Thursday, May 24, 2007

David Crisp (& family) facing 8 foreclosures

From today's Bakersfield Californian comes an update on former real estate mogul (LMAO) David Crisp and family. Looks like the unwinding of his real estate empire is almost over.

According to public records he and his family (wife and mother) now face foreclosure on 8 homes. I think the only way of this mess is to sell some "sweet links" (see Casey).

One item of note in the story is a quote from Tim Cox, he is the clown who claimed that only a natural or man made disaster would cause home prices to drop. Did i miss a flood or earthquake?



From the newspaper:

8 default notices hit Crisp, family

BY VANESSA GREGORY, Californian staff writer

e-mail: vgregory@bakersfield.com
Wednesday, May 23 2007 11:20 PM


Eight properties owned by local real estate power player David Crisp and his close family members have entered the first stage of foreclosure in just the last six weeks.
Photos:


The Crisp family name appears more than any other on a list of local loan defaults valued at $500,000 or more since the beginning of the year, online legal notices published by the Daily Report show.

The name appears five times -- in notices issued to Crisp, his wife and mother -- among a list of 70 such defaults countywide since January, the online records show.

In all, more than $4.5 million worth of loans taken out by Crisp, his wife, Jennifer, and his mother, Tu, are now in default.

Contacted twice in the last two weeks, Crisp said he was not aware of any default notices. He could not be reached for comment Wednesday.

Tim Cox, owner of Crown Mortgage in Bakersfield, said home loans slip into default for many reasons and the situation tends to be "sad (and) difficult" on a personal level.

"Someone loses a job, some company has problems, there's a death in the family -- who's to say? But the trend is definitely up from previous years," he said.

The number of Kern County homeowners running into mortgage trouble has risen dramatically in the past year.

In April, 770 Kern homeowners entered some stage of the foreclosure process, according to RealtyTrac, a company that tracks foreclosures.

Compared with the same month a year before, the figure represents a 564 percent increase in the number of local homeowners with mortgage woes.

Crisp's wife, Jennifer, was named in the first of the notices of default on April 12 for a $400,000 loan at 12706 Lanai Ave.

Since then, three more loans in Jennifer Crisp's name have gone into default, including a loan for a $1.295 million property at 11219 Draper Court.

The home is a 3,764-square-foot property with five bedrooms, 31/2 baths and a pool, according to First American Real Estate Solutions.

David Crisp's mother, Tu Crisp, was issued notices that two loans in her name went into default this month. A third entered default but later had the default notice canceled.

David Crisp also was issued two notices of default this month, for a $398,790 and a $860,000 loan.

According to public records and First American Real Estate Solutions, the loans in default are:

* April 12: A $400,000 loan to Jennifer Crisp for property at 12706 Lanai Ave. entered default. She purchased the property for $500,000 on Oct. 5.

* April 20: A $1 million loan to Jennifer Crisp for property at 11219 Draper Court entered default. She purchased the property for $1.295 million on Sept. 20.

* April 27: A $629,962 loan to Jennifer Crisp for property at 12718 Locksley Drive entered default. Purchase details could not be located.

* May 10: A $767,200 loan to Tu Crisp for property at 12716 Crown Crest Drive entered default. She purchased the property for $959,000 on Aug. 23.

* May 10: A $860,000 loan to David Crisp for property at 1805 Grimshaw Court entered default. He purchased the property for $1.075 million on March 17, 2006.

* May 11: A $527,472 to Jennifer Crisp for property at 8702 Oak Hills Ave. entered default. She purchased the property for $659,500 on July 29, 2005.

* May 14: A $398,790 loan to David Crisp for property at 10805 Prairie Stone Place entered default. He purchased the property for $443,500 on Dec. 28, 2005.

* May 21: A default notice was issued to Tu Crisp. Details about the loan and property were not immediately available Wednesday.

In addition, one default notice was canceled.

A $367,960 loan to Tu Crisp for property at 12422 Woodson Bridge Drive entered default May 4. On May 17, the default notice was canceled.

-- Staff writer Gretchen Wenner contributed to this story.



29 comments:

Tehachapi said...

There will be a special place in hell for them! Hope they enjoy seeing the repo-man taking their shit away!

Anonymous said...

BAHAHHAHAHAHAHAHHA. What a dumb ass.

Max said...

I posted this on Calculated Risk a couple of weeks ago. Seems apropos today:

This one's for Crispy&Cole (aka Bakersfield Bubble). Pretty obscure, but timely.

Sung to the tune "Come on Darkness" by Camper Von Beethoven:

It came on slow
The prices rose, then fell
And the flippers flopped
As the payments rose

The bubble bust
Drove me back to the street
While the market cooled
Goodbye dreams

So goodbye house
Sent my keys to the bank
Cause the payments got, just a little bit too high

Come on bailout
Send some money down to me
I've been drowing in debt for so long now
I need someone to blame.
Come on Congress
Won't you take me in?
I have spent all I can spend, won't you give me more?

