My job is to watch dreams die (2011)

During this same time period I had a project at a part-time gig which involved updating document templates and adding a few fields here and there for a legal application. The application was used by a law firm which specialized in mortgages. So I saw the details of various documents one is served in these situations: notice of default, acceleration notices, notice to vacate, and ultimately evictions and foreclosure auctions. And of course you could see thousands of these documents being generated and mailed out. For a guy like the one in the post to show up, you probably would have had to completely ignore probably a dozen of these documents for at least 6 months, not paying your mortgage all along.

Sometimes I feel like this experience, especially the idea that the entire principal balance can be accelerated if you don't make your payments regardless of the value of the house, left a bit of a scar on me that caused me to miss out on the ZIRP real estate boom II. But I am still happy with the way things are turning out overall.

Re: My job is to watch dreams die (2011)

#5

Post by DaiPlusPlus » Thu, Sep 05, 2024, 8:42 PM UTC

analyte123 wrote: post #4

During this same time period I had a project at a part-time gig which involved updating document templates and adding a few fields here and there for a legal application. The application was used by a law firm which specialized in mortgages. So I saw the details of various documents one is served in these situations: notice of default, acceleration notices, notice to vacate, and ultimately evictions and foreclosure a…

> you probably would have had to completely ignore probably a dozen of these documents for at least 6 months, not paying your mortgage all along.

Fun-fact: thems the benefits of being a mortgage holder.

If you're a tenant that's renting, you get no such legal protections - let alone discretion from whichever faceless entity actually owns the property: where I am in King County WA, I think, at most you can get 30 days' notice tops (and that's if nonpayment is the only thing they allege; it's trivially straightforward to make it a 3-day nuisance eviction, honestly).

The whole thing doesn't feel right (I don't want to say "class warfare", but I haven't heard a better explanation for this double-standard).

Re: My job is to watch dreams die (2011)

#6

Post by howard941 » Thu, Sep 05, 2024, 8:47 PM UTC

I worked the other side of this thing, as a debtors' bankruptcy attorney. Sometimes I could save the house but usually it wasn't in the cards: The income wasn't there and the bankruptcy laws were skewed by GWB. Fortunately there were many times when - if a house wasn't an issue - the debtor was much better off without an albatross around his neck. Overall it was a rewarding occupation - not monetarily, the rules kept debtor's attorneys on a very short leash - but morally.

Re: My job is to watch dreams die (2011)

#7

Post by 0cf8612b2e1e » Thu, Sep 05, 2024, 8:48 PM UTC

analyte123 wrote: post #4

During this same time period I had a project at a part-time gig which involved updating document templates and adding a few fields here and there for a legal application. The application was used by a law firm which specialized in mortgages. So I saw the details of various documents one is served in these situations: notice of default, acceleration notices, notice to vacate, and ultimately evictions and foreclosure a…

There was a Planet Money story about Zombie Mortgages. Home owners thought a second mortgage had been annulled, sometimes even being explicitly told that. Years of no statements being sent and suddenly collections was asking for money on what the home owner thought was a done deal. Even the bank was claiming it was some weird fraud attempt. So of course you could feel safe ignoring that paperwork. Until they came and sold her house out from under her.

https://www.npr.org/2024/05/10/1197959049/zombie-second-mort...

Re: My job is to watch dreams die (2011)

#8

Post by BobbyTables2 » Thu, Sep 05, 2024, 9:02 PM UTC

DaiPlusPlus wrote: post #5

analyte123 wrote: post #4

During this same time period I had a project at a part-time gig which involved updating document templates and adding a few fields here and there for a legal application. The application was used by a law firm which specialized in mortgages. So I saw the details of various documents one is served in these situations: notice of default, acceleration notices, notice to vacate, and ultimately evictions and foreclosure a…

> you probably would have had to completely ignore probably a dozen of these documents for at least 6 months, not paying your mortgage all along. Fun-fact: thems the benefits of being a mortgage holder. If you're a tenant that's renting, you get no such legal protections - let alone discretion from whichever faceless entity actually owns the property: where I am in King County WA, I think, at most you can get 30 days…

Indeed. When I lived in an apparent, got a very angry knock at the door. Before I even got up, manager already was unlocking the door without asking, with a formal eviction notice in hand.

Every month I faithfully put my rent check in an envelope, deposited the slot at the office.

That month they accidentally threw away the check after opening the envelope.

They really didn’t believe I had paid, despite being a good tenant for years, always on time. Never caused any trouble.

Marched me to the office and they discovered they had photocopied my check but didn’t deposit it (threw it away).

That all happened in one month — no prior notice/warning/call about being late on rent.

I’m still shocked at this treatment many many years later. Can’t even chalk it up to any type of prejudice… just utter stupidity.

Re: My job is to watch dreams die (2011)

#9

Post by coding123 » Thu, Sep 05, 2024, 9:08 PM UTC

There needs to be some standard addendum attached to homes as an option that anyone selling a home can attach to the sale. Something like:

This house cannot be used as an investment vehicle. It cannot be sold by a real-estate agent with a contract of more than 1%. It cannot be used as a rental. It cannot be sold for more than inflation would allow.

Anyone found violating this addendum may be sued. All proceeds from the lawsuit (after fair lawyer fee of 40%) shall be used to build new homes (as in it can only be used to fund actual building materials, not generic non-profit companies).

This might not be the best approach, but we need a home renaissance that redefines home ownership across the world so that no one has to be homeless anymore.

Re: My job is to watch dreams die (2011)

#10

Post by crooked-v » Thu, Sep 05, 2024, 9:17 PM UTC

coding123 wrote: post #9

There needs to be some standard addendum attached to homes as an option that anyone selling a home can attach to the sale. Something like: This house cannot be used as an investment vehicle. It cannot be sold by a real-estate agent with a contract of more than 1%. It cannot be used as a rental. It cannot be sold for more than inflation would allow. Anyone found violating this addendum may be sued. All proceeds from t…

Or, you know, just actually build enough houses for people to live in. I feel like that would be a better start than suing people into bankruptcy because they made 5% off a house sale instead of of 4.5%.

Houses are only an attractive investment vehicle in the first place because there is a massive shortage of housing.