stories at... i'm bob massi. thanks for watching. [ woman vocalizing ] >> i'm bob massi. for 32 years, i've been practicing law and living in las vegas. i help people with all sorts of real-estate problems, fromes to closing major deals. eight years ago, 6,000 people a month moved here looking for employment and affordable homes. little did anyone know that we would become ground zero for the american real-estate crisis. now, it's a different story. the american dream is back. we're gonna meet real people who faced the same problems as millions across america, and we'll dive deep into a city on the rebound because las vegas was a microcosm of america, and now vegas is back. [ woman vocalizing ]

i'm bob massi, the property man. celebrities and entertainers from all over the world come to las vegas to have a good time. and in addition to that, many of them, they actually buy real estate as an investment and also second homes. our own ed henry, white house correspondent for fox news, he actually bought a home. and he bought it at an auction. when did you first come to las vegas? >> i came here with john kerry in the 2004 campaign. i was the low man on the totem pole, so i had to do the really early live shots, like 6:00 a.m. eastern time, which you know better than anyone is 3:00 a.m. here. and i just got the bug. i thought, "oh, vegas is really fun." and then my wife had never been here. next thing you know, we were coming here every couple months. >> and that was back in '07, which is actually whenever things started slowly -- >> the economy was rocking here. >> it was. >> and you could feel it was starting to change. >> it was. i mean, you know, '04, '05 is when all the homes were being built. i remember driving in different areas, and i was gone for two weeks and go back there, and there's a whole development that went up. they put cookie-cutter homes.

but then the housing market imploded. that meant that suddenly apartments were affordable, and ed decided to take a risk. >> the las vegas review-journal had stories about all of the foreclosures and how all these condos were available for a song. and we thought, "why not make a little investment?" it was almost like we were literally rolling the dice. it was a little bit risky because we didn't know if it had hit bottom. >> in the end, the timing was right. ed got himself a condo in a building with some of the most spectacular views around and truly beautiful amenities. >> it's the million-dollar view. it never gets old. this is the strip. this is what it's all about. >> it really is. >> you got the 360 view here, so every which way you go. >> there's a running track here, too. you could run around. >> you got the mountains on one side, you got the strip on the other. >> but how did they pull it off? >> $222,000. $223,000. >> ed and his wife decided to go to a foreclosure auction. >> sold for $254,100. >> we saw that there were more and more foreclosures, and it seemed like, frankly, there was

a bargain. there was something that might be a good investment for us. >> and what year was that? >> that would've been around 2008, 2009. that's when it was right in the throes. >> that's when things started crashing. >> it was a free fall. >> at an auction, multiple homes are offered up by an auctioneer. an opening bid is established, and potential buyers bid. investors often use these auctions to find good deals on properties they think they can flip and make money. but back then, there were so many foreclosures happening, the auctions could get overwhelming. >> there were so many units. there was a glut because of the foreclosure crisis, so they were auctioning off 40 or 50 units from this building. and so we had our pick of places. it was just a matter of "do you want the one that's 2,000 square feet, 1,000 square feet?" we wanted something smaller because we didn't want this to be a huge gamble that was gonna put our mortgage back home underwater. we had to be careful not to bite off more than we could chew. >> did you see the unit before you bid on it? >> no. so, we came here a few times with our agent, debbie drummond

and her husband, mike. they were awesome. and they really walked us through this chaotic process. and i tell you, we looked at several units that were for sale and were gonna be at the auction. this particular one we bid on had never been sold before, so it was not for viewing, so we had never seen it. but on paper, it's about 1,100 square feet. it was going for about $140,000. and i wasn't a math whiz or anything like that, but i knew that the square footage, the price of dollars per square foot was pretty darn good. the scary part was, has it reached bottom? you know, it seemed like this is a great buy. but what if the prices go lower and nobody knew? >> had that question all the time back then. people come, they say, "hey, bob, do you think it's gonna keep going down lower and lower?" i say, "you know what, man? right now the way the market is, the way the lenders are, it could," and that was the risk. i said, "look, that's why it's called an investment." sometimes it goes up, sometimes it goes down. >> it's a boom-and-bust economy. and vegas has been through it many times.

