November 09, 2007

A special HousingPANIC message to people who bought homes they knew they couldn't afford with loans they knew would reset in hopes of making a killing


Fu*k you.

You'll find no sympathy from us.

Now move out and give those keys that you had no business possessing back to the lender or bank who's going to fail soon because you lied on your mortgage application about your income and ability to pay.

42 comments:

JWM in SD said...

Nice....I love it...Schadenfreude at its best....

brokersleaveyoubroke said...

There's a great story in Bloomberg today. It seems that the new bankruptcy laws that the banks pushed so hard for are the reason for a lot of the forclosures. People can no longer dump their credit card bills so they'll have money to pay the mortgage so they have to dump the house instead. This leaves the bank with a way bigger problem then credit card defaults. The irony is wonderful and now congress is in a rush to reform the new bankruptcy bill.
The banks paid 25 million in campaign contributions to get the bankruptcy bill passed and now they'll lose hundreds of billions because of it.
The Hollywood writers can stay on strike, reality is much more fun to watch.

Anonymous said...

But no! Taxpayers should bail them out! They're losing their homes!

Anonymous said...

Aside from the swear word part - you are absolutely right.

NO sympathy - losers bought in great neighborhoods they couldn't afford and are now ruining them. - Even my neighborhood- humble as it is - we have bubble neighbors who drive salvage title cars they put together themselves - are pissed about the laws requiring car insurance and possess no furniture, electronics or a lawn mower.

They never should have bought in our neighborhoods, now they are driving down our values with their lack of home pride and lack of ability to water their lawn or park their cars heading in the right direction on the street.

Heck, if I stopped paying car insurance, sold my vehicles and bought rolling pieces of junk - fed my kids rice and beans and pocketed money for such luxuries as a/c in the summer and heat in the winter, maybe I could afford my own version of a McMansion too. I hope it all balances out soon and people go back to where they can afford.

Andrew Hac said...

Thanks GOD for the statement "If a person makes $50,000 a year, that person should not have the right to live in a million dollar home". Ooooh, I feel so good hearing that the day of judgment is coming home to those heathens hoity-toity poor-ass Americano whom wants to live like Michael Jackson. OK, hoity-toity, Circuit City clerk, taxi driver, and the shit alike: YOU DO NOT HAVE THE RIGHT TO LIVE IN A HOME. Go and rent and apartment and try to save something like $100K, then you will acquire the RIGHT to live in a home. LIKE ME: A right to live and own a home. Why ? Because I have money, COLD, HARD CASH !!!

Damn... I hate poor, SOB, people whom try to act like they are wealthy !!!

Anonymous said...

Keith,

Who will get your keys? Do you belive your landlord has prepared himself for a market crash, deflation and resulting depression?

Your just as Fu*ked as the rest of us, if all this happens.

Normal Guy said...

F$CK You you greedy bastards. Your greed is the reason the country and dollar is in a mess. So how are all those investment houses feeling these days, oh like a bag of shit you are carrying around, that won't go away. Well too bad me and the rest of the normal people will be the beneficiary of your loss. As Cramer says hogs get slaughtered, well your day has come.

Anonymous said...

the flippers should go and listen on you tube, to the hit song by Shania Twain called ka ching. then come back and report what they think......its all about the money. its all about the diamond rings and the flash....so many americans are like that....oh how hard shall they fall in the day that is coming.

Cow_tipping said...

Oh, get this, in 04-05 evidently people who applied for lower priced houses never got approvals for their loans due to the whole "I only make points on the loan, and slaving over a 100K house for 2 weeks nets me 300 bucks" while I have these 1/2 mil houses making me 10K a pop" problem. OK so I am going to say, the mortgage companies need to pay for this as do the POS brokers.
Cool.
Cow_tipping.

Frank@Scottsdale-Sucks.com said...

Talk about justice.

Where are all the phony Scottsdale snobs who had their noses up in the air and gave everyone attitude?

