Comments on: The Truth About the Mortgage Market http://www.urbanlivingseattle.com/archives/207 Urban Residential Specialists - Lofts, Unique Housing, View Homes & Condos in the metro Seattle & Eastside Wed, 11 Feb 2009 01:38:49 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Maryanne Coffman http://www.urbanlivingseattle.com/archives/207/comment-page-1#comment-168 Maryanne Coffman Thu, 04 Oct 2007 18:01:19 +0000 http://www.urbanlivingseattle.com/archives/207#comment-168 I am so sorry to hear about all of the troubles you have been through. I personally have never heard of such a problem. I would think the builder would have known what they were building on top of and I'm surprised that they didn't take every step possible of ensuring that the privy pit didn't leak toxins into your home. I'm not aware of all of the aspects of the case but it sounds like you have got a good case against your builder there and I hope it all works out for you in the end. Regarding your issue with your foreclosure...when you signed the Promissory Note for your mortgage you were promising that you will make your mortgage payments even if there are issues with the property itself. When the mortgage company processed your loan they most likely had an appraiser go out and appraise the property for value but it is not the appraiser's job to make sure the home is structurally sound including the land it's built on. It is the buyers responsibility to make sure that the necessary research is done by hiring a structural inspector. Your credit will certainly be damaged by a foreclosure, however, this has been a great expense for the mortgage holder as well. It is my understanding that it costs a lender approximately $60,000 to process a foreclosure in addition to any losses they incur for the remaining balance of the loan after the foreclosure auction purchase has happened. Also, assuming the problem with the condo has not been fixed, if the person who bought the property at the foreclosure auction was not aware of the structural and land issues then they purchased the condo then they've gotten themselves into a world of hurt as well. When you buy a property at a foreclosure auction (at least this is how it is in Washington State) you are not allowed to do a structural inspection first AND you have to pay ALL CASH for the property. On a positive note, most lenders will allow you to obtain a mortgage again in the future but you will probably need to wait 3-4 years. Be sure to document everything that has transpired and then when you are in the financial position to buy again you can submit a letter of explanation regarding the foreclosure with your application for a mortgage. Most loan underwriters will consider what has happend to you extenuating circumstances that were beyond your control. But, they will most likely want to see proof of what happened so be sure to keep all of your paperwork to show them. And, I highly recommend the next time you buy a home you do a lot of research regarding the property first. I wish you the best. I am so sorry to hear about all of the troubles you have been through. I personally have never heard of such a problem. I would think the builder would have known what they were building on top of and I’m surprised that they didn’t take every step possible of ensuring that the privy pit didn’t leak toxins into your home. I’m not aware of all of the aspects of the case but it sounds like you have got a good case against your builder there and I hope it all works out for you in the end. Regarding your issue with your foreclosure…when you signed the Promissory Note for your mortgage you were promising that you will make your mortgage payments even if there are issues with the property itself. When the mortgage company processed your loan they most likely had an appraiser go out and appraise the property for value but it is not the appraiser’s job to make sure the home is structurally sound including the land it’s built on. It is the buyers responsibility to make sure that the necessary research is done by hiring a structural inspector. Your credit will certainly be damaged by a foreclosure, however, this has been a great expense for the mortgage holder as well. It is my understanding that it costs a lender approximately $60,000 to process a foreclosure in addition to any losses they incur for the remaining balance of the loan after the foreclosure auction purchase has happened. Also, assuming the problem with the condo has not been fixed, if the person who bought the property at the foreclosure auction was not aware of the structural and land issues then they purchased the condo then they’ve gotten themselves into a world of hurt as well. When you buy a property at a foreclosure auction (at least this is how it is in Washington State) you are not allowed to do a structural inspection first AND you have to pay ALL CASH for the property. On a positive note, most lenders will allow you to obtain a mortgage again in the future but you will probably need to wait 3-4 years. Be sure to document everything that has transpired and then when you are in the financial position to buy again you can submit a letter of explanation regarding the foreclosure with your application for a mortgage. Most loan underwriters will consider what has happend to you extenuating circumstances that were beyond your control. But, they will most likely want to see proof of what happened so be sure to keep all of your paperwork to show them. And, I highly recommend the next time you buy a home you do a lot of research regarding the property first. I wish you the best.

