[Photo by !borghetti used with permission.]
In this blog entry I’m explaining all the potentially “shady” loan practices over the last 12 months as a real estate investor.
I am trying to figure out the following:
- Did I commit mortgage fraud?
- To what extent?
- What are the consequences?
- Will I go to jail?
- Should I take this blog down immediately, run to Russia and change my name?
I will be researching the above questions in the next few days. I will be reading articles online and will be talking to attorneys, lenders and fraud specialists. If you have any pertinent links, articles, advice or professional referrals, please leave a comment or email me. Thanks to everybody who commented on previous articles. The advice has been helpful.
First a little background…
A Year of Buying Houses:
In 2005 I bought a home study course on making money in Real Estate. I also went to a few weekend seminars - “bootcamps” to learn more on the topic. [I am not going to mention names. I do not blame the real estate education or the gurus. The education received was very good quality and above-board as far as I can tell.]
Armed with basic knowledge, I went out and bought 8 houses between October 2005 and May 2005, loosely in this order:
- Calla Way, Sacramento CA - 100% financed, got cash back at close and traded for Burdett Way in January
- Burdett Way, Sacramento CA - 100% financed, fixed and lease optioned, lease option didn’t work out, tenants are moving out - trying to sell now
- Guadalajara Rd, Rio Rancho NM - lease back to builder for 10 months, lease back is almost over - trying to sell now
- Sonora Ave, Albuquerque NM - 100% financed, got cash back at close, fixed and sold via round robin auction this summer
- Larchmont Dr, Sacramento CA - 100% financed, got cash back at close and started fixing it but ran out of cash - trying to sell now
- Muncy Dr, Modesto CA - 100% financed, got cash back, fixed it - trying to sell now
- W 10250 N, Highland UT - 100% financed, got cash back and just recently sold it on a wrap
- Angleridge Rd, Dallas TX - brought about 30K down and financed rest with hard money loan, fixed and am trying to sell now
The first property Calla Way is what got the whole train started. I got 30K cash back at close which allowed me to pay off the 30K of credit card debt. Most of that debt was the real estate education I mentioned. Some of the debt was from the wedding in 2004.
We were very happy to have that debt paid off and the burden lifted. We have been paying minimum payments of about $600/mo on those credit cards for a long time. In one deal it was all wiped clean! The real estate education and desire to make things happen paid off this time.
The maxed out credit cards were keeping my credit score low. After paying them off my credit score jumped by 50 points to over 660 and I was able to qualify for better loans. The new sense of confidence got me going for more deals.
Here are the details of some of the potentially “shady” aspects of the deals.
1) Cash Back at Close
Out of 8 houses I got cash back at close on 5 of them. The amount of cash ranged between 15 and 50K.
I used the cash for:
- Doing the deals - travel costs, fix up costs, mortgage payments, utilities, etc.
- Living expenses - since I quite my full-time job in January and didn’t have any other income
- Additional RE education - real estate conferences, seminars, home study courses
Unfortunately, due to bad planning, mis-management, lack of construction experience and buying too many houses too quick I ran out of the cash in June. I couldn’t continue to pay the 15K+ holding costs on 6 houses so I stopped making payments.
I was planning on one more cash-back deal to close but that fell through at the last minute. “Borrowing Peter to Pay Paul” strategy came to a halt.
No Shady Appraisals!
As far as I am aware, there was NO appraisal fraud on any of these deals. The appraisal was ordered directly by the lender as far as I know were NOT inflated. I do not know the appraisers and have never communicated with them before and thus have not had any influence over the process. Also, on all deals except for one I did not “juice-up” all of the equity, just enough to pay my costs while I was fixing and reselling. There was some equity left for the back-end.
Is Cash Back At Close Wrong or Illegal?
When I was doing these cash-back deals I got some mixed advice. Many of the experience investors I associated with and learned from didn’t think there is anything wrong. Most Real Estate gurus out there have courses that show you cash-back at close techniques.
Some of the mortgage brokers said that I can’t do cash back through escrow but if it happens directly with the seller then it might be OK. Other mortgage brokers and real estate agents told me its illegal no matter what.
But when it comes down to it… How is getting cash back any different then a builder offering incentives (free upgrades, etc..) to sell their homes quickly? The seller needed a quick way out and the cash-back was the incentive to the buyer (me) to buy their house quickly.
2) Stated Income and Owner Occupied
I bought all the properties using 100% stated income owner-occupied loans. The 100% was usually made up of two loans - 80% first and 20% second.
The only exception is Anglridge. I used a “hard money” 70% loan. I had to actually put some money down on that one.
Stated Income:
I am not a mortgage specialist, but as I understand it, stated income means you state (or make up) how much you make. The bank does not ask for pay stubs. They just call the employer to see if you really work there.
If you’re self-employed then they just want to see a letter from your CPA explaining that you have been self employed in the same line of work for at least 2 years.
However, I’m told the bank DOES check to see if the stated income is reasonable. They check the income against an acceptable range of salaries for any given job title. So if I’m flipping burgers in McDonald’s and claim $20K/month, I am NOT getting an approval for that loan. If I am a real estate investor or a business owner and claim $20K/month - that’s very reasonable!
The bank charges higher interest for these loans to cover additional risk. They also require a higher FICO (credit) score. So the lender DOES take an additional risk with these “liar loans” but they balance that risk with higher fees.
Owner Occupied:
Again, I’m not a mortgage specialist, but… as I understand it, an owner-occupied loan means you have the intent to live in it as your primary residence. Owner occupied loans have the best rates and are much easier to qualify for 100% financing.
The alternatives are a) second home loan or b) investment property loan. Second home is like a vacation home and assumes that you will not rent it out and will be living in it part of the time. Investment property is pretty much everything else - buying a property for investment that you will not be living in.
I bought the first house Calla Way in Oct 2005 as owner occupied. I didn’t own any real estate at that time. I owned a condo back in 2002 but sold it in 2003.
I was told I can run it as owner-occupied loan because a) I didn’t have any other houses and b) I would not be able to qualify for 100% financing with my credit score at the time.
I was told that if somebody ever questions it I can say that I “intended” to occupy the property but later changed my mind.
I did have intent. I was thinking that if I buy this house, get the 30K cash back at close and for some reason can’t flip it fast enough, I will have to move into it. It was a little bit far from work and the payment was over our budget but I figured we can float it some how. Maybe rent out a room or two.
However, my primary intent was to buy and re-sell without ever moving into it. Which does NOT mean I didn’t have at least SOME intent to owner-occupy it.
I ran a few other houses as either owner-occupied or second home. That’s because I was buying the houses so fast the credit reporting wasn’t keeping up with my activity. In most cases I would NOT have been able to qualify for “investment property” loan anyway.
So there you have it! Did I commit mortgage fraud??? Am I going to jail???
NOTE: I am NOT blaming anybody who was involved in any of the deals. I was fully aware of what I was doing and take full responsibility. My goal is not to point fingers at any one person, lender, etc. I just want to figure out where I crossed over the line.
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127 Comments
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I have no interest in being associated with you. Hence this response is anonymous.
As an attorney with several decades experience related to your current situation, I can assure you that you have definitely committed fraud. I won’t enumerate the laws broken and the principals who can serve as plaintiffs under each one. The defense attorney you retain can do so.
I will, however, point out that under ordinary circumstances, there would be a significant chance that none of the aggrieved parties would actually bring suit against you if extenuating circumstances were introduced. The information on your blog detracts from this possibility.
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Yes you committed mortgage fraud. You not only provided false and intentionaly misleading information in your loan application but you also blatantly lied about occupying your investment properties to get a better rate. Both of these activities are prosecutable. If you gave the same story to the insurance companies that are covering these properties then at a minimum they can refuse any claims you may need to make in case something happens, and if they were inclined could bring a case against you as well for fraud.
For your sake, STOP telling people about this and consult an attorney immediatly. Good luck
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After I get feedback on this post and talk to some attorneys I will hopefully know if jail time is a realistic expectation.
I honestly didn’t think the stuff I did was that bad. Just grey area type of stuff. Especially since all the people helping me do it (gurus, wholesalers, investors, mortgage brokers) didn’t seem to think there is much to worry about.
They are good people and wouldn’t cause me to do something truly “illegal”.
I think taking the blog down is a little too late. I might as well keep going.
My Plan:
1) explain what I did [done]
2) figure out what I did that was so illegal and HOW illegal is it?
3) appologize
I think that would be a good use of free speech and personal journalistm.
Yes I will have to take whatever consequences that come.
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Expose the shady practices! Testify at Senate Hearings…You will recover but so many others with children will never recover financially. Once upon a time Realtors, Mortgage bankers/ were professions to be respected. Greed permeates the system……Write a book—-EXPOSE!
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Casey,
Coming clean is something that should happen between YOU and your MAKER.
The need to do it here is…….foolhardy.
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If nothing else, your blog will prove helpful to others. Unfortunately, I suspect it will be anything but for you. I get the sense that a lot of what you have done was done because you felt it was common practice and even taught to you at seminars. Do you have any sense how common it actually is? Are there many mortgage brokers out there making up income figures? Are there many people buying so many houses?
If it’s a large amount, do you understand how this will have distorted the market? And how much damage it’s going to cause for absolutely everybody (not just the people directly involved)? No one is going to come through unscathed.
This can’t all be laid at your feet, though. Ever since Greenspan told the lending community “not to be too sensitive to borrower qualifications”, this door was flung wide open. I’ve been curious to see how many would walk through it. Kind of like being unable to look away from a car crash…
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>Should I take this blog down immediately, run to Russia and >change my name?
