Quick update…
Had agent drastically lower the price from 469 to 409k in order to compete with all the inventory. Apparently we haven’t been getting offers because ALL the houses on that street are for sale and the entire Rio Rancho area is really bad right now because of all the flooding. (The rest of Albuquerque area RE market is doing quite well.) So, nobody wants to buy in Rio Rancho right now. This is bringing down all the values in that area.
After the price reduction went into effect on Sunday, three people looked at it today but after they saw the washed-out streets all around they decided not to send any offers.
However, we did just get a letter of intent late today for $380k with $10,000 cash deposit. I’m going to submit that to the bank tomorrow morning with the short sale packet and my hardship letter and see if we can stop or postpone the foreclosure that is scheduled for Wednesday. (Down to the 11th hour again!)
I did verbally accept the $250 + $1250 for my redemption rights on Sunday. The guy sent the initial $250 check and the paperwork in the mail today. I need to notarize it and send it back to him.
That’s actually the same person that submitted the 380K letter of intent. I wanted him to try to buy the property from me before foreclosure so that I don’t get another foreclosure mark on my record and pay the lenders back at least some of the money. The offer might allow me to stop foreclosure temporarily. Either way I told him I’ll sell him my redemption rights. What do I have to loose lose? (I haven’t signed the paperwork yet because I haven’t seen it yet.)
I told my agent to send me pictures of the flood damage around the house and of the damage to the driveway, as well a few good pictures of the inside of the house as well. I will be sending those with my short sale package first thing tomorrow morning to show the bank what’s going on there.
They need to understand that if they take this house back through foreclosure they will be stuck with it for a looong time.
Burdett: Got an offer for $245,000 but they want the seller to pay for a bunch of stuff. I was concerned about that but my agent explained to me that I will not have to come out of pocket for any of that. If the bank is willing to credit the buyer some of the items they asked for it will come out of bank’s proceeds. So I signed it and now we’re waiting for an answer.
Larchmont: nothing at this point. We’re still have some offers trickling in but they are all low-ball. The bank will not go below 220. I haven’t received a foreclosure auction date from the bank either. So this property is in limbo right now.
Muncy: Bank appraisal came in at 330. My realtor thinks that’s way too high. He thinks the banks don’t realize what is happening to the values in the area. However, my agent found another buyer who is interested in raising their offer to 300 (up from their original offer). The negotiator from the bank gave my realtor the feeling that they will probably accept a short sale at 300. So now my agent is trying to see if the buyer is willing to go forward at that price. We’ll know soon.
69 Comments
February 12th, 2007 at 6:56 pm
Casey,
Thanks for the updates. Good luck.
coyote
February 12th, 2007 at 6:58 pm
Dropping $90k off a $507k debt (according to the NM property page) isn’t bad if you can close that deal. As a potential buyer, I wouldn’t offer anything higher than 60% asking price on any property. ($380k on $507k debt is about 75% - I just outsourced the math for you - I’m sure you wouldn’t have done it yourself.)
Of course, running a -25% profit isn’t exactly the path to being rich, but hey, maybe you can save yourself some jail time by getting out of one more property.
So what’s the tax burden on the $127k the bank will forgive? $35,000 give or take? Best of luck.
As always,
Richer Than Casey
February 12th, 2007 at 7:13 pm
“What do I have to loose?”
Is this trolling or are you really this stupid? I suspect the latter. If you can’t learn how to spell a one-syllable word, especially after the error has been pointed out to you several times, how do you realistically expect to learn how to be a real estate investor?
February 12th, 2007 at 7:13 pm
Casey,
This is probably the best news I’ve heard outta your blog. But 380k is bad on NM. Whats your plan for making up the difference?
February 12th, 2007 at 7:18 pm
Seriously, the way around this is to have a mental list of “problem words” that you know you have problems with so when you want to use one, you can double-check. Problem words for me include capitol/capital and affect/effect. When I am going to use one, I double check in my head at the very least. Lose/loose is a obviously a problem homonym for you. Here are a list of other common ones:
http://www.stlcc.cc.mo.us/mc/s.....Words.html
Try to sound educated. It actually does help in business dealings.
February 12th, 2007 at 7:19 pm
Wow Casey, Great update!! It sounds like things are movin and shakin over there!! I wish you luck.
