Wednesday, April 09, 2008

Obama's sub prime mortgage

After reviewing Obama's tax returns, I started asking the question. When did Obama buy the house that's been the subject of the Rezko controvery.

The answer? June 2005.

Yet, if you look at the Obamas' 2004 tax return you'll see that their income for that year was $207,000. The home in question cost the Obama's 1.5 million.

So let me make sure I have this right. Around January, the Obama's work with a real estate agent and tell him/her they're looking for a cozy 4 bedroom in the 1.0 - 1.5 million dollar price range and the agent pre qualifies them with these income numbers? Then they're able to find this home make a offer and close by June.

By the way, where did they get a down payment for a home of this size? Their tax returns show no interest or dividend income for the year so they had no savings.

What mortgage company in their right mind would loan someone that kind of dough on that income?

Most real estate agents will tell you that you really can't afford a home that exceeds 3 times your annual income; Obama's was well over seven times. What gives?

Given that Obama was elected to the senate in 2004 and received his book deal in 2005, a banker could use that income as evidence of future ability to pay. Even Michelle's additional income could be included. But a year ahead of time? I know when I qualified for my last mortgage they wanted three years of tax returns to show that my income was stable. I think a broker would laugh at me if I brought returns like these in for a 1.5 million dollar house.

Obama has been using this quote lately in his stump speech
The top mortgage lenders spend $185 million lobbying Congress, and we wonder why Washington looked the other way when they were tricking families into buying homes they couldn't afford.
Were the Obama's some of these people? Or did Rezko grease some skids to get them their mortgage? Why is no one in the main stream media asking these questions?

See my update here.

17 comments:

syd B. said...

Does anyone know when Obama received money for his book deal. Did he get an advance from the publisher? When and how much? I'm not saying this is the explanation, however, if this possible source of funds can be eliminated, then it makes the original question that more intriguing.

gordon gekko said...

According to his tax returns he did get that advance in 2005. I don't know the exact date.

Anonymous said...

Real question is how did Obama only pay 16K on 1.7 million dollar (including 100K purchased from Rezko) Chicago home. Chicago property taxes are about twice that.

Ben said...

Look guys, I am sure Obama did everything above board.

He is a different type of politican. He would not do anything shady or questionable

Boyd Reed said...

This post is bogus. Obama got his advance for "Dreams of my Father" in 2005.

Why didn't you post the 2005 income? Perhaps because it destroys your premise? Or because it's bad to let facts get in the way of a good story?

gordon gekko said...

Boyd, you obviously didn't read the post. I pointed out his 2005 income increase.

My point is, this guy identified, offered, counter offered, accepted and closed by June 2005. Was he was pre qualified prior to receiving his book deal? I don't know.

How long has it taken you to purchase a home? It took me almost six weeks just to get appraisals, inspections etc. for qualification.

I'm asking the question. It may all be legit but why not ask the question?

Anonymous said...

Mortgages are public documents. Someone from the area should go check it out.

gordon gekko said...

In my mind, the timing needs to be documented.

I just can't walk in and buy a 1.5 million dollar house on a potential lottery winning.

When did they pursue the home?
When did they receive approval on their mortgage and on what income?
When did their 2005 book deal advance get issued or committed to by the publisher?

Given the deal with this home as it relates to his association with Tony Rezko, I believe these questions are worth asking and receiving answers.

Anonymous said...

Michelle "Big Mouth" Obama said they used the proceeds from the books of Osama's to pay off their student loans. There was an article out just yesterday in which she said that.
This is a great piece Gordon,
Good thinking. I am a Real Estate Broker and my husband is a mortgage banker so this is highly questionable. The answer IS Tony Rezco and the Iraqi Billionaire
Auchi. Obama is a dirty rotten politician from Chicago that will bring great harm to our country, that's a memo "to quote Bill O'Reilly who I don't agree with much either except on the good REV
Jeremiah, Bill Ayers, Rezco and others."

Brenda J. Elliott said...

Actually, folks, I've been documenting all this at RezkoWatch since January. You might want to find out today's development.

