Casey Serin

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Casey Konstantin Serin

Born September 10, 1982 (1982-09-10) (age 26)
Tashkent, Uzbekistan
Residence Sacramento, California, USA
Height 5' 8"
Website
BloggerCasey.com

Casey Konstantin Serin (born September 10, 1982) is a former real estate speculator and blogger. In a newspaper article, USA Today called him the "poster child for everything that went wrong in the real estate boom".[1] Born in Tashkent, Uzbekistan, Serin immigrated to the United States in 1994. After graduating from high school, Serin bounced from job to job, generally working in website design. In his early twenties, however, Serin decided to quit working full-time in order to pursue house flipping as a means of generating income. Beginning in October 2005 and continuing through the following year, Serin purchased eight houses in four southwest U.S. states, and then began blogging about the foreclosure[2] process on the properties he was unable to resell. In time, five of the eight properties foreclosed.[3] The dubious nature of Serin's real estate transactions, coupled with his subsequent blogging about the affair, have led to Serin's name becoming strongly associated with the subprime mortgage crisis.

Contents

[edit] IAmFacingForeclosure.com

[edit] Background

Between October 2005 and May 2006, Serin purchased eight single-family homes using stated income loans.[1][4]. These loans required no documentation of income, nor any down payments. Before quitting his web design position in January 2006, Serin claimed an over-inflated income (roughly five times his actual pay) on his loan applications,[5] reasoning that many other borrowers were using similar strategies to obtain mortgages for which they would not otherwise qualify.[6] [7] He continued to claim the same income on loan applications completed after he had quit his job. Serin stated that several of the properties were purchased with owner-occupied loans; these generally provide more favorable terms than loans for investment properties.[1] A Voice of San Diego article suggests that Serin's initial loans may not have appeared in credit reports pulled for subsequent loans because he purchased properties in several states over a relatively brief period, so that "the banks couldn't trace the pending loan documents to check up on his story."[8] Serin received cash back at closing on six of the properties, sometimes exceeding California's legal maximum of three percent of the selling price. A contributor to the Scotsman Guide, a trade publication for the mortgage industry, stated in an article discussing fraudulent practices within the mortgage industry, that the largest amount of cash Serin received for a transaction was $50,000, and that the money was paid either to the seller or a third-party company (which the contributor alleges was bogus), and then returned to Serin after closing. The author, CEO and senior legal counsel of Investors Mortgage Asset Recovery Co. LLC, concludes that responsibility for fraud in cases such as Serin's lies with "everyone who knew about the undisclosed cash and knowingly assisted in the scheme, including the sellers and any real estate agents, appraisers or closing agents."[9] Serin disclosed on a Sacramento news program that he likely would not have been able to qualify for loans under more traditional terms.[10]

Months later, as the United States housing bubble began to rapidly deflate, Serin became unable to pay the mortgages or sell the properties; at one point, he estimated that he was approximately $2.2 million in debt, with a net worth around negative $600,000.[4] Serin's house buying spree ultimately ended when a lender rejected a loan application for what would have been his ninth property, after discovering his blog.[11] Because of the sheer magnitude of Serin's debt and the improbability of his story, some observers had initially questioned its veracity, alleging that the blog was either performance art or a viral marketing campaign. An article at The Motley Fool expressed doubt over "whether or not this [isn't] just a somewhat elaborate hoax.".[12] However, public records confirm that Serin did purchase the properties in question and did subsequently default on most of the mortgages (see table below).

[edit] Blog and Media Attention

In September 2006, Serin started the blog IamFacingForeclosure.com describing his situation, with the idea of both soliciting advice and warning others how to avoid the mistakes he had made. Interest in the blog first developed among readers of other blogs devoted to the United States housing bubble.[13] His story was featured in numerous media outlets -- among them, USA Today,[1] National Public Radio,[14] New York magazine[15], the San Francisco Chronicle,[16], The Economist,[6] The Suze Orman Show [17][18], and ABC's Nightline.[4] When Serin first started the blog, commenters were generally supportive, hoping that Serin would make a good faith effort to avoid foreclosure and pay back any remaining debts by looking for work. The initial media exposure largely lauded Serin as an example of forthright blogging, without delving very deeply into the origin of his debts.

During the ensuing 9 months that the blog was updated, Serin generally let his problems stagnate -- urgent mail went unopened, the houses went into foreclosure one by one, and Serin did not actively look for work. The overall tone of the blog's comments gradually went from encouraging Serin to openly deriding him for his inaction, his apparent nonchalant attitude towards his financial issues, and his role in the then-emerging subprime mortgage crisis. In May 2007, CNET.com writer Declan McCullagh published an article about Serin's story and the largely negative reactions Serin's blog was garnering from commenters, referring to Serin as "the world's most hated blogger" and describing his blog as "irritainment".[19] McCullagh wrote that "Casey's blog has an enthusiastic -- if unrelentingly critical -- audience known as 'haterz'." Serin acknowledged that he began to purposely anger readers in an effort to drive further traffic to the blog.[20] In time, the blog developed a cult status, as Serin began writing about the toll his actions were taking on his personal life. The spectre of legal ramifications also factored heavily into the blog. Many commenters stated that they were attracted to the increasingly "soap opera"-like nature of Serin's story, and the blog was featured on a number of sites devoted to so-called "trainwreck watching".