So, what do you plan on doing when you have no properties left?
February 12th, 2007 at 7:34 pm
Casey - this Blog has been going on for five months now… this is more than “the 11th hour” — I would say 11 hour, 59 minutes and 58 seconds.
The important question is, how are you going to payback all those dirty pennies???
Regardless of how these properties are disposed, either via foreclosure or short sale, how will you pay the lenders back for the ultimate losses resulted from your “cash back” at closing proceeds?
Also, how will you be paying back all those credit card balances?
February 12th, 2007 at 7:36 pm
“(Down to the 11th hour again!)”
save the drama for your mama Casey
you should be more concerned with how you are going to pay the 20k balloon payment on your “promissory note” due the end of april
February 12th, 2007 at 7:54 pm
I wanted him to try to buy the property from me before foreclosure so that I don’t get a mark on my record.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
You already have a mark on your record. Once your cherry has been popped, it can’t be unpopped.
February 12th, 2007 at 7:55 pm
Well at least you’re coming to the end of real estate ownership. It didn’t work out to good for you. You’ll eventually have a lot of free time to figure how to get our from all the debt you’ll have left. Not to mention what ramifications you’ll need to address with the IRS. Should you succeed in short selling out of some all of this mess, then you’ll have to deal with the tax issue around short sales. Remember, whatever is foregiven will be viewed as income to the IRS.
Either I’m getting to busy or this blog is becoming less entertaining to me. Good luck, Casey.
February 12th, 2007 at 8:00 pm
Casey - it sounds like you’re finally getting your act together here. Good for you. Keep it up.
February 12th, 2007 at 8:13 pm
Thanks for the update Casey. You are going to be a real estate guru selling investment books in no time!
February 12th, 2007 at 8:19 pm
So there can be no redeeming of Casey now, because you have sold off your rights. I always thought the Rio Rancho estate was a little dodgy because if you look at the Zillow map, you can see it is criss-crossed with dry streams. I would want to confirm this with a good ordinance survey of the county because these stream beds have a habit of watering up from time to time, which is why I guess the Christmas tree of for sale signs. A little research of this sweet property might have disclosed this little problem. Good luck getting out with your skin on this one. A little more winter rain, and even $400k is going to look very remote.
February 12th, 2007 at 8:36 pm
P.S. My experience with arroyos is that floods tend to piss off the local resident rattlesnakes something fearsome. Since I guess no one has been around this house for several months, might be a good idea to give your potential purchaser a heads up if he/she is a tenderfoot. Don’t kill ‘em. They eat the rodents which in the New Mexico area carry bubonic plague.
February 12th, 2007 at 8:55 pm
Tibetan Monk say:
This first smart thing Casey do. Since market drop for five more years, let someone else hold falling knife.
Casey still not have plan to pay off debt.
Casey still go to prison.
February 12th, 2007 at 9:01 pm
Casey,
I know you haven’t signed anything yet, but can you please explain why you decided to accept the $250?
From what I understand, you have just screwed the bank as when this property forecloses the holder of these rights can lowball any legitimate bid.
You continually talk about wanting to right your wrongs and repay every dirty penny, yet you seem to take short term personal gain over any option that may improve your chances of paying back the people you admittedly defrauded.
February 12th, 2007 at 9:02 pm
Oh, and I appreciate the fact that you have removed the word ‘investor’ from your bio. I guess you are learning something.
February 12th, 2007 at 9:12 pm
Gosh — such a nice house — and of questionable geology? You live …in California — and you know nothing about a geology report? You have batted 1000 Casey — every one of your properties are lemons! Sad, sad — reduced to pawning your magic beans for the promise of a $250 check. Enjoy your free lunch — and crow, and egg on your face. You are lucky to be so young, while earning you PhD, in hard knocks.
February 12th, 2007 at 9:21 pm
Casey,
Hopefully you can get rid of this property real soon without foreclosure. It’s a chance that I hope works out. The faster it is gone and you have less of a chance of criminal prosecution!
Maybe luck with be with you this time.
February 12th, 2007 at 9:59 pm
(The rest of Albuquerque area RE market is doing quite well.) So, nobody wants to buy in Rio Rancho right now. This is bringing down all the values in that area.
