Tuesday, October 23, 2007

Notable Listings

Today's notable listing is one I happened to stumble across while running some comps for a fellow blogger looking in the Folsom area. After taking a closer look at the tax records, it appears the so called "tightening of lending standards" still isn't tight enough. Read on...

3160 sq ft house in Folsom listed at $799K and sells for $764K on 7/2/07. Buyers get two loans with Countrywide, one in the amount of $611,200 and the other for $53,800. Total loan amount of $665K. Then just over a month later they get a third loan for $230K with River City Bank. They're now at $895K on a $764K purchase.

Feel free to draw your own conclusions...

8 comments :

Patient Renter said...

Wow. I had thought standards were tightening since there are signs (and flashy press releases) everywhere, but I also had a suspicion one could still pull ridiculous financing if one tried hard enough. This situation is a good example... the one wildcard is what rate(s) the person received on the loans? They might be practical only for an investor (flipper), not someone who intended to live in the house... of course... some people just don't care about silly things like rates.

smf said...

The seller had the bank convinced to release their 'instant equity' when they bought their house.

buying time said...

This is a great example of everything that is wrong with the current RE market and why we ended up in this mess in the first place! That's an insane monthly payment. We rent something just a bit shy of that size for $2150 a month.

Max said...

Fraud at River City Bank? Say it ain't so, AB?

Bubble Sitter said...

Agent Bubble,

Here is another crazy lending scenerio on 505 Heathmore in Lincoln. On June 26th, 2007, WAMU lent $870,200 ("95%") on this house, purchased by a suspected mortgage fraudster.

Now the suspected fraudster already has it listed as a short sale with Keller Williams for $549,000.

Go to http://www.metrolistmls.com/ and plug in the MLS listing number of 70110106 and you can see the property.

Tri P. Ung paid $842,500 for the property in 6/2007, then moved the property into the Heathmore Ct. LLC, before he sold it to the fraudster.

WAMU will take a $500,000 bath on the deal within a matter of months. I don't think I want to keep any money in a bank with loan officers that are stupid or thieves! For that matter, who wants to do business with Keller Williams either!

AgentBubble said...

Good find bubble sitter.

Anonymous said...

I'll likely repeat this story a few times, but I just applied for my loan a couple of weeks ago. OVER THE PHONE, I applied and was approved for a $400,000 loan...on STATED INCOME.

I should also mention that my FICO is below 700.

My credit report is clean and I don't have any debts, but still, they didn't even verify how much I currently have in my accounts.

I'm only putting 10% down. It amazes me that I was able to get a loan so easily with ZERO documentation. They didn't even ask for a bank statement - they asked for a utility bill to verify that I live at the address I claimed.

To take it a step further, they never even checked a photo ID (the title company did when I went to sign all the documents).

I'm a fairly solid risk for a lender (even if I haven't filed my 2006 tax return yet!), but it shocks me to see that the so-called 'tightening of standards' is anything but.

The rate is 6.375%, but I elected to pay 1/8th instead of PMI, so I'm paying 6.5%.

Hardmoneyloans.org said...
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