a spade a spade. It is about showing would be emperors that they are both naked, and not royalty.
If you begin to moderate out our comments then I promise you this, this blog will lose about 75% of its traffic within a matter of days.
But go ahead. When have you been known to follow anyones advice?
And oh, by the way, what did your lender say about the wrap-around mortgage? You did promise you would be ethical and clear your owner-financing scheme with them first, remember?
October 14th, 2006 at 1:28 pm
Oh.. and one more little point for Casey to ponder as he dives into his next “venture.” The feds don’t like fraud and they are stepping up prosecution.
http://www.fbi.gov/publication.....005.htm#d1
A little snipet:
“Each mortgage fraud scheme contains some type of “material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase or insure a loan.” The Mortgage Bankers Association projects $2.5 trillion in mortgage loans will be made during 2005. The FBI compiles data on mortgage fraud through Suspicious Activity Reports (SARs) filed by federally-insured financial institutions, and Department of Housing and Urban Development Office of Inspector General (HUD-OIG) reports. The FBI also receives complaints from the mortgage industry at large. ”
Here’s a some graphs that illustrate this point:
http://www.fbi.gov/page2/dec05/chartsandgraphs.pdf
Finally, here’s a nice article that summarizes pur boy Casey’s scams from flipping frenzy.com
“Cash Back at Closing: Appealing Arrangement or Sinister Scam?
Cash back deals are stitched into the very fabric of the U.S. economy. Manufacturers promote their products with cash rebates. Credit card companies offer cash-back on purchases. Even banks dangle cash-back deals to attract new customers. Now, home buyers and con artists are jumping on the cash-back bandwagon, and plenty of our own people—real estate professionals—are tripping over themselves to cater to them.
On its surface, cash back at closing seems like a win-win situation. The buyer simply pays a little more for a property than it’s worth, and the seller agrees to kick back the surplus cash to the buyer. For buyers, it can be a savvy financial move, allowing them to pay off outstanding credit card debt or use the extra cash for home repairs and renovations. The seller unloads his house at close to or better than his asking price. The real estate agent gets a bigger commission. The loan officer chalks up another successful loan. And the lender scores a larger loan and stands to earn more interest over the life of the loan. If anything seemed like a win-win situation, cash back at closing is it!
Unfortunately, as with most deals that seem too good to be true, cash back at closing schemes are just another way of scamming someone—in this case, the lender, who’s fooled into making a risky loan. But lenders aren’t the only losers. Buyers are often tricked into buying more house than they can afford. Housing values in the area are artificially inflated, making housing less affordable and raising property taxes. Honest real estate agents lose business to dishonest agents who offer cash back deals. And neighborhoods begin to buckle when homeowners default on the inflated loans and their properties end up in foreclosure. Perhaps that’s why cash back at closing schemes are illegal.
Illegal???!!! Yep.
When I tell colleagues that cash back at closing schemes are illegal, a surprising number of them are incredulous. Agents frequently approach me and describe cash back deals that they were convinced were legitimate.
I was recently talking with a top selling agent in Florida who listed a house for $600,000. A broker who wasn’t from the area had a buyer interested in purchasing the property. Although the broker and buyer had never seen the property, they submitted an offer of $695,000—$95,000 more than the asking price! The only hitch was that the buyer wanted the seller to kick back the extra $95,000 to the buyer at closing. The seller just wanted to sell the house, so he had no problem with it. When the agent asked what I thought, I immediately recognized the scam and informed her that the deal was illegal. She explained that the seller really needed to sell the house and that the seller’s attorney had informed the seller that nothing was wrong with such a transaction. Unfortunately, the lawyer was under-informed.
The law that governs these transactions is referenced on the 1003, Uniform Residential Loan Application, that every buyer signs when he applies for a loan—Title 18, United States Code, Section 1001. It’s part of the small print that lawyers always tell you to read closely before signing anything. To paraphrase Title 18, section 1001, you can’t lie on a loan application or any other document related to the transaction. When a buyer, appraiser, agent, loan officer, or another party provides a false statement of the property’s value on the 1003 or any other document, they’re lying. They’re breaking the law.
As real estate professionals, our job is to know the law, act in accordance with it, and abort any deals designed to dupe anyone involved in the transaction. That means we have to shut down cash back at closing scams before they close. The warning signs are readily evident:
The buyer places an offer on the property that’s significantly more than the asking price on the condition that the seller kicks back all or some of the extra money.
The appraisal is obviously inflated.
Neither the buyer nor the buyer’s agent has ever seen the property.
The buyer wants to use a different title company than the one that the seller’s agent has chosen.
The buyer or buyer’s agent claims that the extra money will be used for home repairs or renovations or paid to a contracting company to handle the repairs or renovations.
The logistics of cash back at closing scams vary, so the warning signs tend to morph over time, but the underlying law that’s being broken remains the same. According to real estate lawyer, Rachel Dollar, “Whether it be through seller kickbacks, inflated purchase prices or ‘repair’ costs, the common thread in these deals is that the lender is not informed of the true nature of the transaction.” Whenever the lender is not informed, in writing, of the true nature of the transaction, the transaction is illegal. And if you go along with the scheme, you become an accomplice, subject to prosecution.
So, what should you do when you smell something fishy? Put a stop to it! Inform all parties that cash back at closing schemes are illegal, and then call the lender immediately. The lender’s phone number is on the closing papers, and, believe me, they’ll be eager to hear of any pending deals that call for them to loan more money than a property is worth. “
October 14th, 2006 at 2:35 pm
The $3000 I borrowed must be used only for business and I must multiply it ten-fold within a short period of time.