Wrong. Stuff is sitting for months in the Albuquerque area. The market has really dropped off just like everywhere else. Three places up the street from me in ABQ have been sitting on the market for 6 months. None have moved despite numerous price drops. A year ago stuff was being snapped up in days.
The problem with Rio Rancho is that builders have been slapping up stuff left and right there, most of which was bought by speculators like yourself. Entire developments are ghost towns in Rio Rancho. Desperate people are trying to rent them out and asking for way too much money. There’s very little in the way of jobs in Rio Rancho, except for Intel. The prices there are way too high. Nobody can afford a house for 380K in the area because salaries are really low in New Mexico. Prices were driven up by Californians who got priced out of Arizona.
Count yourself very lucky there appears to be a greater fool who might be willing to buy that place.
February 12th, 2007 at 10:14 pm
pay the lenders back at least some of the money
You have your whole life ahead of you, some five decades, why can’t you do the honest thing and pay ALL the money back over time?
February 12th, 2007 at 10:39 pm
“What do I have to loose lose?”
You don’t know what you have to lose, but you will sign anyway. Remember signing the note that you have to start paying on now?
$250 is not worth all the risk you are putting on yourself, not even in your situation.
Instead of doing short sales, and things you don’t understand, you should simply let everything foreclose. That way you are out of all future obligations on those properties. Gone forever.
Instead of that you are putting yourself into risky situations you don’t understand one bit.
February 12th, 2007 at 10:47 pm
Insolvent people don’t have a “tax burden”….
February 13th, 2007 at 12:00 am
380k with 10k cash deposit? Wow. Thats actually pretty resonable all things considered. Its hard to go for anything less than break even. However the alternative could be much worse.
If every house on your street is for sale then it is better sell now than later. The other sellers will eventually be forced to lower their prices. This market has nowhere to go but down.
February 13th, 2007 at 2:22 am
6 months from now these deficits for each property will look small and managable. The market is going down, down, down. Try owing $200,000 on EACH one by October ‘07. You should be doing anything and everything to get these properties off the books.
If you want to sell your story, try $50K as a generous network offer. Then all the litigation costs for those who claim rights to the story as well. About the same or less for a book deal. BTW there are some way better RE flop stories brewing in Florida and Arizona.
Your blog has nothing to do with foreclosure. You’re a spectacle of irresponsibility, denial, and fantasy.
Sorry to burst your bubble.
February 13th, 2007 at 4:19 am
GOOOOD MORNING CASEY!!!!!!!!!
I AM AN EARLY RISER!!!!!!!!!!!!!!!!!
SWEEEEEEEET!!!!!!!!!!!!!!!
You seem to be doing pretty well with your “BIG DIRTY”.
Keep up the good work and make Julian proud.
Julian-The Original Trailer Park Boy
Trailer Flippin Guru
Best Friend to Ogg, Homey da Clown and Casey Serin
February 13th, 2007 at 4:37 am
go casey go
go go go go go go… now your on you’re comeback i am telling you you need to invest in Bahamian property, take the $250, hitchhike to Fort Lauderdale and fly to the Bahamas and get into the new money down cash back at closing craziness over there
http://www.escapeartist.com/ta.....shore.html
The Caymans are great too:
http://www.viviun.com/Real_Estate/Cayman_Islands/
Don’t forget Costa Rica, not only can you get SWEEEEEEEEEEET deals, you don’t have to worry about extradition. One dition is usually enough, why have an extra one?
http://www.propertiesincostarica.com/
February 13th, 2007 at 4:54 am
Casey,
Update us on your future as an RE magnate.
What elaborate schemes are brewing in the “sweet deals” stew?
We grow anxious.
February 13th, 2007 at 7:45 am
“Entire developments are ghost towns in Rio Rancho…”
I thought that Rio Rancho was a simply a fictional place - created by David Mamet for his play.
Remember — the only thing that counts in this life is get them to sign on the line which is dotted.
February 13th, 2007 at 8:10 am
If it’s coming out of the banks proceeds that means that it is still coming out of your pocket.
February 13th, 2007 at 8:14 am
Good luck Casey. Try to keep positive.
February 13th, 2007 at 8:46 am
Hey, Casey, I think I found your long lost brother here:
http://www.prosper.com/public/.....ngID=96851
BTW, how are you planning to deal with the IRS?