I was just talking to someone in Novosibirsk - apartments there have gone up 10x in the last seven years.
Big flipping opportunities!
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Dude, you are stupid.
Unfortunately, ignorance of law is no excuse. That’s way the system works America. Despite this fact, you probably won’t end up in prison. In fact I’d bet the chances of you going to prison are between slim and none.
In that sense you have pulled off an amazing coup. You have effectively gotten away with stealing millions of dollars, spent it foolishly on exotic vacations, nice cars, fancy dinners, plazma TVs, and whatever else you stupid little brain wanted at the time.
Only in America!
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Ignorance is no defence in the eyes of the law. The fact that you think it is ‘not that bad’ is irrelevant.
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You’re either a sociopath or monumentally stupid. Possibly both.
Whether a DA will actually decide to prosecute you I don’t know, but I think you ought to spend less time blogging and more time trying to resolve the mess you’ve gotten yourself into.
I also think what you’re really doing here is setting yourself up to go into the consulting / seminar business helping people “beat” forclosure.
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First, I’m chuckling over the ads at the top and bottom of this site. If ever there were an example of making lemonade out of lemons…
Second, keep in mind that the shysters you were dealing with do not want the bad publicity, nor do they want regulators and hungry young prosecutors poking around in their business. All they want is their money. I think you’re gonna lose the property, but the more I consider the domino effect the less likely it seems that mortgage brokers, banks, appraisers, etc. are going to want a messy legal situation. If you’ve got the stones, have your attorney (surely you have one by now) lay a deal on the table that returns the property quietly, with you walking away and their good name intact.
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Come clean? Cool. Could you post copies of the letters to lenders and insurance companies clarifying the owner/occupier status of your investments?
Come clean? Cool. Since you went to RE courses concerning cash back outside of escrow how did you justify the appraisal? Did you think the nice seller was giving you money? No, you knew full well the 100% appraisal with 100% financing was a case of the appraisal including the cash back.
Come clean? Cool. Time to name names. Who wrote these deals and what advice did they give you that you now suspect to to be illegal?
Whole enchilada? You haven’t discussed the stated income aspects of your loans now have you?
Of course you are going to jail. You are however doing a lot to keep the sentence shorter. Good for you. Oh, and California has an interesting law you might well consider. You are not allowed to profit from telling your story. Did you know that?
Frankly I’m surprised you are still posting. You claim to be following advice and such but if you had retained a lawyer he’d have shut you down by now.
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Here’s what a leading lender said about loan fraud in today’s rate sheet:
For Brokers:
• Criminal prosecution, which could result in fines, imprisonment or both.
• Revocation of Broker’s license.
• Loss of access privileges to lenders resulting from the exchange of legally
permissible information between lenders, mortgage insurance companies;
FHLMC, FNMA and other investors; policy agencies; and state and federal
regulatory agencies including the Department of Justice and the FBI.
• Loan repurchase and/or liability to *** for resulting monetary loss.
• Civil action by borrower, *** and/or other parties involved in the transaction.
• Loss of approval status with ***.For Borrowers:
• Acceleration of debt as authorized by the security instrument (Deed of Trust /
Mortgage).
• Criminal prosecution, which may result in possible fines, imprisonment or both.
• Civil action by *** for damages.
• Civil action by other parties to the transaction such as seller or real estate
agent/broker.
• Forfeiture of any professional license.
• Long term adverse effect on credit history.The federal penalty for mortgage fraud is 10 years in prison and/or $1 million dollar fine.
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I believe there are a lot of guys like you out there. This is the reason why I own puts (options to sell stock at a certain price in the future) on Countrywide.
I would not assume you won’t go to jail simply because what you did is small time white collar stuff and “everyone else is doing it”. There is nothing prosecutors like more than a written confession, and you have given them that. Get an attorney. If the FBI comes calling, be ready to cooperate & cut a deal. You definitely won’t go away for very long - but remember not to drop the soap in the shower!
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To some of the RE agents posting:
Start looking for another job and stop pestering Casey. It’s time for this kind of material to be displayed to the public. The guys that stand in front of Home Depot make more than you. At least they don’t get paid one every 6 months when you win the lotto and actually sell a home. KEEP IT UP CASY!!!!!!
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Mugador was here!
Casey (Investor!) you’re (not your) hopefully (definitely) going (maybe soon) to jail!
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Casey,
Since you see to have a lot of time for blogging, and doing very pricey ‘RE education’ courses, perhaps you should spend some time looking at John Reed’s site. He’s also in California, and may even be able to give you some personal advice, if he has time. You need to follow a lot of links on his site to get the full picture. He points out that tens of thousands of dollars is far too much to spend on what is often superficial, misleading, dangerous or run-of-the-mill ‘education’. If you start at this page, you MAY find some of your RE guru friends listed — I would be interested to know if you do.
http://www.johntreed.com/Reedgururating.html
Plus:
http://www.johntreed.com/rateseminars.html
and others -
BTW Dante that realtor/home depot comment was not at u
:( that was made for all the mean people on here. -
Your story is an example of the backwards and secretive Asian (since you are from Uzbekistan, right?) culture planted into what suppose to be a transparent environment.
Lack of simple analytical skills is also demonstrated by your example!
Otherwise, you’re fine. Do not worry!
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I see some fellow BH’s on here and still acting like fools. Robert calm down with the “come clean” crap.
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Okay, so why don’t you get a day job to help cover some of the debt? You could probably pay for a property or two if you had a current day job.
Second, it’s people like you that helped fuel the mania, which has priced those of us who actually make a decent income out of the market for the most part. I’m sure there are TONS of people like you. While I think your at fault, I believe the lenders share the blame. There are ads everywhere locally for these stated income loans and “no income verification.”
There was a local radio show with a realtor or two and a mortgage broker or two. As callers were calling in with huge schemes of having unemployed familiy members buy property and write off all costs as losses and such, the mortgage people were chuckling about how “nothing is really illegal in America huh huh.” Given the fact that a median home in our community is now 7 times median income, I’m sure liar loans are widespread here in Southeastern Virginia.
I just can’t wait for more of the local stuff to get exposed. The bubble blog folks have commented on this for years, and I owe much to the education I’ve received from my daily reads of several sites.
What a mess. I find it totally ironic that (AFAIK) one cannot get a loan to start a business without collateral, but hey, lets throw money away like it is nothing.
When in doubt, you can just hop the fence to the south. I understand illegal aliens are getting mortgages with no issue as well. Let’s just hope the people that wrote these mortgages loose everything they have as well.
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Just rent the homes and wait for the values to go back up in the Spring when you can seel for a profit. Sacramento is a hot market and now is a great time to buy.
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Casey,
You need to talk to a book agent NOW. I’ve been a journalist and reporter for years, and you have a real, gripping story here - start to finish - I guarantee. You may lose your *** on these properties, and even might go to jail, but by the time this story plays out (assuming you are who you say you are), you’ve got a potential bestseller on your hands. So maybe there’s a silver lining for you after all.
Good luck, you’re gonna need it.
–Amazed Reporter -
Partial intent versus primary intent? That sounds like a lawyer talking to me. In fact, I’d not be surprised if your entire effort right now is just following the advice of your lawyer and focusing on positioning your criminal acts in the best possible light to try and minimize your chances of going to jail.
In the circumstances where there is no paper evidence, you couch your acts in such a way that creates reasonable doubt.
In circumstances where there is paper evidence, where you cannot dispute the facts, you use the common defense of “everybody does it” and that others colluded with you to create your problem to try and mitigate your guilt.
I think its a great defense and its even better when you try to come across as a crusader who is shedding light on these deceptive practices. You do a good job of hiding the fact that the only possible reason for you starting the blog is to hope that somehow, someone will help dig you out of the whole you created for yourself. Why don’t you stop begging and go and get a real job.
Unfortunately, you’re supposed altruistic tone is easy to see through. You are easy to spot as the typical, lazy common criminal just trying to find any way to make a quick buck.
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Casey,
The lenders won’t come after you if you don’t default. Rent those vacant houses out, and lease option the ones you can’t rent out.
Take the job you were considering and pay what you can. I’ll have a full complement of advice for you and everyone else in your situation in a couple days on my blog: www.slcrealestate.blogspot.com.
I’ll post it here when it has been drafted. I sincerely wish you luck.
Nigel
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I honestly didn’t think the stuff I did was THAT bad.
Huh? You borrowed a lot of money under false pretenses.
The people that you borrowed money from are not faceless bankers; they are people like grandmothers and grandfathers that depend on the income stream from the loan. The bankers are middlemen who take a cut but don’t get hurt during your bankruptcy.
You have bilked people out of millions of dollars.
And you still think it’s not “THAT bad”?
FYI if you haven’t figured it out yet: It does not really matter what you think. It will matter what the DA, judge, and jury thinks.
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I’m not saying this to be mean, but you deserve to go to jail. You defrauded a bank, as well as all the people that invest in those banks. I doubt you could say that you would be this “honest” if you didn’t get into trouble with this.
If you really want to be honest, turn yourself and the criminals that gave you these loans in. If you fail to understand how bad what you did was, just try imagining it from a lender’s point of view, instead of a borrower’s.
