Ryan Case

I am sure most of you have read the controversial Part I and Part II Of this blog post, if not, you can easily source back part I in my blog history, and part II in Tom Bashe's blog post. 90% of the comments were for the most part in agreeance, and about 10% just didn't grasp the ethical issues, or just plain disagreed with the posts. That is the beauty of a blog, not everyone has to agree!

Now to Part III, and to WHY I DONT FEEL SORRY for the (mostly) subprime lenders that went out of business:

1. I DON'T FEEL SORRY FOR YOU because you played (in my opinion) the largest part in destroying our economy.
   
2. I DON'T FEEL SORRY FOR YOU because you allowed a gardener, making $2000 a month, to "State" $10,000, and then chose NOT to verify what he made (Liar Loans), and proceeded to give him a $400,000 mortgage that he NEVER could afford from the first place
3. I DON'T FEEL SORRY FOR YOU because you preyed on the buyers with low credit scores, and shaky credit, offering them "Stated AKA Liar Loans" where they pretty much could fog a mirror and get a $400,000 mortgage! You also pushed Option arm loans, dangling a low $1500 MINIMUM PAYMENT OUT and not giving them FULL VERBAL DISCLOSURE on when it would recast, on what the "difference in payment" did to their loan amount, etc.
   
4. I DON'T FEEL SORRY FOR YOU because you should have taken then time to really look at the borrower, their job, and honestly, should have made them prove their income. I strongly believe when you implemented a "Stated Loan" program you set the housing market up on a crash course!
5. I DON'T FEEL SORRY FOR YOU because you basically promoted ZERO ACCOUNTABILITY to the general consumer, and hard working homeowners. You made home loans so easy to get, buyers often didn't fully think through their decision to borrow $400,000, as they had "no skin" in the game.

To sum it up, I think lenders were a HUGE PROBLEM. They promoted ZERO accountability, by making loans just a few signatures away, with their " NO DOC " " STATED LIAR LOANS ". They set the housing market up on a major crash course, and I strongly whole heartedly believe if they had not created the "Stated Liar Loan" we would not be in this situation today

Most homes sold during the upswing were financed with stated subprime loans. The buyers put nothing down, therefore had no reason to really think the purchase through. They also saw the market falsely going up due to these loans being so readily available, so they assumed if they ever were in trouble they could sell for a large profit.

This all falls back on my original post. If I came off harsh to anyone I apologize. I only meant to call light to the people who fail to understand that two wrongs don't make a right. Trashing your home does not help anyone, A non arms length short sale is FRAUD, and pulling out an equity line with no intent of paying it back (HAVE SEEN 1st HAND) is NOT OK

But, ultimately if these darn subprime lenders hadn't made financing so readily available to pretty much anyone who could fog a mirror, I don't believe our housing market would have EVER gotten to the point its at today, which is a big mess, with millions losing their homes to foreclosure, and millions losing their entire life savings and nest eggs just trying to get by, as the economy crashed, jobs were lost, and we had one of the worst recessions on record.

I hope the banks learn from their mistakes, and work to NEVER repeat them!

Goodnight,

*Disclaimer* This is a topic I have been wanting to write about for quite some time, and whether you agree with my opinions or not, please take the time to read the reasons why, and digest the information, before commenting.

First off, let me start by telling you who this blog is NOT FOR:

1. This blog is NOT FOR the wife who lost her husband in Iraq
2. This blog is NOT FOR the family who's child was diagnosed with Cancer
3. This blog is NOT FOR the dad who is working 3 jobs to support his wife & 3 children
4. This blog is NOT FOR the consumer who was tricked into an Option Arm Loan, or one with an adjustable rate that is balooning out of control
5. This blog is NOT FOR the consumer who lost his or her job, and is doing everything possible to make ends meet.
6. This blog is NOT FOR the consumer who fell on hard times, and is doing their best to make ends meet
7. This blog is NOT FOR the consumer trying to short sale their home to get out of a bad situation

I think you get the point on who this blog is NOT MEANT FOR. I could spend the next hour on #'s 8-30, but I covered enough to get the point across

Now, lets get to who this blog post IS FOR:

1. This blog IS FOR the homeowner who refied 6 times, bought all the new toys, then let their home go
2. This blog IS FOR the homeowner who hasn't had to make a payment in 2 years, and lives in the BANKS HOME free of charge, yet still complains about being broke (I have Strong disregard for this person)
3. This blog IS FOR the homeowner who bought 3-4 homes to flip right at the peak, and got stuck with them yet still complains that they are being done an injustice!
4. This blog IS FOR the homeowner who feels the need to "strip the home" as a final parting gift. Was it not enough you got to live for a year + in the home free of charge, and YOU are the one who defaulted, yet you feel the need to cost the bank $30,000-$50,000 by gutting the kitchen and baths, destroying the walls, kicking holes everywhere like a MISGUIDED CHILD.

