When foreclosure started becoming the word du jour, and Americans were struggling under the burden of underwater loans and lost jobs, the ugly side of human nature went on glaring display. Scams and cons sprung up as cottage industries, promising to save homeowner’s homes from foreclosure. Real estate agents became instant “short sale experts,” and the mortgage industry was in a shambles.Picture by www.abcnews.go.com
One of the uglier scams of all had to be the landlord that walked away from the mortgage but continued collecting rent from the tenant. Often, the tenant had no knowledge until the lender showed up at the door.
What happens, though, when the landlord trusts the tenant to make his mortgage payments and she decides to pocket the money instead? Additionally, the landlord can’t afford the payments either. Everyone’s not-so-favorite tabloid queen, Nadya Suleman, the “Octomom,” recently played out this interesting scenario in real life.
For anybody fortunate enough not to know whom this woman is, a refresher course: Nadya Suleman, implanted with 12 embryos, gave birth to eight children in 2009. Octuplets are rare, so she naturally received a lot of attention from the media. But, a single woman giving birth to octuplets who already had six other children – all the result of in vitro fertilization as well – unemployed and on public assistance, garnered international attention.
In March 2009, Suleman borrowed over $450,000 from her La Habra, California landlord to purchase the home she was renting from him. She was to repay the landlord by making his monthly mortgage payments.
Well, she didn’t. As celeb gossip site TMZ so eloquently put it, Suleman “hosed” landlord and note holder Amer Haddadin. Although the foreclosure auction was postponed numerous times over the past few years, it finally took place yesterday, and the opening bid of $355,643 brought no takers. Kind of makes you think twice about owner financing, doesn’t it?
So, why did she do it? Suleman decided she didn’t want to live in the $3,500-a-month, four-bedroom, three-bathroom home any longer and stopped making payments in June of last year. She attempted to sell the house in September 2011 to pay off the $450,000 balloon payment owed to Haddadin, but she overpriced it, and – you guessed it – the home languished on the market. This, despite her marketing it as a “celebrity home.”
All is not lost for the Octomom, however. Although she’s reneged on a promise to dance at a strip club in Florida (the people there made derogatory remarks about her to the press), and she’s being sued by the club’s owner, the payment she made for starring in a recently shot porn video, “Octomom Uncovered,” should float the bloated family for a short while. Then, there’s always the $2,000 a month in food stamps she receives, so they won’t starve.
Haddadin’s credit is, of course, in ruins and it’s doubtful he will ever entertain financing anyone else into homeownership. “I helped them and this is what I get. This is crazy,” he remarked.
The lender? Its next, unenviable job, is evicting Suleman and her brood of 14 kids so it can sell the home.
Octomom claims she took the strip club gig just to promote the porn video. She tells HLN “Showbiz Tonight” that her real hope is to become a role model for other struggling women. We wonder which role other women will want to model. Stripper? Men’s magazine nude model? Strategic defaulter? Media hound? How about serial-single-mom-on-assistance? A plethora of choices for the modern woman facing struggles.
Update: Endorsed by Octomom
How does that endorsement make you feel? Does it pave the way to use the service she’s endorsing, worry-free?
How about if it’s a loan? I mean, after all, “if anyone knows financial hardship Nadya [Suleman] does.” That’s right; Octomom has decided to go into cahoots with OctoLoan – a company that hooks you up with a lender “when you need money quickly.”
Although OctoLoan bills itself as a “cash advance” company, they also say they aren’t lenders or brokers, nor do they make loans. It’s merely a website that, in the company’s words, “collects the information you provide” and passes it on to a network of lenders.
So, Nadya, who has begged, stripped and porno’d for money, is now hoping that her vast network of fans will choose to do otherwise. You know, something more respectable, like take out a payday loan – with a 650 percent APR – when they’re desperate for money.
Suleman, mom of 14 kids who recently lost her landlord’s home to foreclosure, and subsequently filed for bankruptcy, has signed a “five-figure deal” with OctoLoan to promote the site, according to The Daily Mail.
She says she is now financially stable, has been off welfare for a whopping one month and is releasing a brand new single next month. This, of course, makes her qualified to give financial advice.
I have a feeling that I won’t need an OctoLoan because keeping everyone up-to-date on Octomom’s real estate endeavors could become a full-time job.