Ravings of an entitled whiner struggling to keep a house she can’t afford

  56 Responses to “Ravings of an entitled whiner struggling to keep a house she can’t afford”

1. Irvine Renter says:

   October 29, 2012 at 6:03 am

   Yearly Price Gains Maintained by Decrease in Distressed Sales

   Summer’s end may have led to the close of a strong home-buying season, but a decrease in distressed sales is helping prices maintain their yearly gain and some regions are still experiencing monthly price increases.

   As of August 23, 2012, prices fell 0.4 percent in 25 major U.S. metropolitan areas from July 23, 2012, according to Radar Logic’s RPX Composite price. Year-over-year, prices were still up 4.5 percent, and year-to-date, the RPX composite showed prices have risen 12.8 percent, the largest increase for the period since 2005.

   When Radar Logic broke down the data based on region, a more complex picture was painted.

   “There was considerable variation in price performance from region to region. In some areas prices have clearly peaked for the year and are now declining, while in others prices are still rising,” the real estate data provider said in its monthly housing report.

   The Midwest and the West saw monthly price gains and rose 2.5 and 1.2 percent, respectively. In the South, prices were flat, increasing just 0.1 percent. Radar Logic said the South may have reached its seasonal peak and begin its seasonal descent. The Northeastern housing market brought the RPX Composite price down month-over-month with its 3.1 percent descent.

   Year-over-year, price gains were seen in the South (6.7 percent), Midwest (7.3 percent) and West (9.2 percent). On the other hand, the Northeast fell 2.3 percent, according to the RPX Composite.

   Over the last year, REO and foreclosure auction sales have seen a significant decline, which has helped to push up prices.

   According to Radar Logic, motivated sales, or sales of REOs or foreclosures, fell to 13 percent of the total transaction count, down from 23 percent a year ago.

   This decline in motivated sales led to the yearly increase in the RPX Composite. Over the last year since August 23, the price for motivated sales has been 34 to 42 percent less than the price for all other non-motivated transactions, according to data from Radar Logic.

   The share of motivated sales compared to total sales decreased in all 25 metropolitan areas tracked, with Phoenix and Las Vegas seeing the biggest declines over a one-year period. In Detroit, 33 percent of sales were motivated, the largest among all 25 metros, while New York had the smallest share of motivated sales at 3 percent.

   Radar Logic’s report also looked at buying activity among investors. As of the end of July 2012, investors accounted for 9 percent of total transactions and 21 percent of motivated transactions in the 25 metropolitan areas tracked.

   In Miami, buying activity from institutional investors accounted for 18 percent of total sales, the most out of any of the 25 metros. Investment purchase in Phoenix was also high at 16 percent, along with Las Vegas, where 15 percent of transactions are from investors.

   In additional, investor purchases have surged in those metros since 2009, increasing nearly 400 percent in Las Vegas, 350 percent in Phoenix, and almost 320 percent in Miami.

   According to the report, investment purchases generally put downward pressure on prices, but in the most active markets, where there are bidding wars for the limited supply of REOs, prices for REOs increased.

   • Gary Anderson says:

     November 2, 2012 at 8:51 am

     There are bubbles, Mike in some places as Dr Housing Bubble pointed out. Those bubbles are made with cash buyers paying up to 100k more for a house than it is worth, so that the comps go up. It is a scam Mike. The 1 percent, the private equity, is buying up all the real estate. I wrote a few articles about it and hope you would read them:

     http://www.businessinsider.com/the-1-percent-is-buying-up-all-the-real-estate-beware-of-tom-lee-of-jpm-2012-5

     and:

     http://www.businessinsider.com/well-now-we-know-the-next-wall-street-scam-with-real-estate-will-be-2012-6

     BTW, lots of folks who were responsible renters lost their homes when then went way underwater. And you wrote an article about a new housing bubble. Of course the powers that be want another housing bubble. Once the Fed owns most of the mortgages, they will be forced to offer easy money to protect their investment. And the owners will be blamed again. Zero Hedge had an article about property owners being blamed for a housing scam in 1850. Bankers never forget how to scam the people. The liar loans were imported from the UK:

     http://www.businessinsider.com/smoking-gun-liar-loans-were-imported-from-the-united-kingdom-2012-1
2. Irvine Renter says:

   October 29, 2012 at 6:07 am

   Officials Charge 17 More in Massive Mortgage Fraud Scheme

   A massive mortgage fraud investigation led to 17 defendants being charged with crimes ranging from mortgage fraud to money laundering, according to a release from the Justice Department. The new indictment brings the total number of defendants to 81.

