33 thoughts on “Squatting Newport Coast Style”

1. Planet Reality March 27, 2010 at 5:48 pm

   “I imagine lenders will find a way to take bailout money for these losses. You are probably going to pay for Washington Mutual’s loss on this property with your tax money as part of the backstop agreement when Chase took WAMU over. ”

   You got that right.

   We are all Newport Coast home owners now !!!

   Another week, and more tax payer help for homeowners. There is no end in sight. Government sponsored principal reductions are just a hop, skip, and a jump away.

   This will all blow up into major inflation 5 to 10 years from now.
2. newbie2008 March 27, 2010 at 8:33 pm

   IrvineRenter,
   Why you heartless soul. You’re likely picking on a single mother. She only did what was legal and forced there by dead, divorce or stragetic separtation. Only 3.2 million dollars in cash equity withdraw from a first with the banksters blessing. The $0.7 million HELCO is questionable, because that would create a recourse loan, but payment of 20 cents on the dollar, still a ROI of 500% for the HELCO.. :{

   What’s it to you that she got the good deal from the bank? $3.2 million in walk-away money and only one year plus free rent now.

   It doesn’t matter what price she sells it at this point. You’re assuming that she really wants to sell the place. It likely a one action/non-recourse. The game is to give the bank a reason to delay FC. String the lowering of the price for another 3 years of free rent. If it sells for $500 thousand or FC, it no skin off her back and that would be 4 years of free rent plus 3.2 million in walk-away money. Maybe she can make some political contributions on behalf of GS for more bailout money for the banksters and expansion of non-recourse for all home loan, unless she’s a bankster. Is she?

   I would put some quotes of our founding fathers, but the OHS would like be shutting down your website. :}
3. Alan March 27, 2010 at 8:42 pm

   If it had sold for $6.1 million, she would have gotten another $2.3 million on top of the $2.7 million in equity withdrawal. Great fantasy, but too bad life didn’t play along quite right. I guess some lawyers and debt collectors will take the time to look into this one eventually. Any Sugar Daddies out there?
4. OrangeRenter March 27, 2010 at 8:58 pm

   I’m always compelled to post when you discuss Option Arms.

   Having worked in loss mitigation for a larger servicer, I was amazed at the number of Multi-million dollar option arms going bad… Especially in hard hit areas of FL.

   One comes to mind: a single woman that work for a large TV network making $450,000/yr.

   $3 million Option Arm with a teaser rate payment of about $10,000/mo. In Foreclosure. We offered to get her all caught up with a fully amortizing 2% rate which would keep her payment at about $10,000 (but no longer be neg am). Rate would step up to a “normal” rate of 5% after 5 years.

   She sued us. Case was still pending when I left.

   Does this rich, saavy business woman deserve a 2% payment? Do YOU have a 2% payment on your $3million dollar home?

   The whole mod business disgusted me, which is why I quit.

   The 5% payment shocked her (about $16,000/mo), but what did she expect was coming on a 3 MILLION DOLLAR LOAN!

   Why can’t she just go rent somewhere with her $450,000 ANNUAL SALARY! No, we “owed” her somehow.

   No I’m mad all over again…
   1. Chris March 29, 2010 at 10:51 am

      If the salary/commish pays well, hell, I’ll take your job 🙂

      Screw morality….do you think this gubbermint cared about morality when it provided the largest bailout ever known to mankind?
5. newbie2008 March 27, 2010 at 9:02 pm

   Alan,
   If it sold for $6.1 million, she would be responsible for pay the REA and clearing the loan. The net with the sale would be about only $1.8 million. A walkawy with $3.2 million is $1.4 million more plus a few years of free rent. She only needs to do the math.

   The one action rule with a judical FC might keep her in the house for another 3 years and call the title into question for one year after JFC. But then she could of hid the $3.2 million.

   You can buy a lot of house for $3.2 million in 95% of the USA. $3.2 million is a life time of rent, small house and retirement funds.
6. newbie2008 March 27, 2010 at 9:13 pm

   Sorry, Math mistake. Net on sale for $6.1 million would be $4.5 million cause the property was purchased for 1.2 and she should have cash for the refinance what would be a wash. But she at a point that the sale below her loan value would not likely be in she best interest.

   JFC are a crap shoot. Too much rest upon a judge that might have great sympathy for this poor single mother or buddies with her family. The title/sale would still be in limbo for a year after JFC.

