Reply #216: Before everyone tears up there's more to the story.

[art43302]

As Paul Harvey would say "and now for the rest of the story!"

Here's a little more information about Patricia Guerrero's financial situation from public records (LA County Assessor and Recorder):

The 2,948 square foot house on a quarter acre lot was built in 1948.

She and her estranged husband Ray acquired the house, apparently from HIS PARENTS Israel and Esther Guerrero, in August 2002, at which time the debt load on the property was about $157,000.

Ray and Patricia took out a conventional fixed-rate first trust deed on the property on 8/14/2002 for $202,000.

I'll spare you all the gory details of their various refinancings and equity loans, but the present note from 8/21/2006 is for $649,999.

So, it looks like they bought the place for a sweetheart deal from his parents and proceeded to jack themselves up to the tune of almost $500,000 over a period of just 4 years.

I feel like passing the hat so we can all take up a collection in order to help this poor woman keep her little house.

What happened to the 500 grand that they won't be paying federal income taxes on? That's $125,000 a year AFTER taxes plus her $70,000 she made and I am sure her estranged husband had a job.