going back -- and i remember when we were thinking about investing, finding an old life magazine -- early '60s -- with all these great historic photos of vegas, and they were saying, "it might go bust. it's gone bust before." and that was in the early '60s. >> did you intend it to be a vacation place for you and your wife or did you intend to just rent it? >> we wanted it to be our place, and my wife and i were dating at the time. we weren't married yet. and we thought we were gonna get married in vegas. but it's hard sometimes 'cause when you're on the east coast working all the time, a 4 1/2-, 5-hour flight... >> so you rented it out. >> so we've now rented it out. and it's a good investment because we bought it at the bottom. it was essentially $100 per square foot. you can't get that. >> no, you cannot, not with this view. i mean, really, when we're standing up here -- >> it's a million-dollar view for $140,000. >> and it's panoramic. when we come back, we're gonna see a massive construction project that revolutionizes the

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♪ >> welcome back. i'm bob massi, the property man. the one constant in las vegas -- it's always changing. and one of the biggest symbols of the city's resurgence is a gigantic construction project that is currently under way. >> live from las vegas, it's showtime! >> nothing is small in las vegas, and that includes a shovel they brought to this groundbreaking, along with fireworks and confetti, of course. but this is not just another hotel going up. it's the start of what will be a $375 million, 22,000-seat arena right smack in the middle of the las vegas strip with an expansive park and public plaza right outside. nearly 300 construction workers are hard at work, shaping 7,000 tons of steel and 21,000 cubic yards of concrete

into this gigantic arena right behind new york-new york. it's the kind of project that can completely transform the entire area, and it's already having an impact, starting with jobs and the local economy. >> not only ongoing employment, but you can see the construction employment is pretty amazing. about 4,000 workers on this job site alone. and it's gonna be something that really changes the face of what we're doing. they say that the arena is kind of nestled into a tight site, but actually it's a very functional site. its visibility off of i-15 all the way through down to the strip. it's gonna change this region and really lighten it up. >> this arena will be a full modern arena. we'll be able to seat 20,000 people for events. as you see, leading up to the arena, we have a two-acre plaza. >> this is private money? no government money. and for what this country has been through in the last six, seven years with the real-estate

crisis in america, why was the private-money thing so important to aeg and mgm? >> it's really important to us because we don't want to go to the community and ask for funds. we have a $375 million g.m.p., or guaranteed maximum price. we're gonna fully fund that. we project 100 events in year 1. so, out of those events -- 50 concerts, 25 sporting events, 15 boxing/ufc, 5 award shows, like billboard music awards. we can eventually get that return on investment by bringing in those high-profile events, but we didn't want to ask for public money, and we feel that we're better served and so is the community. >> in fact, arenas like this have been planned for years in las vegas, but they usually wanted some sort of public subsidy to help pay the bills. >> that's the reason why the other projects really never got off the ground. it's very complicated to get public money and get taxing authority in order to make those things happen. we built the grand garden arena and mandalay bay events center with private funds, and we're very, very adamant about the fact that if you're gonna build

a venue like this that it needs to be self-sustaining and not on the backs of the public. >> but these two companies realized that the country -- america -- and the city -- las vegas -- well, they've been evolving. >> vegas has changed dramatically. the younger generation, they want outdoor experiences as well as more entertainment experiences across the board. we have two other festival lots that we program. obviously nightlife has been a major boost. we're finding that the millennials -- gen x, gen y -- are really searching for those alternative experiences other than just gaming. >> years ago, the casinos never wanted anybody outside. they wanted everybody inside. and now it's such a reflection of how this town has changed that the casinos are willing to have people go out and enjoy as a family. >> the paradigms changed. the gaming casino companies now realize 70% of their revenues from food, beverage, and entertainment. so, as a result of that, that's where the focus is, and this all works well together and

integrates well together because it's a total entertainment experience. certainly when we have events, the park will be thriving, it'll be lively, it'll draw people in. and then we can bring them all the way back here to the plaza as well as the arena. >> it looks like there's a park area, there's water. >> well, this is a full entertainment district. this will transform las vegas unlike any other development. close to seven acres, and it'll have approximately 85,000 square feet of food, beverage, and retail. the idea is to pull our guests and visitors into a nice, pleasing environment where they can actually relax. they can enjoy the park-like atmosphere. there's nothing like this. i'd like to take the roof off of the arena here so that you can see this. >> i see something in the middle that looks like... >> hockey. [ laughs ] we have a hockey rink in here. we also have a concert set up, but we put hockey in here, obviously, because of the excitement and the energy around the hockey team.