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University’s Joint Center for Housing Studies tried to tell you. Here’s a snippet of Casey’s latest. I’m glad the kid’s back - he adds to the bubble story HP’ers - like it or not. You see, Sunday morning I published the previous article “Am I going to Jail For Mortgage Fraud?“. Not only did I publish it, but I also sent an email to all my contacts to update everybody on my blog. I wanted to encourage feedback and I was also asking for referrals to good real estate / bankruptcy attorneys. I did get some good feedback,
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Casey. Good luck in whatever happens to you. I have personally been witness to dealings that some brokers will try to pull on someone who is clueless in the real estate market. I have been approached myself to lie to get an owner occupied rate, offered cash back on deals, been offered a moused appraisal, and various other fraudulent activities. I personally said no to all of them. If I couldnt buy a rental/investment property the right way, I didnt need to risk my freedom for that. I have a family to protect who need me and my income to provide for that and nothing that could risk my freedom or my familys livelyhood would I ever accept.
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he’s blackmailing, people. he’s threatening to ‘out’ the lenders and brokers who conspired with him.
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Personally I think its all BS. Casey, you strike me as a kid who wants attention and boy you are getting what you want. Mister big man Trump wantabe. Here is some good advice, get a real job and make something of your life. Good luck!
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The cat’s already out of the bag. Anyone who worked with Casey on a shady loan is already on the hook legally because of this site being cached, and thousands - including media and legal folks already having copies of this entire site saved on their hard drives. No need to pull the site down anymore. Damage is done. Casey, you’d do well to continue to be completely honest on this. But you’ve already likely really, royally angered those you’ve dealt with who may face criminal liability on the loan front for selling you these loans - and some of them might be so stupid and shady that they will threaten you with more than just legal harm. I would honestly notify law enforcement on this can of worms you’ve opened, save your emails and record your phone calls, because this is going to get ugly. Again, good luck.
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As long as everyone is telling the truth here I’ll let you know how I feel.
1. You should go to jail
2. You commited fraud (liar loan, and owner occup.)
3. You intentially deceived mortgage companies by purchasing multiple properties all at once.You suck. You are the reason why houses are so expensive right now for for people like myself that are actually saving up to buy.
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Not being a lawyer I don’t know what you could expect as far as mortgage fraud goes, but you may wind up with a large tax liability. If your properties are foreclosed on and sold off for less than your mortgage, then you’ll be charged the difference as income and owe the associated tax liability to the IRS.
Something I’d expect to see plenty of as many people went in thinking their worst case was that they could just mail in the keys, walk and wind up with bad credit -
the past 2 years. I did my first successful deal in October while still at my full time job. In January I quit my website programming job and went all out! From October 2005 to May 2006 I bought 8 houses in 4 different states, mostly with the help of 100% stated income loans (”liar loans”). Most are fixers - I was going to rehab and flip each one within a month or so. Buying was easy, but man was I in for a surprise (or a lesson?). This is the best part: As the last resort I went for one more cash-at-close deal.
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You deserve to go to jail.Everything you did wrong,you knew it was wrong/illegal at the point you did it.
Only a criminal would allow someone else to fill out a mortage app,so it would be approved.
As a real estate investor I HAVE NEVER lied to get first crack on a house by lying & stating it was owner occupant.I know people who do it it is not fair.
On HUD foreclosures i have to wait 14 days while criminals get 1st crack at the best deals by lying & stating they are buying for occupancy!
You & scammers like you have made housing prices skyrocket,thus forcing people to pay waaaay more for housing plus forcing hard working investors like me to sit on the sidelines while people with NO money scam the system.
I pay cash for EVERY investment property i ever bought,but i can’t compete with all the banks loaning out $$ to people like you & you paying 25% more for a property with a loan.
In an optomized market you shouldn’t be allowed to purchase property without at least 5-10% down payment out of YOUR own pocket!!!
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Some people seem to think I should shut-up and lay low and avoid being investigated or whatever.
You know, if the legal process finds me guilty of something and the punishment is fair then I must pay it… right?
Would you tell a “criminal” to run and hide from the law?
But am I a “criminal” in the first place?
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I have a brother just like you who is on drugs.
He thinks it is my moms fault for leaving her pocketbook out when he steals money from it.
He is 37 now & EVERY problem he has ever encountered in life has been blamed on someone else.
You are just a whiney little criminal,who is trying to become famous by posting on this website you created in hopes of making enough money from it to bail your sorry @ss out of the hole you dug!
you made the bed you are in, now lay in it(with bubba i hope)
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Good comments guys. Thank you all for both the criticism and the support.
I am not hating on the Bubble Blogs by the way. I have gotten lots of constructive feedback from those guys. And new ways of looking at things, like the economy as a whole!
I DO need to stop spinning my case any more than I already have. Talking more about it is just burying me deeper into a whole. And people are getting tired of it.
I just need to get myself out of my situation and hopefully help others do the same.
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So now it’s the BANK’s fault that you lied on your loan? Give me a break.
You obtained millions of dollars under false pretenses. This is the very definition of fraud. No jury in America would let you walk.
And remember, EACH loan you took will be a separate count of mortgage fraud, EACH with a possible 10-year sentence. The houses you bought and sold will be historical sites by the time you get out of prison.
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I myself am a mortgage broker and without trying to dodge the fact you are to blame… Ok that’s out of the way you’ve already faced up to that fact however (and I’m not trying to give you a scape goat here) I do blame a large portion of this whold fiasco on the mortgage broker’s you’ve dealt with provided that you did not pull the wool over their eyes. Somewhere above someone mentioned that realtors and mortgage broker’s used to be in an industry that had integrity. Borrowers like yourself come to us expecting legitimate advice that is in your best interest that’s why we get paid the money we get paid. The unfortunate reality is that most brokers only care about their own bottom line, how much money are they going to make etc. I just can’t imagine watching a new investor dig themselves into the hole you dug yourself into. Of course I am being a monday morning quarterback and it’s easy to come in after the fact and criticise others. If any other new investors are reading this BLOG my recommendation is to realize that Realestate is not a get rich quick scheme it is like any other job out there you have to work to make the money and it doesn’t happen overnight. Investing in realestate is not meant to be the risk that many (yourself included unfortunately) make it. Realestate is like mining for gold. You will certainly find the properties that will make you money overnight but they are the exception not the rule. Ok enough of that tantrum
Regarding the “Liars Loans” that got you into this whole thing. A Stated income loan was never intended to be a liars loan it was intended for the borrower whose income isn’t as easy to prove as another’s for example a waitress, bartender, or self employed individual. The borrower should certainly be aware of what the Broker is stating their income at and if it is outrageous or untrue the broker should be questioned on that. There are time when we stretch the income to make the loan work but it should be done sparingly and “stretched” only not Out and Out B.S..
In closing after all that you have learned I hope that you aren’t closing the door on Investing in realestate in the future the good thing is that you are still young you can take the hit financially and hopefully bounce back. Let this be the hit that makes you see stars and teaches you to get out of the way next time you see this punch coming. Don’t let it be the punch to the chin that knocks you to the mat and is so hard that it keeps you from getting back up. Finally all I have to say is STOP BEING THE MARTYR who jumps at the chance to get sued or put in jail. You are not the first person to do this and you will not be the last. Be the educator for others, learn the line you must walk between investing and just throwing your money away. Don’t try to get rich quick. Surround yourself by individuals who are successful and eventually it will rub off on you and you’ll be in the same boat as them. Don’t quit your day job, and don’t stay down for the count…
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whoa - what book was that? Sounds like an interesting (and VERY timely) read.
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Casey,
Taking your naiveté at face value, I think you’ve come to recognize that you’ve messed up pretty bad. As an owner of a mortgage company, let me tell you what happens to the owner of the company you’ve defrauded. All fraudulent loans will be put back to the originating company to either foreclose or to pay the losses after foreclosure. Having been bitten by guys like you severely a couple times, I’ve lost millions to fraud. My company has been critically wounded because of dishonest loan originators, Realtors, appraisers, and simpletons like you. You rail against the system that it is too easy to commit fraud, but it takes people of integrity to keep the system going, not just whine after the fact. There are countless ways to cheat the system, but who is going to stand up and defend the system. I am pained that your moral education will cost dearly someone who is not at fault.
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Why this might mean its time to PUT out the trash The implications for what this means are huge. If everyone is doing these kinds of deals, it won’t be long until it starts to hurt financial institutions and lenders. A comment from a poster named HungryBear here said it best. “I believe there are a lot of guys like you out there. This is the reason why I own puts (options to sell stock at a certain price in the future) on Countrywide.” His strategy is clear. Bet against the lenders because once these loans
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The best way to avoid blame is to make sure you are making the same mistake that many other people are making at the same time.
Lying on a mortgage application is just like pirating software/music/movies nowadays. A lot of people are doing it, and this makes it almost impossible to enforce. In your case, you went over the top. If you had purchased one or two houses fraudulently, it wouldn’t have been a big deal.
The question now is whether or not the lenders wish to press charges. (not whether or not you did anything wrong, because we already know you lied on your mortgage applications) If you did several transactions with a single bank (i.e. countrywide…. might be a good idea to buy Jan-2009 puts on their stock), they may feel wronged enough to punish you.
Your best bet is to approach every lender, give them their house with an “I’m Sorry” letter. This will save them costs of foreclosure. That might be enough to avoid anything criminal. Once again, whether or not you end up going to prision is going to be up to the lenders that are losing money because of you.
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OWNER FINANCE remaining properties. Ask for 10- 20% down which will cover your back payments and your monthly mortgage payments. Have the buyer responsible for taxes and insurance. 2 out of 4 buyers will default in some way then the property is yours again to sell at another 10-20% down. It will work, people with money have bad credit to and sometimes cant get loans but want to buy. DO IT!