Cole have you got a job?
Or Crisp, can you spare a dime?
Seems like we're all, a little bit more than f---ed

And baby if you're renting now, out in Bakersfield
There's 10,000 sqft available, across from CSUB

I feel ripped off, your buisness has gone away
So come on bailout, we need you today
Come on Congress, won't you take us in
We have spent all we can spend, won't you give us more?

Come on bailout
Come on bailout

Bakersfield Bubble said...

Thanks Max!

sunsetbeachguy said...

bwahahaha.

Time is on our side.

It would be great to get the LA Times article that really highlihgted Crisp's pimped out AMG lifestyle juxtaposed with his current situation.

It warms my heart.

Adam Smith said...

BB said:

One item of note in the story is a quote from Tim Cox, he is the clown who claimed that only a natural or man made disaster would cause home prices to drop. Did i miss a flood or earthquake?

In his defense, he DID say "man-made disaster". The rampant speculative "investing" (which was really gambling) frenzy we saw in the Great Real Estate Bubble of 2000-2006 was a man-made disaster, fueled by greed and lust for fat commissions all around.

However, I'm amazed when bubbles collapse and take out the idiots who worked in the biz and profited from the bubble; they SHOULD know that real estate goes thru cycles. Maybe that's why such morons are so convincing as sales people: apparently they're AS DELUDED as the buyers, thinking real estate ONLY goes up! They have been intoxicated by the REIC Kool-Aid, too.

And that's the problem with easy success, early in one's life: it clouds the person's judgment, fooling them into thinking they're geniuses when they just were at the right place at the right time.

BTW, the ultimate theme song for bubbles/collapses was written by Steely Dan after the dot-com crash, a ditty called, "Everything Must Go".

The name refers to the auction/liquidation of an 'easy come, easy go' start-up business, where the CEO slides DOWN the ladder (of success), and the Head of Acquisitions is forced to aid selling stuff by filming it with his videocam!

http://www.steelydan.com/emgtracks.html#track9

It's high time for a walk on the real side
Let's admit the bastards beat us
I move to dissolve the corporation
In a pool of margaritas
So let's switch off all the lights
And light up all the Luckies
Crankin' up the afterglow
'Cause we're goin' out of business
Everything must go

Talk about your major pain and suffering
Now our self-esteem is shattered
Show the world our mighty hidey-ho face
As we go sliding down the ladder
It was sweet up at the top
'Til that ill wind started blowing
Now it's cozy down below
'Cause we're goin' out of business
Everything must go

We gave it our best shot
But keep in mind we got a lot
The sky the moon good food and the weather
First-run movies -- does anybody get lucky twice?
Wouldn't it be nice...

Tell me can you dig it Miss Fugazy
Now it's gone from late to later
Frankly I could use a little face time In the service elevator
And if Dave from Acquisitions
Wants to get in on the action
With his Handicam in tow
Well we're goin' out of business
Everything must go

Can it be the sorry sun is rising
Guess it's time for us to book it
Talk about the famous road not taken
In the end we never took it
And if somewhere on the way
We got a few good licks in
No one's ever gonna know
'Cause we're goin' out of business
Everything must go

Anonymous said...

WHO are the sleezy mortgage companies, brokers, and appraisers who did these deals???? Must be a whole lot of fraud and criminal behavior to go around!

Realestateslasher said...

Lets have some names davids burnt out, Show me the the real Crooks
He cant be the Real Loan Ranger

Rob Dawg said...

I'm betting that the college is in bed with him and is about to be burned at the same stake.

Personally what I want most is a look at the books. It has got to be an amazing confabulation. The reason I want to see the crooked books is to rub it in the faces of all those smug people who insisted I was wrong to point out that the numbers obviously didn't add up.

Anonymous said...

Moneywise on KERN 1410AM will be broadcasting a special about this story and the rest of the real estate bubble tonight at 6pm. Catch it!

Ryecatcher said...

This is just the beginning. I am the friend of blogger "Hermes" who posted about the employee of C who was convinced at $10,000 a pop to be the straw buyer of 5 properties. The employee was told that C would pay the mortgages and/or find renter tenants to occupy the structures until the price of the house elevated and C could sell it for a profit. Prices did not rise and the former employee is left with 5 properties in default and facing foreclosure.

From what I understand, our friend, Mr. Mogul, was making this kind of offer to not only employees, but to friends and acquaintances of employees. I cannot personally corroborate or verify any of this information personally, but I would like to see Ryan Schuester or one of the other good guys over there at that Californian dig into this story. It makes sense that a guy that would (presumably) talk his family into taking on outrageous loans, may have also been able to convince the jet loads of junior loan officers, realtors, and office folk that he would ferry to Vegas after giving them checks of 1000 dollars or more to spend. Once these people get through talking to the Feds, hopefully they'll begin talking to the media. Schuester, please talk to 5 former employees of C and see what stories they tell.

You don't need a bodyguard in this town if have money- You need a bodyguard when you've made your money screwing others.

xs10shell said...