It seems they've shut their mouths now.

Anonymous said...

In what I consider the poster-child for this mess, inland empire, CA, we would comment on the lines of brand new S.U.V.'s lined up to drop off one child each in front of the elementary school located within walking distance of most families. The worst thing though was the ex-ubran moms bringing their little girls into the nail salon for pedicures and maincures every week.
In stark contrast, nowadays homes are selling for at least $100K less than a year ago. Foreclosures are on every street and the nail place is empty. However, kids still don't walk to school. Now why do we have a childhood obesity problem?

sandman said...

You have to read this.... hat tip to Ben Jones for posting it...

The New York Times. “The housing market is horrible in most parts of the country, says the chief executive of the luxury home builder Toll Brothers, and he fears it will not get better until the newspapers stop saying how bad it is.”

“‘Translation, they’ve read one too many Times articles, and decided now is not the time to buy a home,’ he said.”

d*mned newpapers caused all these problems!

Anonymous said...

>> Damn...I hate poor, SOB, people whom try to act like they are wealthy !!!

Didn't Jesus say that?

Anonymous said...

Ha! Here in Portland, OR we saw people buying giant houses... houses that had bedsheets for curtains, and little furniture. I think those folks will be checking out of Motel $500,000 pretty soon.

Anonymous said...

Great video here. People bought these home builders for the dividend... and

SURPRISE, SURPRISE, SURPIRSE

no more dividend

http://www.thestreet.com/video/index.html?clipId=1373_10388639&channel=Market+Strategy&cm_ven=YAHOO&cm_cat=&cm_ite=#10388639

Also, you gotta love the builder named St. Joe. I suppose they really think the name is going to help them with all of that massive amount of overpriced Florida inventory.

Eric said...

"Where are all the phony Scottsdale snobs who had their noses up in the air and gave everyone attitude?"

They've left or are in the process of leaving.

Anonymous said...

Stupid anon.

If Keith's Landlord goes belly-up the landlord's credit is devastated until his credit clears up in 7 yrs (if only).

All Keith has to do is move.

So Keith is not really f*cked like a desperate home-borrower. More like inconvenienced by someone else's catastrophe.

Keith can then choose whether to find a more solvent landlord or purchase a foreclosed McMansion for pennies on the dollar.

Frank@Scottsdale-Sucks.com said...

In what I consider the poster-child for this mess, inland empire, CA

I never understood the appeal of the inland empire - it's basically the same thing as Phoenix so why not go there where it's cheaper to live??

Anonymous said...

Great set up and punchline!

Anonymous said...

Frank@Scottsdale-Sucks.com said...

"Where are all the phony Scottsdale snobs who had their noses up in the air and gave everyone attitude?"
.
.
.
The phonys all moved to unpretentious southern California, where they b1tch about how bad Scottsdale is!

Anonymous said...

Keith,

THEY WILL PUT THEIR CHILDREN IN FRONT OF TV CAMERAS.

The tears will flow. The sob stories will be told, set to background music. "What about my children?????????!!!!!!!!!". Nobody, I repeat, nobody exploits children like parents and politicians. Nobody.

Annie said...

What's worse are those dumb schmucks who bought in the late 1990s and saw their home equity rise.... like the dot-commers who had millions in stock options they had an inflated sense of "wealth."

In the case of those with new found weath in their homes, they began to spend their riches. Home Equity Loans and Lines of Credit were being extended. Refinancing with "equity farming" resulted in many individuals/couples financing the lifestyle they felt their new found wealth made them entitled.

And, really, that's what it is about - entitlement.

In 1997 my sibling bought a home in the Bay Area for 197,000. This could only be done with downpayment assistance from our parents. As the housing market boomed, so did their "wealth." A HELC bought the sail boat. The house value went up, so refinancing paid off the HELC and bought new cars.

