Casey Serin

Casey Serin

Casey Serin (born September 10, 1982) is a real estate speculator who, at the age of 24, became a person of notoriety in the blogosphere following his involvement in the real estate investment. Critics sometimes call him the "poster child for everything that went wrong in the real estate boom". Serin was born in Uzbekistan and emigrated to America in 1994. In his early twenties, Serin was working as a PHP script programmer for Pride Industries, but he decided to quit this job to pursue his dream of becoming financially independent by real estate investment. Beginning in October 2005 and continuing through the following year, Serin purchased eight houses in various U.S. states, and then began blogging about the process of facing foreclosure on several of the properties he was unable to sell before the borrowed money ran out.

Background

Serin purchased eight properties from October 2005 to May 2006 using stated-income loans. He left his programming position in January 2006 but elected to claim the income from that job on subsequent loan applications, reasoning that many borrowers were using similar strategies to obtain credit. All eight of the properties were purchased with owner-occupied loans; this generally permits more favorable terms than if the lender is aware that the property is being purchased as an investment. Serin's high debt load, and his multiple primary residences, might have raised questions with a lender who evaluated his credit report. No suspicions were aroused however, perhaps because the properties were purchased over a short period of time, and the report had not yet been updated. In addition, he received cash back at closing on several of the properties -- for his California properties, Serin received more than California's legal maximum rate of 3 percent of the selling price. Serin has stated that his advisors and brokers "saw nothing wrong" with this approach. In a matter of months, Serin found himself unable to service the mortgage payments or sell the properties; he estimates that he is now approximately 2.2 million dollars in debt, with a net worth of around negative $600,000. An online discussion of the fraudulent nature of overstating income in stated income loan applications uses the case of Serin as an example.

In September 2006, Serin started the blog IamFacingForeclosure.com describing his situation, with the idea of soliciting advice for dealing with his predicament, and warning others how to avoid the mistakes he had made. Interest in the blog first developed among readers of blogs devoted to the United States housing bubble. His story was featured in USA Today, National Public Radio, New York Magazine, and the San Francisco Chronicle, among other mainstream media. Serin disclosed on a local TV news program that he had used stated-income loans, received cash back at closing, and likely would not have been able to qualify for more traditional loans. Serin attempted to purchase a ninth home, but his application was rejected because the lender had Googled his name. Because of the sheer magnitude of Serin's debt and the improbability of his story, some question its veracity -- an article at The Motley Fool expresses doubt over "whether or not this [isn't] just a somewhat elaborate hoax." However, public records support the authenticity of Serin's claims.

Readers of the blog initially encouraged Serin to contact an attorney in the hopes of discharging at least a portion of his debt by filing bankruptcy. Serin has not yet chosen to file bankruptcy, even though some readers have estimated that the interest on his debt is growing at the rate of approximately $600 per day. Serin has been referred to as the "pied piper of financial ruin." In early 2007, Serin set his goals for returning to fiscal solvency by attempting to purchase an apartment complex. In addition, Serin has proposed to transfer his personal debts to a shell corporation, a course of action that readers have advised is illegal. Serin initially conceded that there might be something "shady" about his proposal, although he has gone so far as talking to a corporate attorney about the plan.. Serin stated he had spent $3,000 to purchase a 4-year-old shell corporation for the purpose of applying for corporate credit.

Serin's lies on loan applications could be prosecutable offenses. However, Serin has not been arrested or charged - although IP logs of the visitors to his blog have shown that the blog has been accessed by the FBI, the IRS, the SEC, various state governments and banks from which his fraudulent loans were obtained. Some readers of the blog have attempted to contact both law enforcement officials and Serin's lenders about his situation.. In early 2007, Serin started up two real estate websites: ablebuyer.com and buyingapartmentbuildings.com, though the second address currently directs visitors to the first.

In a March 2007 blog entry, Serin asked readers to modify his Wikipedia page, arguing that its tone was hostile and biased.

