Kevin Mims

Kevin Mims, Writer / House Buyer ATM User
When it comes to housing, it's best to keep your mouth shut if you've done something suspicious. You cannot erase the tracks of your actions. I wonder if he had any intention of ever repaying the debt. Of course, all inductees to the Housing Bubble Hall of Shame are innocent until proven guilty in a court of law. *wink-wink* For some, this Housing Bubble was a Money Train.

2008-02-07: When the subprime crisis hits home
KEVIN MIMS: Twenty-seven years ago my wife and I lost our home to foreclosure. She and I and my two young stepdaughters lived there for less than two years, but it was our first home together. We loved it.
My wife and I met while working together at a title and escrow company. Now a real estate slump had cost us our jobs. The foreclosure process took several months. It felt like a deathwatch. Eventually the bank came along and pulled the plug. Afterwards we swore we'd never allow ourselves to become emotionally attached to another house. We moved frequently, so it was easy to keep our vow.
But four years ago we bought an 80-year-old home in a nice Sacramento neighborhood. My wife, an escrow officer, and I, a notary public, were earning good money. We had every intention of staying here forever, but the subprime lending crisis has triggered another real estate meltdown. Now my wife's salary has been cut and her bonuses eliminated. My notary work has dwindled to a trickle. It becomes more difficult to make our house payment each month.
Financially it doesn't make sense to even try. We owe about $430,000 on the house. It's currently worth no more than $400,000. Selling isn't an option. Sooner or later we will probably give up another home to foreclosure. The interest rate is competitive, six and an eighth, and it's fixed until August of 2012. A sudden upward adjustment of our loan won't force us out. It's the sudden decrease in our incomes.
I suspect foreclosure will be much more difficult at 50-something than it was at 20-something. We've imprinted our personalities on this place more than we ever did on our first home. On the bright side, my stepdaughters are grown up. We won't have to uproot them. The only downside for them is, they may end up housing us for awhile.
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--1821 Commercial Way, Sacramento, CA
What he failed to mention: (hat tip to Sacramento Real Estate Stats)
June 2004: purchase for $350,000 ($315,000 first from Saxon, $35,000 down)
February 2006: $100,000 cash out from JP Morgan
June 2007: Refi into a $360,000 first and $67,500 second from NL Inc

Questions I have:
- Where has he been living the past 27 years?
- If he sold his previous home, where did the money go?
- What did he spend $100,000 on?
- What kind of ARM did he use that it resets in 2012?
- In his 50's, how was he planning on paying back $300K in his golden years?

Kevin, keep baking cookies.