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an email from a reader sent to bill fleckenstein
"The one thing that nobody mentions is the speculative buyer/investor who would buy multiple homes for the quick FLIP. Well, I can tell you firsthand that these are the type of people who killed the housing market. I live in a new community in So Cal (Yorba Linda) and am also a board member on our homeowners' association [HOA]. "Out of 62 new homes (finished in 2005), we currently have eight foreclosures (and probably two more, very soon). One realtor/investor owned three of these. He also owned four additional units in another neighborhood (built by the same builder) close to ours. We have two other investors who own two each. (These are all $2 million homes, or shall I say were $2 million homes.)
"Guess what? They all got loans from Countrywide. Not just one loan -- they went back for seconds and thirds on each of the properties owned. At present, all of the properties are encumbered by 20%-30% of current value. (Most had loans that were over $2.2 million.) They not only screwed themselves but also all the other honest homeowners in our HOA/community. I blame these people and the GREED to make quick money. It started with the builders -- who knew damned well that these buyers were investors -- and ended with the banks loaning on these properties with the Alt-A, liar loans, and NO-MONEY down, with $10,000 back at closing.
Countrywide, Hello?
"The funny thing about all of these foreclosures: We can't even get Countrywide to claim the properties. They sit vacant, with no 'For Sale' signs. No maintenance on the properties, and no HOA dues have been paid by the bank. The HOA has been maintaining these properties for some time now. (We even have so-called house sitters in two of them who don't pay rent and are now sub-renting rooms out.) I guess we have to foreclose on Countrywide. Tell Angelo we said thanks. Countrywide, please claim your foreclosed houses. Greed at its best."
"The one thing that nobody mentions is the speculative buyer/investor who would buy multiple homes for the quick FLIP. Well, I can tell you firsthand that these are the type of people who killed the housing market. I live in a new community in So Cal (Yorba Linda) and am also a board member on our homeowners' association [HOA]. "Out of 62 new homes (finished in 2005), we currently have eight foreclosures (and probably two more, very soon). One realtor/investor owned three of these. He also owned four additional units in another neighborhood (built by the same builder) close to ours. We have two other investors who own two each. (These are all $2 million homes, or shall I say were $2 million homes.)
"Guess what? They all got loans from Countrywide. Not just one loan -- they went back for seconds and thirds on each of the properties owned. At present, all of the properties are encumbered by 20%-30% of current value. (Most had loans that were over $2.2 million.) They not only screwed themselves but also all the other honest homeowners in our HOA/community. I blame these people and the GREED to make quick money. It started with the builders -- who knew damned well that these buyers were investors -- and ended with the banks loaning on these properties with the Alt-A, liar loans, and NO-MONEY down, with $10,000 back at closing.
Countrywide, Hello?
"The funny thing about all of these foreclosures: We can't even get Countrywide to claim the properties. They sit vacant, with no 'For Sale' signs. No maintenance on the properties, and no HOA dues have been paid by the bank. The HOA has been maintaining these properties for some time now. (We even have so-called house sitters in two of them who don't pay rent and are now sub-renting rooms out.) I guess we have to foreclose on Countrywide. Tell Angelo we said thanks. Countrywide, please claim your foreclosed houses. Greed at its best."
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