>> an nhl expansion hockey team for las vegas is looking more and more likely, and we're excited. and season-ticket reservations are already selling fast, even though a team right now has not yet been announced. although it is being built to fit major league hockey and basketball teams, well, they promise that even without them this arena, it's gonna thrive. not only are you catering, if you will, to the patrons and visitors that come here, but also for the local community. >> oh, definitely. this is really designed with the locals in mind. there's no question about that. we wanted to build a las vegas arena in las vegas and not build just another arena in las vegas. >> up next, if you build it, they will come. but this field of dreams, it's not in an iowa cornfield, and it can be yours. and by the way, if you want, they'll throw in your own private hockey rink as well. [ woman vocalizing ]

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follow every pitch, every play and every win. change the way you experience tv with x1 from xfinity. ♪ >> welcome back. i'm bob massi, the property man. we've shown you some unbelievable homes over the past few weeks. but you haven't seen anything yet. realtor frank napoli has one hitting the market that he promises will blow your mind. let's go look. ♪ frank, we're really at an amazing compound. it's spectacular. >> yes, it is. >> so, i want to start walking through some areas so you can show us exactly what's involved with this beautiful, beautiful place, so let's take a walk. this stunning property has 6 bedrooms in the main house, 7 1/2 baths, and is more than 43,000 square feet, including both the living area and a huge recreation center.

the detail of the chairs in the room and the chandelier. >> right now we're in a very comfortable and functional formal dining area. it's a circular dining area. it's very comfortable. you have your wine cellar with your custom wood-carved door, solid wood, stone finishes. look at the ceiling. it's just absolutely beautiful. the chandelier. and then in addition to that, this whole wall area of windows opens up to take you to the outside. >> so, now going into the amazing kitchen. >> this is another one of those rooms that just drops your jaw. again, we're in a 20,000-square-foot home, and they have managed to construct this large area to make it still so inviting and comfortable for the family to enjoy. >> look at the beams, the woodwork in the ceiling. and again, the chandeliers. >> this is jerusalem stone reclaimed from the streets in the middle east that have been refinished to be used in this home. these floors are about two inches of solid stone. >> let's go look at some other place. >> let's do it. >> now we're going into the master bedroom area.

and again, the thing that's amazing is how beautiful it is, how warm it is. the colors are so engaging to just give the warmth and love of a home. >> in a 20,000-square-foot living space, it's hard to find the cozy feel. usually it's big and open. it doesn't fit right. every little piece of this house fits, and it feels formal and cozy everywhere you go. >> over here is the fitness center, obviously. >> one of the nicest home gyms that i've ever seen. and it's right off the master bedroom. >> the master bath is something you really need to see to believe, with a custom-built hearth and mantelpiece, a two-person, self-heating spa tub, and a steam shower like nothing you've ever seen before. i don't even think you have to say much. you just have to look at it. almost it's like in the old roman days. >> yes. it's hard to talk also when your jaw is on the floor. [ both laugh ] >> that's true. this is the entrance into the shower, which is also a steam room. >> yes. also a steam room. >> so, we're gonna go from here through the master bedroom shower, which is also a steam room. >> yes. you have surround sound in the shower. floor to ceiling stone,

obviously a marble, stone-covered bench that goes from one end to the other. plenty of water sprays that come out of the walls. again, the shower heads that come out of the ceiling. and it is also all steam. >> so, you know, frank, there are such things as basements in homes. >> yes. >> this is like a little way past a basement. talk about a kids' paradise. >> yes. >> you got your pinball machines, you got your video games. i'm looking up, and i'm looking at cinema. some people like to say that they have a home theater. wait a second. this is the real deal. the custom-built theater even has its own concession stand. here it is right here, where you get your tickets. >> yes. this is where you get your tickets. you get your popcorn over here, you get your movie-size candy over here, and then you enter this beautiful movie theater. ♪ >> but the truly amazing features aren't even part of the main house. >> we're 20,000 square foot in the residence, and that includes the basement. then we have a separate