Of course, their wages remained the same. At the height of the market, the house's value was in excess of $750,000.... And of course it was refinanced to the max - now for private schools for the kids and trips to Europe.

Our parents were never paid back. And, of course they know about the excess spending. They could have lived within their means.... and still have a single mortgage of $160,000 (minus whatever principle that has been reduced over 10 years of payments). However, sail boats, Jeeps, BMWs, luxury vacations and private schools paid for from the "wealth" they've earned in their home has them now deeply in debt.

And, of course, guess who was laid off from their job?

I know my sibling isn't the only one out there who has fallen to this inflated sense of "wealth."

sam said...

This article below is hillarious- from the BBC link on the main page "Housing meltdown hits US Economy"

First, the idea of realtors and mortgage brokers sitting around a kitchen table thinking of who to blame (for declining commissions) is amusing in and of itself. But then they reach a moment of clarity. Their collective wisdom- FORECLOSURES ARE TO BLAME!

Couldn't blame yourself, or the sheep you sold that grossly overpriced house paid for by the toxic mortgage your buddy originated. No, it's foreclosures! Ergo, maybe we should end foreclosures. Of course, after their collective wisdom acheives this (with help of some populist politicians), they will be sitting around wondering why no one will pay them to make loans.

No personal responsibility anywhere.

FROM BBC ARTICLE:
"Sitting around her kitchen table for coffee, a group of real estate agents and mortgage brokers in the area were clear what was to blame.

They said that the wave of foreclosures and evictions of people who had sub-prime mortgages was having a chilling effect on the housing market - and those foreclosures had now spread from the inner city to suburbs such as Westlake."

Anonymous said...

Frank- fact is in many parts of scottsdale (like nearly everyone south of frank lloyd wright blvd) the folks are quite normal with good jobs that can afford the houses they bot- you just had a bad experience here and have decided to dedicate a whole lotta your free time to a pathetic attempt to exact some kind of strange revenge on scottsdale- your sweeping generalizations are akin to saying all asians look alike- just plain stupid!

Anonymous said...

Checking out real estate prices in Santa Monica. Holy f$cking shit.
I think pirates should arrive on to the shore and pillage the town.

Where are all the Vikings?

Oh, and farting on the beach is a $250 fine. Dare to fart in California and you will pay!

TM said...

I think those folks will be checking out of Motel $500,000 pretty soon.

Good one!

Anonymous said...

Rent from a landlord or rent from a bank.

What's the difference?

Oh yeah, if you don't pay your rent you get evicted, if you don't pay your mortgage you get evicted AND still have to pay the bank.

Sound like a good deal to me.

Anonymous said...

I dont blame homeowners (flippers and speculators aside) I blame the financier interest who promoted this massive swindle.

Regulate, regulate, and regulate some more.

Free markets = insanity

Anonymous said...

What about the American Dream and all that crap? Retirements are at stake here.

Anonymous said...

No need for all the drama people. These buyers were for the most part just sheeple to the slaughter, some were complicit to varying degrees, but the agents, brokers and banks all knew what the hell was happening, but could care less as long as they got paid and the imminent default that was to follow would not be borne by them but by the buyer and the MBS/CDO investor.

Fortunately they were all wrong and they now realize that they are all going to take it in the shorts one way or another.

Its justice, but there will be alot of tragedy, like all the little kids that have no idea that their parents are fools and only know that the safe warm stable home that was theirs is now gone.

Anonymous said...

Anonymous said...

What about the American Dream and all that crap? Retirements are at stake here.

November 10, 2007 1:24 AM<<<

what is the ....american dream....?

the american dream was always just that, but we always thought that it meant something. little did we know. it was all a big lie wasn't it? retirements???? my friend, when the smoke clears, you will find that most of the retirement money that the boomers have been putting away in their various investment vehicles...........has......

already been stolen and is gone.........

and this is the dirty little secret that will surface soon enough.......

and there will be no joy in mudville as this realization hits home.......suddenly things like watching tv and keeping up with stupid sports and eating hot dogs and buying big expensive cars and houses.......etc ,etc etc.....will have to take a big back seat as a massive adjustment takes place.......the lowering of this social class known as the american middle class to real terms in real time.........without credit........


thomas paine said one time long ago,
these are the times that try men's souls....

surely that statement can be used again now with effect.....