As they say, the apple does not fall far from the treee. "His father, a talented entrepreneur, had landed in jail for passing bad checks." From the LORE puff piece december 2005. Anybody got more details?

Darth Toll said...

It couldn't have happened to a nicer guy. LOL. I hope all of the other dumbass Realtwhores (and blog trolls) pay attention to this story about the sadsack and his rags to riches to rags story.

Perfect Storm said...

Fuck'em he can go back to unloading UPS trucks.

Anonymous said...

Does anyone know other questionable Real Estate companies are being investigated?

Such as Westchester Realty?

Anonymous said...

bwahahahahaha!

I love the smell of vindication in the morning....

Wonder how long the bodyguards will hang around after their paychecks start bouncing....

subsonic22 said...

Looks like someone should have been shopping at the Mens Warehouse instead of buying Armani suits at exclusive stores. Maybe it would have been a little easier to keep up with those pesky mortgage payments. There is definitely more that meets the eye here. I think Mr. Crisp is Casey Serin more than you know.

Here is one example. He buys a home (Newquay Ct.) 3/06 for $1.705 million. He finances a first mortgage for $1.105 million, a second for $350k. He then refinances 1-07 with a $1.750 million 1st mortgage and a $250k second mortgage. This is a confirmed down market, yet somehow his property appreciated $300k and he manages to pull all the equity out. If you want to know who to short next, try X Bancorp, the lender for this deal. This deal makes no sense on any legitimate level. I've never heard of them. Is that the name of Crisp's mortgage company? This story is only going to get better. Here's hoping him and Casey Serin will soon be planning real estate strategy in the hole.

Bakersfield Bubble said...

Thanks subsonic.

I knew about the refinance in Jan 07, I just didnt know the details. That is a house he was trying to flip and he has now taken it off the market. Sounds like "flop" to me.

I have no idea who X Bancrop is.

Bakersfield Bubble said...

I would love to know who the appraise was on this deal!

subsonic22 said...

I've done a little more research. Grimshaw also had a 2nd mortgage for $200k. It didn't look like he bought it as an investment property. If so, he lied on his loan application because other properties he bought didn't seem to be purchased as investment properties either (Heaton and Newquay). WMC lent the money out on this deal. The value is now $974k and that's assuming it's purchased at market value. Who knows how much it would receive in foreclosure sale.

Want to know why Fremont was shut down by the Feds, here's one for you. Crisp buys the Heaton St (not in default, yet) for $487k 1-04. Finances 100% with Long Beach Mtg (80/20). Somehow Crisp refinances in 7-05 with Fremont for $900k (80/20). Property is now worth according to an AVM for $780k. Fremont's parent company is an FDIC lender. Again, who accepts at face value a property appreciating 100% in little more than one year's time?

This house of cards is starting to implode. If the other stuff is true about creating strawbuyers to purchase properties, this guy will either have to flee the country or will be looking at serious jail time.

Bakersfield Bubble said...

Great research!

Multiply this activity by all the agents in his company who were probably doing the same thing. No wonder his whole company has now closed shop and changed names.

Bakersfield Bubble said...

"Again, who accepts at face value a property appreciating 100% in little more than one year's time?"

Yes, who was the appraiser and mortgage broker on these deals. They helped make these deals happen and are part of this issue also.

subsonic22 said...

I read in one of the articles that Crisp had a mortgage company (probably as a mortgage brokerage). Some mortgage companies will not finance deals for people that broker loans to them. It would be interesting to know if Crisp was the mortgage broker for his own deals. I'm sure the state fraud investigators will want to know. As far as the appraiser, I would bet the farm that Crisp had selected him/her no matter who financed the loan.

I just can't believe how much debt this guy took on. What kind of issues does one have to want to borrow yourself to the hilt to maintain the appearance of a big shot? I hope his 15 minutes were worth it.

Anonymous said...

His issues were apparent when he shared his motto with the paper last year: You got to fake it to make it. What an idiot.

Anonymous said...

From rags to riches to bitches and back to rags.

Sam Sam said...

Jenniffer and her husband are young.
Why is the FBI and BPD not going after Frank St. Clair, FATCO, Fidelity, LoanStar, New Century, wells fargo,City Manager, and the agent called Debbie bandduci working without a Lc. from 2003-2004 per Dept. RE Fresno Supervisor.

Sam Sam said...

BPD and FBI need to clean up their own act. Such as City Manager and his cronies working for Assessors office and FATCO

Raynor said...

Sam Sam:

Agreed that City Mgr and Appraiser need to be looked at, as well as others.

I am sure that all loan officers, appriasers, agents, etc. will be looked at as well.

C&C however, will be scrutinized most heavly as they were the vangauard of this "movement". The others were but facilitators.

Follow the money. Who took $$ out at close, and who will be caught holding the $bag?

I think that will tell you who is most culpable. C&C and cronies were the ones taking $$ out at close. Some appraisers, loan officers may have been paid, not hard to prove.

The fish rots from the head. The head is spelled C&C.

Buck Haggard said...

"...Ryan Schuester or one of the other good guys..."

There arent any good guys at TBC