Brokers Lost Investments to Foreclosed House for Sale Lists
The sad stories of two San Diego realtors and investors illustrate the harsh reality of losing from foreclosed house for sale lists despite years of training and experiences in the real estate sector.
Both 62-year-old John Woodbury and 45-year-old Lenska Bracknell had years of experiences in the real estate business, which could have trained them in detecting trends and exercising caution with their investments. Even so, they failed.
This year Woodbury has lost all his six homes to foreclosed house for sale listings. Bracknell meanwhile has hired a company to negotiate with her lender for the short selling of her three properties in Idaho to prevent them from being added to foreclosed house for sale listings and to preserve her credit record.
Woodbury related that he bought six properties in various locations – Los Angeles, Hemet and Escondido in California and in South Carolina, Texas and Montana. He claimed that all the homes were earning rental income in 2006.
Woodbury said his problems began when the rental income from his Los Angeles home fell to $1,600. He and his wife knew they had to sell the home because the monthly mortgage payment was $3,200 and it was wiping out their savings.
They talked with their lender, First Horizon Bank, when they found a buyer willing to advance a bigger down payment, but the deal failed when the bank refused to give Woodbury some leeway in late fees and penalties so that he can close the gap between the mortgage balance and the selling price.
Woodbury said that he tried loan modifications for all six of the houses, but not one was successful because the banks were uncooperative and unhelpful. He decries the lack of concern by banks for individual citizens while receiving bailout funds from taxpayer money.
He admits though that part of the reasons why all his houses went into foreclosed house for sale lists was his credit score which declined drastically.
Bracknell’s case is a bit better because she was able to find an investment company specializing in short sales. The company is currently negotiating with her bank.
Bracknell said she did not do anything wrong, blaming the economic downturn as the cause of her losses. She explained that she made 20-percent down payments, submitted all lending requirements and treated her renters well.
Despite her losses, Bracknell said that she still loves real estate. What happened will no doubt make her smarter to avoid losing her investments to foreclosed house for sale inventories in the future.
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