Really?
The “lender” expects 900% interest on this “loan”?
You might want to check into California Usury laws. lol.
Or, is this “loan” from Papa Vinny’s Pawn Broker?
October 14th, 2006 at 2:36 pm
Somebody was wondering why “Casey” doesn’t sound like a Russian or an Uzbek name. (I am from Uzbekistan, a former Soviet Union republic).
Its not my original name. Its a nick name that people that couldn’t pronounce my original name gave me when I cam to America in ‘95.
So then it stuck and I eventually changed my legal FIRST name to “Casey” and I made my original name my legal MIDDLE name.
October 14th, 2006 at 2:41 pm
Randy… I will have an answer back from the lender about the wrap-around mortgage soon… don’t worry… I’m not dodging you.
I will probably have a full post soon on weather or not “wraps” are illegal / unethical / whatever.
October 14th, 2006 at 4:07 pm
go back to your job and when youre out of debt try the market. ill be praying for yall!
October 14th, 2006 at 4:18 pm
YOU REAP WHAT YOU SOW
October 14th, 2006 at 8:44 pm
Randy, don’t worry… i’m going to keep it very organic. The stuff you will miss out on is stupid things like “Casey is a #@#%@#.” or “Kill yourself!” and the like.
By the way, I removed “nofollow” attribute from comment links - which WordPress enables by default. So if you have your own site/blog, DO enter it. Google will now follow the link to your site and give you some PR juice.
October 14th, 2006 at 9:04 pm
Before ending up with a career in research, I worked my way through college as first a car sales rep, then a finance and insurance manager (the guys who grind you out for an extended warranty and a 2% profit spread on your auto loan). While there were some who begrudged the profit I made, there were others who were thankful that I was their buffer with the finance company when things went sideways for them.
One bit of knowledge that I always passed on to my customers was that even if they only paid $1 a month on their car loan, they were technically not in default. While they may not be paying on a schedule agreed to, with making a small (or tiny) payment every month on the due date as required by the finance company, they were able to avoid default AND salvage their credit rating from ‘the big R’s’.
October 14th, 2006 at 11:10 pm
Good luck Casey
Your in so deep I’m rooting for you.
Perhaps these naysaying lecturers can drive your blog traffic to a height where you can monotise your way out.
Either way its got to be worth a try to make a comeback after all what else have you got to lose ?
Keep strong and keep pushing !
October 14th, 2006 at 11:50 pm
Randy is not Randy H, just for clarification.
Casey, I am sorry if I am overly harsh on you. Nonetheless, I feel very strongly about sending a message to any other would be get-rich-quick dreamers that such scams are always unethical, and usually illegal. I have been frustrated by your stubbornness. I have been more frustrated by the few cheerleaders who seem to be egging you on. You should know that these people are not your allies. They are either disingenuous or motivated to squeeze the last drop of blood out of the housing bubble.
Seriously, you should reread the last few weeks of posts and take a lot of the good advice given you to heart.
October 15th, 2006 at 6:47 am
Neil Jenman, Australian ethical real estate advocate, feels that wrap mortgages are unethical.
He particularly criticises an Australian ‘guru’ known as Steve McKnight who is known for 2 things: handing out extremely prosaic advice for a high sum, and wrap mortgages. This Australian guru has even conducted wrap mortgages in America, presumably having to foreclose on more than one unfortunate mortgagor due to the impossible repayment schedule.
THE WRAPPING DEBATE -
It all comes down to one important question.
WRAPPERS UNWRAPPED -
Meeting reveals nasty home truths.
October 15th, 2006 at 7:31 am
REAL ESTATE ‘WRAPS’
Kind-hearted investors? Heroes?
No. More like real estate pawn-brokers from a Dickens novel.
Consumer Alert - REAL ESTATE ‘WRAPS’
Another respected financial adviser has condemned the practice of real estate ‘wrapping’. In his column in Brisbane’s Sunday Mail (June
, Noel Whittaker acknowledged that real estate wraps can offer big returns to investors, but added that he would rather be able to “sleep at night”.
The column, which carried the headline Sharks Prosper in Shallow End, detailed the stress placed upon battlers who succumb to the lure of an easy way to own their home.
Far from being easy, however, Whittaker showed how those who buy homes from wrappers are placed under increased financial strain. They pay an inflated interest rate – usually far more than they were paying in rent. They must also pay the rates and the costs of maintaining the home. And, on top of these extra burdens, they must also pay an inflated purchase price for the home. In his example, Noel Whittaker calculates that it takes the buyer ten years to reduce the debt just to the true value of the property.
Consumer Alert - WRAP SHARKS
October 24th, 2006 at 6:34 am
Before denegrating individuals who utilise wrapping as a real estate tool, you should look at them independantly. I refer in particular to Steve McKnight. I do have the pleasure of knowing him personally and have seen how he applies this method to the market. Yes, a profit is made via both the increase in sale price as well as a slightly higher interest rate. HOWEVER, all this is made transparent to the buyer. The buyer makes an informed decision to then go forward with the purchase. To the best of my knowledge, only those deals where the repayments were similar or less than what the buyer would have rented the same property for were pursued. Where is the problem here? Wrapping is not new….it has been around for over 100 years, check out your real estate history.
Dont get me wrong, I am not saying that there isnt a cause for concern with the way some individuals do buisiness and yes, some should be strung up for intentionally and knowingly taking advantage of those struggling to get started. But please people, lets not tar everyone who wraps with the same brush.