   A federal indictment unsealed in late October charges the 17 defendants with a number of crimes stemming from their alleged involvement in a criminal organization simply called the “Enterprise.” The group, which operated principally out of Charlotte and Waxhaw, North Carolina, allegedly stole more than $75 million from investors and mortgage lenders.

   The 81 defendants believed to have been involved with the Enterprise face a number of charges, including investment fraud, mortgage fraud, bank fraud, money laundering, and distribution of illegal drugs.

   According to allegations in the indictment, several of the defendants also bribed bank officials and committed perjury before a grand jury.

   The Enterprise’s mortgage fraud scheme involved acquiring luxury homes in neighborhoods in Charlotte and Waxhaw. According to the indictment, one member of the group would agree with a builder to purchase a property at the “true price,” making arrangements for a buyer to purchase the property at an inflated price. In most circumstances, the buyer would agree to purchase the property in their own name in exchange for a kickback.

   The builder would sell the property at the inflated price, the lender would make a mortgage loan based on that price, and the difference between the inflated price and the true price would go to the Enterprise, the indictment says.

   The indictment alleges that the Enterprise funded its mortgage fraud operation through a series of investment scams that defrauded more than 50 investors out of more than $27 million.

   The indictment is just the latest in a series of criminal charges resulting from Operation Wax House, a mortgage fraud investigation that began in North Carolina in 2007. The list of defendants investigated and indicted in the operation includes attorneys and paralegals, bank insiders, builders and sellers, facilitators and financiers, buyers, real estate agents, and promoters, according to the Justice Department.
3. Irvine Renter says:

   October 29, 2012 at 6:08 am

   Consumers in No Rush to Borrow in Extended Low Rate Environment

   The Federal Reserve’s recently-announced commitment to keep interest rates low until 2015 isn’t doing much to persuade consumers to borrow, according to Bankrate’s Financial Security Index for October.

   The survey bounced from 96.6 in September to 99.2 in October-a solid increase, but still short of positive territory (a number less than 100 indicates falling financial security compared to the same time last year).

   Most telling was consumers’ response to Bankrate’s “wild card” question of whether or not the Fed’s pledge on interest rates would spur them to borrow money: 74 percent of consumers said they are not interested in taking on debt, while 23 percent said they are more inclined to borrow. Three percent said they did not know.

   While the Fed’s announcement was intended to stimulate economic activity, it may have had the opposite effect, one expert told Bankrate.

   “If anything, the effect of the announcement itself would be to reduce borrowing today,” said Bill Hampel, SVP of research and policy analysis and chief economist for the Credit Union National Association. “Some people may want to borrow now because credit is so cheap, but you’ve just told them you don’t need to rush out and borrow now because it’s going to be cheap next quarter, next year, the year after that and the year after that.”

   Hampel added that, even in normal times, consumer loan demand is rarely affected much by interest rates. Rather, demand tends to be influenced by consumer confidence, which is still limited by an uncertain economic climate and falling household income.

   “In today’s environment, it’s upside down: Incomes are falling. So, when incomes are falling, people worry, ‘How am I going to pay it back if I borrow?’ no matter what the interest rate is,” said Robert Barone, economist, portfolio manager, and partner at Universal Value Advisors in Reno, Nevada.

   Adding to the problem is the amount of debt accrued in the household sector. The most recent numbers from the Fed show total household debt—including mortgage and nonmortgage—is at 103 percent of disposable income.