recreational building that's 15,000 square feet. >> so, over here we have, of course, racquetball court, squash court, handball court. >> all in one right here. indoor recreational center. you also have bleachers for the family to watch. >> of course. >> all right. in addition to that, you have your own locker room with his and hers bathrooms. >> and then we have our own indoor hockey rink and basketball court. >> yes. with professional lighting, and again, climate-controlled as well. >> i cannot even imagine what it must have been like for the kids to have their friends over and to have this type of facility available and the enjoyment of it. >> and the nice thing about it is with a full kitchen here, if you did want to have an event at the house, you can throw whatever event you're looking to throw here in the recreational center, have it fully catered out of the kitchen here, and never have to worry about having anybody in your residence. >> oh, my goodness. >> when was the last time you've been to a home where they've had an indoor batting cage to go along with the indoor hockey rink and along with an indoor golf simulator as well?

>> the custom-built, 15-foot-deep, heated pool features a commercial-grade water slide and diving platform. this sort of gives a whole new definition to a slide in the backyard. >> this is a commercial-grade water slide in the backyard of your private residence, all right? and then attached to the commercial-grade water slide, you don't have a diving board, but you have a diving structure. >> it is like an adult disneyland but for children. it has everything you could ever want. >> yes. fantastic for the family, and if you want to entertain, plenty of space for entertaining. we have an outdoor full kitchen out here with another wood-burning pizza oven, a gas outdoor fireplace over here that's covered in stone and brick. >> you would never know you're in las vegas. >> no, that's for sure. you never know you have houses around here. >> never. we're now gonna go see something that's also outside that sort of, when you look at it, you think this can't really be here, and it is, so let's go take a look at it right now. >> let's do it. [ "take me out to the ballgame" playing ] [ bat cracks ] >> this can't be happening.

this cannot be happening. >> this really is happening. believe it or not. >> this is way past "field of dreams." i mean, i remember as a kid, we'd come out after school. "can we go out and play baseball?" yeah, we'd go out in the backyard. it was like maybe right here. this is a full-service -- this is a baseball field. about 300 feet out to center field, 250. >> 90-foot baselines. >> 90-foot baselines. >> and this is in your backyard. ♪ every single square foot of this house, the attention to detail is incredible. every room is the perfect size. and you get that wonderful calm feeling. it's like being in your own park out here. >> from the strip, how far do you figure we are? >> depending on traffic, 5 to 10 minutes to actually get to your destination. >> when you go to market a home like this... >> yes. >> ...i mean, what are you thinking? >> [ chuckles ] this home could suit really anybody, and a home like this really markets itself. i mean, it's really just making sure the home gets in front of the audience to make sure they can see how beautiful this home really is.

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♪ >> welcome back. i'm bob massi, the property man. time now for the massi memo, where we review what we learned today. earlier, ed henry told us how he was able to get an amazing deal

on a great apartment by going to a foreclosure auction. now, auctions can be a good way to purchase property at below-market value, but like most things in real estate, you better know what you're doing. you must make sure you understand the foreclosure process itself. what type of auction are you at? are you at a trustee auction? is it a sheriff's sale? is it a bank foreclosure auction? is it a government foreclosure auction? if you're a novice, watch out. if you've never gone to an auction, take a few minutes, go see what happens at the property, see what happens at the auction. research the area of the home. you can't actually get inside the home where you normally could. and there is a saying. the way it looks on the outside, that's how it is on the inside. check the prices of the property in the area so you'll have time and an idea of how much to bid. be on time at the auction, guys, because if you're not, you're gonna lose out. believe me, they're fast, and they get it done. by the way, you've got a lot of information at our website covering auctions and all the other items we covered today. go to foxnews.com/propertyman, and also, don't forget.