October 24th, 2006 at 6:48 pm
Why don’t you try modeling? It can pay pretty well.
October 30th, 2006 at 2:58 pm
To ‘Time to Finally Come Clean’
Bennett are Casey are so far apart it’s not even funny.
Casey never got loans in the name of his unborn kid, pet, mother, or anyone else. He never set up “straw” (fake) buyers to cash out his properties.
Bennett was a calculated criminal. Casey broke laws too, he admittedly inflated his income to qualify for a loan that he shouldn’t have qualified for…but he never pumped it to a fake buyer to cash in.
Also, Bennett was acting as the buyer, mortgage broker, underwriter, RE agent, etc, etc. come on man????? not even close to the same thing.
drink some haterade then come back
November 11th, 2006 at 11:50 am
jonny
December 3rd, 2006 at 4:41 am
Hey Casey,
I’m in a similar situation. I was in the process of buying 7, only closed on three thank goodness. foreclosed on 2 already, in the process of foreclosing third. my situations’s a bit worse than most…though I won’t go into it b/c that’s a whole ‘nother website! I’ve now had my fair share of scams, crappy lawyers, Romanians, crooks, etc. I was just really naive about a lot of things. Some people have said I was an idiot. I would have to agree to some extent…but to my credit, this is not a well-publicized issue (or hasn’t been…thank you for your blog…I heard about you on PBS!!). I’m glad there are people in the public out there listening now. And, p.s. naysayers, I did call the FBI, my mortgage company, the cops, the Attorney General, a judge, the IRS, attornies, etc., and none of them actually gave a s*** . The mortgage industry may complain about these kinds of loans, but they (from what I can tell) don’t actually care unless you really go overboard–like that Bennett guy in CA.
I wish you good luck w/everything Casey. this has happened to a lot of people and I’m glad you are blogging about it…tho’ take it as a life lesson and get to the root of why you did it in the first place. This is a lot of drama to create. I know for me, I only create drama when there is something in my life I just cannot see unless it is blown up into a huge dramatic mess. I am just now beginning to see the roots of my house drama…and it is not pretty.
d
December 3rd, 2006 at 5:25 am
I left a comment just now and then perused the website a bit more…read your “am i going to jail” piece. thanks for that…your life is paralleling mine. I was under…well, still am a bit…the fear of going to jail for this too. The mortgage companies would have to be the ones to prosecute you…or an attorney general (and only if a complaint is filed about you), so as long as no one complains about what you did, no…you will not go to jail. Like I said in my previous comment, unless your actions have gone “overboard like this guy Bennett in CA”, you will probably not be prosecuted…even with stated docs, cashback, mortgage fraud, appraisal fraud and the rest. The mortgage companies don’t care as long as they get their money. And…as long as you keep trying to give them money, they’ll keep playing the game w/you…even if it’s not enough to meet the payments. Many honest, middle-class people want to believe that if you lie, cheat, or steal in the financial world, our system will somehow bring you to justice. It’s just not that way…see Enron. It’s actually not a fair and just market…see China…though I bet you (or your relatives) know that from living in Uzbekistan.
Also, I would look at the state laws about whether you are personally liable for any monies not collected during foreclosure…in other words, if a property goes to foreclosure but doesn’t garner enough during the sale to meet the loans, are you personally liable to the mortgage company for those funds? I live in a state where I am not personally liable if the foreclosure sale funds fall short. if you are not personally liable, this can work to your advantage if you just want to get out of the situation and foreclose on the houses. I got that lovely information from a real estate attorney…the one out of about 8 that was actually worth his salt.
I also like the fact that you are stating what you want and being honest about where you are at…that takes a lot of courage, though I’m sure you’ve been told that just like I have. I think though, like me, you might use your courage in a way that’s not always smart…taking risks that you, looking back at it, probably shouldn’t have taken. The only thing I was disappointed about was your calendar…it looks like you are still under the “rich dad, poor dad” model…in other words, you are linking personal growth to the market economy. Is that something you want to continue doing after having gone through this ordeal?
Btw, I got a part-time job…flexible hours/days. I set my own schedule…that way I can deal with the meetings w/attornies, accountants, realtors, and my court hearings. And it’s commission-based which allows me to keep a pulse on my level of integrity and ability to receive money. If I’m not making any money, it just gives me an opportunity to grow, and clear more fear….
d
December 17th, 2006 at 11:43 am
Casey, my man I salute youin the other hand you learn a lot way furhter than what your mentor teach you. keep it up and you will success later on,
I have a quick question in a short sale do the second is included eeven it was not on forclosure or both loans has to be on notice of default, I just need some answer, so that I know what to do next time and like what I said you learn more than anybody else, Please teach me. Email me personally because I know I will learn more from you. Thanks.
December 17th, 2006 at 10:42 pm
You cannot completely blame yourself for this mess.
First you got suckered into all those training courses offering you millions in real estate profits.
This is no different than all the recent foreign exchange seminars running around the country seeking to show people how to make huge fortunes from small fluctuations in the value of the dollar, then charging them $5,000 for the automated software which has no guarantees.
Second, once you got brainwashed, you compromised your own integrity by allowing the very people who depend on such deals to make a living to manipulate your financial information and your very own reality…but you did go into agreement with their fraud.
So ultimately you fell prey to the American made philosophies of “there’s a sucker born every minute” school of hard knocks, and “there is a greater fool just around the corner” from Skrew U university.