   With debt so high, the Fed is hoping to free up spending by giving consumers a low mortgage interest rate at which they can refinance, Hampel explained. However, with the bank committed to keeping rates low until 2015, Bankrate says customers may not be motivated to borrow until the 2015 deadline is almost up.
4. Irvine Renter says:

   October 29, 2012 at 6:09 am

   Can the Fed’s QE3 Policy Save the Economy?

   As the Federal Reserve launches its QE3 monetary policy, some interpret the plan as a sign Fed Chairman Ben Bernanke has “gone ‘all in’ on the U.S. housing market” and is clinging to hope the housing market can not only recover itself, but also restore the entire U.S. economy. This, at least, is the outlook of Global Markets Intelligence (GMI) Research.

   The research firm suggests the Fed is turning to the housing market “as the last, best hope” for strengthening the overall economy and restoring “healthy self-sustained economic growth,” according to a GMI report released earlier this month.

   “If QE3 does not work, we don’t think it’s much of a stretch to conclude that the U.S. financial system and economy is broken,” GMI stated, faulting “excess legacy indebtedness and excessive financial regulation” as the culprits.

   As the Fed purchases $40 billion in mortgage-backed securities each month “for an unspecified but extended period of time,” GMI will watch vigilantly for signs of the plan’s success.

   The first sign would be a sharp increase in mortgage applications. Specifically, GMI will look for the Mortgage Bankers Association’s purchase composite index to rise above 200.

   “If the Fed is successful in supercharging the fledgling recovery in housing, we should see the index exceed 200 in fairly short order, presumably by the end of the first quarter of 2013 at the very latest,” GMI stated.

   Following an uptick in applications, GMI would expect to see existing home sales rise, perhaps above the five million mark.

   While the true outcome of QE3 remains to be seen, GMI suggests the “potential value of housing as a catalyst for growth should not be underestimated.”

   Sustained and measured growth in housing could lead not only to growth in real estate, finance and construction, but also bring improvement in raw materials and retail markets.

   GMI, however, remains mindful of the “fiscal cliff,” continuing to watch for possible evidence that “political partisanship and expectations for Federal sequestration have rendered the Fed impotent in the contemporary socioeconomic climate.”

   • Mike says:

     October 29, 2012 at 7:32 am

     I think if a QE like policy does work, we would have seen before in the past. Printing money doesn’t grow the economy, strong fundamentals do. However, the Fed will print money and try it. The fed needs to keep interest low for the for the bad mortgage and growing US federal debt.

     • Irvine Renter says:

       October 29, 2012 at 7:52 am

       The federal reserve can create the illusion of prosperity, and that is generally enough to satisfy politicians and the general public.

       • matt138 says:

         October 29, 2012 at 11:30 am

         True. Inflation raises gdp and people misperceive this as a growing economy. To achieve this, they must also understate cpi inflation numbers. Most contra-educated americans eat it up.
       • Irvine Renter says:

         October 29, 2012 at 4:04 pm

         As evidence of the manipulated numbers, after the bubble of the 1970s, the CPI used owners equivalent rent instead of actual house prices. When the housing bubble inflated, it was completely missed by the CPI despite the inflationary effect because house prices were taken out of the mix. If actual house prices had been in the CPI, the federal reserve would have been receiving inflation signals as the bubble began to inflate, and this would have forced them to raise rates and deflate the bubble before it got too large.
       • newbie008 says:

         October 29, 2012 at 4:52 pm

         Matt138,
         Yes, If cpi is <3% for the last 4 years, why are car part (tires, batteries, etc) almost 80% from 4 years ago. Why are food prices aobut 50% higher (they made the package larger and while reducing the net weight)? Why has almost cost of all consumable goods gone up by 50%? The calculation of CPI has been so politically based for the last 20 years.

         Funny how the price of an advance computer ~3 years ago is used as a basis for purchasing the same model today for the calculation of CPI. PMI at the current interest rate is also used. How many people refinance for a 0.2% interest reduction and why isn't the cost of refinancing included in CPI?
5. honcho says:

   October 29, 2012 at 6:27 am

   I hope the author stumbles upon this blog post. Well done.

