Evicted: Loan scheme costs couple their San Mateo home

San Jose Mercury ^ | June 11, 2017 | Tracy Seipel

[artichokegrower]

Robert and Dolores Sexton never saw it coming: a classic real estate ruse the Bay Area retirees say has cost them the home they bought almost 42 years ago.

The couple says they quit paying their mortgage and started paying a Southern California company that promised to work with their bank to renegotiate their loan. But the company disappeared, the bank foreclosed and now an eviction notice demands the Sextons pack up and leave by 6:01 a.m. Tuesday.

[artichokegrower]

They wanted to modify their latest loan of $770,000

Ok this is a sad story but somethings are not adding up

They bought a $49,000 dollar house 42 years ago. Should have paid off the 30 year mortgage by now. Borrowed $770,000 against their equity and did what with it? A purple heart vet should relieve a military pension with a disability upgrade. Retired city employee should receive another very generous public employee pension. Someone bought their $49,000 house for $1.3 million at a public auction and they didn't do a short sale? Sorry for this couple but they brought much of this onto themselves.

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[Steely Tom]

So long, farewell, auf wiedersehen, adieu!

[Dilbert San Diego]

Good points. They really needed some good legal advice from an attorney and a CPA regarding their finances, and the legal.process of foreclosure. Among other things they needed to know that you still have to pay your mortgage even if you are trying to renegotiate. It should have been a giant red flag if they were behind on their payments month after month, but the fly by night company they were paying was not making any progress on their case. There are lots of red flags in their story.

[Lonesome in Massachussets]

A $770,000 mortgage, 15 year @ 4.25% is ($5,890.45) monthly, 30 year @ 3.5% is ($3,457.64).

These people are nuts.

[DoughtyOne]

With all the government programs over the last decade, they could have taken advantage of, to lower their rates, I'm amazed they still had a $770,000 loan at 7+ percent.

Man I hate to see this, but honestly, it seems these folks had to have almost worked at it to wind up in this bad of a situation.

To top it all off, they quite paying to their mortgage holder and started paying a third party?

Yikes¹⁹⁷⁵

[vladimir998]

“They bought a $49,000 dollar house 42 years ago. Should have paid off the 30 year mortgage by now. Borrowed $770,000 against their equity and did what with it?”

I wonder if they invested in a business and then it went belly up. I know far too many people who bought homes DECADES AGO and could have paid off those homes twice over but blew their money on other things. They now owe more than they did when they bought the house (again, DECADES AGO).

My parents worked their butts off and made many sacrifices to pay off their house early. My father also paid for every car he bought in cash so it would be free and clear. We never owed anybody really (except for that mortgage) and that’s how I like to live now.

[SkyDancer]

Ich gabe auf.

[yldstrk]

so why do they still have a mortgage after 42 years is the relevant question

[Tennessee Nana]

anyone stupid enough to still be paying a mortgage 40+ years later deserves to lose their house...

[Steely Tom]

To top it all off, they quite paying to their mortgage holder and started paying a third party?

The "loan modification company," called Endeavor Resources Group, told them they must immediately stop their monthly mortgage payments, because they were now "in litigation."

That sounded fine to the Sextons, who were more than happy to comply with this instruction.

If they had spent five minutes on Google, the Sextons would have found out quickly that Endeavor Resources Group is very shady.

[albie]

I suppose this is the big bad banks fault. Banks hate short sales and foreclosurs. They lose money every time. I’m in real estate and am always having to deal with this kind of horsesh&&. They obviously opened about 20 HELOC’s over the years. They should’ve had the house paid off 12 years ago.

[DoughtyOne]

As far as I read in article, that seemed to be where it was headed. Of course the company is no longer in business.

Score a few suckers and retire...

(seems their business model)

[fireman15]

No, this one doesn’t add up. We had neighbors down the street who eventually lost their custom built brand new house and were evicted. Like this situation, it was not completely unexpected.

They had a similar story. The wife was supposedly dying of cancer. But fortunately she didn’t. Despite their desperate situation, they were still driving around in new luxury cars and they moved into a another new house when they left here.

After they moved into their new custom built home, they never made a payment. It took the bank 4 years to finally get them out. I assume they used their sad story to maximum advantage.

[rb22982]

Don’t forget to add on insurance and RE taxes

[bigbob]

I know a couple that did the same thing - wife used the house as collateral for one home equity loan after another to bail out their drug-addled worthless kid. Now going into foreclosure.

[GOPJ]

You’re right.

This is a pity party story that doesn’t add up.

My guess - it’s with a story with a liberal elite political motive. Democrats want to help one of their deadbeat victim groups and they’re attempting to use a story that might have appeal to traditional Americans (if they don’t ask the right questions - as you did...)

[Terry L Smith]

I agree that ‘some things do not add up’.

An expansion on a master bedroom should NOT cost in multiples of the value of the ENTIRE house.

I think it is not the amount of the loan that has caused them to keep borrowing. I am inclined to look towards the city/county real estate tax assessment rates as being the culprit. HOWEVER, as can be found across the nation, your 30 year old house VALUE increases, when the neighboring houses keep getting bought and sold, at the increasing property values, which increases YOUR assessment.

ALSO, look at the guy. He says he is going through leukemia chemotherapy. He is wearing a sleeping mask, and his LEGS ARE WRAPPED AND NOT ELEVATED.

THIS LEADS ME TO THINK THAT THE LOAN MONIES ARE NECESSARY FOR MEDICAL COSTS.

[DoughtyOne]

That’s my take too.

The banks are there with the money. If someone gets a loan, man they love the bank. Then when the bank asks them to pay the loan back, “Why those dirty rotten banks!”

This happened with South American countries too. Oh they wanted the loans. Then when the North American banks wanted the loan payments, the borrowing nations declared the banks to be dirty filthy manipulators.

How could they do this to those poor Central and South American nations?

Some folks buy into this rot too.

These folks here seem to have acted very irresponsibly. When you screw up, you screw up. Take responsibility. Don’t blame everyone else.

[windcliff]

ping