Your education is priceless, keep exposing the frauds and damn the critics, your integrity is more important and valuable in the long run, and certainly you will learn not to compromise with your own reality in the future.
In america, corruption is job 1.
http://www.americanchronicle.c.....leID=17716
December 21st, 2006 at 2:27 pm
looking to fix ‘n flip. I made some mistakes and fell flat on my face with millions in debt and facing foreclosure. Trying to avoid foreclosure, sell quickly, repay everyone, and blog my lessons to help others in trouble. Comments welcome! Email CaseyView All Entries
January 4th, 2007 at 6:57 am
Thank you for publishing this information. I am not an investor but I have fallen into this foreclosure delimma. I do have a question about though (this may have been answered already). Are you liable for any short fall in the sale price? Are you still liable for the loan if the property does not sell at all? What are you looking at as far as taxes, insurance and other costs? How can I get in the position to buy the property back if I am interested?
I saw your piece on “Mistakes are only sins when not admitted”. To your nay sayers I would say “He who is without sin, cast the first stone”.
Thanks for your help
Alex P
January 6th, 2007 at 12:59 pm
Dude,
Bail. Simply bail. Your credit is wrecked. Go bankrupt. Start fresh. FInance companies do it, airlines do it, willie nelson did it, automotive companies will soon be doing it. Hell, the USA will do it in the next 5-25 years.
You have learned a bunch and that will serve you well. Most entrepreneurs/billionaires have hit the wall a few times. You will never get out of that debt and it will be an anchor around your head.
Its your fault - but also the fault of lenders from using aggressive lending standards. BUt you are simply trying to rearrange the deck chairs on the titanic by continuing to f*** with this mess. Its Kraft DInner at this point - you can do whatever you want to it - add ground beef, fois gras, whatever. It is still kraft dinner. Call it quits - stop responding to any banks or creditors and call it a day. Realize that it is not you who has the problem at thsi poitn -its your creditors. WHen you make that mental switch - its very empowering and it is how empires are born.
Once you are through bk -you could continue to do what you are doing now. leverage your knowledge and brand and bilk the system all over again. its the american way . yeah baby
January 10th, 2007 at 9:47 am
Hello,
I’m sorry to hear about the staggering debt. Can I make just 1 recommendation? Please read every article on www.johntreed.com. I know it’s probably not everything you want to hear right now, but I highly recommend keeping an open mind and reading the entire website.
Good luck to you
January 13th, 2007 at 10:19 pm
Please check out Oprah’s website. She has a Debt Diet that seemed very successful for many. One of the big things advocated is to contact the credit companies to renegotiate terms for credit cards. She gives all the steps. Many of the credit cards on your balance sheet indicate 30% or more interest rates.
If you could reduce $50k of debt from 30% to 10% interest, you will have found $20k less in payments for the year. That would make the monthly payments a lot less.
She had a lot of other suggestions, too.
January 24th, 2007 at 11:19 am
Let’s see, you’ve lied, you don’t work and you’d have to borrow several hundred grand just to be flat broke. And you still think you’re a real estate tycoon? You proof positive that anyone can lie, steal and borrow their way to the bottom. Sorry, I have no sympathy for you. You need serious financial counseling in case you do ever find a bag of money…
February 1st, 2007 at 8:23 am
Dude,
“Flipping” anything in a raging bull market has been going on for a long time. A great book which documents this very phenomenon is “Extraordinary Popular Delusions and the Madness of Crowds” . The whole concept of “flipping” in real estate, stocks, or tulips, is to buy high and sell higher. Some call it the “greater fool theory”. It’s like musical chairs - a great big party as long as the music is rocking and there are enough chairs (buyers who will pay a greater price). Fear of missing out and greed drive people to do the dumbest of things:bidding wars, fights, overleveraging. Eventually, the music stops. I am posting to tell you that the music has stopped. There are no “greater fools”, there are now only bag holders and you sir are one of them. At this stage of the cycle we have a bunch of people sitting around waiting for prices to come back. HOPING for prices to come back. If you want to learn the game of speculation - you will learn that hope is your greatest enemy. Typically, what we will see soon is panic set in. This is where people are willing to get out at any price becasue the pain, emotionally and financially, is too great to bear. THis could play out over years. The irony of this is that when the greatest amount of panic is in the market, the most seasoned of speculators, who are WELL capitalized, will start buying their asses off. They know they wont pick an exact bottom, because that is a fools game and impossible. However, they are seasoned and capitalized well enough to wait it out. This is how wealth is created. Guys like Buffett, Soros, Livermore, this is how they do it - buy when everyone else is selling and sell when everyone else is buying.
Anyways, sorry to pontificate, but the smartest, most seasoned thing to do at this point imo is to cut your losers. Another classic trait of a seasoned speculator. Plenty of guys come back and typically you have to hit the wall a few times before you will become rich. My advice is to go bankrupt, screw the banks and creditors. Lick your wounds , start fresh. I promise you with that debt burden and your income potential, you will be in an endless spiral of pain. THe upside is you are young and this type of experience cannot be bought or read about or taught.
Best of luck
February 1st, 2007 at 5:12 pm
Dear Foreclosure Victims,
Please E-mail me as I am a Mortgage Consultant. Would would be Interested in ‘Attempting’ to assist you in your Financial needs. I am not a HARD MONEY LENDER Nor am I a Private Lender.
I feel bad for those who are facing foreclosures due to misc reasons and so on, I think it’s wrong for someone to take your home away. We dealt with a lot of people in Mississippi whom seek Help on Foreclosures and so on….