February 13th, 2007 at 8:55 am
Sacramento County forclosures have increased 400% over the past year.
http://www.sacforums.com/index.....544.0.html
February 13th, 2007 at 9:07 am
I heard that Casey might be the father of Anna Nicole’s baby. Any truth to that?
February 13th, 2007 at 9:23 am
http://www.boston.com/news/spe.....page1.html
in a month this will be casey’s life.
He won’t trustee his property, he won’t file bankruptcy,
in a month they will be going to grab his car, his computer,
everything.
February 13th, 2007 at 9:31 am
Hi Casey,
Good luck to you and stay positive! So many mean spirited replies here. You’ve taken some chances based on dreams in your heart, and yes you’ve made some mistakes. I feel you’ve learned some great lessons, and you will rise again as a SUCCESSFUL real estate investor.
The very best to you.
February 13th, 2007 at 10:00 am
Here is Casey with his business partner in the fruit business:
Casey and his partner buy watermelons from a farmer for $1 each, haul them over to the market and sell them for $1 each.
Months go by and Casey’s partner says “you know, we’re not making any money”
Casey turns to him and says “Do you think we need a bigger truck?”
February 13th, 2007 at 10:10 am
LongShanks says:
“I really don’t understand why you continue to live in this dreamworld.
….sit down with the 10 or so lending agencies and work out a repayment plan that everyone can live with.
I bet you are no more than $500 to $700k in the hole. That works out to a loan amount of around $2000 - $3000 per month over 30 years.”
Who’s living in the dream world? Payments of $2000 to $3000 per month would be low on secured debt, never mind unsecured. And I’d love to see the lender who would give Casey, or anyone with no assets (never mind bad credit) a $700,000 unsecured loan.
It’s not going to matter anyway, because the properties will be foreclosed on, Casey can later declare bankruptcy, and if he’s honest with himself and wants to keep his vow to us and his Maker that he’ll repay every penny, he’s free to do so.
February 13th, 2007 at 10:23 am
Hey, if there’s anyone still out there who doesn’t think house prices are collapsing, read Casey’s post today! Wow, this is happening even faster than I thought. 380K on a house you paid 550K for!
February 13th, 2007 at 10:31 am
Losing 60 grand is a hell of a deal for the alternative consequences!
February 13th, 2007 at 10:53 am
Someone already pointed it out - Rio Rancho is the name of the fictional land dumping schemes pushed by Ricky Roma and his pals.
Third prize is you’re fired!
February 13th, 2007 at 11:01 am
Lesson for the day:
Floodplains are a bad place for a home. Might adversely effect property values…
Hello Sacramento!
PS Trailer Park dude…thanks for the Homey update but why ain’t Homey dishin’ it out? His comments had a bit more of a cutting edge…
February 13th, 2007 at 11:10 am
Casey,
How is your wholesale flipping business coming along? Have you found any new sweet deals that you would like to double escrow?
Please give us an update.
February 13th, 2007 at 11:11 am
@ 32. LongShanks
What you said is what everyone has been telling Casey since this Blog started FIVE MONTHS AGO.
Five Months Ago, Casey was at the 11th hour and the first property was lost to foreclosure.
Casey has let this drama play out far longer than it should have while continuing to take out loans and use credit cards.
What is keeping most readers following the blog is to see what Casey’s plan is to “repay” all the dirty pennies the banks have lost due to taking large amounts of $$ at closing while also running up balances on the credit cards.
February 13th, 2007 at 11:32 am
To Mister Gash and all the spelling nazis… you do realize that english is not Casey’s first language right? I think that he has a remarkable command of the language for someone who grew up speaking something else. Could Mister Gash please write us a small essay in Russian so we can compare?
kthanksbai
February 13th, 2007 at 11:33 am
@41:
You got the story wrong. Casey takes out loan to buy $1.00 watermelons at $1.50. The watermelons are bought in four different state, including Alaska and North Dakota. Casey gets $0.25 back on each watermelon, under the table.
Most importantly, Casey never picks the watermelons up. He lets them rot in the warehouse while going on vacation and to Watermelon Selling School.
Actually putting them on the truck and selling them takes too much effort.