Properties owned by Serin

Date	Property	Purchase Price	Serin's Actual W-2 Income	Status	End Price	Comments	Cash Received At Close
3-8-2002	Salmon Falls Drive, Sacramento, CA	$110,000	$30,000	Sold 3-13-2003	$157,000	Serin's personal residence	$0
10-7-2005	Calla Way, Sacramento, CA	$360,000	$50,000	Sold 1-4-06	$365,000	swapped for Burdett	$30K
1-4-2006	6842 Burdett Way, Sacramento, CA, 95823	$295,000	$50,000	Foreclosed	<$247,500	No bids at bank auction	$18K
2-6-2006	6021 Guadalajara Drive, Rio Rancho, NM, 87144	$497,000	$0	NOD/NOT			$25K
2-24-2006	Sonora Ave, Albuquerque, NM	$345,000	$0	sold Jun 06			$20K
3-6-2006	1910 Muncy Drive, Modesto, CA, 95350	$323,000	$0	NOD/NOT			$40K
3-10-2006	6656 W 10250 N, Highland, UT, 84003	$360,000	$0	Sold	$399,000	profit $12K	$20K
3-24-2006	6500 Larchmont Drive, North Highlands, CA, 95660	$330,000	$0	Foreclosed	<$216,000	No bids at bank auction	Yes
5-4-2006	9524 Angleridge Road, Dallas, TX, 75238	$191,500	$0	Foreclosed		Serin put $75K down.	$0

Criticism

Serin is regularly discussed in the real estate blogging community, as a public face for the current subprime meltdown. Specific criticisms leveled at Serin include:

• His enthusiastic endorsement of real estate seminars, for which he spent over $30,000. Unaccredited Nouveau Riche University is one of these.
• His reluctance to move into any of his properties, to possibly delay its foreclosure and save on rent.
• His refusal to discharge his unsecured debt through bankruptcy.
• His unwillingness to pursue a salaried job, in favor of self-employed entrepreneurship.
• The unwillingness of his wife Galina to get a job and remain a full time student.
• His reluctance to curb his spending. Serin posted bank statements to his blog which showed expenses related to dining out regularly, incurring overdraft fees in the process .
• His reliance on loans from subprime brokers, family, and friends to meet his day-to-day living expenses.
• His determination to continue as a real estate investor despite his financial situation.
• His decision to tithe $300 to his church each month, despite his current financial situation.

Pre-Foreclosure Actions

After it became clear to Serin that he would be unable to service his mortgage debt, he e-mailed friends to ask them for money. Serin phrased the e-mails as an investment opportunity secured by his real estate holdings, with a promise of 24% interest. A week later, Serin admitted that his real estate business was actually in trouble and that he was facing foreclosure on all of his properties.

Personal life

Casey Konstantin Serin is married, although his wife has chosen not to enter public life. Their marital ups and downs were a large part of his first blog, entitled "Earth Mission Log". His wife does not participate in the current blog or other publicity. In addition, Serin wrote on his blog that they attended real estate seminars together. He has posted photographs showing her working on his investment properties. Placer County public records indicate Casey and his wife are co-owners of Able Buyer and Finch Properties.

Themes and catch phrases

Serin is fond of using catchphrases and buzzwords on his blog. Among these are "sweet deals", "repaying every dirty penny", and "failing forward." Readers have adopted these catchphrases to mock Serin's exuberant optimism. Serin also tends to end postings with a cheerful "It's all good!", even at the end of posts describing his financial difficulties.

Numerous references to Jamba Juice and Macaroni Grill appear in his blog. These originated in an early blog post, in which Serin reproduced a recent bank statement showing that he was a customer of both establishments. Since then, the names of these two restaurants are repeatedly cited in attached comments — usually with the intention of symbolizing examples of luxuries that Serin cannot realistically afford.

External links

• serin.us Official website