   • Irvine Renter says:

     October 29, 2012 at 6:47 am

     Thank you. Someone needs to point out the error of her ways.

     I can just imagine her telling this story at cocktail parties and everyone gives her words of encouragement and sympathy. A few will silently think what I wrote above, but nobody will have the nerve to tell her.

     • Perspective says:

       October 29, 2012 at 9:32 am

       Unfortunately, I’m “that guy” at the cocktail party who will interject himself into the conversation just so she can finally hear a voice of reason. Of course, she’ll discount my opinion and label me heartless, as will others, and I will have achieved very little; but at least I would have stopped the choir from consoling her with echoes.

       • Irvine Renter says:

         October 29, 2012 at 10:02 am

         I’m proud of you. Sometimes, hearing a simple truth will shake people out of their paralyzing denial.
       • Mellow Ruse says:

         October 29, 2012 at 11:17 am

         I think it’s even more difficult when the person is related to you through marriage. How far do you risk creating a family rift when you’re not likely to change their mind or their behavior? I’ve typically kept quiet and just had faith that in the end they will get what’s coming.
       • matt138 says:

         October 29, 2012 at 11:38 am

         Be that guy! or girl! Somebody needs to speak up against people like her. She is a delusional collectivist. She believes she is entitled to having her losses socialized and payed for by the collective. She is disgusting, collectivist, statist trash.

         I sympathize with her hours being cut and divorce; but she is morally corrupt. She expects money to be taken from other citizens, by force, to pay for her happiness. Unacceptable.
       • Mellow Ruse says:

         October 29, 2012 at 2:53 pm

         Well said Matt.
       • Irvine Renter says:

         October 29, 2012 at 4:05 pm

         “She expects money to be taken from other citizens, by force, to pay for her happiness. Unacceptable.”

         That is the root of the problem, and she totally fails to see it.
       • newbie008 says:

         October 29, 2012 at 4:57 pm

         She maybe just applying the current PC fables of the ants and grasshoppers. The ants slaved away to work and save. The grasshoppers played and didn’t save, but the queen ant gave the grasshopper lodging and food for the winter. It’s seems to be the application of the new PC fable to US RE.

         Divorce and single motherhood, the 2 major factors for proverty in America. The former gets the lawyers wealthy.
   • newbie008 says:

     October 29, 2012 at 5:03 pm

     Maybe some one could forward a link of IR blog to her.
     Please usually just like their ears tickled with flattery and agreements.
     When people come to me for “advice” I usually also them what is their intent. To seek agreement someone that will agree with them, an shoulder to cry on, what I think, or sound or maybe not too sound advice.

     • Irvine Renter says:

       October 29, 2012 at 9:12 pm

       I wonder how many claim to want honest feedback when what they really want is to be told what they want to hear.
6. Mike says:

   October 29, 2012 at 7:24 am

   Storm or no storm…

   Diana Olick ‏@diana_olick

   S&P Dow Jones Indices reporting they still plan to release S&P Case Shiller Home Price Indices Tuesday at 9amET as planned. Updates to come

   • el O says:

     October 29, 2012 at 10:46 am

     WGAS!

     a 3month lagging index that indicates prices are rising but does not capture sales price data from: unoccupied properties, REO/short sales, new construct, or investment properties sold carries minimal to no weight.

     But, on the other hand, pertaining to sell-side marketing tools, C/S index would carry a lot of weight so all is not lost.

     • Mellow Ruse says:

       October 29, 2012 at 11:08 am

       Unfortunately, this is another example of el B talking down an index that doesn’t conform to his worldview. You can bet if the index were negative, he would be spreading the bad news to anybody that would listen.