send me your questions or your stories at propertyman@foxnews.com. i'm bob massi. thanks for watching. [ woman vocalizing ] >> i'm bob massi. for 32 years, i've been practicing law and living in las vegas. i help people with all sorts of real-estate problems, from trying to save their homes to closing major deals. 8 years ago, 6,000 people a month moved here looking for employment and affordable homes. little did anyone know that we would become ground zero for the american real-estate crisis. now, it's a different story. the american dream is back. but even today, i still get over 300 e-mails a week from people. they just want to know how to navigate the new landscape so they can live the american dream. we're gonna meet real people who face the same problems as millions across america, and we'll dive deep into a city on the rebound, because las vegas

was a microcosm of america, and now vegas is back. [ woman vocalizing ] 5.5 million people bought a home last year in america, and more than 2 million of them share one critical thing in common -- they have never done it before. so how do you take on something so huge if you've never done it before? well, we decided to tag along as a first-time homebuyer went shopping. this is gino. he's a pilot looking for a three-bedroom starter home near a major airport. kathryn is his realtor. she'll be helping him every step of the way. representing the seller is geoff. kathryn's already shown him two homes. next up is a three-bedroom, 1,900 square-foot home in henderson, nevada. >> gino, the home we're gonna look at now is a home that was built in 2000.

it's right around the square footage that you were looking for -- three-bedroom, two-story home. i think you'll really like the backyard, as well, so should we go take a look inside? >> all right, let's go. >> great. ♪ >> come on in. >> thank you. >> the nice thing about this house, which is somewhat unusual, is we have a downstairs master, so it gives you the functionality of a one-story for ease of livability, but you have the use and space of a two-story. [ tires screeching ] >> hold on. back up a minute. before you even step foot in the house, there's some critical things you got to know. number one -- always really understand your finances. outside of getting married, well, buying a home -- it's the biggest commitment you're ever going to make. many first-time buyers calculate what their mortgage payment would be, but there's a lot more to just knowing what your mortgage payment's going to be. >> their taxes, their homeowners' association, their energy bill -- they need to be really comfortable with that amount, and so a good agent will

sit down with them and make sure that they fully understand all of the costs. >> that brings us to step two -- you got to get the right realtor, somebody that understands the area, exactly what your needs are. >> the biggest thing in buying a house is making sure that your agent's in it for you as the buyer and not for the deal. >> your realtor -- they're gonna be the guide. they're gonna take you through this entire process from beginning to end. >> how long have they been in business? that would be one of the questions i would ask. how many homes have they actually sold? >> the third thing to do before stepping inside any type of home is find the mortgage lender that you're gonna be able to work with. >> you want to make sure that your lender has their act together and really has you pre-approved, not pre-qualified. they've look at your bank statements, tax returns -- all your income and assets. >> otherwise, what happens? well, you find yourself that dream home, comes time to closing -- lender doesn't approve it, derails the entire deal. okay, now we're ready to go house shopping.

the important thing now is to know exactly what are your priorities. >> as a pilot, i'm gonna be gone a lot, so i'm looking for a safe area, an efficient area, some place close to the airport. >> this is a home you're gonna live in for a long time. make sure you find out certain things -- what's the crime rate in the area? have there been a lot of foreclosures? what's the history of the values in the area where you intend to buy? >> what are the h.o.a. monthly dues on this? >> the monthly dues on this are $25 a month, so really affordable. that's gonna be mostly a landscape association, so they're not gonna be super hard on you. >> this is critical. if there's a homeowners association, you need find out exactly what the monthly dues are, any assessments, the rules and regulations, and how they enforce them, because they are basically your government in the area where you live. >> so upstairs, we've got your loft that we talked about earlier, secondary bathroom here, which is a full bath -- tub/shower combo. this bedroom, actually, is great 'cause it's got a huge closet.

