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Victim of the Housing Problem

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October 18, 2007 – Comments (6)

Let us all stop and have a moment of silence for this poor victim who, through no fault of his own, finds himself in hard times.

During the height of Las Vegas's real-estate boom two years ago, property investor Rob Rozzen bought 16 homes, hoping that skyrocketing prices would pump up his retirement nest egg.

Now, Mr. Rozzen says he is considering filing for bankruptcy protection. As the housing market slowed, the 40-year-old was unable to sell the homes, and his full-time job as a real-estate agent was no longer able to support mortgage payments totaling $45,000 a month. So one by one, over the past 14 months, Mr. Rozzen has stopped making payments on his investment properties, for which he paid between $226,000 and $390,000, and lenders have foreclosed.

As a result, Mr. Rozzen's credit score plunged from 730 to the high 400s, he says. The Prada clothes, luxurious vacations, and full-time housekeeper and pool cleaner he once enjoyed are things of the past. Still, he says, walking away from his investment properties was his only option. "You get to a point where your hands are tied," he says.

Surely, this guy deserves a 17th and 18th chance! Why should he have to pay the price for the fickle market, manipulated, as it is, by the liberal media conspiracy!

6 Comments – Post Your Own

#1) On October 18, 2007 at 10:01 AM, TMFBent (99.82) wrote:

Ah, and here's another great glimpse into the morals and personal responsibility of these home-flippers. What do they do when their bad bets bite them in the tuckus? They look for a way to hide what they've got, lest they be forced to pay their debts.

Mr. Adkisson, the Newport Beach, Calif., lawyer, says he has received about 30 calls a week in recent months from real-estate investors seeking to shield their assets, just as lenders are beginning to chase after them. "There's just an absolute flood of people seeking asset protection, and it's all after the fact. It's like buying auto insurance after the car wreck."

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#2) On October 18, 2007 at 10:18 AM, floridabuilder2 (99.26) wrote:

should approach a lender about a possible loan "workout," in which the mortgage payments are reduced but the investor gets to keep the property. Some investors say they have tried this, but without success. 

I interviewed a bank lender this last week and got a lot of great newsworthy things to post this Sunday... its going to get real ugly...

tell Tmfdan not to cut out the blog rec button or i am boycotting.....

 

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#3) On October 18, 2007 at 10:55 AM, MakeItSeven (32.44) wrote:

Mr. Rozzen's credit score plunged from 730 to the high 400s

Poor man.  For somebody who wants to start a small (almost medium) business, he should not be punished for his venture and has his credit score taken away from him no less !!!

It must be the fault of the liberal's anti-business stance.  The moment they took over Congress, business doesn't do well any more. 

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#4) On October 18, 2007 at 11:22 AM, martynanasi (98.39) wrote:

Are you kidding...poor guy. The man made huge bets on real estate...over extended his liquidity. He should have to declare bankruptcy. If I took out a investment account margined it 10-1 and placed bets on the options market and was wrong no one would be poo pooing me I am sure of it. Why do people take real estate as anything different than an asset class...it still goes up and down and still to my kowledge is considered an investment. Part of the issues arising in today's housing bubble and sub-prime market can be thanked in part to extreme gamblers such as our Mr. Rozzen and make no mistake about it.

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#5) On October 18, 2007 at 11:48 AM, saunafool (98.76) wrote:

My question is: If Mr. Rozzen is such a great real estate investor, why didn't he rent out all of those properties that were sure to go up in price? Why couldn't the rents cover the majority of the mortgage bill?

Undoubtedly, because he left the homes empty, thinking he'd flip them like Internet stocks, and if he did rent them, he'd get a yield of 3-4%, unable to cover the 6% mortgage.

Why would the rent be unable to cover the mortgage? Because he paid too much! Bad "investor."

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#6) On October 18, 2007 at 12:38 PM, TMFBent (99.82) wrote:

You are all just anti-business, anti-American! Here's a poor guy, doing what he can to make money, and through no fault of his own, things go bad. The Banks should fix his loans so they don't cost him so much and allow him to wait out this rought period.

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:P 

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