In 2006 I was in a car accident with my fiance two months before our wedding. We were building a spec. home and planning to sell it to pay off our small house I had owned for 10 years. I was a single mother, a real estate broker for over 13 years, with little debt (under $200,000). I represented a $20,000,000 project of non-conforming condos and was in line for over 1 million dollars in commission in the course of the following year. I had $80,000 in commission in line for the Summer and early Fall 2007. It all fell apart around that time.
We spent every dollar we made in the spec. home, about $150,000. I designed the house and my husband handled the subcontractors. We paid insane fees for a one time construction to permanent financing. By the time the bubble hit we were told the bank that was going to provide permanent financing was not going to offer any more permanent financing. Also, if we didn’t live in it we would have to pay a non-owner occupant fee of $20,000. Magnet Bank was our lender and they filed bankruptcy less than two months after our closing. Our house closed without being 100% complete. We still have rock and paint that needs to be addressed. As well as the fence, landscaping, etc. So we had two weeks to find permanent financing. We then paid high closing costs again. Then we tried to sell our small home we lived in prior to the spec. home and couldn’t sell it. We were trying to keep our excellent credit and pay off our creditors. But this was a luxury spec. home. We couldn’t sell the spec. because it wasn’t complete. My business dried up for over a year. I earned $180,000 in 2007 and less than $30,000 for 2008. Both my homes are in foreclosure. I rarely see a paycheck. I am filing for foreclosure in two weeks and my new husband and I are trying to figure out where to go from here. He’s trying to find work and we are both hoping to hang on and deal with the bills and lack of options for jobs. We are both in need of furthering our educations and would like to focus on the eco-friendly environmental consultant in order to have more career options. But I am getting many referrals from past clients and I am seeing more activity again. Cross your fingers for me!
I would love to be able to keep my home and pay my bills off. But my business is just starting to slowly see movement. I am in debt over $1,400,000. My properties are worth $760,000. I owe over $1,200,000 on both properties.
I hope this letter helps.
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