I really will not get into too many details, as I could blog about this for hours. I think you now see the full jist of my thoughts and feelings on this topic. I can't stand that while honest hardworking folks such as myself work hard, make a good living, PAY THEIR MORTGAGE, and PAY THEIR TAXES on time, while we have folks abusing the system, dragging out their foreclosure, forcing the bank to go through a lengthy evicition when they ALREADY have been in the home 1 year + without making a payment. Is that not enough? Why do you choose to feel like the world owes you a huge favor. YOU took out the mortgage. YOU chose to to refi umpeen times. YOU chose to risk it all and buy several at 1 time, and YOU chose to further harm the bank, which in affect harms the economy, by stripping your property!

Look, I understand things can happen. And for everyone that falls under the "not for you" section, I have zero issues with you and completely can understand your situation! But when people abuse the system, haven't had to make a payment (in certain cases for 2 years!), and still choose to draw out the evicition, trash their homes, and what not, that is NOT OK in my book!

Whatever happened to morals? If you can't afford your payment, and can't work it out with the bank, find a rental you CAN afford and when the home is foreclosed on move out!!!! Why wait for the bank to kick you out via an eviction, why choose to be irresponsible and live off the economys dime? Why choose to gut your home, something I believe you should be thrown in jail for!!! Its time to learn a life lesson from this terrible experience and to move on!

So to wrap it up, this is my "shocker" blog of the week. The one that people will either love, or hate, I am not sure I will have to many neutral party comments :)

I AM SHOCKED THAT EVEN AFTER STATING TO READ THE BLOG IN ITS ENTIRETY BEFORE COMMENTING I AM STILL GETTING NEGATIVE COMMENTS 10% OF THE TIME! THIS BLOG IS MEANT TO CALL TO LIGHT THE PEOPLE WHOM ABUSE THE SYSTEM, NOT THE HARD WORKING HONEST HOMEOWNERS WHO FELL ON BAD TIMES.

Enjoy!

I will rarely blog about sports, but after watching the San Diego Chargers lose last night to the lowly Kansas City Chiefs last night, A.J. Smith needs to suck it up, and sign Vincent Jackson to the contract he deserves! Why is it our Owners of Pro Sports teams in San Diego never can spend money to keep GREAT PLAYERS. It seems the philosophy is to use them for as long as possible, and when they outplay their contract, let them go, or play games with them. The New York Jets nearly learned this the hard way, but at least that owner was smart enough to work it out prior to opening day! A.J. Smith - WAKE UP!

Please don't allow our season to be ruined by your ego. That would be a shame. I have tickets to both the Patriots game and the Monday night Denver game, please get this resolved before then! The receiving core SUCKED last night, absolutely TERRIBLE! And all Kansas City did was double team our only threat, Antonio Gates, the entire game! No fun in watching a season derail due to a contract issue. PAY HIM!!!!!!

Yes, I promise to leave sports off Activerain for the most part :)

I can't turn on the news as of late, or open up the New York Times, without seeing a doom gloom article stating how the market is going to go into a "double dip" and that prices will plummet once again. And if I am seeing this, I can only assume the consumers are reading the exact same thing.

The funny thing about all this, is that it is complete rubbish! The newspeople just want to have something to talk about! The market is not plummeting, and the only reason home sales were down was perhaps due to the fact that an $8000 First Time homebuyer credit expired!!!! But did they mention that? Its quite obvious that about 2-3 months worth of buyers crammed themselves into the last applicable month that the credit applied to.

But you won't read about this, you will only read about articles telling buyers its not a great time to buy. That statement in itself is a joke! Why shouldn't one buy? Is it because prices are down 60% from their peak? Is it because rates are at all time lows? Maybe its due to the fact that owning is now more affordable than renting in most of my local markets? Its a total joke that the media takes a misleading stat (home sales down 1 month after a tax credit expired) and runs rampant with it!

Perhaps they should come see my local market, where correctly priced homes still pend within 30 days. Where homes are flying off the market, and demand still outweighs the supply. Where even 55+ homes can pend in 4 days (7688 Couples Way, Hemet CA 92545) Yes, this was a project I did! So please spare me the theatrics, and before you run wild with an untrue story, perhaps you should do some fact checking!

I am not saying the market is as strong as it was when the credit was here for first time buyers. But to say it will go into a second freefall, simply is rubbish! Quit scaring buyers away, and go report on something meaningful!

Our latest project is a 2 bedroom, 3 bathroom Townhome located in Los Angeles County in the city of Gardena. We purchased this Townhome from the bank for $113,500. We put a little under $12,000 in rehab into the unit, from new flooring, paint, appliances, landscaping, etc. Our agent put it on the market for $164,900, and less than a week later we already have over list price offers on this unit! Another GREAT project at the hands of Pacific Servicing, LLC! Enjoy