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VERY GOOD ADVICE
Mortgage companies dont want your houses they want you to make the payments. If you find a way to keep up the payments you will be ok. Real estate investment is a ligit type self employment. If you were basing your stated income off the project amount of monthly income leasing or renting the properties thats not lying. I am a loan officer and when people have investment properties they can use them as income minus cost like. $2000 for rent monthly minus $800 mortgage and $300 taxes is a profit of $900.00 and you have 5 houses thats $4500 a month pre tax. You are young and mabye did not fully understand what the self-employment rules consist of and I dont belive you aquired these loans with the intention of default,which is an important point to make. One word of advice though..Do not avoid communication with the mortgage companies. Put out an ad for Owner financed homes good or bad credit 10-20% down,catch up your payments and dig yourself out of the hole. This can be resolved. -
Let’s just say that over the past few years you and more than 50% of the flippers did the same thing. The chances of you going to jail are slim to none.
Over the next couple of years this market is going to shakeout with thousands of your stories.
Dump everything except one you can afford and make it your home. Learn from your experience and realize that it will take a few years for your credit to rebound to any acceptable level of getting a good loan rate.
Then when you’re 30 and have great job with great income and want to dabble in real estate on the side, power to you……but never quit your day job.
Good luck from someone that quite remarkably had the story 15 years and the same outcome, but now I own multiple properties for the long term.
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I briefly skimmed through this for entertainment purposesI am a REALTOR in NY Stateand find this interesting to say the least. In regards to cash back at closing, there is nothing illegal about that as long as it came from your lender. You can use the money however you want as long as there are no stips that say different, at least thats how it is in NY.
The bank always takes a risk lending a mortgage, espaecially with the “flipper” types, and its up to the underwriters to figure out the level associated with it.
People lie in every transaction, wether its moving numbers on contracts for more sellers concessions or on stated income loans, or for damage repair. Its up to the lenders and attorny’s involved in the deal to do thier homework to protect both buyer and seller.
To get yourself out of this, contact your bank(s) and ask for a short buyout amount and try to get rid of them quick at that amount. If you can produce an offer to the court, it will usually slow the process and if the bank see’s money comming back, t may slow criminal charges.
In the mean time, maybe you should think about getting into a different line of work. -
You have definitely committed mortgage fraud.
But you will not go to jail.
It’s just paperwork.
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Hello Casey:
Since you are in California and there have been previous questions re California law re mortgage fraud, here is a link to the California Code of Civil Procedure section 726. The title of the section is:
“Foreclosure of mortgage or deed of trust: Proceedings; Action based on fraud”
http://caselaw.lp.findlaw.com/.....730.5.html
For Federal law, the U.S. Code section on mortgage fraud is titled “Bank fraud”:
18 U.S.C. § 1344
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practices over the last 12 months as a real estate investor. I am trying to figure out the following: Did I commit mortgage fraud? To what extent? What are the consequences? Will I go to jail? Should I take this blog down immediately, run […] Continue Reading September 24th, 2006
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Casey–
I see a lot of similarities between my story and yours. I was the smart business guy at 16, and I was in bankruptcy by 21.
Through careful planning and painful recovery I’m doing very well now. But it wasn’t easy, and I had a lot of very close calls in the period leading up to my bankruptcy.
Before I talk too much about me, let me comment a bit on what I see in your story:
Rarely do people normally go to jail for these things. But the publicity introduces a wild card.
You’ve essentially set yourself up as a poster-boy for the irrational real estate investment trend of the last decade.
Traditionally mortgage companies just forclose. They don’t often sue for damages, because given the reality that the person in forclosure doesn’t have any money to go after. This typically makes it not worth the effort.
However, if I were a large bank or a mortgage company that had suffered huge default losses over the last few years, partly due to shady application data…. I might just choose to take you on to show my stock holders that I’m doing something about it.
The only way to counter this is continue to shout your story from the rooftops. You were in the SF Chronicle website (www.sfgate.com) today and that is a great start.
Publicize the hell out of your situation and the companies that try to come after you…. In my eyes that is the only way to deflect the almost certain legal action that will follow.
Keep your “story” and yourself in the public eye as much as possible.Large banks and mortgage companies hate getting screwed, especially by someone who so publicly states how easy it was… but the only thing that will prevent them from making an example of you, is for you to make an example of yourself… keep up a public persona, banks won’t want to be a part of that. (They will forclose though)
THIS DOES NOT MEAN: Talking about your guilt or innocence in the press or blog and it does not involve publicizing the names of the people who you do business with now. As much as a public persona will make you too hot to go after by the banks, it will also make you too hot for people to want to get involved to help… (If they think their name is going to be all over your blog).
Most importantly: For God sakes Casey follow your attorney’s advice and stop making statements concerning your guilt or innocence on any particular law you feel might have been broken. What is already on your site is already there forever, but don’t dig your hole deeper. Tell your story without talking about specifics on your feelings of guilt or innocence. (You have to realize that a print out of this blog will be the very first piece of evidence admitted at any civil suit or criminal case brought against you.)
Finally, Casey… While you make your story public, just don’t forget one very important thing — you are in real trouble here. This means you need to follow your attorney’s advice and start to work on your strategy for emerging from this.
You say yourself you didn’t have an exit strategy from your RE investments… well, now’s the time to work on your exit strategy from the resulting mess you are in. You may not realize this yet, but regardless of your efforts to manage your existing holdings you have already entered into default. Even if you sold all of your propertys at break-even price, you still probably have maxed out credit cards. Bankruptcy of some sort is almost inevitable based on what I’ve read of your situation. That and unless you’ve been careful, you are going to have real tax problems…. but later down the line.
Rest assured, the days of debitor’s prison are gone… long ago we realized it doesn’t help anyone in the greater economy to lock someone up and throw away the key simply because they failed to pay back their debts.
Bankruptcy could be part of your exit strategy. Just don’t consider it too late in the game. Bankruptcy isn’t necisarily giving up, rather it is a means of providing you time to reorganize your assets and liabilities without fear of creditors coming and seizing and selling everything down to your silver fillings. Don’t think you can represent yourself in Bankruptcy court. The average person would be able to buy a book and file themselves, but you are not that person. Your case is going to be complex.
Finally, a note about your mental health and your family. Take it from someone who has been there before, someone who was in real financial trouble before I was 21. This whole process can leave you depressed and troubled. You need to keep an eye out for depression and get it treated if it comes up. This is going to be one of the most challenging and painful chapters in your life. You are going to have to borrow money from your parents to pay your attorneys. You are going to have to swallow some pride. You don’t have all the answers, and you are going to need real help.
Your relations with your family will be tested.When you emerge from this you will be certainly wiser, but your recovery both financially and emotionally will take many years.
The decisions you make from here out will determine how painful and how long of a recovery you will have. But, do not lose sight of the fact that YOU WILL RECOVER.
Many years now after my bankruptcy I am doing very well. In hindsight, I’m very lucky that I made those mistakes as young as I did…. Now I don’t have to do them again!
Good luck Casey, and feel free to e-mail me.
-Greg
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Always amazes me to what extent rampant greed bundled with youth, intelligence and unbridled arrogance is capable of.
Enough of the “gee whiz, golly gosh I did not ever think what I was up to might have been (a) unethical (b) dishonest (c) illegal (d) predatory, or whatever. Sure ya knew it (and a lot more I’d wager)- but hey you were gonna get yerself rich, rich, rich. It’s the ‘merican way baby, right?
Wrong grasshopper. You are in trouble now and you should expect a lot more to come tumbling your way. Best advice; Drop the f***ing blogging and get yourself an attorney asap for some serious chat. This mess of yours has not really even begun if even half of what you state is true.
Oh yeah, one more thing - grow up.
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Honestly, on behalf of everyone who has been ‘priced out’ of the real estate market, unable to buy homes in the neighborhoods we grew up in, seen families and friends and communities torn apart by the need to move due to escalating housing costs, fueled by flippers such as yourself, I really, really, REALLY hope you go to prison.
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No, but you will go to Hail for Mortgage Fraud
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I work for the Dept of Banking & Finance, i have checked you out and contacted other federal law enforcement officials, thanks for being Honest, and Honestly mabye you’ll only get probation, jowever we are coming for you, just mounting a case. As for your comment on backing out of short sales, you said in your own words you would cancel at last second, leaving the new unsuspecting buyer let down. Keep letting everyone down, once a fraud always a fraud ! You day in court will come, not before your ride in an unmarked car, a photo session and bond hearing.
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go to prison for your deeds.
you own your actions, you pay for them. -
Casey,
Ignore the idiot (Dept of Fin) in the last post. Government workers are NEVER up that late. There are two regulatory agencies, the Department of Corporations and the DRE. Banking and lending laws vary by state in the United States. Each state has its own commercial and consumer regulatory guidelines. Each state has a banking commission or finance department and in California is the Department of Corporations.
It is up to the each individual lender to come after you for loan fraud, a very costly process for the lender. They would rather you sell the homes and pay them off. They are more likely to go after the loan officers or brokers who helped you with your loan applications. Under the DRE and the Dept of Corp, the loan officer has a fiduciary responsibility to look out for your best interest, which includes telling a borrower “no” when they are crossing the line.
Your loan officers had to know how long it would take the different mortgages to show up on your credit reports. Because of first payment dates, setting up servicing and the time it takes to report back to the 3 major credit repositories, it buys you about 90 days. Your loan officer had to know this and order your appraisals accordingly.