February 13th, 2007 at 11:59 am
IMO, RE prices collapsed here after the Mr. Happy opened up an adult store in Rainbow Center, and Intel shipped some local work overseas.
February 13th, 2007 at 12:00 pm
A $127,000 loss on a short sale and you’re released of all obligations? That’s a sweet deal for them, I’m sure they’ll go for it.
February 13th, 2007 at 12:04 pm
“Casey Serin: The Movie”
David Spade as CS
??? as G
??? as NLL
??? as RK
etc, etc.
Help me out here folks. Let’s do some casting.
February 13th, 2007 at 12:28 pm
Man, you really didn’t know anything about the properties you bought, did you?
Thee only big employer in Rio Rancho is Intel. Intel has been cutting back for a while, including a 10% across the board cut last year, and a decision to pretty much exit the flash memory business this year, both of which impact the Rio Rancho facility.
Most of the houses built around there were started a few years ago when Intel was expanding, moving jobs to NM from CA and OR, and generally things looked much better. Today, a whole bunch of people don’t have the jobs they had a year ago,large numbers of good new jobs are no longer being moved into the area and many of the ones who remain don’t have any feelings of job security smaller bonuses, smaller option packages and a lot more uncertainty about the future.
All of this would have been obvious a year or more ago, had you bothered to ask basic questions about the community, what was driving demand there and whether it was likely to continue.
-btc
February 13th, 2007 at 1:07 pm
В начале июля, в чрезвычайно жаркое время, под вечер, один молодой человек вышел из своей каморки, которую нанимал от жильцов в С — м переулке, на улицу и медленно, как бы в нерешимости, отправился к К — ну мосту.
Он благополучно избегнул встречи с своею хозяйкой на лестнице. Каморка его приходилась под самою кровлей высокого пятиэтажного дома и походила более на шкаф, чем на квартиру. Квартирная же хозяйка его, у которой он нанимал эту каморку с обедом и прислугой, помещалась одною лестницей ниже, в отдельной квартире, и каждый раз, при выходе на улицу, ему непременно надо было проходить мимо хозяйкиной кухни, почти всегда настежь отворенной на лестницу. И каждый раз молодой человек, проходя мимо, чувствовал какое-то болезненное и трусливое ощущение, которого стыдился и от которого морщился. Он был должен кругом хозяйке и боялся с нею встретиться.
Не то чтоб он был так труслив и забит, совсем даже напротив; но с некоторого времени он был в раздражительном и напряженном состоянии, похожем на ипохондрию. Он до того углубился в себя и уединился от всех, что боялся даже всякой встречи, не только встречи с хозяйкой. Он был задавлен бедностью; но даже стесненное положение перестало в последнее время тяготить его. Насущными делами своими он совсем перестал и не хотел заниматься. Никакой хозяйки, в сущности, он не боялся, что бы та ни замышляла против него. Но останавливаться на лестнице, слушать всякий вздор про всю эту обыденную дребедень, до которой ему нет никакого дела, все эти приставания о платеже, угрозы, жалобы, и при этом самому изворачиваться, извиняться, лгать, — нет уж, лучше проскользнуть как-нибудь кошкой по лестнице и улизнуть, чтобы никто не видал.
February 13th, 2007 at 1:11 pm
@ 51. Mister B
-Holy S**t! That was hilarious, just about pissed my pants.
February 13th, 2007 at 1:13 pm
@43 “Hey, if there’s anyone still out there who doesn’t think house prices are collapsing, read Casey’s post today! Wow, this is happening even faster than I thought. 380K on a house you paid 550K for!”
There is no question but that the RE market is in a serious state of decline, but you cannot reasonably estimate the decline in home values based on Casey’s models. One must keep in mind; Casey purchased homes that were languishing on the market, obviously because they were overpriced for the condition, location, or whatever. And this is where Casey’s overpriced, useless education fails him, and where Casey’s shenanigans skews the data even further, with cash back, helping to render the Zillow estimates even more useless than they already are.
The “No Money Down” gurus teach the likes of Casey to look for these types of properties, for an obvious reason. The seller’s are becoming desperate, or nearly so, so they are willing to make a deal. So, up steps Casey, he is willing to make a deal, on condition of course. It has to be a 100% financing, it has to be a “liar loan”, and most importantly, there has to be CASH BACK AT ESCROW for that is how Casey makes his money, and how he keeps this house of cards afloat. CASH BACK is the biggest mortgage scam (fraud) going, and Casey knows about it.