   Not leagal advise, just looking over the possibilities.
7. oc bear March 27, 2010 at 10:10 pm

   While I enjoy IHB very much, I doubt that many people in the mid west are reading the blog. Once everyone that rents, pays their mortgage, or owns their home outright truly understands this problem and has a way to express their displeasure, something big is going to happen.
8. wheresthebeef March 27, 2010 at 11:45 pm

   Those are some mind blowing numbers! Like you said, the tax payers will probably eat the loss. When all the people in the midwest who live within their means figure out where their hard earned tax dollar is going…shit could hit the fan real bad. It’s funny how the MSM doesn’t cover any of these stories because it would insite anger and possible violence.

   The woman featured has zero ethics or morals. But she is business savy and knows how to game the system…that is what sets her apart from the rest of the Oprah watching, cheesy poof eating regular working class.
9. Major Schadenfreude March 28, 2010 at 1:32 am

   Thank you for this post.

   I will be printing it out and sending it to elected officials along with a letter explaining why their heads should be more or less lopped off.

   This story will be in support of just one bullet point of many in that letter.
   1. tonyE March 28, 2010 at 7:49 pm

      I was thinking of doing the very same thing.

      Unfortunately this is the kind of person, living on the kind of neighborhood that supports the politicians.

      They may let Moreno Valley and Hemet go down in flames,. Irvine will take a big hit… but the rich areas of Newport, The Westside, San Francisco, etc.. will be propped no matter what.

      Going after this woman would upset the apple cart -err the gravy train for the politicians.
10. newbie2008 March 28, 2010 at 3:21 am

    She even better. The listing has a lease option while in default.

    Taking 3.2 million in cash, not paying and maybe have someone to pay her by leasing the house. It doesn’t get much better than this bailout.

    Say $10,000 month plus deposit for leasing. Plus prepayment of rent and deposit? The bailouts are really reeking of greed. Will the leasee get stiffed? I hope the laws have been changed to protect the leasee for FC.

    The large families in the midwest are needed. Who else is going to pay for all these bailout?
11. jack dawson March 28, 2010 at 5:04 am

    wow, this is just gross .

    shouldn’t there be some kind of law ?
12. E March 28, 2010 at 7:39 am

    Hmmmph.

    Interesting.

    I did a little noodling around on the internet.

    Looks like this person *may* also be the owner of a $1,640,000 Sunny Isles Beach, Fl condo bought in 2008.

    I wonder if she’ll “homestead” her condo and get to keep it for free. I think that’s how it works in FL.

    Bitch.
13. Laura Louzader March 28, 2010 at 11:58 am

    Ohmygod, I am beyond disgusted.

    I am a renter and I have just been informed that my job in financial will go away next month, or the following month.

    Let me tell you that I will not get the forbearance from my landlord that this woman has gotten from the system, and I don’t make anything like $450K a year. My landlords are great people but even THEY are not in this woman’s income bracket,nowhere near, and they cannot afford to carry a 42-unit building full of unemployed freeloaders. I wish I could tell you she is the only rich person living on welfare in a palatial home, but I personally know of a couple such here in Chicago.

    This woman should be prosecuted for bank fraud and made to move out of this house and to pay back as much of her debt as she is able to. That means that she should be left about 20% of her income to live on, about $90K, which last I heard was well above the poverty line. Maybe she should be left $45K, which is ample for her needs. That will get her a nice rental in FL and pay her car expenses. She should have a lot of nice clothes and jewelry left to show for her HELOC spending binges- but the jewelry should be hocked to help pay the debt.

    And she should be made to perform Community Service. I would suggest she be put to work in a homeless shelter, so she can meet people who’ve really been had by our rotten system.
    1. IrvineRenter March 28, 2010 at 5:48 pm

       Laura,

       It’s sad to hear you are facing difficulties. I wish you the best of luck finding a new job.
    2. zubs March 29, 2010 at 11:01 pm

       You guys have gotten it all wrong. This woman is a hero who is trying to bring down the corrupt system. Everyone should emulate her, and then the system would collapse, and out of the destruction, a new and better system borned.

       So yeah..game the system and get yours while you can and try to do it legally…..lots of grey areas.
14. Laura Louzader March 28, 2010 at 12:22 pm

    OOps, why did I say FL? This house is in CA. Oh well, she can get a livable rental somewhere in SoCal for $1100 or so, I’m sure, though I do not know your market.