       • el O says:

         October 29, 2012 at 1:07 pm

         Well, I presented irrefutable facts as to why C/S index should be considered more of a sell-side marketing tool than an accurate gauge for home values/prices, and what is the gist of your subsequent refutation……….more ravings from an entitled whiner.

         tsk tsk
       • Mellow Ruse says:

         October 29, 2012 at 3:14 pm

         Lol! Your “irrefutable” facts are a bit off. Check the part about REO/short sales being excluded. Keep flailing my friend.
       • el O says:

         October 30, 2012 at 8:24 am

         Dude, unoccupied properties (all types) are NOT included in the data capture. Period!

         Do unoccupied REO’s exist? Yes
         Do unoccupied short sales exist? Yes

         I think it’s crystal clear who is the one doing the “flailing”
       • Mellow Ruse says:

         October 30, 2012 at 11:10 am

         So you claim that S&P gathers occupancy data on the entire US housing market prior to each sale?

         Link please…

         Thx in advance
7. Irvine Renter says:

   October 29, 2012 at 10:08 am

   Home mortgage interest deduction vulnerable

   If Social Security is the third rail of American politics, then the home mortgage interest tax deduction is the space just above it – no instant electrocution, but still a very dangerous spot for any politician who dares play near the tracks.

   Once the elections are over, however, Congress is likely to find itself in precisely that position. Trillions of dollars in Bush-era tax cuts are due to expire at year’s end, and hundreds of billions of dollars more in spending cuts are set to take effect at the same time unless lawmakers agree on a plan to cut the federal budget deficit.

   In the scramble for savings, the home mortgage interest deduction is a tantalizing target simply because it’s so big.

   This tax break for millions of middle- and upper-income taxpayers amounts to about $100 billion per year in lost revenue to the U.S. Treasury. That’s nearly twice as much as the deduction for charitable contributions, or, if you think of tax deductions as spending in disguise, more than twice as big as all other federal housing programs combined.

   Faced with difficult choices, lawmakers might be smart to opt for one bold blow to an iconic piece of the tax code instead of enduring the political pain of making lesser cuts to hundreds of popular programs or tax breaks.

   But there are better reasons to put the home mortgage interest deduction on the chopping block. It doesn’t increase homeownership, and most of the $100 billion goes to taxpayers who are already well off.
8. Mike says:

   October 29, 2012 at 10:25 am

   “If Social Security is the third rail of American politics, then the home mortgage interest tax deduction is the space just above it – no instant electrocution, but still a very dangerous spot for any politician who dares play near the tracks”

   Not for mortgages above $500K. That’s probably be where they start and then slowly work their way down.

   If you have less than 3.5% 15-year mortgage you won’t see much of a mortgage tax deduction is 8 years anyways.
9. Mellow Ruse says:

   October 29, 2012 at 11:19 am

   IR – How did you determine that today’s featured ponzi was a school teacher?

   • Irvine Renter says:

     October 29, 2012 at 4:07 pm

     All the loans were drawn on a teacher’s credit union. Perhaps only one of the parties was a teacher, or perhaps they got into the credit union another way, but in all likelihood, one or both of the former owners were teachers.
   • Mike says:

     October 30, 2012 at 10:34 am

     Did she misspell the word foreclosure on her sign? It’s on the screen cap.

     • Irvine Renter says:

       October 30, 2012 at 12:11 pm

       Nice catch. I missed that one. Too funny…
10. Perspective says:

    October 29, 2012 at 11:25 am

    Maybe people like her anger me, because she’s the exact type of person against whom we were bidding when we were looking at houses in 2007? She, and many others just like her, stretched their finances too far causing prices to rise; thereby causing me to spend more for my townhouse than I otherwise would have.

    The loss of her house doesn’t benefit me, but her whining about her victimhood does feel like a second slap to my face. If she receives some no-interest mod with principal forgiveness, that will be the third slap!

    • Irvine Renter says:

      October 29, 2012 at 4:08 pm

      You should be angry. You weren’t priced out, but you were certainly priced down. With what you paid, you should have obtained a much nicer property, a property akin to what others in your income bracket obtain. The hidden price you paid for your property is settling for something with a marginally lower quality of life than what you should have obtained given your income.