Anonymous said...

Annie said
"Our parents were never paid back. And, of course they know about the excess spending. They could have lived within their means.... and still have a single mortgage of $160,000 (minus whatever principle that has been reduced over 10 years of payments). However, sail boats, Jeeps, BMWs, luxury vacations and private schools paid for from the "wealth" they've earned in their home has them now deeply in debt"
--------------------
Amen to that. The only thing I want to add is that your story is NOT an isolated case. I know of one couple who bought a home in southern california, and the husband actually quit his job because their house equity "supposedly" went up from an initial of $200,000 dollars to over $900,000 dollars from 1995 to the peak.
And they did what you'd expect Greedy people to do: trips to Europe, fancy cars, expensive jewelry and a whole lot of "stuff."
And NOW that the market is in for a serious correction things are really starting to change. Ostentatious lifestyle are so last year.
One thing for sure: I believe these next few months, indeed next couple of years (with the imploding housing market and the crashing dollar)these will be quite possibly the most INTERESTING times in American history. And to that I say to all the FLIPPERS and GREEDY HELOC people :

FU%K YOU, YOU GREEDY BASTARDS!

Anonymous said...

I do not condone telling people to walk from their mortgage contracts until they at least try to get the bank to re-work the loan . To not try to work it out with the bank in good faith is not right .

If you lied on your loan application to get a loan ,I hope the bank nails you to a cross ,because they can . Beware of not knowing what kind of lender you are dealing with ,therefore be careful people here when you just tell people to walk .

Stuck in So Pa said...

"Anonymous said...
Keith,

THEY WILL PUT THEIR CHILDREN IN FRONT OF TV CAMERAS.

The tears will flow. The sob stories will be told, set to background music. "What about my children?????????!!!!!!!!!". Nobody, I repeat, nobody exploits children like parents and politicians. Nobody."
----------------------------
There's one group that has both beat, and that’s the God Almighty Teacher's Union. "After all, you want good education, DON"T YOU?"
Translation: Give us everything we tell you to (under the guise of negotiation with your spineless, gutless, and obedient school board,) with the standard no-accountability contracts, and never, ever, question how the money is spent.

Oh, no! Parents and politicians are babes in the woods compared to the teacher's unions when it comes to exploiting children!

Anonymous said...

>> your sweeping generalizations are akin to saying all asians look alike- just plain stupid!


Don't they?

mayor mcmansion said...

The greed doesn't stop at the border friends. We've got people up in Canada right now going into outrageous debt on their sh*tshacks thinking appreciation is going to be their salvation. The media mostly quotes vested interests going on about how Canada is immune, blah, blah. It's like watching a bad re-run.

Anonymous said...

Well ,there is one story that deserves mention . If the appraisers were faulty on the appraisals against the appraisal laws , and the lenders breached their duty to underwrite the loans, than the lenders allowed a false inflated market based on unqualify buyers and speculator fraud in lending ,that caused real borrowers to think it was stable market ,causing them to purchase and on and on .You can go on to say that loan investors were given incorrect ratings on loans, which caused them to supply money ,which caused to much of a money supply that resulted in fraudulent loans etc. etc.

Actually ,its pretty serious how bad the lending got that caused the value of property to inflate beyond reason . You can't be basing markets on fraud and if a borrower relied on the data ,just as the loan investors relied on incorrect credit ratings and fraudulent loan applications ,than people were hoodwinked and they have cause for complaint .


If the realtors said real estate always goes up and they brought borrowers to homes they didn't qualify for and they told them they could refinance ,and it was a lie ,than borrowers have cause for complaint .