Also, contrary to new loan officer’s way of thinking, “stated” loans are NOT for stating vapor income. Stated loans are for income that cannot be documented BUT IS THERE. Such income is room rent, selling cosmetics, Tupperware and the like in homes or over the internet, extra jobs for cash, other family members that are contributing to the mortgage but are not going on the loan, bonus income that is only in its first year but will continue, income from rental properties that is too new to count, and a new job that is paying you more or a new second or third job. Your loan officer should have advised you accordingly. They are to know the sources for the extra income. A QA process happens with the lender prior to loan funding … someone should have been looking your loans over.
There is also the issue of the appraisers and their licensing status in the State of California. In order for you to go “owner occupied” the appraiser had to mark the first page of the appraisal as such. The appraiser’s duty is to check if the home is tenant occupied or owner occupied or vacant. The appraiser had to be a part of this as well and the lender will look at them as well. If they feel the appraiser is involved, his lic can be revoked or suspended for a number of years.
Don’t let some of these people scare you. Continue looking for your solutions and work with your lenders.
Always,
Catherine
http://journals.aol.com/rapieress/Aweekinthelife/ -
gary north runs a real estate forum on graynorth.com.
It costs ten dollars a month to join his website, and join the forum.
John Schaub - go ahead, GOOGLE “John Schaubreal estate” that’s him - is among the moderators and posters in the real estate forum on his board.
Why not spend the ten, and post your problem where people like schaub will give you a really good analysis of your situation for the best price of all - FREE?
Good luck.
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You must be young to post your murders on the internet.
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first successful deal in October while still at my full time job. In January I quit my website programming job and went all out! From October 2005 to May 2006 I bought 8 houses in 4 different states, mostly with the help of 100% stated income loans (liar loans). Most are fixers - I was going to rehab and flip each one within a month or so. Buying was easy, but man was I in for a surprise (or a lesson?)….” He began to write a tell all blog about his adventures. Here is the
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Great, now you’ve told us what your lawyer(s) told you. Now you’ve waived the attorney - client privilege.
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OK, I’m now officially convinced that this is a joke/brilliant piece of performance art.
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thank you for sharing your plight with the world. Mostly, I hope your Adwords revenue helps pay your way out of this debacle. Think about other ways of generating income from your story and if you ever have to face disgorgement or can’t get rid of some of your fraudulent debt in bankruptcy, you’ll be glad you wrote this blog. Don’t listen to the naysayers. I think you’re smart for doing it.
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have questioned whether his blog is just a publicity stunt, but USA Today verified Serin’s closing documents before running a story Sunday declaring he may be “a poster child for everything that went wrong in the real estate boom.” With entries like “Will I Go to Jail for Mortgage Fraud?” Serin’s blog is a fascinating read. The details of how he got in too deep are a revelation, and so far he’s resisted the advice of readers to keep a few things to himself in the interest of self-preservation.
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DUDE that sucks
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My understanding is that bird dogging for real estate is illegal in the state of California. I don’t know about other states…
www.goldcountryhomes.com/story/?sid=810
Don’t get in deeper legal trouble…
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Colette
Try reading your own reference:“RESPA, forbids a real estate agent from paying an unlicensed person a referral fee.”
Casey is not a real estate agent.
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[…] Im sorry if this is a repost but i am reading this blog with my mouth on the floor. You have hardworking people who cant buy a home and this 24 yo with no income purchased 8 homes as an investor and is now facing foreclosure on 5 of them!Background:I'm a 24-year-old aspiring real estate investor from Sacramento CA. After going to few seminars I bought 8 houses in 8 months across 4 states with no money down. I fixed and sold 2 and then ran out of cash. I am now facing foreclosure on 6 5 houses. I'm learning my lessons, finding solutions and blogging about it. Comments appreciated! http://iamfacingforeclosure.co.....age-fraud/ ——————– TU 609- 6 inquiriesEX 643- 13 inquiriesEQ 590- 12 inquiries$148,000 Countrywide Home Loan$4,000 Bank of America (AU)$2,000 Hooters$1500 Crown Jewelers$1500 Dell Preferred $500 Credit Union Mastercard$500 ShopNBC$455 Walmart Card$300 Capital One Card$200 Target $1000 Target Visa […]
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Will you go to Jail you ask?
Well, let’s see, help me out here Casey.
In California, you have to sign lots of papers in the loan application process next to a notarized person stating that what you are saying is true.
It asks you if this will be your primary residence and you checked “Yes” as you were buying other properties while stating the same on the other paper work.
For a Judge to believe any of this BS, he/she is going to ask for PROOF that you LIVED in the home(s) you claim were INTENDED as your primary residence. Pushing for 5 “INTENDED” homes you wanted to occupied is streching it to say the least.
You already admitted here in PUBLIC that you bought these homes with the INTENT of flipping them, not occupying them. Now I believe you when you said that your lawyers advised you to SHUT UP.
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[…] Will I Go to Jail for Mortgage Fraud? by Crete property (crete-property) @ Sat, 11 Nov 2006 17:34:05 +0000 The alternatives are a) second home loan or b) investment property loan. Second home is like a vacation home and assumes that you will not rent it out and will be living in it part of the time. Investment property is pretty much … Original post: Will I Go to Jail for Mortgage Fraud? […]
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[…] When I found this on the Inman blog I almost went into shock.Full disclosureQuick: name a Web-based tool that anyone with a browser and Internet access can use to research the background of a loan applicant. Oh, and it’s free.If you didn’t say Google, go spend a few minutes on “IAmFacingForeclosure.com,” the blog written by a 24-year old Web site programmer who got in over his head investing in real estate. […]
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Wow what an interesting story. I admire your entreprenerial spirit but as someone already said, it does take many failed attempts before you succeed. Good luck with everything.
God bless.
Michael Mells,
http://www.mikeshostingreviews.com -
Well, I am depressed now. At least “A JOYous one” was at the end of this blog. Casey, there was somee good avdvice in here I’m sure, but JOYous one was the best. Why do people want to hurt those who are hurting. Does it make us feel better to see someone else pay. All have sinned! Every blasted one of you out there has made a bone-headed mistake. Casey did not risk someones life by speeding, or running a yellow, or firing a gun in a crowd. he tried to make some money doing what thousands of other people are doing. Did he do it the right way? No! But jail time? Do all of you realize that by putting him in jail, you have to pay for his meals, clothing, and housing? I say, show him a constructive way to get out of this…even if it takes years. He is obviously motivated and not afraid to work (he was doing the repairs himself). Maybe I am siding with him because our situations are mirrors of each other. But, I can’t imagine he deserves to go to jail. Good luck Casey
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Mortgage Rate are down again, probably best time to refinance again, you can try my services.
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Here is a question for you! I bought a property as an investment. The investment company I bought it through inflated the value and was keeping he extra money in an account to make the payments on the property for the next year while they do the same with other properties. I also saw on the loan docs they over stated my income by about 20k a month. I am now finding out they took the money and spent it on other things and there is not enough to make the payments on the mortgage anymore. I also found out the person who came to my house to sign the papers was not a notary. Can I get out of this?
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Bob,
Are you for real ?
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Bob, you need to see a lawyer. Casey is in no way in a position to tell you if or how you can get out of it.
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Serious! i didnt put any money down out of pocket.
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[…] reply to this post email it rate flag Casey Serin has some questions…….. <> 12/07 22:32:49 12/04/06 at 07:19 AM ——————————————————————————– Hello folks, I found your site and you can read my story below or go to my web page to see how the lenders worked with me to put me in foreclosure and how I am trying to stop foreclosure and protect my credit. http://iamfacingforeclosure.com/ http://iamfacingforeclosure.co.....age-fraud/ Will I Go to Jail for Mortgage Fraud? In this blog entry I�m explaining all the potentially �shady� loan practices over the last 12 months as a real estate investor. I am trying to figure out the following: Did I commit mortgage fraud? To what extent? What are the consequences? Will I go to jail? Should I take this blog down immediately, run to Russia and change my name? I will be researching the above questions in the next few days. I will be reading articles online and will be talking to attorneys, lenders and fraud specialists. If you have any pertinent links, articles, advice or professional referrals, please leave a comment or email me. Thanks to everybody who commented on previous articles. The advice has been helpful. MSFraud.orghttp://forums.oregoncoast.craigslist.org/?ID=53877972 […]
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THIS KID’S FRAUD IS ENDEMIC IN THE ENTIRE MORTGAGE INDUSTRY
MORTGAGE INDUSTRY REFORM NOW
DOES ANYONE REMEMBER THE S&L CRISIS OF THE 80’s??
WE ARE ALL COMPLICIT IDIOTS THAT THIS KID FOLLOWS OFF A CLIFF
The truth is that MOST mortgage banks have no business being in business. They are homogenous(sp?) manufacturers of loan products ultimately purchased by others. This is one job the federal government could do just fine (think of it, the IRS already has all your tax information). Mortgage lenders add very little value to our economy. The investors that buy their loans have one goal: Creating securities with structured fixed income streams that pay very wealthy people, insurance companies, foundations, retirement funds, and others with reliable interest and dividend payments. Fixed income streams amassed from the the pile of suburban home-sprawl and dead bodies of middle class Americans chasing the phantom of the American Dream- financial freedom, who don’t realize that 98% of us are not going to make it. And the 2% of us that do hope that the rest stay confused enough and scared enough not to rock to boat so that we can keep getting ours.