I’d love to try to assist some of you if I am posting on the wrong forum I am sorry.
My best wishes to all of you who are facing foreclosures
No Fraud, No B.S No games nor do I want liars e-mailing me
I should have done some more research before I posted either way I’d love to try to help you guys out
Thanks A lot
Looking to hear from some of you..
February 3rd, 2007 at 10:53 am
Hi - I am new to this blog, and wanted to jump right in. I have also got into a couple of really bad deals, and am contemplating foreclosure on one of them.
Is it okay to post personal situations here?
February 11th, 2007 at 9:11 pm
WHen you make that mental switch - its very empowering and it is how empires are born.
February 25th, 2007 at 9:54 pm
Hello,
I’ll keep my entry simple. I am trying to avoid foreclosure which is pending due to a couple late payments, which resulted from a long period of unemployment. I’ve found Prosper.com to be helpful as a means of advertising what I need to get back on track, because Prosper bypasses ordinary banking arrangements and connects individuals who need help with ordinary individuals willing to lend money. It is very promising for people who need a little help.
I recommend using Prosper only if you first become a member of one of Prosper’s online groups. When you become a member of a group you have the support of others in a network — and your starting loan rate before people begin bidding on your proposed loan amount gets a discount. It is very advantageous.
You can actually as an ordinary person make money helping people. To explore how you can do this take a look at my Prosper listing at http://www.prosper.com/public/.....gID=102009
I hope this helps and I look forward to seeing you “prosper on Prosper!”
-Colin G.
February 27th, 2007 at 8:53 am
Good job screwing the lenders over Casey. I hope you become someone’s b**** in prison
March 1st, 2007 at 2:05 pm
Hey Casey and others,
Good news — I avoided foreclosure using a Prosper loan! It was my first loan listing on Prosper and was successful. You can see my listing and the details of how I did it at http://www.prosper.com/public/.....gID=102009
(It also helps that I have a new, good paying job starting March 5, and knowing my new salary I’ve budgeted to ensure that payment of all my household obligations — mortgage, prosper loan, all household costs… will not be an issue.)
I think that Casey, your situation is pretty extreme but you should still look at Prosper as a possibility for getting a small amount of money to pay off your credit cards or other high-interest debt that you may have. Your credit rating is probably HR at this point and your debt-to-income ratio is probably extremely high but if you work on getting your credit rating one step above HR (which I think you can do, Casey, with a little hard work) then you really do have a chance to use Prosper assuming you do it responsibly to pay off high-interest debt.
I also think that since you own this website / blog which obviously gazillions of people look at all the time, it really would be great if you would feature this post I am making on the front page of your website for a day or two. Not for my benefit (since the bidding has ended on my Prosper loan listing) but rather, for the benefit of others who may be near foreclosure and have perhaps been looking at your website as part of their research on foreclosure issues.
My Prosper loan was specifically designed to make sufficient payments to avoid foreclosure until a new income from a new job begin. It has worked for that purpose. Again, you can view the listing at http://www.prosper.com/public/.....gID=102009
— and I strongly encourage you Casey to take the post I am putting here out of the comment section (where nobody sees it) and put it onto your front page! Somebody will see this and if their situation is similar to mine they will see there is a way out.
March 1st, 2007 at 2:22 pm
@ Colin #45
I’m a lender on Prosper and I can assure you that no one would loan money to Casey. I wouldn’t trust him with a dollar.
March 1st, 2007 at 3:02 pm
Hey Casey, maybe you’ll do some good by highlighting Mr. Gallagher’s post. If you need help with a mortgage, Prosper could be a good way to go. I’m a Prosper lender myself and I can tell you that Casey would never get funded. Personally, I won’t touch anything that smells like a real estate flip, but I do consider people who actually live in their houses and make their home in them.
March 18th, 2007 at 8:51 pm
seminars I bought 8 houses in 8 months in 4 states with no money down looking to fix ‘n flip. I made some mistakes and am now millions in debt, trying to avoid foreclosure, sell quickly, repay everyone, and share my lessons to help others in trouble. Comments welcome! |View All Entries
March 19th, 2007 at 8:56 pm
I bought 8 houses in 8 months in 4 states with no money down looking to fix ‘n flip. I made some mistakes and am now millions in debt, trying to avoid foreclosure, sell quickly, repay everyone, and share my lessons to help others in trouble. Comments welcome!” Ca sa intelegeti entuziasmul meu, daca nu v-a cuprins deja, recititi, va rog, articolul meu despre cel care a transformat o agrafa intr-o casa cu ajutorul blogului…
March 22nd, 2007 at 12:27 pm
What were you thinking buying all those homes at 24?
There is no way on earth that you were qualified for that kind of work. Too greedy to start with one house and see how it went?
You made your bed, now pull up the sheets and enjoy the rest. Good news for you in bankruptcy doesn’t stay on ones record forever.
No way I feel bad for you, nope nada zilch
March 22nd, 2007 at 4:44 pm
All I have to say, what the hell we’re you thinking!!?? I don’t think I could spend that kind of money if I tried. I saw your financial spreadsheet and I could not believe how you ran up your debt. What, were you paying credit cards with other credit cards? And borrowing money from friends to “get back in the game”. What game? You lost. Your friends and family are trying to put food back on the table for you. Time to go back to the drawing board, and stop blowing everyones money.