    Where she really ought to be living is in a jail cell. This was HELOC fraud, pure and simple.
    1. Swiller March 28, 2010 at 7:49 pm

       A “livable” rental in OC for $1100? LOL!!! Where? And what is “livable” varies from person to person and even from one phase in life to another.

       Sure livable can be a tar paper shack south of the Salton Sea….or a husk of a home in Hemet. No jobs out that way and commute is a bust in the gonads every drive….plus the cost of Arab gasoline is only going to go up.

       I’ve been living in OC since 1986, and even THEN, I was paying $660 for a one bedroom. I would say $1400-2500 for a 2 bedroom in OC in a good neighborhood. A house? $2200-5000 If you like to risk your life for cheaper rentals, you can do SanTana, Anaslime, Garbage Grove, or Guada-La Habra.
       1. Swiller March 28, 2010 at 7:58 pm

          I agree with you on the HELOC fraud and people going to jail, but only *IF* the banksters and those at the top go to jail for even longer periods of time….which won’t happen. HELOC abusers should be forced into bankruptcy. You see, IF you have the $$$, you will be forced to pay on those debts, it may not be 100% recovery, but at least they can’t slimeball out with profit free and clear.

          I would one day like to see Pecora trials begin, but as some of our founding fore-fathers wrote about the dangers of a central bank, it may be too late for that.

          I voted for Ron Paul, and I will again, even if I have to WRITE his name in like the last election. I vote for what I believe in, not for fear of who will do the least amount of damage. To the older generation, they think I’m wasting my vote, but I see what voting for the “lesser of two evils” has done to this country. Now all the politicians are devils, just some worse than the others.

          Eventually, Satan himself will have to run for President and elected Congress just so the people have someone to vote AGAINST.
       2. Laura Louzader March 28, 2010 at 8:27 pm

          Well, a “tar paper shack south of the Salton Sea” is sure as hell livable enough for this fraudster. She’d have her freedom, which is really more than she deserves.

          I wouldn’t let this woman bankrupt, but would make her commit 90% of her pay to paying back these loans. Unfortunately, her Sunny Isles place gives her Florida residency, and FL has the most liberal,corrupt bankruptcy laws in the country, except perhaps for TX. In FL, you can declare a Chapter 7 total liquidation and keep a house worth up to $2M. This place is probably worth a little less than that.

          Irvine Renter, thank you for your kind sympathy. But I believe I will be OK. I’ve sensed this coming and have been scouting other job and business opportunities, and I am frugal and live in an inexpensive apartment.
    2. tonyE March 28, 2010 at 8:18 pm

       There’s no room for people like this in our jails. They’re overcrowded with pot and crack users.

       Hopefully when we legalize pot we’ll have room to throw people like this in for 20 years or so. Make them pick cauliflowers in a work farm.

       Good luck with your job.
       1. Swiller March 28, 2010 at 8:46 pm

          I’ll agree with you that the War on Drugs has been an abject failure. Making crimes out of things that by nature aren’t crimes is foolish. Prohibition *never* works.

          I do ponder whether a crack smoker (not an incarcerated crack smoker, they employ police with union jobs and a 3% per year retirement plan with full bennies) has more of a negative impact on society than a HELOC abuser who costs taxpayers a million bucks or so. Both cost us tremendously and are a huge burden. Police with bloated pay and unsustainable pensions, and someone walking away with a cool million, just because the law says they can.

          When a Ponzi scheme is discovered, who do they go after to arrest? The little guys who all contributed and lost their money, or the person or people who started the scheme and made the most $$$? The flippers participated, but the banksters and politicans, they created it through their laws, but when will people indict themselves? That’s why there is no investigations, and no one going to jail. The system would have to jail itself, and we would have to elect an entire new government and abolish the central bank. Will never happen….
15. Laura Louzader March 28, 2010 at 9:14 pm

    Here is a nice Irvine rental for a thou a month.

    Now, it’s a studio, and I have no idea how the neighborhood is. But it is on the 2nd floor and looks fairly break-in resistant, if you put a good stout deadbolt lock on the door. It has a tennis court and a pool and parking and is close to everything.

    http://www.realtor.com/realestateandhomes-detail/264-Streamwood_Irvine_CA_92620_1115400302

    I found many other nice cheap places in the Los Angeles area. Very nice little places in charming, well-kept, secure old buildings for as little as $667 a month. Granted, they are not in choice neighborhoods, but if you are careful and alert, you can live safely in these areas.

