Miami Foreclosures one Hot Day in July by Geniusofdespair

There are about 600 foreclosures scheduled for August here in Miami. I like to look at the ones that already happened, so I am in July. There were 90 foreclosure sales on July 19th. I looked at the records of a few of the unlucky folk.

Genoveva is a first time buyer. Bought the house 10/’04 for $350,000 with husband Jose. She got an adjustable rate mortgage with a prepayment rider from First Franklin Financial 9/30/04 for $350,000. The terms: Interest started out at 8.125% and was scheduled to change in Oct.‘06.

On her foreclosure papers she owed $418,506.33. The interest due from 11/1/2006 to 5/24/2007 was $39,891.23. If we look at that as 6 months, that is about $6,600 a month? That is a big nut to pay off. How did she get a mortgage for the ENTIRE amount? This is the first time I saw the full amount in just one mortgage. Usually there are two.

Like Charles M. for instance...
He bought one house on 3/’05 for $305,000. His first mortgage was for $244,000. It was an interest only adjustable rate, starting at 7.15%. He got a second mortgage for $61,000 3/05 due April 2020. Total mortgage $305,000.

Charles bought a second house 7/’05 for $470,000. He got a mortgage for $376,000.00 from SMC Mortgage Company. It has a prepayment rider with an interest rate of 5.95% until July '07. The rate can then go up to 8.95% with an interest rate never greater than 11.95%. He got a second mortgage, balloon rider, from the same company for $94,000.00, due in 2020 (with a prepayment penalty). One hundred percent financed again.

Foreclosure documents for Mortgage 1 on house 1 give his grand total as $284,632.61.

Charles got his first notice of Lis Pendens for house No. 2 7/13/06. He has reset his foreclosure sale a couple of times. It apparently was reset for 7/19 finally. His final judgment for foreclosure on that first mortgage was $387,559.66 issued October 19, 2006 but, as I said, it was reset.

How on earth did he get mortgages totaling $775,000? And what happens to the second mortgages on these properties?

Now we come to some people with down payments. It seems odd to see downpayments when looking at foreclosures.

Mervyn bought his house 9/’05 for $208,000. He got a mortgage for $197,600 with an adjustable rider and a prepayment rider. His interest rate was 8.475% with the increase due in October ‘07. His final judgment of foreclosure was dated June 18th and his total owed was $213,111.87.

Marie A. bought her home across the street from a school for $187,000 2/22/06. She got an adjustable rate $177,650 loan with a prepayment penalty from BNC Mortgage. Her interest was 9.475% could go up to 16.475%. Her total owed at foreclosure: $191,413 was Jan. 10 (she got an extension till July 19th).

Liliana bought a condo for $295,000 8/’05. She got a mortgage for $265,000, adjustable rate with a prepayment rider. She started out with a 5.99% mortgage that could go up to 11.690%. Then there is a second clause that says her rate could never be higher than 15.590%. What is that about? Bad loan. It didn’t take long for the condo association to start putting judgments on her. Her total at foreclosure: $281.854.16.

The only ones who could have made out on their foreclosures are the "O" down people: Genoveva and Charles M. The rest: Their records show they are regular people. Not buying and selling a lot of homes. They seem like first time buyers getting really bad mortgage deals and shitty advice. Instead of a mortgage broker, they should have seen a financial advisor.

And the banks, they are taking a beating. They are taking these properties back but at such inflated prices, what are they going to do with them? Nobody in their right mind would buy these houses and condos. And, what ever happens to the second mortgages?