March 23rd, 2007 at 1:29 am
Big deal , failure happens all the time and as far as loan fraud well maybe he does a little time maybe not but ill say this. Folks borrowing your way to riches? get real lenders are the only poeple profiting they print credit from thin air to lend on these properties praying you pay them. They lend you money not from the federal reserve its really the private reserve for banksters of america!!! Dont believe me research Freedom to Facism online or study history of banking and currency . I invest in realestate with cash! Why cause its makes more sense then leveraging yourself into a mess of tax problems. I was millions in debt and let myself go under and i recovered my credit and went on with great success.
Only 24 months later I was on top with zero debt and no more borrowing my profits went thru the ceiling as soon as I abandoned banks. You poeple managing credit your funny pushing credit like its a tool. Its a snake that will bite you.
I dont have to manage credit any longer and thank god my credit was ruined cause it taught me how to make lots of money without credit, which by the way !!!Is all profits none is shared with the banksters. PS did you notice all the partners you get when u make loans on property??? appraiser banker broker
inspector pmi and more. I pay cash no appraisal needed lol and no loan fees no interest pmt no share of my profits. Star t small do asignments of contracts and sub 2 and wholesaling and maybe tax deed and lien investing all cash. Then as your profits get larger you can hammer on bigger deals all cash. Let the irs and his big banker partner alone. They are scheming in bed together to enslave all of america!
By the way to all that ran this kid thru the ringer at least he tried to build a business I give credit for that. Next time try it debt free and dont spend money like its going outta style.
Spend every dollar like it had to bring 3 more dollars home or you wont have the ransome to get back your love. Thats how you invest. Get some education then get back out there.
Quit listening to realtors, brokers, bankers and other folks like that. They can sell u into slavery. Never sign over the properties unless u can make enough on the deal to pay the irs! Pay irs off first then everyone else gets paid second!
Cause irs debt can survive the BK. Another Question is why in the world would you go online and tell everyone the laws you broke. Next time you might think about pleading the 5th! Lose lips sink ships!! Lastly the damage is done just try to stay outta jail and i wish you luck. If you do jail time spend it studying how to make money. When you get out if you spend every moment studying money law and finance youll be ready to success second time around!! Good luck!
Have a priofitable Day!!!
March 23rd, 2007 at 2:29 am
te lo mereces payaso
March 23rd, 2007 at 10:11 am
Dude - I came across your site after reading the Economist article. At first I had to laugh because anyone with any sense of investment perspective knew that this was a bubble, particularly in California (I grew up in SoCal). But then after reading more through the blog, I started feeling really sorry for you. Hopefully you have learned many valuable things from this experience and have taken responsibility for your actions. Having bought the highs in both the dot-com and real estate craze, you should now recognize what bubbles and investment frenzies are made of. Everyone makes mistakes, and Donald Trump was nearly bankrupt 15 years ago. Don’t let these experiences preclude you from becoming a better businessman and person. As a derivatives trader, the soundest advice I can give you is from the best investor you and I will probably ever see, Warren Buffett: “Be fearful when others are greedy, and greedy when others are fearful” Good luck with the foreclosures Casey and hope everything turns out for the best!
March 24th, 2007 at 8:16 am
I don’t have any sympathy for you or people like you. After saving for a downpayment (yes, a downpayment) for 6 years, my husband and I were repeatedly outbid by people like you - with significantly less income (true income), much lower credit scores and perhaps most importantly willing to take on risky loans.
And now Senator Chris Dodd is might see to it that my tax money goes to bailing out greedy people like you. You should take responisbility for your own problems and bail yourself out.
March 27th, 2007 at 3:11 pm
I got caught up in the real estate flipping scam, paid some real estate “investors” who actually lied to get me the loans and put stupid ideas in my head with no way to pay for the severe negative cash flow except keep borrowing money and hope the houses sell.
If someone is a lawyer reading this I’d really like to take out this person who is ruining lives daily
http://www.nothingdownforwomen.com/
March 28th, 2007 at 9:14 pm
seminars I bought 8 houses in 8 months in 4 states with no money down looking to fix ‘n flip. I made some mistakes and am now millions in debt, trying to avoid foreclosure, sell quickly, repay everyone, and share my lessons to help others in trouble. Comments welcome! via Economist
March 29th, 2007 at 2:50 pm
This is fascinating for all the wrong reasons.
If this were a blog entry for me I’d title it: “The American Dream NEVER was about becoming wealthy.” Who ever started that mentality hopefully died broke. And touched a nerve in me because people like you jumping into something so serious, so seriously clueless, has made it harder for the vast majority of Americans to afford homes. House flipping insanity has driven up the price of homes to a completely absurd level. And only a handful of people generate huge profits with it. House flipping is an inane and stupid ecomonic festering sore in the average American’s side.
First, I want to say that I don’t blame you for your situation, nor will I slam mercilessly like others, because quite honestly the system is set up for “suckers” like you to get in deep. There are no real checks-and-balances that should have been in place to allow someone like you to get so tied in deep. There is a high level scam in place (banking institutions at the top), and they definitely lie (pun intended) in wait for a naive one like you. Yours is a unique take on what has become a serious problem in this country since you’re taking it one step further with your “I’m just not paying my massive debt”. House flipping needs people like you (playing the real estate market like Vegas or “quick stocks”), along with those legitimate homeowners who lose everything trying to just have a home that eventually they can’t afford, in order for this new Vegas style house-flipping to thrive and survive. But house flipping also needs people like you, who have gone over the edge of finances, to pay back what you legally owe…and most definitely illegally obtained (”everyone else lies”? no they don’t). The house flipping scheme system needs people like you to pay your debt, or else they’ll send you to a judge and if you get the wrong judge? yikes. You could be in for a much harsher lesson that what you’ve got through if you continue to ignore the elephant in the living room.