Case in point, Casey says he “paid” $330,000 for the Larchmont house, and admits he took cash back at escrow. But, a forensic examination reveals the fact that the property was being offer for $289,000, and the home had been on the market for an extended period of time at that price. Common sense would suggest the home is overpriced at $289,000, so a rational purchaser would offer an amount that is less than the asking price, UNLESS there is another motive. And by now, that other motive should be glaringly obvious.
The obvious question becomes, at least for me, how did they get this appraised for $330,000 when it had been on the market for $289,000. Where was the appraiser who is supposed to be protecting the lender, the investors, and the public from such actions? It certainly smacks of fraud or incompetence. I have asked Casey to post the appraisal, blacking out the names of the lender and appraiser of course, so that all could get a closer look at how this was accomplished. But, Casey was not willing to do so, nor was he willing to respond. It is almost as if they are trying to hide something? Think?
February 13th, 2007 at 1:48 pm
@Shamu
You are absolutely right, please forgive. My giddiness got in the way of a sensible explanation.
I believe the issue with appraisals is that because the market was flooded with liquidity, the real estate profession was flooded with amateurs, and everyone was greedy, I think a lot of people shopped appraisers. What? You don’t think this house is worth $330K? I’ll find someone who does, and I’ll pay them, not you. If you can’t beat em, join em.
I think that’s why we are where we are.
February 13th, 2007 at 2:01 pm
Oh noes Mister Gash.. google says you plagiarized.
http://ilibrary.ru/text/69/p.1/index.html
That’s poopy. You’re a fake.
February 13th, 2007 at 3:30 pm
LongShanks,
He can’t sell the properties in the MLS. He is upside down you idiot.
February 13th, 2007 at 5:13 pm
What, Crime and Punishment was too obvious? Or was it not obvious enough that I was giving Casey something to think about in his native tongue?
February 13th, 2007 at 6:53 pm
Longshanks. You said:
“I bet you are no more than $500 to $700k in the hole. That works out to a loan amount of around $2000 - $3000 per month over 30 years”
Payments of $2000 to $3000 per month would be a killer. Casey declare bankruptcy! If it doesnt go your way then move to a nation that speaks Russian and take your computer skills and significant other with you. The United States is on the decline. Escaping the US would be a great oppurtunity. If I was offered a position in say - Australia I would sell my business and gladly move immediaty.
You wont be extradited back to the United States and may even be able to come back once or twice a year for visits.
When you add up your earnings, factor in taxes, interest, and biggest of all oppurtunity cost you will see that $2000-$3000 per month even for an above median income earner is a financial death sentance.
Sell all these properties as fast as you can and declare bankruptcy with any funds you have over. Get a good attorney and hope that the repayment amount (if any) is low.
Be sure to scope out places overseas and get prepared as much as you can in the meantime just in case.
February 13th, 2007 at 7:55 pm
hey can u give me ur number i had a few questions to ask you email me back with ur number. thanks.
February 14th, 2007 at 5:09 am
@ comment 56
If this becomes a movie we will have to cast Michael Richards as Tim from MBA. Refer to Robert Cote’s blog for when Tim from MBA when on his rant a la Kramer.
-Big Cheese
February 14th, 2007 at 1:08 pm
do you think casey know how to spell in russian?
February 15th, 2007 at 11:12 am
Case in point, Casey says he “paid” $330,000 for the Larchmont house, and admits he took cash back at escrow. But, a forensic examination reveals the fact that the property was being offer for $289,000, and the home had been on the market for an extended period of time at that price. Common sense would suggest the home is overpriced at $289,000, so a rational purchaser would offer an amount that is less than the asking price, UNLESS there is another motive.
February 16th, 2007 at 9:31 pm
Well, Well. It’s not over until the fat lady sings. Time flies so stay on it.
Also, the $250 purchase of the rights to redemption was to cover the buyers own arse. That way the buyer won’t lose their purchase money if the property would be redeemed by someone other than the buyer. R
April 10th, 2007 at 11:18 pm
Yeah. I think you could’ve done better.
The misspell of words just really points out how you “kind of” overlooked the details.