[edit] Final Months

In April 2007, Serin appeared on The Suze Orman Show to discuss his financial predicament. Orman recommended that Serin file for bankruptcy and attempt to increase his take-home pay. [17] However, Serin continued to make no effort to secure full-time employment, nor did he file bankruptcy; a bankruptcy attorney had told Serin that he would open himself to potential charges of mortgage fraud if he filed for bankruptcy, since the debts were acquired under fraudulent pretenses.

The final month of the blog saw further erratic behavior by Serin; specifically, Serin took a spur-of-the-moment trip to Australia without informing his wife or family members.

As for his real estate investments, Serin acknowledged to the Sydney Morning Herald that "the stuff I did is technically mortgage fraud, but it's not officially called that until someone prosecutes me and proves that that is indeed mortgage fraud," [21] asserting a presumption of innocence. On the Jon Ronson show, Serin confirmed his use of so-called "liar loans".[22] On July 11, 2007, Serin disclosed that he was under investigation by the FBI.[23]. In an interview conducted by ABC News, his attorney reported that Casey Serin is under investigation by the FBI, but "no charges have been brought against Mr. Serin. However, based upon conversations with the U.S. attorney's office in California, federal charges related to Mr. Serin's real estate transactions are expected to be brought against him" [24].

As of 07/28/2007, Casey's commentary on www.iamfacingforeclosure.com has been removed. His final entry was dedicated to his wife. Aaron Krowne, an Emory University library researcher and owner of ml-implode.com, purchased the blog. Serin says he used proceeds from the sale to pay off $35,000 of consumer credit debt in his wife's name[25].

[edit] Current status

Jon Ronson interviewed Casey with his trademark wit on BBC Radio.[22] While in Australia, Casey Serin appeared on Top Shelf Radio with Robbie Buck[26]. The Official IAFF (I Am Facing Foreclosure) Theme Song received 400 plays in one day during Serin's rise to fame -- a small example of his cult-like status among bloggers.

Serin created an online financial statement, summarizing his budget and net worth.[27] This was last modified on January 292007, and has not been updated to reflect his foreclosures.

On May 31, 2007, Serin deleted his blog after violating his published contract with his wife. A week later on June 6th, his blog reopened.[28]

On June 11, 2007, Serin went to Australia, leaving his wife in Sacramento[29][30] and working on his book deal with his newest partner and publisher. According to his blog, he returned to the United States on July 1st, 2007.

In July 2007, Serin said in a mass e-mailing that he would be closing the blog, abandoning the book, and getting a "regular W-2 job," citing the stress his family has experienced.[31]

Throughout 2007, Serin has hosted semi-monthly talkcasts where he speaks to callers about personal and financial matters.[32].

It has been discovered that Serin has been the owner of a Corporation since 2003, named "Able Buyer, Inc."[33] Its operational status is unknown, since internet searches return zero related results, despite its listing as "active" in the filing.

[edit] A return to blogging

After staying offline for a few months, Serin resurfaced as a partner of Damion Lupo (author of Maverick Mistakes in Real Estate) on ForeclosureHelpBook.com. This partnership dissolved in October 2007. Casey resurfaced with a new blog, EscapeMyHouse.com, which was taken offline in November 2007. As of January 29, 2008 he had started and then stopped a blog based on his information on gold stocks, most specifically GoldSpring (GSPG) called MillionaireByChristmas.com. This site has gone through numerous edits, some within minutes. His latest blog TrueCasey.com continues themes from his previous blogs, including publishing a foreclosure book and detailing his investment into GoldSpring.

On 8/8/2008, Serin started blogging once again at TrueCasey.com. One of his major topics is his investment in penny stock GSPG. His story was followed up on the National Post in September 2008[34]2008. He seems to have also shut down truecasey.com, and as of 2008-11-25, he is looking for people to buy the domain name.

[edit] Foreclosure book

Alexa web searches revealed a joint venture agreement between Casey Serin and Marty Stewart, an internet marketer. Their joint venture agreement along with a series of audio files was found within Google cache.[35] The book project, named The Foreclosure Code: My Bubble Burst! How I Purchased and Lost $2.2 MILLION in Real Estate, was originally scheduled for release in Fall 2007.[36] According to the book's website www.foreclosurecode.com, Serin's numerous violations of the joint venture agreement nullify his rights to the work, and the book itself has yet to be released.