      • Taxxee says:

        October 30, 2012 at 3:57 am

        Let’s face it. Since banks bought the government and changed the rules so that they can sell our mortgages to our pension funds while taking a cut on both transactions and collecting insurance and fees when the mortgage payments stop they have been like zombies feeding on the dead and injured in a bidding war they created using the foolish buyers as pawns.
11. Terrence Trent Derby says:

    October 30, 2012 at 4:35 am

    It’s easy to be hard, but the Government policies that spurred easy loans also undercut the value of all homes by spurring new construction. We played games on each other and losers were left without a chair when the music stopped. Given the high rate of home appreciation and given the stagnant wages of the same period..it was impossible for most to keep up without being a speculator of some sort. Are these former homeowners any different from the people who have all their retirement money invested in a mutual fund inside a 401k? The latter are 100% exposed to a total loss..though few acknowledge that possibility.

    • Taxxee says:

      October 30, 2012 at 5:58 am

      And who invented the 401K? The politicians play the music but the bankers call the tune.
12. john says:

    October 30, 2012 at 6:53 am

    Suprise. Another “blame the homeowner” article out of this site. No culpability of blame to the realtors and banks who probably persuaded this person to get this loan. Where was the bank’s underwriting department when this loan was written. Oh, yeah, they enabled and perpertrated the fraud.

    Statements like this show your ignorance and bias:

    “This woman is crazy. The denial of the loan modification meant she was not qualified”

    Anyone who has been thru a loan modification will tell you the banks don’t approve them whether your qualified or not. Calling the woman crazy for wanting to keep her home while passively allowing the banks a free pass just speaks to your ignorance. You used to have some worthwhile info and perspective on this site. You have descended into the easy soundbite so you can vent your dumb Realtor perspective about what idiots us buyers really are. I hope your relatives and friends get foreclosed upon. I hope no shows you mercy when your Nevada real estate investments go south.

    • Irvine Renter says:

      October 30, 2012 at 7:17 am

      First, this is a “blame the loanowner” article. She doesn’t have any equity, so she owns no part of this home. She is NOT a homeowner.

      Second, if you read this site at all, you know I don’t give the banks a free pass. Lenders are more culpable than borrowers in this fiasco, but that doesn’t mean foolish borrowers get a free pass either.

      Third, if you think I have a “dumb Realtor perspective,” you obviously don’t read this site very much.

      Fourth, my friends and relatives who invested in Nevada will not get foreclosed on because we purchased cashflow positive properties. Why would any of us default on a property making us money? Obviously, you made these statements because you just wanted to spew some hate. It reveals much about your character and state of mind, and it isn’t good.

      • Leviathan says:

        October 30, 2012 at 7:50 am

        Down, boys.

        Allow me to make a suggestion, that we try to take the emotionality out of our discussion as much as possible. IR, I respect you and like this blog but sometimes (case in point, today) you get judgmental and presume to understand more about someone else’s life than the facts warrant. I don’t think the criticism that you “blame the homeowner” is fair, in general. But some human empathy might prevent you trashing this woman as an “entitled whiner” (harsh!).

        Mortgage mods should NEVER have been framed as something that are called for by the needs of down on their luck homeowner, but ALWAYS as a remedy for a bubble that temporarily and artificially drove up the price of RE beyond where it should ever have been. The two are not the same!

        If you buy in a rigged market you are entitled to compensation based on the rigging, not your income after the fact. This is the basis in class-action suits for sending people checks to compensate for credit card or merchant fraud. It could have worked for home loans as well.

        If loan mods had been framed as a remedy for a rigged market most people could have gone along with that. But all these questions about “what people could afford to pay” got in the way and muddied the waters. The only way affordability should be a factor is if the family can’t pay the real market value (which, I would argue, would apply to most people, probably including the single mom in this piece).

        • el O says:

          October 30, 2012 at 8:07 am

          Excellent post.