]]> By: admin http://www.urbanlivingseattle.com/archives/207/comment-page-1#comment-161 admin Wed, 03 Oct 2007 18:58:46 +0000 http://www.urbanlivingseattle.com/archives/207#comment-161 I'm sorry to hear about your troubles with the developer and then on top of it sounds like you had some financing problems as well. I think this is a good example why it's so very important to choose who you work with carefully and never be pressured into a situation. It sounds like there were a lot of things that might have turned out differently if you had a separate Buyers Agent working for you in your best interest rather then purchasing directly from the developer. At least with your own representation you might have been able to investigate the property to a greater degree which could have potentially uncovered the problems you are facing. Since I don't know the entire situation I can't really comment on it but I do think many buyers face challenges with developers who are looking for ways to limit their liability as much as possible. Most of our laws in Washington State put the responsibility on the buyer to investigate thoroughly all aspects of a property and the seller is really only liable if they committed fraud with their representation of the property. Rules in New Mexico are likely different then they are in Washington State but here Buyers are able to have their own representation (Buyers Agent) when purchasing although many buyers do choose to purchase directly from the developers it's a much wiser choice to have your own agent. You don't mention why your condo was foreclosed upon so I don't know the situation or why you weren't informed it was being foreclosed upon, usually most people have some idea that they are behind in their payments and the bank is taking action. That's a very emotional situation and I can understand why you are upset about the circumstances. I'm curious as to what kind of loan program you were in and did your loan officer explain the details to you about it? You mention the integrity of the agent that bought your house at the foreclosure auction. Did this agent know you personally? I don't think you can really find fault with the agent who purchased the home at the auction because that's what a foreclosure auction is for and just like anyone, agents are also people looking for good deals which foreclosure auctions usually are. It's unfortunate that most of the people who are foreclosed upon are not in financial situations to be able to regain their homes or buy them back and I certainly think the mortgage industry has some responsibility for that (getting people into loans that they really couldn't handle) however it's also the responsibility of the individual person to assess their financial situation and make sure they can make ends meet comfortably regardless of what they are told by a lender they can qualify for. As for the agent who purchased your home, unless it was YOUR agent you used to purchase the house with or you knew him personally I don't think he's done anything wrong with buying something he deemed to be a good deal as long as the auction was legitimate and all of the proper procedures were involved. I can understand why you have a very negative opinion about real estate agents and lenders from your comments but I just want to point out that there are "bad" business people in every profession, not just real estate and I'm sure there are people with the exact opposite experience as you had. I’m sorry to hear about your troubles with the developer and then on top of it sounds like you had some financing problems as well. I think this is a good example why it’s so very important to choose who you work with carefully and never be pressured into a situation. It sounds like there were a lot of things that might have turned out differently if you had a separate Buyers Agent working for you in your best interest rather then purchasing directly from the developer. At least with your own representation you might have been able to investigate the property to a greater degree which could have potentially uncovered the problems you are facing. Since I don’t know the entire situation I can’t really comment on it but I do think many buyers face challenges with developers who are looking for ways to limit their liability as much as possible. Most of our laws in Washington State put the responsibility on the buyer to investigate thoroughly all aspects of a property and the seller is really only liable if they committed fraud with their representation of the property.

Rules in New Mexico are likely different then they are in Washington State but here Buyers are able to have their own representation (Buyers Agent) when purchasing although many buyers do choose to purchase directly from the developers it’s a much wiser choice to have your own agent.

You don’t mention why your condo was foreclosed upon so I don’t know the situation or why you weren’t informed it was being foreclosed upon, usually most people have some idea that they are behind in their payments and the bank is taking action. That’s a very emotional situation and I can understand why you are upset about the circumstances. I’m curious as to what kind of loan program you were in and did your loan officer explain the details to you about it?

You mention the integrity of the agent that bought your house at the foreclosure auction. Did this agent know you personally? I don’t think you can really find fault with the agent who purchased the home at the auction because that’s what a foreclosure auction is for and just like anyone, agents are also people looking for good deals which foreclosure auctions usually are. It’s unfortunate that most of the people who are foreclosed upon are not in financial situations to be able to regain their homes or buy them back and I certainly think the mortgage industry has some responsibility for that (getting people into loans that they really couldn’t handle) however it’s also the responsibility of the individual person to assess their financial situation and make sure they can make ends meet comfortably regardless of what they are told by a lender they can qualify for. As for the agent who purchased your home, unless it was YOUR agent you used to purchase the house with or you knew him personally I don’t think he’s done anything wrong with buying something he deemed to be a good deal as long as the auction was legitimate and all of the proper procedures were involved.

I can understand why you have a very negative opinion about real estate agents and lenders from your comments but I just want to point out that there are “bad” business people in every profession, not just real estate and I’m sure there are people with the exact opposite experience as you had.

]]> By: Karen Marie Kline http://www.urbanlivingseattle.com/archives/207/comment-page-1#comment-159 Karen Marie Kline Wed, 03 Oct 2007 17:07:58 +0000 http://www.urbanlivingseattle.com/archives/207#comment-159 For me, the "mortgage meltdown" reflects what I experienced with Realtors and Brokers, that is, they were not very honest with me. To say the least. I bought a condo from a developer who was also a broker, and at the very same time he was being awarded Realtor of the Year, I had to excavate the privy pit my condo had been built over, and he refused to make good in any way. The problems that I have had because of his sale to me of an unsafe home have been gigantic and I really do not know how I am going to get through this. I explain much of the problem in my revised brief: http://www.health-boundaries-bite.com/Revised-Brief.html The brief results from my condo being foreclosed without a hearing, and a Realtor where I had it listed buying it at the auction I knew nothing about. What kind of integrity is that? I wonder if you will publish this... or if the "truth" only goes so far... Karen Kline For me, the “mortgage meltdown” reflects what I experienced with Realtors and Brokers, that is, they were not very honest with me. To say the least.

I bought a condo from a developer who was also a broker, and at the very same time he was being awarded Realtor of the Year, I had to excavate the privy pit my condo had been built over, and he refused to make good in any way.

The problems that I have had because of his sale to me of an unsafe home have been gigantic and I really do not know how I am going to get through this.

I explain much of the problem in my revised brief:
http://www.health-boundaries-bite.com/Revised-Brief.html

The brief results from my condo being foreclosed without a hearing, and a Realtor where I had it listed buying it at the auction I knew nothing about. What kind of integrity is that?

I wonder if you will publish this… or if the “truth” only goes so far…

Karen Kline

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