[edit] Properties previously owned by Serin

Purchase Date Property Parcel/Lot Number Purchase Price Status End Price Assessor Price
3-8-2002 Salmon Falls Drive, Sacramento, CA N/A $110,000 Sold 3-13-2003 $157,000 N/A
10-7-2005 8256 Calla Way, Sacramento, CA 115-0710-018-0000 $360,000 Sold 1-4-06 $365,000[37] $360,000
1-3-2006 6842 Burdett Way, Sacramento, CA, 95823 039-0227-001-0000 $295,000 Foreclosed <$220,000[38] $149,745
2-6-2006 6021 Guadalajara Drive, Rio Rancho, NM, 87144 $497,000 Foreclosed <$252,000
2-24-2006 6209 Sonora Ave, Albuquerque, NM 101006348417440403 $345,000 sold Jun 06 $212,386
3-6-2006 1910 Muncy Drive, Modesto, CA, 95350 $323,000 foreclosed (April 27th, 2007) $240,000
3-10-2006 6656 W 10250 N, Highland, UT, 84003 514530008 $360,000 Wrapped $399,000 $184,195 (Market Value $334K)
3-4-2006 6500 Larchmont Drive, North Highlands, CA, 95660 217-0171-009-0000 $330,000 Foreclosed $125,000[39] $180,167
5-4-2006 9524 Angleridge Road, Dallas, TX, 75238 00000792898000000 $269,600 Foreclosed[2] $211,222 $227,970