let's go down to the backyard, and i'll show you what we've got down there. >> excellent. >> so what do you think so far, gino? >> um, so far, so good, actually. it's got everything i'm looking for -- size, functionality. the only thing that i would, i guess, worry about, is stuff like the roofing. when's the last time it was done, or are we up-to-date on the water heater, the appliances? >> one of the things that we're gonna do, gino, is when we find the right house for you, we're gonna have the home professionally inspected by a licensed and bonded company. >> the home inspection is so critical to understand what you're buying. every home you buy is as-is, the good and the bad. >> i guess, we'll just work on financing and -- >> i'll let you two get back to the office for the offer. >> great. thank you so much, geoff, for showing us the home. >> it was great to meet you. >> i appreciate it. >> good to see both of you. how are you doing? >> good to see you. >> you know, i was wondering -- what's the like, maybe the four or five top things that you want to discuss with a first-time buyer of a home? >> buying a home for the first

time can sometimes be a bumpy ride. we want to make sure that the financing is in order, that they're comfortable with the financial commitment that they're making, also that the home suits their needs. >> how important is it for the homeowner to understand what we call the cc&rs -- the make-up of the homeowners association, if there's a management company? >> one of the advantages of what we call cc&rs is that it's gonna maintain and help you maintain your property value so that there's a continuity to the neighborhood. your next-door neighbor isn't gonna paint their house purple with pink spots. >> one of the things that i've seen happen over the years that becomes very controversial is the earnest money deposit, which is sort of the good faith money, gino, that you put down, saying, "i b home," subject to the conditions of financing, and you're happy with the home. it's a common problem sometimes, though, isn't it, where the earnest money goes hard and they can't get it back. >> you're absolutely right.

as a broker, it's probably the most disputed item that i've seen in my career. also you have what's called a due diligence period, which is typically anywhere from 10 to 15 days. >> this is your time to make sure there's no hidden surprises waiting for you. all the more reason -- have that home inspection. >> if we decide to make an offer, we'll receive what's called a seller's real property disclosure report. it's gonna disclose any information as far as the condition of the home. >> unfortunately, you don't get to pick your seller, so the truth and the veracity and the integrity of that seller on that disclosure statement is as good as the person that discloses it. gino, thank you for your time. >> appreciate it. >> kathryn, you're the best. >> as always, a pleasure, bob. >> my pleasure. thank you. up next, i'll introduce you to dennis and judy. like many americans, well, they got into trouble when the economy took a nosedive. >> the values -- they turned completely upside down, and then my son was unable to make the payments.

>> he's very good about managing the money and everything, and i just could see his pain, you know? >> sure. >> it was not good. >> and then it even forced me to get a second job. >> in order to maintain the payments. >> i worked seven days a week for three years. >> but this is a story about perseverance and creativity just like america, and the light at the end of their tunnel just might be a lesson for all of us. [ woman vocalizing ]

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in new york state, we believe tomorrow starts today. all across the state, the economy is growing, with creative new business incentives, the lowest taxes in decades, and new infrastructure for a new generation attracting the talent and companies of tomorrow. like in rochester, with world-class botox. and in buffalo, where medicine meets the future. let us help grow your company's tomorrow - today - at business.ny.gov ♪ >> welcome back. i'm bob massi, the property man. i'm gonna introduce you to dennis and judy. in 2006, they moved to las vegas with their adult son right before the real-estate market crashed. >> we all lived together, and then it was kind of crowded, so i said to judy, i says, "you know, there are condos that are for sale right now -- one bedrooms." we figured we were gonna put my son in that condo. >> vegas is still booming. i mean, everything -- the prices are -- you're paying premium. >> oh, yeah, definitely. >> no question about it. >> definitely. >> so, you know, around 2008,

2009, things started getting bad. >> the values -- they turned completely upside down, and then my son was unable to make the payments. >> so at that point, then, you're making a condo payment, what you're living in, and you're making your son's condo payment. >> correct. >> right. >> so when the prices started bottoming out, did you start contacting the lenders yourself to see if they would help you out? >> well, they just didn't cooperate. >> now, i'm assuming that you had to turn over a lot of your financial information. >> oh, definitely. >> what type of things did they want? >> pay stubs, bank account statements, checking account statements, any investments we might have had. >> but when push came to shove, the banks were just not interested in doing much about loan modifications. >> one of the things that a lot of homeowners experienced in dealing with the banks and trying to work something out is a never-ending updating process. often the banks would ask for financials or your last two pay stubs or your most recent tax returns. >> you are going through these