While it is true that borrowers in many cases knew they were just betting on a speculation game ,some borrowers were just buying a home and they relied on the fake information that was given to them by the real estate industry .

I thought that the buyer beware laws were superceded by new protection laws in alot of cases .

If someone bought a home that they couldn't really afford ,than there must of been some loan fraud . If someone bought a home and they qualified ,but they are going to lose a bunch of money because of a false market riddled with fraud ,than they were a victim of a market of liable parties on a number of levels .

Anonymous said...

I think you guys are a bunch heartless people. You folks who are publishing mean spirited comments are just that.

I have news for you though. I bought a town house for 425K. I bought it through a hybrid loan. I saw housing prices go up by 20% per year for four years. I saw the value of my property zoom to 1.1 million dollars and every couple of months I extracted equity to buy stuff (a large screen tv, cars, expensive dinners, vacations, etc...).

Several months ago, I couldn't keep up with my obligations. So I frankly told my lenders that I can no longer keep up with my debt obligations and I am prepared to walk away from them. And I did exactly that. Now, who is the real sucker? Folks like you on this board who keep hoarding money and hope that other people fail or someone like me who used other people's money to live it up and then walk away? Who is the real sucker?

Anonymous said...


I think you guys are a bunch heartless people. You folks who are publishing mean spirited comments are just that.

I have news for you though. I bought a town house for 425K. I bought it through a hybrid loan. I saw housing prices go up by 20% per year for four years. I saw the value of my property zoom to 1.1 million dollars and every couple of months I extracted equity to buy stuff (a large screen tv, cars, expensive dinners, vacations, etc...).

Several months ago, I couldn't keep up with my obligations. So I frankly told my lenders that I can no longer keep up with my debt obligations and I am prepared to walk away from them. And I did exactly that. Now, who is the real sucker? Folks like you on this board who keep hoarding money and hope that other people fail or someone like me who used other people's money to live it up and then walk away? Who is the real sucker?


In other words, you are a parasite on society and then call the prudent heartless. That's the philosphy of the Democratic Party for you!

Anonymous said...

"Now, who is the real sucker? Folks like you on this board who keep hoarding money and hope that other people fail or someone like me who used other people's money to live it up and then walk away?"

Hmmm. What about it guys? The sociopath has an interesting point.

Anonymous said...

Anonymous said...
I think you guys are a bunch heartless people. You folks who are publishing mean spirited comments are just that.

I have news for you though. I bought a town house for 425K. I bought it through a hybrid loan. I saw housing prices go up by 20% per year for four years. I saw the value of my property zoom to 1.1 million dollars and every couple of months I extracted equity to buy stuff (a large screen tv, cars, expensive dinners, vacations, etc...).

Several months ago, I couldn't keep up with my obligations. So I frankly told my lenders that I can no longer keep up with my debt obligations and I am prepared to walk away from them. And I did exactly that. Now, who is the real sucker? Folks like you on this board who keep hoarding money and hope that other people fail or someone like me who used other people's money to live it up and then walk away? Who is the real sucker?

November 10, 2007 7:27 AM
----------------------------------
Heartless? People like yourself are the ones that drove home prices through the roof leaving others having to either pay the higher prices or sit on the sidelines and wait for something that was more affordable. You know, like being responsible.
Call them heartless yet you brag about using other peoples money to live it up and then you walk away from your obligations. Now that is what I call heartless. Here, lets see. You purchase a townhouse at 425K that goes up in value to 1.1Mil. Ok, 1.1 mil minus 425K leaves you 675K for tv, vacation, expensive dinners, etc. and now you have nothing to show for it except some pictures and used doggie bags. Brilliant.

Anonymous said...

"Now, who is the real sucker? Folks like you on this board who keep hoarding money and hope that other people fail or someone like me who used other people's money to live it up and then walk away?"

Who am I to argue with progress?