A Foreclosure in Miami - Case Study by Geniusofdespair

When a couple can buy over $7,000,000 worth of real estate with a little more than 10% down you have to wonder what is really going on. Since 2006 this couple amassed mortgages of: $6,230,000 and in one year paid over $93,000 in taxes. I looked in detail into their upcoming foreclosure sale -- how they got to the point where a foreclosure is scheduled.

This couple, Mr. and Mrs. G had been living in a modest home in a middle class neighborhood in Hialeah since 1988. They took their last two Homestead exemptions there. Another house sold on their block in June of 2006 for $370.000. So modestly they lived until 2006 then everything changed with three housing purchases.

Now Mrs. G.'s Property (Case No. 07-838) is on the docket, set for foreclosure sale June 21st, 2007. The property - "Lot 1" - was purchased March 31, 2006 and recorded April 20th in the name of Mrs. G for $2,000,000. The husband’s name, Mr. G, is not on the deed. Then two loans were secured on April 20th one for $1,290,000 and a line of credit for $510,000: Total financed: $1,800,000. Husband joined wife on the mortgages only. The payments on the larger adjustable mortgage are $4,452.00 a month, set to go up in May 2007 to who knows what.

The husband, Mr. G, posing as a single man, bought a property “Lot 2” On March 6, 2006. Recorded March 23, 2006, for $2,900,000. He signed a Mortgage for $2,000,000 March 7th as a single man. Signature matched that of the same married man Mr. G. on the mortgages above for the “Lot 1” property. There was a second mortgage signed the same day for $450,000 for the same “Lot 2” property. Total financed: $2,450,000. The two million is an adjustable rate, interest only loan according to records. The rate was at 2 1/2%. This address is where the "G's" took another homestead exemption. The records indicate they did (perhaps there is an overlap of one property to the other because that would be fraud otherwise).

In January, the husband signed as a single man to purchase "Lot 3", but this was then crossed out on the deed, and "married" was written in. Lot 3 was purchased for $2,200,000 on January 26, 2006 (recorded 2/22/06). Husband and wife signed the first mortgage for $1,540,000 and second mortgage for $440,000. Total mortgages of $1,980,000. The payments on the larger adjustable mortgage are $5,314 a month - mortgage documents state that March 2007 the rate could change.

What does this information tell me or anyone? It does tell me that this couple has a lot of payments to make between the upkeep, mortgages and taxes on these 4 homes.

As I pick these foreclosures at random, it is interesting to note that each one is a science project in itself. This is the third one I have put a magnifying glass on. I can't seem to unravel what is really going on with any of them. This one, however, appears to be uniquely insane.

P.S. One of my readers was right: Same title company for all three lots.

Others I have looked at:
Another Insane Miami Foreclosure
Record Foreclosures in Miami: Fraud or Incompetence