    While I’m sure it’s not a great apartment and it probably isn’t in a desirable location, it is still far from being a slum. You can paint the place and make it charming, with a little imagination and almost no money, especially if your are already loaded with luxe furniture left over from your binge-spending days.The location also might make up for what it lacks in desirability in its proximity to retail and recreation.It beats the hell out of a prison cell. Many people who used to live far better would now be grateful to live this well.

    But this lady probably has closets bigger than this place so she will have to sell a lot of her nice designer duds to fit into the joint. She shouldn’t feel bad- it beats living in a Tent City
    1. tonyE March 28, 2010 at 10:01 pm

       “close to UCI”
       “close to the Spectrum”

       WTH?

       It’s on the North Side of the Santa Fwy towards Tustin.
    2. Swiller March 28, 2010 at 11:31 pm

       This is so funny I almost spit my drink out…

       “Granted, they are not in choice neighborhoods, but if you are careful and alert, you can live safely in these areas.”

       Not around here. I lived in Santa Ana for 5 years shortly after moving here in the 80’s, and let me tell you, no amount of be careful and alert will save you from a bullet fired on a drive-by, you would be jumping on the ground every car that went by. It’s just different out here. You have good neighborhoods (where killings still take place, just a lot less frequent) and you have bad neighborhoods where you read about killings going on darn near every week-end.

       If I was a single woman, I would want to move somewhere that is relatively stable (condo/house, not an apartment) and get to know the neighbors.
16. Laura Louzader March 28, 2010 at 9:21 pm

    Here is another cheap Irvine rental:

    http://www.realtor.com/realestateandhomes-detail/2253-Martin-212_Irvine_CA_92612_1117304059

    How is this neighborhood, does anyone know? This looks like an attractive complex, but from the listing I can’t tell how the maintenance is, or anything about the neighborhood. But from this distance (Chicago) this looks OK for a single woman with no kids.
    1. Swiller March 28, 2010 at 11:21 pm

       Well, it depends on what you are calling a “neighborhood”. In the midwest there are houses and parks and schools around. This specific area is all business. It’s close to the airport (see Airport Way on the little map), and there are large business buildings all over. Heavy industrial/commercial use is nearby in all directions. So, it depends if that’s how you want to live. There are other areas much more conducive to actually having a social life without having to drive everywhere.

       That whole complex there reminds me on one giant Precinct 13…I’m not a fan.
       1. Laura Louzader March 29, 2010 at 1:27 am

          It’s Ok if you are “not a fan” and can pay your bills to live elswewhere. You pay your bills, so you are entitled to your choices.

          We are all entitled to our choices within our means.

          But when you are someone who has scammed the system for $2.7M, you should be darn happy living in a “non-premium” neighborhood. If it’s close to commercial and the airport, a BK person should be grateful-it’s at least convenient to jobs and retail.

          Beggers can’t be choosers. This woman should be grateful she’s not in a homeless shelter.
          1. Swiller March 30, 2010 at 12:20 am

             Now you are sounding like the government…”I’ve made this decision, and this is good enough for you”.

             I thought you were asking about living areas for yourself and was trying to help out because I know the area very well. I should know better than to help 🙂
17. JH March 28, 2010 at 11:43 pm

    This place has a one bedroom for $1100 and it looks nice. Is this a bad part of town? Is it an inconvenient place to live?

    http://www.apartmentguide.com/apartments/California/Santa-Ana/The-Court-At-Artists-Village/63644/
    1. JH March 28, 2010 at 11:51 pm

       I, like Laura, have a hard time believing you can’t find a decent place to live in Orange County for a little over $1k a month.

       Studio for $1k at Seal Beach
       http://www.apartmentguide.com/apartments/California/Seal-Beach/Oakwood-Long-Beach-Marina/1774/

       San Clemente studio or one bedroom for around $1.1K
       http://www.apartmentguide.com/apartments/California/San-Clemente/Pacific-Pointe/20677/

       Newport Beach:
       http://www.apartmentguide.com/apartments/California/Newport-Beach/The-Beach-House-Apartment-Homes/1655/

       Laguna Hills one bedroom less than $1.1K
       http://www.apartmentguide.com/apartments/California/Laguna-Hills/Alicia-Plaza_-Alicia-Village/25682/

       Are all of these places unlivable?
       1. nefron March 29, 2010 at 9:42 am

          There is no place in Irvine that is unsafe. The studio is in Northwood, it’s perfectly fine. The rest of them, I’m not familiar with. But no matter what, we’re not talking South Central.

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