          No doubt nefarious sell-side ‘hard sell’ tactics were fully deployed during the run up.
        • Perspective says:

          October 30, 2012 at 8:24 am

          I don’t think it’s harsh at all. Even if she bought a house she could afford (when married) spending less than 28% of her household income on housing costs on a fixed-rate mortgage (or even a traditional ARM with no neg-am features), AND she had some equity today, she would still be in trouble today because SHE’S LOSING HALF HER INCOME!

          She conveniently blames her divorce, subsequent income being halved, and therefore her inability to make her mortgage payment, on the big bad evil banks. It’s a great scapegoat, but a scapegoat nonetheless.

          Once she decided the marriage was over, the loss of the house in most divorces is inevitable…
      • john says:

        October 30, 2012 at 8:22 am

        1. She is a homeowner. Playing semantics is convenient for you but ignores the reality that the fed built up the bubble with low interest rates encouraging people to homeowners supported by the banksters underwriting bad loans.
        2. You essentially give a free pass to lenders. You don’t call lenders “crazy” and “entitled whiner”, etc. You bias and hatred shows clearly in your remarks.
        3. Yes, it is a dumb realtor perspective skewing articles against homeowners (your future clients) and not placing blame where it belongs.
        4. I hope you and your friends will be foreclosed upon because rental income is falling like in Phoenix so those “great” cash flow properties will tank soon and if not in the next financial crises that you think are so great just because you have cash flow at the moment. I hope a site like patrick.net gets to plaster your dumb face over their site like you do the same tired picture of the black couple above that you use over and over again when your investments in Nevada crash because of the next financial crises. I hope they call you “whining realtor feels entitled just because he has his own blog and how everyone but himself is too blame”.
        5. I hope patrick takes your drivel off his site soon.

        • Perspective says:

          October 30, 2012 at 8:26 am

          You sound like a guy who bought a house you clearly couldn’t afford using an exotic mortgage a few years ago, no? Take all of that energy going into hate, and convert it to learning something about personal finances. You’ll be a much wiser and happier person…
        • john says:

          October 30, 2012 at 9:22 am

          Dear Perspective,

          Instead of giving tangental advice, why don’t you take your own and understand propaganda and the real causes of the housing market mess. Start with inside job documentary and then some frontline docs. You’ll be a much wiser and happier person and won’t need to spend your time defending bigots.
    • Mellow Ruse says:

      October 30, 2012 at 12:24 pm

      John-
      There is no way this lady qualifies for a loan mod based on the information presented. We can deduce that her loan amount was $270,000 based on the statement that her loan was upside down by 124% after a $65,000 reduction in value (the original article has this). That would take a minimum $85,000 income to afford at a 7.5% rate.

      If her household income was reduced by 75% as the article implies, no mod program would qualify her, not even Obama’s. That’s because the most she can afford on a $21,500 income would be a $70,000 mortgage, and that’s at a reduced 2% rate.

      So the only way this works is if the bank writes off $200,000 in principal. Now why would they do that if the property is worth more than $70,000? They won’t.

      It’s sad that she got divorced and had a massive loss of income, but she can’t afford this house under any circumstances. What she should try for is a short sale or deed-in-lieu with a nice cash-for-keys payout to help her get back on her feet. My 2 cents.
13. Mike says:

    October 30, 2012 at 12:48 pm

    FHA “Bank Settlement” payouts?

    Wells Fargo mails checks to thousands with FHA-backed mortgages

    • October 30, 2012 • 2:44pm

    Wells Fargo ($33.97 -0.09%)recently surprised thousands of home loan customers by sending refund checks to a fraction of its Federal Housing Administration-backed borrowers. The checks came with a letter informing recipients they had previously paid unnecessary mortgage-insurance related fees.

    When the checks are cashed, the borrowers loses the right to sue the nation’s top home lender, on the grounds that the refunds came as a result of borrowers being placed into FHA-backed mortgages unnecessarily.

    In an email to HousingWire, Wells Fargo stated: “During the course of our own internal review, we identified a small group of borrowers who had received FHA loans between 2009 and 2011 who may have qualified for conventional financing under circumstances where such financing could have been a preferred option.”

