Human Face of the Mortgage Mess

[haha]

I read a WSJ article today about the high number of home forfeitures and evictions in the "inland empire" of San Bernardino and Riverside Counties in California. Some of the house losers seemed to richly deserve it, buying new cars, taking Caribbean vacations and whatnot as they rolled up to defaulting on their loans.

But here is one thing the sheriff recalled that would likely move a rock. He was evicting a family and the locksmith was there changing the locks. The family's little boy said, "But if we move, how will Santa find us"?

Sheriff and locksmith- I am adding those to the long list of jobs that I am glad I never had to do.

Ha

 

[REWahoo]

Guess this WSJ article really struck a nerve. Two new threads and a post in another thread referencing it, all on the same day. I think this is a forum record.

http://www.early-retirement.org/forums/f28/mortage-failures-mis-use-fraud-credit-31922.html
http://www.early-retirement.org/forums/f28/do-you-want-pay-sub-prime-freeze-31601-13.html#post589769

 

[tryan]

yeah, evictions this time of year are tough ... had one Christmas Eve several years ago. Was a family of 4; restaurant fire wiped out his income back in August. October he's WAY behind ... eviction started. Lots of chances given by the court and I .... but Christmas Eve the sheriff and I were there changing the locks. The wife took the kids to relatives in Atlanta - so no Santa comments.

As in most of these things, it's the parents lack of planning.

 

[Moemg]

As in most of these things, it's the parents lack of planning.

this reminds me of the book " The Glass Castle " .You just want to slap these parents silly and say grow up .

 

[W2R]

yeah, evictions this time of year are tough ... had one Christmas Eve several years ago. Was a family of 4; restaurant fire wiped out his income back in August. October he's WAY behind ... eviction started. Lots of chances given by the court and I .... but Christmas Eve the sheriff and I were there changing the locks. The wife took the kids to relatives in Atlanta - so no Santa comments.

As in most of these things, it's the parents lack of planning.

Wow - - that is true, but even so I don't think I could have actually evicted someone on Christmas Eve. I would have felt terrible about it and would not be able to sleep at night thinking about it!

Obviously I am too tender-hearted to be a landlord, despite my seemingly hard-nosed conservative political leanings. Thank goodness I had no intentions of being one anyway (since my own house is more than enough for me to keep up with, and since I suspect some tenants might seriously damage rental units).

 

[ikubak]

Unfortunately some people do not manage their money very well. Guy in my neighborhood was telling a large group at his house that they overspent when they gutted and remodeled their house. They have their house up for sale because they are having trouble making the payments. They asked us to pray for them as they sought ways to refinance so they could stay in the house. Finally, he said he would appreciate it if we would watch over his house while him and his wife were on vacation in Jamaica for a week..?? That's right, an all inclusive top of the line resort!! I don't know about everyone else in the room, but I immediately understood why they were having problems with the spending on their remodeling and their mortgage payments.

 

[tryan]

I don't think I could have actually evicted someone on Christmas Eve

Owners have little to do with the timing ... once the process is started the "timer" is set by the courts.

Had another one on New Years Eve ... Sheriff posts the 48 hour notice (basically says "your being moved in 48 hours"); Guy is in complete DENIAL ... not a single box packed. Sheriff and moving crew walk into the family eating breakfast. Cost me another $500 for the added work. Sheriff hires a couple more people off the street. Two hours later the entire apartment is "thrown" into a pad locked trailer.

But they won't take perishables - food, plants, pets. Sooo the tenant walks over to my truck carrying his infant in only a diaper and says "tryan, please don't throw the food away ... I need the food for my family. Can I come back for the food?". Of course I let him come back for the food ... didn't change the lock that day.

 

[imnxpat]

As former residents and one time home-owners in the IE who went through tough times before my wife and I were able to sell our home there, I sympathize with those who are losing their homes or being evicted.

When we bought a house there in 1984, we had excellent credit and a modest life style. As a bill collector at the time, I thought I was pretty savvy about loans, but we got taken in by an ARM anyway because we had less than 20% for a down payment.

But what's this nonsense about eviction or foreclosures during the "Christmas season"? For a lender or landlord to toss out a delinquint occupant is either legal and moral or it isn't. The date on the calendar should have nothing to do with it.

 

[Siv]

Sooo the tenant walks over to my truck carrying his infant in only a diaper and says "tryan, please don't throw the food away ... I need the food for my family. Can I come back for the food?". Of course I let him come back for the food ... didn't change the lock that day.

Sorry didn't know how to do the quote thing....

Whoa...that's tough. I'm a landlord too but I let my agent deals with everything as I'm away from the location. Sure glad I never have to evict anyone because our rentals are in area where we receive money 6months to 1 year in advance! Sure too my agent has me for good again(maybe she's getting more than she claims the rent is? who knows) because I'm away but I just want to know the "net" of what I'm getting.

 

[Siv]

Now it's almost scary to think about what 2008 will bring.

 

[maddythebeagle]

Now little Billy knows that Santa always gives deadbeats the shaft at Christmas and with a bad taste in his mouth will grow up to be a productive citizen and know the importance of savings...

 

[tryan]

Ok, one more Christmas eviction (my last one too) ...