The Obamas found the townhouse in December 2004 and had an accepted offer, made the downpayment, and signed an agreed upon contract all before the end of January 2005.

Where did the downpayment come from, eh?

Anonymous said...

At the time of contract, there would have to be some "earnest" money put down. If the Obama's signed that contract in January for a June closing, we should be asking these questions:

how much earnest money was put down at the time of the contract?

how much money was put down at closing and how much was mortgaged?

When did Obama receive his book deal money? Was it before, or after, the closing on the house? If before, where did they get the downpayment required on a $1.65 million home purchase?

What mortagage company "preapproved" the Obama's for the balance (mortgage) and when? Was it before they received the book deal money?

I know of no mortgage company that would lend that kind of money on a previous year's income of $207,000, eight times the Obama's annual income.

Anonymous said...

Slowly but surely the right questions are being asked. If it was mortgaged, there is documentation. If there are ANY lies on those documents, BOOM!

Anonymous said...

So, we're suspicious about how a couple with a $200k+ income can come up with a downpayment on a home?

Anonymous said...

Joe Rossetti
Elgin
26 years old


I just purchased a home. I was approved for a 200k loan on an income of 35 thousand a year, thats 6 times my current income. I needed $99 down. Its a 7.65 fixed term loan. Now the 1.5 million loan, assuming high ball estimates for ALL which is not true would come out to being 7.5 times more than what I am making now.

Obama had an income of 210k + which is 7 times more than I make.

I also had a credit rating of just 599 and nothing down. It is entirely believable that this is legitimate.

I also started looking for a house with an agent, got a loan officer and the house in just 13 days.

gordon gekko said...

The mortgage payment on a $200,000 mortgage, with real estate taxes and insurance would be close to $1,800/mo.

You expect to pay $21,600 in annual mortgage commitments on a pre tax income of $35,000 a year? What do you expect to eat on?

You will be on TV in about three years crying about how the man conned you into a home you couldn't afford.

And we the taxpayer will have to bail out your sorry ass.

Frankly, I don't believe you. But if it is true, you are a dumb ass.

Anonymous said...

1. The deal could have gone down without Rezko.

While it's true that the couple who sold the house to the Obamas and the adjoining vacant lot to Rezko's wife required the deals to close on the same day, there was at least one other serious bidder on the lot.

2. The Obamas did not get a special discount on the house.

Yes, the original asking price was $1.95 million and the sale price was $1.65 million, but the sellers have confirmed that the sale price was the result of routine real estate negotiations and was the best offer they received on the house.
2 hours ago - 3 days left to answer.
Additional Details
2 hours ago

3. The sellers rejected two lower bids from the Obamas.

The Obamas first offered $1.3 million and then $1.5 million before agreeing with the sellers to the $1.65 million price.

4. The Rezkos did not pay an inflated price for the vacant lot.

Obama has said his broker told him another interested party had already put in a bid on the lot at or close to the asking price of $625,000. No one has challenged this assertion.
2 hours ago

5. The Obamas did not get a special discount from the Rezkos when they later purchased a one-sixth strip of the vacant lot to enlarge their yard.

The price the Obamas paid, $104,500, was a neat one-sixth of the price of the lot and more than double the value Obama said his appraiser put on the strip. The remaining portion of the vacant lot reportedly sold earlier this year for $675,000.

6. The Obamas did not receive or borrow any money from the Rezkos to buy their house.

They took out a $1.3 million mortgage and paid the balance with proceeds from Obama's best-selling books.

7. Obama hasn't done any political or personal favors for Rezko since this saga began.

The lone example critics cite is that Obama allowed the son of a Rezko business associate to serve a one-month unpaid internship in his office in 2005.

Anonymous said...

I have no reason to lie. I said I was APPROVED for the loan. That was way out of my budget. I settled on a house for 150k with taxes + ins a 1480 a month payment at 6.17? Somewhere in the 6. range I dont remember exact and my documents are in the safe.

Rather than accuse me of being a liar, you could try asking a few more questions to get all the facts first =)