The emporer has no clothes. I love this kid. I have been consulting to mortgage lenders small and large for nearly a decade. I quit working in the industry because, honestly, the executive leaders at many mortgage lenders think just like this kid does. IT IS ONLY A QUESTION OF SCALE. Sure they play by all the regulatory rules, and they have credentials, they are legitimized by society, peers, secondary markets and on and on. Yet MOST mortgage banks produce loans that are sold to either Fannie or Freddie or to issuers of mortgage backed securities. In other words, most mortgage banks, serve as mortgage coupon aggregators for secondary market investors. THEY ARE THE ULTIMATE FLIPPERS, few hold their loans for longer than 60 days. Oh yes, have you been following the FRAUD at Fannie? The FIASCO at Freddie? These are the BLUE CHIP (government insured) organizations that BUY mortgages from the lenders like a bunch of frat boys on crack buying pretzel sticks by the case at Costco. Compliance in the industry is almost completely and directly proportional to enforcement AND enforcement energy is directly proportional to economic externalities impacting institutional-level players not joe six pack sitting on his stoop watching his kid ride a skateboard.
The federal government created institutions that deliver on the public interest on having liquid residential real estate markets permitting ease of capital movement (easier lending, loan purchases from Fannie, net you quicker cash to redeploy). The investment banks caught on and started speciality funds to issues securities backed by loans as well. However, the OH S*** moment arrives when we accept that the whole system depends on brokers, loan officers, and underwriters that are 1) not particularly bright people and 2) paid based on production like a used car salesman and 3) most Americans have the same feeling about personal savings as Britney Speers has about wearing panties, 4) the same appetite for debt that Clay Aikens has for dick. In other words, this KID is US. AND IF YOU ARE SCARED YOU SHOULD BE. The American dream of home ownership is yet another diversion from the new substantive dreams that Americans have failed to invent and this lack of new vision is leading us towards becoming culturally and economically bankrupt.
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(It’s time to face reality…) 19 Interesting CommentsFiled under other Casey Serin: I’m a 24 yr old real estate investor from Sacramento CA. After going to a few 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 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
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TO; Casey Serin
Dear Sir,
REQUEST FOR URGENT BUSINESS RELATIONSHIP
First, I must solicit your strictest confidence in this transaction. This is by virtue of its nature as being utterly confidential and ‘top secret’. You have been recommended by an associate who assured me in confidence of your ability and reliability to prosecute a transaction of great magnitudeinvolving a pending business transaction requiring maximum confidence. We are top officials of the Federal Government Contract Review Panel who are interested in importation of goods into our country with funds which are presently trapped in Nigeria. In order to commence this business we solicit your assistance to enable us transfer into your account the said trapped funds.
The source of this fund is as follows: During the last Military Regime here in Nigeria, the Government officials set up companies and awarded themselves contracts which were grossly over- invoiced in various ministries. The present government set up a Contract Review Panel and we have identified a lot of inflated contract funds which are presently floating in the Central Bank Of Nigeria ready for payment. However, by virtue of our position as civil servants and members of this panel, we cannot acquire this money in our names. I have therefore, been delegated by my other colleagues in the panel to look for an overseas partner into whose account we would transfer the sum of US$21,500,000.00 [Twenty-One Million, Five Hundred Thousand U.S Dollars]
Hence we are writing you this letter.
We have agreed to share the money thus:
1. 20% for the account owner you
2. 70% for us [ Myself and other members of my panel ]
3. 10% to be used in settling taxation and all local and foreign expenses direct or incidental to the execution of this transaction.
It is from the 70% that we wish to commence the importation business. Please, note that this transaction is 100% safe and we hope to commence the transfer latest Ten (10) banking days from the date of the receipt of the following information, company’s name, Address, Telephone and Fax number.
The above information will enable us write letters of claim and job description respectively. This way we will use your company’s name to apply for payment and re-award the contract in your company’s name. We are looking forward to doing this business with you and solicit your confidentiality in this transaction.
Please acknowledge the receipt of this letter using the above Email address.
I will bring you into the complete picture of this pending project when I have heard from you.
Remember this is a Deal so treat with utmost confidentiality.
Yours faithfully,
DR. YABRIL OMOTAYO
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Bravo TBS. I’ve always wanted to be associated with Britney Spears. Now you’ve solved it.
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[…] Well it all started one day when I was waiting at the bus stop. There was a homeless man sleeping sound covered in news papers. I saw one section of the paper that he wasn’t using and it had an interesting article entitled “10 mistakes that made flipping a flop” it was a fascinating story about a 24-year-old Real Estate investor named Casey Serin. I didn’t get a chance to read the whole article because my bus came and I didn’t want to take the homeless mans paper, so when I got home I immediately ran to my mom’s computer logged on and searched for “Casey Serin” the results came back with “IamFacingForeclosure.com” I clicked the link and that was it, the start of my nightmare.On his website there was all this information on how to by Real Estate. He showed how easy it was for someone to buy properties with out having anything just by lying on loan application. From his own submission it was clear even a monkey could buy Real Estate.That was all it took and I was hooked Casey was my Idol my Guru, he was the MAN! The main reason I ended up going down this dark lonely road fallowing after Casey was because of the sweet deals like getting money after you buy the house or “close”. He talked about one deal and how he got $50,000 cash back at close, Imagine that actually buying a house and instead of paying $50K you get $50K. Only in America!I had it in my head that this was going to work for me, my Master Casey made some mistakes and was a little unlucky. But I was going to learn from his mistakes and were he failed I would succeed.The Sweet Deal!I thought I had learned everything I need to know from Casey’s blog and I was on my way. I looked in the Real Estate section of the news paper looking for some sweet deals. This was the first time in my life(I had just turned 18) I ever thought about buying Real Estate, I never even looked in the RE section before and can you believe I found the sweetest of deals my very first time.Now that I had identified the property I wanted the next step was to get the loan, one Casey special coming up. The good old “liar loans” the things Casey’s dreams are made of. With the tricks or should I say the techniques I learned from my Master’s blog, I logged on to the Internet and went to some shady mortgage loan website and applied for a 100% financing - stated income - interest only loan.To my surprise I got approved for a loan rather easily, they stuck it to me with a really high interest rate but I didn’t care because I was going to get cash back and anyway I was going to turn around and sell the properties fast!I say I bought 4 properties in one day and this is true, the place I bought was a fourplex that was just converted in to 4 single condo units. Although the condo conversion was completed the place still needed some upgrading witch I didn’t mind because I was going to use this to help get even more money back at the end of the deal.Well this was the beginning of the end for me, to recap so far:I saw Casey’s story in USA TodayI found his Blog: http://iamfacingforeclosure.com/I learned how he worked all his sweet dealsI saw how easy it was and wanted to be just like him but betterI bought 4 condos with 100% stated income I/O loansI am NOW facing foreclosure just like CaseyI will keep blogging about my story and keep everyone up to date with whats happening.Please feel free to leave me a comment below.Encouragement, advice, tips are all welcome. […]
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casey keep in mind the phrase when you build it they will come.
most investors which are not contractors fail to understand that a comprehensive understanding of construction law and its use is needed to succeed in property investing. for example im from chicago the sears tower is an example, nobody built another one it has location, risk, liability, no comparison a unique structure. most bloggers here dont have a clue for instance when their wives or girlfriends are being f***ed by someone like me and go home and everythings all good, the same has to be understood when the former owners sat down and said we want to build this, they laughed at them, but you know what no one laughs at them now just sheer admiration at the complexity that was undertaken and achieved through hard work and strong business plan.back to your so called worthless parcels either venture out with a construction partner, acquire portfolio construction financing, acquire an honest general contractor do a thorough background check make sure they provide you waiver of liens for their subcontractos or anybody that enters your parcels, verify their business licenses, credit reports, dunn and bradstreet, their business insurance verify that its current, pay for the building permits from proceeds of closing, acquire surety bonds and pay for workmans compensation separetely.
then take and add aditional bedrooms to the parcels, augment the square footage by expanding the parcels up by adding additions verify with zoning first, most will allow it more re taxes to them, add additional bathrooms, finish the basement for sales appeal, purchase home warranties for parcels, enlarge or enhance the kitchen this is for sales only the value in my opinion will increase by how much im not sure you need to contact an appraiser for bedroom count and square footage in bedroom and additional space remember in appraisals basement bedrooms cannot be counted in the report its just used to create a good sale that closes or acquires a happy tenant and then allows you to refinance.
if you keep all these steps in mind you will win and be out of this mess, never give up only losers give up winners always f** the prom queens
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After reading this I am just laughing really hard. I totally admire your initiative & desire to become financially free. However, you went too fast & now in deep water.
The financing techniques you used can work, yet require careful planning and experience. No matter how the mess shakes out, know that deep down you’re a winner. You have the most important - a mental success attitude. Remember that long term sucess always includes temporary setbacks. No man or woman that ever made their own money (and kept it) did so without mistakes.
As far as those people that suggest you get a “real job,” they are ignorant about how to accumulate assets. The time it takes to learn this business is tremendous. You never learn this working a “real job.” You only learn it by doing deals as a principal, period.
No matter what kind of market, you must always acquire at a discount - either with price or terms. This is how to keep a safety margin and grow the portfolio.
Get through this and keep learning…you now know what NOT to do. And who NOT to listen to. Most of life is about finding out what doesn’t work.
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those angry can now rejoce in his pain I suppose. Here is his caption on his blog: [IMG ]Casey Serin: I’m a 24 yr old real estate investor from Sacramento CA. After going to a few 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 fell flat on my face with millions in debt and facing foreclosure. Trying to avoid foreclosure, sell quickly, repay everyone. I’m going to weigh in here and point out a very common misunderstanding when
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, he is the now infamous poster boy for the current bubble. By his own admission, “I’m a 24 yr old real estate investor from Sacramento CA. After going to a few 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 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
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Casey Serin
please asdvise your readers that this guy (yabril Omotayo)
that is writhing to you is a scam artist he is just trying to scam people out of there hard earned money by getting your/there bank information in order to clean you/them out
please have an open eye for people like this especially if the letters are coming from nigeria.good luck
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Let’s be honest and pinpoint the source of this negativity. You whiners are pissed that 20-26 year olds are getting filthy rich while you have wasted your life in the middle class never being able to reach the financial peaks you would have liked.