Sitting with an arbitrator the tenant and his son ... arbitrator is triing to be stern with the tenant, says "Your landlord could go to the judge today and you'll be out before Christmas! Or we can set up a payment plan to try to keep you in the house for the holidays. How many kids do you have?" ... We agree to weekly payments and meet again in a month. He missed every payment. We go back to court in January ... he's given 2 MORE WEEKS to move. Who's the SUCKER in this picture (I am out another 2k in rents)??

 

[Nords]

Who's the SUCKER in this picture

Hmmmm... our tenants have paid their rent on time since moving in last April but they claim they'll be spending Christmas & New Years' in Thailand. I'm sure they'll be back next month...

Might have to let them know we're going to do a property walkthrough.

 

[haha]

Who's the SUCKER in this picture (I am out another 2k in rents)??

I should make clear I that I am not faulting the landlord, the sheriff or the locksmith.

My comment that this would move a rock was that reading it, or hearing the boy quoted seems to be emotionally moving. Tearjerker, so to speak.

Ha

 

[MooreBonds]

They have their house up for sale because they are having trouble making the payments. They asked us to pray for them as they sought ways to refinance so they could stay in the house. Finally, he said he would appreciate it if we would watch over his house while him and his wife were on vacation in Jamaica for a week..?? That's right, an all inclusive top of the line resort!! I don't know about everyone else in the room, but I immediately understood why they were having problems with the spending on their remodeling and their mortgage payments.

And these same people are the ones that most vehemently shout at us 'frugalites' "Why don't you 'live a little' and loosen up?" (i.e. spend more money). To these people, there is no such thing as sacrificing wants. Whatever they want, they buy/do, regardless of the cost. It's the same mentality of the severely obese who eat anything and everything without any whim or thought about why they are obese.

If I had been there, right after they asked people to watch over their house, I would have said "Well, why don't you just hire a house sitter? You can obviously afford it."

 

[Lazarus]

Now little Billy knows that Santa always gives deadbeats the shaft at Christmas and with a bad taste in his mouth will grow up to be a productive citizen and know the importance of savings...

Very Funny! Lot of truth in that.

 

[youbet]

Now little Billy knows that Santa always gives deadbeats the shaft at Christmas and with a bad taste in his mouth will grow up to be a productive citizen and know the importance of savings...

Now little Billy understands that the capital, the means of production, belongs to the people and it's possession by the elite few calls for redistribution through REVOLUTION!

 

[Retire Soon]

It was definitely a bad day for Billy, but keep in mind that children are much more resilient than what adults give them credit for. I'll never forget the nice girl in my class of fifth graders, who nonchalantly mentioned to me as I was walking my class to the gate after school one day a couple of years ago, "I'm so happy my daddy is getting out of jail today after spending six months there."

 

[tryan]

Poverty and hardship build character.

Prosperity and security destroy it.

 

[haha]

Poverty and hardship build character.

Prosperity and security destroy it.

Absolutely! And that is why inner city Detroit and Cleveland, not to mention Watts and Compton and Hazard KY produce the highest type of person on the planet.

I wish I had realized this while I was still raising children. Could have given them a boost in life, and at the same time saved a pile on living costs.

Nothing like dodging bullets to keep a kid on the straight and narrow.

Ha

 

[clifp]

Absolutely! And that is why inner city Detroit and Cleveland, not to mention Watts and Compton and Hazard KY produce the highest type of person on the planet.

I wish I had realized this while I was still raising children. Could have given them a boost in life, and at the same time saved a pile on living costs.

Nothing like dodging bullets to keep a kid on the straight and narrow.

Ha

[-]LOL[/-] HA HA

That sounds like a great idea for a reality show. Lets put kids in those places and see what type of character it builds. We can call it Survivor: Urban Jungle

 

[tryan]

Was talking to a successful builder (comparing notes about RE trends) ... topic turned towards hiring. He said: for every 20 mexican/hispanic immigrant worker he hires, he keeps 19. For every 20 white american worker he hires, he keeps ONE. After a couple years of "baby sitting" he stopped hiring white kids. Apparently they've become a little too pampered for construction work.

Couldn't make this stuff up.

 

[Walt34]

Unfortunately some people do not manage their money very well. Guy in my neighborhood was telling a large group at his house that they overspent when they gutted and remodeled their house. They have their house up for sale because they are having trouble making the payments. They asked us to pray for them as they sought ways to refinance so they could stay in the house. Finally, he said he would appreciate it if we would watch over his house while him and his wife were on vacation in Jamaica for a week..

Sounds like a couple my wife and I know - he's a carpenter, she just retired as (of all things!) a math teacher. They are $400,000 in debt. Their solution? Open a new credit account - the others are of course maxed out - and take a trip to Aruba!

What planet do these people come from?

 

[clifp]

Sounds like a couple my wife and I know - he's a carpenter, she just retired as (of all things!) a math teacher. They are $400,000 in debt. Their solution? Open a new credit account - the others are of course maxed out - and take a trip to Aruba!

What planet do these people come from?

I guess she must have skipped the chapter on compound interest. Yes these people are from a different planet than most of the forum members. On the other hand if corporations are stupid enough to loan them money, part of me understands why they take it.

 

[imnxpat]

Poverty and hardship build character.

Prosperity and security destroy it.

How poor are you, tyran? Do you enjoy it? Is it building your character?