    FHA loans, typically offered to borrowers who are unable to pay the 20% down payment required for traditional loans, may be more expensive in terms of fees and insurance.

    “The FHA loans impacted by this remediation are less than 2% of our total FHA originations for this period and the bulk of the refunds are between $2,000 and $5,000,” said Wells Fargo.

    These loans were granted on the upward journey of Wells Fargo to become the No. 1 originator of loans. In September, Wells Fargo identified their error and began mailing notifications to customers.

    “FHA and conventional loan products have a great deal of overlap,” the Wells email said, “there are many times that a borrower qualifies for both products but that the FHA choice is the preferred choice for that customer given interest rate and down payment considerations, among other things.”

    mhopkins@housingwire.com
14. RR says:

    October 30, 2012 at 2:51 pm

    The beef I have with TARP, HARP, HAMP, or whatever other stupid acronyms thrown out there by politicians is these programs are one-sided. When the market is down and owners owe more than their homes are worth, they want help. When the market is up and people are making $100k when they sell, they aren’t willing to share those profits with anyone else. You can’t get bailed out when times are tough and pocket your profits when times are good. That’s not a free market. I would love to have made a few hundred thousand dollars buying and selling when the market was hot. I chose not to because I recognized the risk of losing money was real. Now, as a taxpayer, I am expected to bail out people that gambled on the housing market and lost. How is that fair to me. I had 0% chance of making a profit off of a home sale because I chose not to buy. I also was 100% safe from losing money on a home. Now, I will be paying for others that gambled and lost. Are the millions of people that made money selling homes willing to share those profits with me since I didn’t buy? Better yet, how about the government cut me a check since I didn’t get to profit from the market when everyone else did.

    I recognize that there are innocent people that bought homes they could easily afford and suffered multiple blows from the lousy economy. A couple that loses both jobs isn’t to blame for the housing market mess. To me, those individuals could use temporary help. Buying up negative equity because prices dropped is something else entirely. It’s another manipulation of a supposedly free market, which impacts the market as artificially as the cheap credit did before the bubble burst.

    • Irvine Renter says:

      October 30, 2012 at 3:08 pm

      Well said. You echo the sentiments of many, particularly those who were prudent and wise.
15. Fed & Sandy, FNMA and MIs, QE3 and Housing, QM, Distressed Sales, Basel 3, Boomer Wealth Cohorts, Lack of Ethics, 20% Fewer Mortgages, Entitles Housing Whiner, Fed Laundering? | Mortgage News Clips says:

    November 1, 2012 at 2:33 am

    [...] of an entitled whiner struggling to keep a house she can’t afford – OC Housing News ————Is The Federal Reserve Using Money-Laundering Techniques To Cleanse [...]
16. Liane says:

    November 2, 2012 at 12:33 pm

    I’m a Realtor and even I think this blog is hysterical, is something wrong there?

    • Irvine Renter says:

      November 2, 2012 at 1:48 pm

      Welcome. I don’t get many agents who admit they read it. I hope you stay and comment further. I would appreciate a new point of view.
17. azpoppy says:

    November 7, 2012 at 4:57 pm

    People like this just piss me off. I sympathize with her situation, but it is not the bank’s responsibility to make her house more affordable for her considering her change in status. My sister-in-law and her husband walked away from a house that they could afford (barely, but could afford) simply because they wanted to reduce their monthly outlay by purchasing a much cheaper short-sale, taking advantage of the reduced prices and leaving the bank holding the bag for the loss on the original house. There were no shady financing going on or anything, just simple economics – they reduced their mortgage payment from $4,000 to $1,700 a month. Meanwhile, my husband and I have been responsible with our finances having learnt our lesson with consumer debt even after having been advised by the same sister to “just file bankruptcy” for our credit card debt. We struggled mightily for four years to pay it off and I am happy that we did. We felt in a sense that we “did the crime, and we had to do the time.”

    • Irvine Renter says:

      November 7, 2012 at 5:23 pm

      Thanks for stopping by and commenting. Some criticized me for being so harsh with this woman, but I also find her attitude sickening.

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