I am 26 and a millionaire 30x over with 45% of that in liquid assets. I am not even a high school graduate and you people cannot stand it. I made it all in 6 short years through Real Estate and Mortgage Brokering while you folks have struggled month to month trying to make the payments on your Ford Escorts. You hate it..i know it..let’s move on.
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[…] I’m on a mission to acquire 100 income generating properties. Emphasis is on income generating. Lots of people have bought homes over the past five years, some to live in, others for investment property. I think many who bought investment property bought wrong (hoping for price appreciation), and many people who bought to live in should have never bought at all (through liar loans pushed by scrupulous mortgage brokers). As I’m a long-term investor and not a flipper, I will only acquire properties when NOI works. […]
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Casey:
Y’know, you shoulda come to see me first for your financing…
I don’t demand a lot of forms or paperwork to fill out. and I don’t even mind if you lie to me a little.
As long as you agree to the vigorish, that’s fine.“Will I go to jail for mortgage fraud?”
Well…yeah, you probably will.
Which is why you shoulda come to me.
All I’d have done is break both your f***** ’ legs if I don’t get my money.
But Banking Laws frown on that sort of practice….so what ELSE is left for them to do to you?
Fuggedaboutit.
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why didnt you just refinance the houses with investment loans? simple solution to your primary residence problem
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[…] Look at it from the other end - the borrower. This is the work of a 24 year old relatively naive young man who took courses on how to get rich in real estate and then sort of let his imagination take over. He bought 8 houses in 8 months with no money down. […]
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Seems the $30,000 in Real Estate school did not teach enough. Here is the senario: audits of mortgage files happen random to those mortgages in default. It seems some fraudulent activity took place, mainly if you over exagerated income and the owner occupant stated is really aggressive. I would say on the stated income, well that is all over the place as an investor maybe you were making the big money at first then dried up. As for owner occupany it could be trouble, although most likely you won’t go to prision. Potential problems are: the second mortgage lenders could come after you for the difference in some states, as like a car loan they auction off and a balance is left remaining. Also short sale is an option, the negative in this is the lender could 1099 the shortage agreed upon as earned income. They take a $50,00 loss, now you owe the IRS income tax on that $50,000. I say maybe because it does not always happen. My suggestion to newby investors, don’t speculate Real Estate (hope the vaues will increase) we purchase homes and make the money the day we buy not sell. What do I mean, the property is being sold undervalue at the time of purchase. I get the home for $400,000 knowing the low end comps are $510,000 plus right then. Even in down market we can rehab and get out quick sell under market and still profit. Never buy a retail or close to it. Searching NOD records and MLS listings there is always a deal out there, I like 25% off the average selling prince in the area, never lost on one yet and no mortgage fraud. Let the lender make their money for taking the risk to loan you money on a non-owner property, (investor). Win win situation, everyone goes to the bank happy…
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If he had started a year or 2 sooner, he would have looked like a genius - because market appreciation (inflation) would have solved all his problems. But sadly, he got in too late, and now he is wondering if he will go to jail. IMHO - Casey’s comments, and all of the reader comments demonstrate the huge disconnect between perception and reality. This entire blog is the blind leading the blind. I give him credit for this much - high rating on entertainment value. Well
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If he had started a year or 2 sooner, he would have looked like a genius - because market appreciation (inflation) would have solved all his problems. But sadly, he got in too late, and now he is wondering if he will go to jail. IMHO - Casey’s comments, and all of the reader comments demonstrate the huge disconnect between perception and reality. This entire blog is the blind leading the blind. I give him credit for this much - high rating on entertainment value. Well
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These people you hurt are not faceless. I have 6 children and my landlord did what you did. He bought alot of homes (owner-occupied) and flipped them. Well the ones he couldn’t flip (because he overstated the value) he rented. Now the house I am renting is being foreclosed on and I have to move. In the middle of the school year. My little ones are crying because they have to leave their friends. I had no clue of what he was doing until foreclosure. I have a lawyer and I am suing him for fraud. If people like you and him go to jail for awhile hopefully this insanity will stop. If not I can see vigilantes taking it on their own to make it stop.
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Hey
I listened to Kiyosaki and he has totally changed my life. I started my own biz and at 25 am financially free. I would love to help you if you need some insight
Dale
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I don’t know the full legalities for your particular state, as I thankfully live in the South. However, having been in the mortgage business more years than I care to count, you CAN face civil and/or criminal prosecution. Having “lied” on your loan applications for these properties and most of all admitting to it here (not real bright from a legal standpoint) you have committed fraud. If you care to read the statement at the bottom of every single loan application that you signed in conjuction with these mortgages you declare when signing that application that “the information provided in this application is true and correct as of the date set forth opposite my signature and that any intentional or negligent misrepresentation that I have made on this application may result in civial liability including monetary damages, to any person who may suffer any loss do to reliance upon any misrepresentation that I have made on this application, and/or in criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Sec. 1001.” That is the standard language at the bottom of 99.999% of all loan applications out there. This is to protect all parties involved when someone is commiting fraud without their knowledge. This even protects the mortgage company that you used in case they were by chance a Broker and the Lender that purchased your loan comes back to them to “buy-back” the loan since you defaulted on your payments within a certain amount of time. Whether or not someone will CHOOSE to prosecute you, that is another story. But you can be held liable. I have fired several loan officers over the years when I caught them doing fraudulent loans exactly like yours!
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criteria for getting these properties financed has been screwed up for some time now, (which is now getting fixed)
stated income or liar loans can’t work, (unfortunately). lower credit score thresholds? need to get fixed. 80-20 loans are a bad idea. responsibility is not just a casey problem, he lied and should be punished, but the lending industry has to tighten up their standards as well. By the way, stated income loans were not created for you casey.
Sad thing, i have seen kids right out of college with no job buy 500,000 dollar homes right here in las vegas on liar loans. what did we think was going to happen, hey look the shoe shine boy just bought a million dollar home. casey, nothing special about what you did, anyone can do it, but your timing was bad and you got caught when the bills came due. market has pulled back some, economy is soft, now comes correction. 5 to 10 percent down on residential, commercial or otherwise is still not enough, 20 percent can give you the head room you may very well need when things get tough. creating wealth is not a fifty yard dash, it is a marathon race. good thing for you this nationwide home mortgage problem does not leave you alone and resources won’t be there to prosocute everyone, kind of like the S and L scandals way back. you can’t ask people to tell the truth you have to make them prove the truth i guess. -
“God” you make a good point, the industry does need to tighten up and it is now definately correcting itself in a hurry. As evidenced by all of the changes I have seen in the last 30-60 days especially this week alone. There is virtually no demand for 80/20 or 100% loan paper. Just this week I can think of 4 major lenders that still offer 100% financing in one form or another that have significantly changed their credit score and documentation guidelines for these products, raising the score requirements by 40-50 points minimum and the “stated income” option on these is now almost non-existant. Give it another week and I predict that it will be. I also recieved an e-mail a few minutes ago from another major lender that as of the end of business today stopped offering 100% financing period because of the lack of demand on the market and the flood of incoming applications that they were receiving as a result of the volitility of the loan market and the changes being made by other lenders. Also, 1 major lender shut their doors to residential lending Monday and other one is in serious trouble and more than likely heading for Bankruptcy. Lending is heading back very quickly to where it was pre-2001 where guidlines were much smarter and much tougher than where they are now, and it’s happening very rapidly.
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So bottom-line — watch out for these scams as they can ruin your credit and actually prevent you from getting the house you want. <> <> Tags: money, business,
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All take a look at my post number 91 here. Look at what is happening in the industry today. The whole mortgage ecosystem is in toxic shock. Seems that many tampons made of mortgage backed paper are causing infections at an alarming rate. All of this in a post Sarbanes Oxley world. If you are not scared shitless you should be. Mortgage banks, investment banks, institutional investors will ring their hands HOWEVER they have already rung the cash register exploiting systemic weaknesses. By the way, the chinese government holds est. $300 bn in US mortgage backed securities. In a way we can thank their demand for our paper as one influence keeping the bubble going. We primarily have our own institutions to blame. They do not give a s*** about average americans. We are simply atomic inputs into models that project mass behavior or demographic trends. Important only in the aggregate. Exploited economically in the aggregate and disaggregated for political power dilution. Wealth is concentrated further and further the masses complicit in their own slavery. The capitalist dream bastardized by market makers in hedge funds, investment banks, etc. who care more about derivatives than creating a society of destiny. America is so much more that what our bankers and politicians have made of it. All this abundance to what end? Watch the squirming that goes on now that the damn is breaking in subprime…..watch how the infects spreads to prime AAA paper….watch how the hedge funds catch fire…….I am very concerned
To, I like reyl estayte, not sure I follow your points. Mortgage savings=home equity. Home equity is a phantom in most sub prime loans.
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No matter what your critics (as Arnold S. so aptly described these types as “Girley Men”) say, at least you did your best to acheive the American Dream. Dude, you’ve got balls!! Okay, so you failed this time. Well, you’re back on your feet and back on the prowl…
You obviously learnt some invaluable lessons, and appear eager to share it with others. Maybe you plan to market the lessons you have learnt from putting into practice the theories and techniques taught by “motivational experts” in R.E. such as Kiyosaki, Whitney, etc. I’d say you should seriously consider writing a book about yourself, what goes on in your head that makes you so positive and hopeful for a better future inspite of set backs, if you had a chance to redo your life how you would re-live it (the mistakes you would not want others to make, and what alternative choice/decision they should make), etc.