[edit] External links

[edit] References

  1. ^ a b c d Knox, Noelle (22 October 2006). "10 mistakes that made flipping a flop". USA Today. http://www.usatoday.com/money/economy/housing/2006-10-22-young-flipper-usat_x.htm. 
  2. ^ a b "(Type in Serin Casey) Dallas County Record 200600425251". 2006-11-15. http://www.realestate.countyclerk.dallascounty.org/. 
  3. ^ "Foreclosure: When Will Casey Serin Pay ...". 2007-05-15. http://consumerist.com/consumer/foreclosure/when-will-casey-serin-pay-for-embodying-the-worst-of-the-housing-bubble-burst-260577.php. 
  4. ^ a b c "Facing Foreclosure Video Segment on Nightline". 13 April 2007. p. 1. http://abcnews.go.com/Nightline/story?id=3030705&page=1. 
  5. ^ "Facing Foreclosure Video Segment on Nightline". 13 April 2007. p. 3. http://abcnews.go.com/Nightline/story?id=3030705&page=2. 
  6. ^ a b "America's Housing Market:Cracks in the façade". Economist.com. 22 March 2007. http://www.economist.com/finance/displaystory.cfm?story_id=8885853. 
  7. ^ Knox, Noelle (4 March 2007). "Homeowners stuck as lenders cinch standards". USAToday.com. http://www.usatoday.com/money/economy/housing/2007-03-04-mortgages-1a-usat_N.htm. 
  8. ^ "My Life is an Open Blog". 2006-09-22. p. 1. http://www.voiceofsandiego.org/articles/2006/09/30/survival/949casey.txt. 
  9. ^ Simpson, C. Robert (January 2007). "Truth or Consequence". Scotsman Guide. http://www.scotsmanguide.com/default.asp?ID=1893. 
  10. ^ "Central Valley Man Poster Child Of Mortgage Crisis". CBS 5 Eyewitness News. 7 March 2007. http://cbs5.com/video/?id=21405@kpix.dayport.com. 
  11. ^ Britton-Simmons, Geary (April 2007). "From the Top: April". Scotsman Guide. http://scotsmanguide.com/default.asp?ID=2071. 
  12. ^ Jayson, Seth (25 September 2006). "24 Years Old, $2 Million in the Hole". The Motley Fool. http://www.fool.com/personal-finance/general/2006/09/25/24-years-old-2-million-in-the-hole.aspx?source=ihghlpban100102. 
  13. ^ Lloyd, Carol (5 November 2006). "As bubble sags, market critics are busting out". San Francisco Chronicle. http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/11/05/REG7DM52OS1.DTL. 
  14. ^ Arnold, Chris (19 October 2006). "Loose Credit Standards Boost Real Estate Woes". NPR Morning Edition. http://www.npr.org/templates/story/story.php?storyId=6326038. 
  15. ^ Nussbaum, Emily (12 February 2007). "Say Everything". New York magazine. http://nymag.com/news/features/27341/index4.html. 
  16. ^ Lloyd, Carol (5 November 2006). "No spin is used as blog describes downward spiral". San Francisco Chronicle. http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/10/08/REGCJLKK831.DTL. 
  17. ^ a b "Facing Foreclosure". Suze Orman. 7 April 2007. http://www.suzeorman.com/index.cfm. 
  18. ^ "Facing Foreclosure Video Segment on Suze Orman Show". 7 April 2007. http://gambit3.com/iaff/index.html. 
  19. ^ McCullagh, Declan (14 May 2007). "The World's Most Hated Blogger?". CNET. http://news.com.com/Casey+Serin+The+worlds+most+hated+blogger/2100-1028_3-6183383.html?tag=st.prev. 
  20. ^ Los Angeles Times (3 June 2007). "Say It Isn't So: Casey Serin, Foreclosure Blogger, Closes His Blog". Los Angeles Times. http://latimesblogs.latimes.com/laland/2007/06/say_it_isnt_so_.html. 
  21. ^ Hutcheon, Stephen. "Blogger learns how to monetise hate". http://www.smh.com.au/news/web/blogger-learns-how-to-monetise-hate/2007/06/19/1182019071972.html. Retrieved on 2007-06-18. 
  22. ^ a b Ronson, Jon. "Jon Ronson On...". http://www.bbc.co.uk/radio/aod/mainframe.shtml?http://www.bbc.co.uk/radio/aod/comedy.shtml?radio4/jonronsonon. Retrieved on 2007-06-19. 
  23. ^ Serin, Casey. "I Am Facing Foreclosure". http://iamfacingforeclosure.com/268/the-last-24-days-of-i-am-facing-foreclosure-com#comment-52139. Retrieved on 2007-07-12. 
  24. ^ ABC News. "ABC News: Housing Bubble Bursts for Investor". http://abcnews.go.com/Nightline/Story?id=3030705&page=3. 
  25. ^ Bob Shallit - Sacramento Bee. ""FacingForeclosure" blogger sells his site". http://www.sacbee.com/103/story/337692.html. Retrieved on 2007-08-22. 
  26. ^ Buck, Robbie. "Top Shelf Radio, Triple J". http://www.abc.net.au/triplej/topshelf/listen/mp3s/20070628_hatedblogger.mp3. Retrieved on 2007-06-19. 
  27. ^ Serin, Casey. "Casey Serin - Financial Statement". http://spreadsheets.google.com/pub?key=pPacQAmy3C4AuHrqHYLazIQ. Retrieved on 2007-04-14. 
  28. ^ McCullagh, Declan. "Notorious debtor Casey Serin shuts down blog". http://news.com.com/Notorious+debtor+Serin+shuts+down+blog/2100-1026_3-6188143.html. Retrieved on 2007-06-01. 
  29. ^ Serin, Casey. "Australia and Idiot Haterz". http://iamfacingforeclosure.com/241/australia-and-idiot-haterz#more-241. Retrieved on 2007-06-11. 
  30. ^ CNET News.com Staff. "Interviewing Serin, the blogger people love to hate". http://news.com.com/Interviewing+Serin%2C+the+blogger+people+love+to+hate/2324-1026_3-6190602.html. Retrieved on 2007-06-13. 
  31. ^ Shallit, Bob. "A flop as a 'flipper,' he seeks a real job". http://www.sacbee.com/103/story/274523.html. Retrieved on 2007-07-20. 
  32. ^ Talkshoe. "IamFacingForeclosure.com Talkshoe". http://www.talkshoe.com/talkshoe/web/talkCast.jsp?masterId=8714&cmd=tc. Retrieved on 2007-07-19. 
  33. ^ Serin, Casey. "California Secretary of State". http://kepler.ss.ca.gov/corpdata/ShowAllList?QueryCorpNumber=C2556789. 
  34. ^ Colby Cosh - National Post. ""The Irritating Face of economic havoc"". http://www.nationalpost.com/opinion/columnists/story.html?id=805442. Retrieved on 2008-09-17. 
  35. ^ CNET News.com Staff. "Hated blogger leaves US". http://news.com.com/Hated+blogger+leaves+U.S.%2C+threatens+lawsuits/2100-1026_3-6190628.html?tag=nefd.lede. Retrieved on 2007-06-13. 
  36. ^ Shallit, Bob. "Blogger's book has a barrel of red ink". http://www.sacbee.com/103/story/243538.html. Retrieved on 2007-07-20. 
  37. ^ "Free 8289 Calla Way Home Value". RealEstateABC.com. http://www.realestateabc.com/home-values/CA/Sacramento/CF334DF9EE09F6DCBEBD41337A3EF836. Retrieved on 2007-04-14. 
  38. ^ "Free 6842 Burdett Way Home Value". RealEstateABC.com. http://www.realestateabc.com/home-values/CA/Sacramento/6D625F72A40CF5F0B43501CCF65EBA6F. Retrieved on 2007-04-14. 
  39. ^ "Free 6500 Larchmont Dr Home Value". RealEstateABC.com. http://www.realestateabc.com/home-values/CA/North%20Highlands/670210BBA6F8400F2649109B2727324D. Retrieved on 2007-04-14. 



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