Let me repeat again to anyone still reading: The American Dream NEVER was about becoming rich. That’s a lie if anyone every tells you differently. It was about getting yourself a nice place in this world. America was the first place on the planet where an average person could grab a plot of land and call it his/her own. Everything before that was given, or not given, by some authority. America was the first place, hundreds of years ago, where a simple man could get some land to call his own and nobody could take it from him. It was about getting out of slaving for someone else while you had no money for anything. It was okay to labor hard and long, as long as you had security in home, health care, and retirement years with something to pass on to next of kin. People have twisted the American Dream into PowerBall mentality. It’s completely absurd how obsessed becoming rich is these days. It’s not something to be admired in the first place…extreme wealth for a few only creates massive problems for the rest…and it’s mathematically impossible for a large percentage of citizens to become rich. We’d all be a lot better off if competitive capitalisim stayed the same but taxed the super rich 70% to use for health care, education, food programs, perfect roads/bridges, etc, etc. (And I am not advocated “hand outs” like welfare or foodstamps, but services to make life easier for Americans.). There would still exist the chance for anyone to become “rich” but we’d avoid this “super rich” mentality that is ruining the economic fabric of a truly unique economic juggernaut that used to be called America.
It’s especially true of young people that the message is you can get rich quick and things like house flipping is a no-brainer more or less. I can’t tell you how many younger people (I’m 42) that just assume they will be rich some day. It’s really strange. Those that aren’t the “assumers” think “if I just work hard, I’ll definitely be rich. I just know I will. I know I’ll be succesful”. Power of positive thinking isn’t enough. There are only about 3 or 4 million, millionaires in this country of about 300 million people. But most wealthy people got that way through nepotism - or “my parents (or a friend) helped me get here” connections. Besides a few hard worker examples, PowerBall lotto, pure luck, it’s always been not what you know, but who you know. That’s why majority of “famous” people are children of famous people or connected people.
VERY FEW PEOPLE are becoming rich. Rich is when you have all your bills paid, basically zero debt, strong savings in progress for retirement years, and THEN LOTS of cash in the bank or conservative investing to save more or “play a little”. VERY FEW PEOPLE are verifiably wealthy. This country has become obsessed with “nice everthing”, “big everything”, house flipping, schemes, “let money work for you”, 3 a.m. infomercial nonsense… all funded by people who want to look like they’re doing well financially, but aren’t. There suckers is what they really are and their crashes are really painful to watch sometimes. Why do you think they play those informericials so late? People who have money problems, or no money, stay up late worrying about it surfing channels thinking of ways to get out of their situation. It’s a dangerous time to surf!
[Fortuntely for me, my 3 a.m. infomercial lesson was relatively painless. You might buy Eagle Eye sunglasses or an Orbitrek machine only to find out that Eagle Eye glasses should be called Clown Glasses where everything is yellow and you look like a clown to everyone else, and Orbitreks should be called “walk in place while holding small weights and you’ll get the same benefits” machine. It’s all a scam where a handful a people make insane money off of “suckers”.] It’s not a viable economic system. And this country is going to find out the hard way and it’s because of folks like you who don’t have a clue what they’re doing, but are convinced they do, and get mixed in with (or encouraged by) the “If you just do what I say…I can make you rich” guru.
I do feel empathy for what you’re going through, but I don’t feel sorry for you at all. It’s like you went to Vegas at the high stakes table, with no hand whatsoever, and bet your life against top players. Bad decisions are one thing…reckless abandon is what you were (are seem to still be) about. I give you the benefit of the doubt for being young and wide-eyed and very cocky. It’s okay to make a mistake and as you point out valuable lessons can be learned. You don’t seem to have learned anything with regards to “hitting it big”.
It’s not at all a healthy ecomonic or real estate system we are currently in. It hurts so many people given the small few who profit from it. It ruins healthy real estate that should just stabilize at some point, ruins neighborhoods (does anyone live anywhere from more than 5 years?), raises the price of everything for everyone because of “keeping up with the Joneses” mentality. And then taxpayers are the ultimate “rich daddy bailing out citizen in troubles” victims. It hurts a lot of people in so many ways and ultimately is a giant myth all this house flipping nonsense.
And you better be careful…you might find yourself in a white collar crime minimum security prison. But prison is prison. You have a very cavalier, or naive, approach to “my debt is so massive I won’t have to pay it…taxpayers will” (because at the end of the day that is who bails people out just like insurance fraud hurts only honest people who have to bail out the dishonest). Your openness to your dilemna is refreshing but you may very well be facing jail time. That should get yourself in gear to hustle up legitimate money and make contracts with debt collectors to pay back at least in commitment for now. Don’t you realize they just amended bankruptcy laws to protect taxpayers against someone like you? It’s not so easy anymore to say “hey, I ain’t got no cash…what are you gonna to do about it?”. Debt collectors will accept deals if you commit to paying something. You may talk them into reducing such a massive debt by as much as 30 or 40%….maybe more. They’d rather take 400k then zero. If you just ingore it all and it goes to court? You could be a 20something in a miserable economic future turning into a 30something just getting out of jail…with a still miserable economic future. Good luck starting over then. Not impossible, but almost. There is still a very good chance you can legitimately work something out with debt collectors. Don’t assume “they” (society) are going to bail you out of this one. It may not happen.