You’re a gold mine of information on R.E. I know I’ll buy a book (hopefully if you write one) written by you on R.E. mistakes, wrong strategies, etc. in a hearbeat.
Good luck to you, and keep your head up!
–Umesh -
About [IMG Casey Serin facing foreclosure] Casey Serin: I’m a 24 yr old “would-be real estate mogul” from Sacramento CA. After going to a few 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!
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Meet Casey Serin. http://iamfacingforeclosure.com “Casey Serin: I’m a 24 yr old “would-be real estate mogul” from Sacramento CA. After going to a few 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!
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Found this blog in a roundabout way through Transparent Real Estate. The author outlines a fairly typical set of fraudulent transactions demonstrating his crass disregard for honesty and integrity as well as the ridiculously common collusion of the real estate
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Casey,
I hope you contact me from this and we can talk. I am absolutely amazed at all the people who are throwing rotten tomatoes at you. I want to come at your whole situation from a completely different bent.For anyone out there who REALLY knows…and I mean really understands the real estate/mortgage industry, you were channeled into what the industry was quite happy for you to enter. Stated loans — what are they all about? They are designed specifically for someone who can’t document income. Stated is stated…period. You predict what your income would be. As a borrower, you pay the price of not being able to provide evidence of the income by a much higher interest rate. The investors behind the loans know perfectly well what they are dealing with.
100% or above is exactly the same thing. Every subprime loan and overleveraged loan was made by willing brokers - but more importantly, willing investors who are happy to get that 8.5% (or 9% or 12%) out of your payments. It’s only the lawyers and politicians who seem to need to be involved in everything that created the muddle that’s now interpreted as the ‘law’ behind these loans. Anyone who doesn’t understand that you are borrowing from highly knowledgable willing participants who are all too happy to earn a healthy income stream for 30 years has absolutely no clue how the process really works. Only in the last couple of decades have all this nonsense about occupancy, income statements and the like been added in to loan documents…for the protection of the big pockets and big pockets alone.
Once upon a time a person who wanted to borrow went to a bank and applied for a loan. The banker made a decision based on lots of factors - credit worthiness, reputation, purpose of loan, etc., etc. They either made the loan on behalf of the bank and its depositors or it didn’t. If you wanted to borrow 110% of the sale price of a property worth twice as much fixed up, so be it.
Today, we have instead the Fannie Mae, Freddie Mac and other entities…that are…guess what…connected to wall street under the guise of the government. That’s where it all comes under the legal lens. And, I’ll say it again…those who ultimately invest in the loan portfolios, those who service and sell the loans, those who broker them, are quite happy to get you into the loan and get that interest…until things go bad for YOU. Then, you become the criminal because you tried to make good for yourself. If you had kept your ship afloat paying that 10% interest, they’d never care, and would write you those loans everyday without care.
A piece of advice — keep up the real estate investing, but look to private lenders. Get out of the institutional money. However, don’t get into the private borrowing until you have a better handle on your own investing numbers. In short, get a bit better at the investing game. Those private lending people really do need their money back and you dont’ want to risk a foreclosure with them out of integrity.
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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!
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I can’t honestly believe a person in your position would openly disclose as much of the details in your respective transactions as you have. That said, to answer your questions, based on 25 years in the investment banking business, let me offer my perspective, seasoned with a modicum of practical sense.
Did I commit mortgage fraud?
Yes. We both know you lied on your loan application. You lied because you signed the form, and your broker lied, because he/she knew the truth–as a practical matter, and they framed the facts in a way that would produce a favorable outcome for your intended objective. Your alleged good intent is irrelevant; what you actually did is relevant. Besides, your intent was to defraud the lender of funds that given the facts as they existed in reality would never have been provided. That said, even if your intent was to purchase the property and use it under a special-use permit as a habitat for terminally-ill orphaned children, your underlying intent was to defraud. The information you provided was provided for that purpose. You intentionally misstated the facts for the purpose of obtaining funds that would not otherwise have been available. And if you wish to hang your hat on the “nail” that the broker misstated the facts, then we can simply reply, “You knew, or should have known” what was being written on your loan application. Add to that the fact that, as an investor, arguably you are a sophisticated purchaser, as that term is defined by the law, and therefore we can reasonably assume you read the documents, and if that much is true, in and of itself, you are guilty, because you read and then signed the form attesting to the voracity of the contents thereof.To what extent?
See response above.What are the consequences?
Grossly oversimplifying this, when the loan is originated, it is then sold to an investor, who purchases it with limited recourse, usually free of any personal defenses. The initial consequences run from the investor to the lender, secondarily from the lender to the broker. Depending on the extent and timing of the default, the lender may have the right, and therefore may elect, to have the broker repurchase the loan (usually in the face of an EPD of 1 to 3 months). The investor most certainly will require the lender to repurchase the loan, because the loan is part of a REMIC pool and the servicing and pooling agreement most likely requires the repurchase or replacement of the defaulted loan in the pool (many times the servicer can elect to place the defaulted loan into a forbearance agreement and monitor the receivable until it reaches “reperforming status”).That said, no doubt your question speaks to the consequences which you may face arising by reason of your alleged actions as you have “confessed” them. First, as a practical matter, you can reasonably expect no consequences, except the loss of your property through foreclosure, possibly a deficiency judgment against you, and of course the obvious negative impact on your credit report by the payment history reported for each defaulted loan, the notation of a foreclosure for each defaulted loan, and the corresponding impact on your credit score, which by now should be languishing somewhere in the mid to low 400’s.
Investors, regulators and other relevant law or regulatory-enforcement agencies have no time to deal with individual cases like yours. However, IRS, FBI, and in some cases HUD, have been known to actively seek prosecution of the perpetrators of the type of fraud you have committed, where the fraud evidences other forms of criminal activity, say, for example, tax evasion… One might reasonably conclude that if you are willing to commit fraud in the manner you have, you may be willing to also misstate your taxable income.
Clearly, to answer this question you need an attorney. However, I have worked with fraud investigators from all of the agencies I have listed, and typically, while obviously they frown on what you have done, much larger “fish to fry” exist. Obviously, I’m oversimplifying, and I would add, you are one among many millions of folks who have committed the same acts. I would say the prosecution of your instructors and those who aided you is a larger fish, and your abject cooperation with regulatory agencies, if any, investigating and/or prosecuting the matter would mitigate some of what you have done. I think a DA couldn’t care less about you, and a US Attorney might if there are larger elements.Will I go to jail?
As a practical matter, highly unlikely, because it is unlikely your case would even be examined at that level. However, if you have committed other crimes in connection with your mortgage fraud, you may very well enjoy the hospitality of some type of minimum security federal prison—highly unlikely. Have you? Don’t answer.Should I take this blog down immediately, run to Russia and change my name?
Too late. The right people reading this already know your location.In the end, what you have done is what many have done. The industry is not unfamiliar with your situation. And with the advent of securitizations back in the ’90’s, the stage was set for this type of drama. As with all window opportunities, this one was destined to close, as it has now slammed shut. We can’t blame the industry professionals or the private sector wishing to get ahead. The motivation of the industry professional which drives him or her to perpetrate and suborn mortgage fraud is identical to that of the borrower doing the same thing. We all want to get ahead using the fastest way possible. When you provide a loan product to an indivdiual, and you say, “here, if the credit score is 580, you can just ’state’ income and assets–no need to prove either”, can you honestly expect a reasonable everyday human not to perform in the way the industry has this past decade?
Stop beating yourself up, learn from your mistakes, work on cleaning up your credit, get a decent job, and return to investing as a side income. Be honest with yourself regarding what you can do, tenacious or not, and you’ll be fine.
What you have done is technically criminal, and it is actionable. On the other hand, legal rights are only as enforceable as is practical to do so.
You may have dodged a bullet, but watch yourself.
Your number’s been recorded–more than once… -
So i need to understand…when you watch shows like house flippers they make it look so easy. Im getting that its not for those who have attempted it.
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File for bankruptcy protection:
http://www.totalbankruptcy.com.....p?state=caPick out out the best affordable house to live in that you own. Then file for chapter 7 bankruptcy protection. Refer all legal questions to your lawyer.
Pray a lot.
Never give up . . . -
http://www.totalbankruptcy.com.....p?state=ca
file bankruptcy chapter 7
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BankruptcyLawyers-home.com will provide you with some useful general information concerning bankruptcy and its effect on mortgages.
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He also told the bank that he planned to live in each house, which got him better financing. I’ve heard of other people doing this too. Sounds like a good scheme, but lying on a mortgage application is apparently a federal crime, which could land a person in jail. Mistake No. 2: Overpaying In order to flip his house in Sacramento, he agreed to purchase the buyer’s existing house. He also helped the buyer out with the 20% down payment and penalty to the bank (for ending his mortgage early), resulting in him
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m being a lady). Here’s his little “about me” bit on his site: I’m a 24 yr old “would-be real estate mogul” from Sacramento CA. After going to a few 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 got over-leveraged, trying tried to stop foreclosure, and still trying to repay everyone (if possible), and share my lessons to help others in trouble.
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situation is f–ked UP (I’m being a lady). Here’s his little “about me” bit on his site: I’m a 24 yr old “would-be real estate mogul” from Sacramento CA. After going to a few seminars I bought 8 houses in 8 months in 4 states with no money down
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