As more and more people are landing in foreclosure, evictions are also on the rise. Good weekend reading and another sign of things to come unfortunately:
"Sheriff's Deputy Mike Strickland is a postman of bad news, delivering eviction notices in the western stretch of San Bernardino County.
He is armed with a Glock .45, which he seldom draws, and Scotch tape, which he goes through in prodigious amounts while posting court orders on doors and windows.
The deputy spends most of his days at down-market apartment complexes, where the destitute, the addicted and the forlorn fitfully live. But in recent months he has begun venturing into neighborhoods with spacious homes and groomed yards, bringing his legal warnings to those who have fallen hopelessly behind on their mortgages.
These people typically bought a home they couldn't afford or drained their equity through incessant refinancing. If they had a chance to sell, they passed it up.
Eventually, the lender foreclosed on the property. When it was over, the home was auctioned off."
The legend of jingle mail will once again be resurrected. It is said in lore that once upon a time, people refused to pay their mortgage and simply mailed in their keys to the bank as to say "we wash our hands clean." Fascinating to read that the sheriff deputy is actually on pace to paying off his mortgage. Say what? A California resident with aspirations to be debt free. Say it ain't so!
He also mentions that he has a great job and is very busy. I can assure you that he will have job stability for the next few years. Something those at New Century cannot say.
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3 Comments:
Dr.,
Another appropriate article as to the state of things, and things to come. As far as the sheriff and the housing bubble, remember that when your civil servant types cannot afford a median priced home, the community and its inflated value is screwed. Civil servant types (cops, fireman, nurses, etc.) are the only ones with steady recession proof income.
An old trainee of mine says that some of the Sacramento suburbs and Mcmansions built there are looking more and more ghost town "ish". He has changed his business model and also now has 30 bank owned listings as an agent. This weekend he received 3 offers on 2 different properties. None were accepted as the "brain trust" decision makers on the bank's end saw it better to decline all 3 offers that were within 10k of listing (295k & 319k were the actual listing prices). They are now looking at at least another 60 days of holding costs! I wonder if any of them were in this business in the early through mid nineties? Is there a puppet master letting this become a longer, slower bleed?
Until these things pencil out for investors meaning - postive cash flow plus depreciation expense or someone can actually afford them (based on debt to income) on a traditional 30 yr poduct after 10 or 20% down, the ride down will continue. We are not imune in the OC, late 07 and all of 08 will be fun.
More schadenfreude to all who deserve it,
Socalappraiser
Still, a rather sleazy way to make a living(as are many others); he shouldn't be surprised if he meets equal or greater(to Glock)
resistance some day-with both he and his victim never having to worry about debt again. Minimal loss to society, with the biggest tragedy being that the greatest culprit,the lender,(who should know better and act responsibly in extending credit, aka, say 'no' at times)doesn't join in the dirt-surfing as well.
Well, folks in California are lucky in the sense that they can simply leave the keys on the counter and walk away, since the lender can't pursue a deficiency judgement against them.
In most other states when the lender incurs a loss on sale after foreclosure they can and will com after you for the difference.
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