sad state of America
While reading Diane Kennedy’s blog post on 1099 A&C problems I happened to nod off into a daze and dream a little dream. In my dream I had a client, who in a six year period, had acquired a personal residence and four rental homes. For the sake of my dream, lets say this took place between 2002 -2007. The five properties combined cost him $260,000. Over the six years he owned the real estate, he managed to refinance the five properties to over $500,000. WACK!! My head hits the desk, there is slober on my keyboard, and I am trying to figure out what happened. This is the part where I wake up and get really angry.
All joking aside, I am working on a case with very similar facts and I am pissed off about it. Disclaimer: I am not defending my clients actions of refi’ing at every opportunity that came along. But the more and more I study what happened, my client was refi’ing a property on average EVERY FOUR MONTHS!!!! WTF????? Who were these goons preying on the financial non-savvy? When I asked my client if he sought out the cash, he said, “they would call me.” I would imagine this post will attract the brightest of comments toward my client, but there is one thing I would like you to remember before you call my client a $%&^()#%%. My client is your client. This is happening everywhere around America. Noticed those commercials late at night, “Do you owe more than $10k to the IRS, if so call us.” Check your client list, this does not discriminate against race, color, or class.
I think it goes without saying my client is in the process of losing all his properties. His primary residence and one rental are gone, the rest will be out in 2010. What’s the lesson here, I do not want to insult my readers, just needed to share. Thanks for listening.
Chris F.
