24-Year-Old Mortgage Mogul Goes Bust

People talk about a soft landing in the housing bubble, but have they considered how speculative the housing markets are, and how reckless the lenders have been? Hold on to your hats! Here's a story about a 24 year old guy who easily borrowed far more than he ever should have been allowed -- and -- go figure -- he's now belly up and blogging about it.

Category:

News & Politics

Tags:

• Housing
• bubble
• foreclosure
• blogs
• investing
• economy
• finance
• inflation
• default
• crash
• bust

[cecilbdml]

Folks, remember that in a foreclosure, the bank gets the house, PLUS any and all money you paid them. They win, NO MATTER WHAT.

We live on credit. We live on time we borrowed from someone who has nothing to lose. We end up losing everything, EVERY TIME. It's time for us to grow up and start paying for stuff in cash, or NOT BUYING IT IF WE CAN'T FRIGGIN' AFFORD IT.

[jcernharth]

True. But do you realize that every dollar in circulation has been loaned into circulation? It all starts with the Fed, my friend.

[LuciusBrutus]

That is how you get ahead in the world, Lie. I wonder how many flippers for years got away with this. No wonder working for a living is old fashioned foolishness. Besides, there is no money in working for a living these days. Even worse his only options probably would have been a McJob.

So, McJob or lie on a loan? You choose.

[jcernharth]

No doubt, but it is also a two way street, with a cadre from Wall Street on down to Main Street mortgage brokers "just getting the deal done" because it could get done, knowing fully well that the loans were garbage. They were repackaged (repeatedly) into an artificially liquid secondary market. Ratings agencies slapped AAA ratings on the it - the insane alchemy is completed.

[Autubescreenname]

God people. This wasnt caused by lender/broker fraud. It wasnt preditory! The program were available & almost all borrowers knew what they were getting. Sure maybe a FEW crook brokers managed to get someone through escrow without a clue but thats hard to do!

The bank DOESNT WIN no matter what. They are not equipped to own property. For each one they lose like that, they have to make dozens more to recoup. What if the property is trashed?

GREEDY ASSED BORROWERS did this to themselves.

[TroyOi]

The amazing thing is, this was more than TWO years ago.

At least now, his misery has A LOT of company!

[myland2012]

If you want to read more on the Casey Serin story, try Caseypedia dt com

This was only the beginning.....

[myland2012]

Casey Serin. Self proclaimed World's Most Hated Blogger.

Three years on and back in the game. Amazing.

[BOGZASV8MA]

@cecilbdml yea but the bank loses when they have to pay taxes and have nobody paying for it.

[sunntzu]

If he had actually been able to successfully sell them or rent them out then he would have been fine. HIs problem was getting to much to soon, besides lying, he bought way to much and never tried to sell or rent...or, he didn't wait until one sold or was rented..I nearly did that also, but didn't lie to get it as I had the income to afford2-3 houses. I would only buy 2, if i were him back then, and sell one or rent one before another

[TroyOi]

Not as soon as you thought, evidently, given that your post is a year old!

[zekeandcharlie]

I was so bombarded by calls from brokers I stopped answering my phone. I'm a free spirit with a career that allows that and these people would NOT stop calling me. Someone a little less secure would have jumped at the chance these guys were offering. These brokers were worse than my dogs with a bone.

[leopadilla]

It's 50/50. Idiots who barrowed more than they could afford and predatory lending..either way everyone in this business is scum.

[lennyfest]

If you buy now, you will find a house like the one you bought for $100K or more less than what you paid. You effectively will be catching a falling knife and become instantly underwater on your mortgage! Imagine going to the bank and asking, "I'd like to open an account for minus (-)$100K". After years of deposits adding up to $100K you will have $0 in the account. Silly isn't it? Well that is exactly what you will be doing if you bought a house right now