I don’t admire your optimism regarding this giant mess, but I will say that you are very smart for your own personal health to maintain a calm approach to all of this. I also think it’s smart you are honest and open about it. I encourage you keep that up because that is an ingredient for success I’m sure. A lot of people would have had a nervous breakdown, new addiction, or worse, if they were in a similar situation. It really is time to come to grips with things. Forget about “success” right now. You need to do some critical thinking.
Well, I did to finish up…this has really got my attention so I rambled a bit. One more comment then a “why aren’t you capitalizing on all this attention” comment
You’re stick stuck on the same philosophy that got you in trouble. You’re an interesting person in that I think you’re head is really in the clouds. Innonence is bliss, they say. 2) You don’t strike me as someone who as the “success” gene. Prime example: This is generating some internet/media buzz and sending people like me to your website. It’s in the news. You say it’s a #2 Google search. Where are the advertisements on your website while your site is hot with traffic? Where is the merchandise making fun of or referencing your situation? Are you finishing the book and/or movie script that probably would make an interesting story? Offering the rights to your story (get a good lawyer don’t you do the negotiations!)? Where is the “can you help me out?” PayPal donate button? Where is your schedule of personal appearances and “don’t do what I did” lectures? I’ll bet you could set up a booth somewhere behind a curtain with “tell me what you think of me…for $10 bucks” sign…or “kiss me” booth. Perhaps I’m missing something and you already are all over this (if so…my bad!), but you are blowing the biggest opportunity of your life in terms of making money. Forget about stupid house flipping (that market preys upon those who’ve lost everything and requires “genuises” to join in). We live in a time where “losers” (I don’t think you are, btw) or “average” people jump right on their 15 minutes of fame and capitalize on it. You seem to be missing that boat in the same way you missed the real estate boat.
The strange thing about you with regards to success boils down to 2 things for me. 1) You seem to give advice about success, as if you’ve known it. You almost seem to talk with a voice that says “I was was successful before this happened”. But you’ve never been at all successful! You can’t know about the success you speak!
I think you are a prime example of how a whole generation (not age group - but a generation of people living in USA the last 20 years or so) that has been given a false tale that to be rich is everything and it will make you happy. I have to use a favorite phrase of an old relative who wouldn’t curse in front of children to sum up my feelings about using house flipping to become rich: “It’s bovine excrement!!”
March 30th, 2007 at 4:33 pm
8 houses in 8 months with no money down?
People like you were the cause for skyrocketing home prices which make it impossible for people like me just to buy a single home. All I want is to pay a reasonable price for a reasonable home.
You and all the other no money down speculative jerks deserve to go bankrupt for causing this mess.
April 1st, 2007 at 8:33 pm
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April 1st, 2007 at 8:43 pm
No-one deserves to go in the hole or bankrupt.
People like Casey were not taught properly and is not the cause of houses skyrocketing. I give him a lot of gumption for even trying to make a living at it. It takes a lot of guts,.
Houses started to skyrocket because it became a sellers market, which has more than Casey in trouble.
I can show you lots of houses that are undermarket value and show you how to purchase a house for no money down.
How would you like that?
Then you can get into a home for yourself for a reasonable price
If you would like to contact me let me know
April 1st, 2007 at 8:47 pm
Hey Casey or anyone else that would like to learn how to invest in real estate and not get in above your head.
Give me a call leave a message at 800-679-4356 ext 5330
Go to www.networthopportunity.com
and www.networthvalue.com
April 13th, 2007 at 11:48 pm
Hi Casey,
Don’t let the negative ones bog you down. They are obviously negative for their own reasons and you’re not to blame.
I think you had alot of guts and honestly thought you would turn a good dollar for your investments. I am sorry for what happened, truly.
I think it was a good thing for you to come out and say what you did.
Anyway, take care. I believe you will be successful.
Erin x
April 13th, 2007 at 11:51 pm
Why not open group homes in them? You can get licensed to be an adult foster care provider. Dev. Disabled adults can bring 5-10 thousand a month each for their care. You could rent them out room by room to sex offenders getting out of prison. They have a really hard time renting. Just use them to make money while you can. It isn’t that dire. You can bounce! Good luck!!! ( Hell-they’re getting foreclosed so what is the difference. I was in that situation and let homeless people live in one of my houses! They were really happy. I didn’t charge them rent because I wasn’t paying the mortgage anyway. Maybe there is some tax break there or you could get a grant or something.)
April 15th, 2007 at 12:24 pm
I had to cringe when I saw you on Nightline admitting to multiple federal felonies. While the feds can’t prosecute the hundreds of thousands who do this, when you go on national TV you are screwed. You should get an English language teaching certificate and teach English overseas. Otherwise you are headed for about a 5 year taxpayer funded vacation-and not to Hawaii.
April 17th, 2007 at 8:36 pm
Hey man…Its pretty impressive that you could pull 8 houses in 4 different states. There’s a lot of people out there that can’t even get a loan for one house with decent income and credit. Yea..your in a mess!!! But you’ll get everything situated. You’re diligently and aggressively pursuing your goals and dreams. You seem like a smart, motivated, and talented individual. Don’t let this dip in your success hold you back. You’ll make it through. You’ll get it the second time around. Maybe in real estate or maybe not. There’s legitimate money that can be made. Just don’t bite to big next time. I know you’ll make it big one day!!!! All the haters are scared people that can stick with their POS job. HAVE FUN!!!