call centers and getting a different representative every time you call in, and you're not getting anyone that has any knowledge about that particular file or about that client or borrower. >> and then, if nothing happened internally within their department in 30 days' time, they were again asking for the same information, and you had to provide it again. >> how did that make you feel, turning all that very proprietary, personal information over to give to a lender? >> violated. i felt violated. >> you were keeping current on your payments. >> oh, yeah. definitely, yeah. >> how important was keeping your credit good? >> oh, very important, because we've had it for so long good, we didn't want it to go bad, you know? i mean, you work so hard and so long for that, especially him. he's very good about managing the money and everything, and i just could see his pain, you know? >> sure. >> it was not good. >> and then it even forced me to get a second job. >> in order to maintain the payments. >> i worked seven days a weeks for three years.

>> these are people that had always made every single payment on time, never missed a bill, had perfect credit, had worked their whole lives to really do the right thing and to maintain that, and the banks basically said, "well, if you're still making your payments, we're really not gonna look at you." >> you're good citizens. you've always paid your bills. you had good credit. how did it make you feel as a relation to the lenders, particularly hearing on the news how they're getting billions of dollars of our tax dollars? >> that's what bothered me. that's what made me feel violated, because they were getting all this money and they weren't giving it out. they weren't helping anybody. >> weren't helping the american people. >> right. >> they turned to their mortgage broker for help. >> dan was a mortgage broker, and he worked with the frank napoli group. >> it was truly heartbreaking at times to sit across from someone who was in a situation where all they wanted was a piece of the american pie, you know? they wanted to own their home -- the american dream. they wanted to own a home. they went out, they found what they wanted, they signed up for a mortgage, they paid whatever they had to pay for the house

because the prices were so over-inflated at the time, and they worked so hard to try to keep their property, and it just got to a point where they just couldn't do it anymore. >> the decision was i want to short-sell the two condos. i can't do it anymore. >> short sale basically meant, by definition, that you owed "x" amount of dollars. >> correct. >> the value of the home was much less. >> right. >> and you're basically going to the lenders and you're saying, "i want to bring a buyer in to buy it for the present value." >> right. >> you tried to short-sell. any luck? >> at the beginning, no. it took a while because what happened was the institutions -- they were waiting for appraisals to come in, and they didn't like the appraisals they were getting, so they were sitting on it and not selling it. they just hung out for more. they wanted more, more, more. >> as they struggled to stay current on the two underwater condos, ironically, the huge drop in real-estate prices meant that they could afford to buy and live in a new home. you were able to qualify, though, working two jobs, retirement, i'm sure, from your job back east. >> correct. >> even though you had these

other condominiums. okay. so you get into this home. you're making all the payments. at some point, you then made a decision. it probably was very difficult for you. >> we took over this home, then it forced me to work even more because now i had to pay for this home and work with the other two condos, and i couldn't do it. i mean, i was getting older and i said to judy, "i can't do this. i'm not 30 years old anymore." >> yeah. >> i'm pushing 60. >> yeah. >> i can't do it. >> so they told the lenders that if the short sales wouldn't work, well, they could just have the underwater condos back. what you basically were in is what we called a few years ago, was a strategic foreclosure. >> mm-hmm. >> how did that make you feel? >> horrible. >> terrible, because i know incurred the debt. i'm not a person to say, "okay, i incurred the debt -- screw it. i'm not gonna pay it." i did feel bad. i really felt terrible. >> eventually, the bank agreed to short sales. >> we were just so far under that we had to file a chapter 13

bankruptcy. >> which is basically what they call a wage earner's reorganization. >> correct, so we're paying the creditors back at full, less the interest. >> over a five-year period? >> mm-hmm, yeah. >> if there were no other options left, bankruptcy tended to be your hail mary to get you out of that debt, and not everybody -- it wasn't a great situation or a resolution for everyone. >> now, chapter 7 bankruptcy is a liquidation. all the debts are wiped out. chapter 13, on the other hand, is a method of paying your debts back over time. >> it's 100% paid back. what they're letting you go for is this interest, 'cause they freeze everything at that point and it's a full payback of what you owe. >> and it basically -- it made you feel better because you're responsible citizens. >> right, right. >> so why was a bankruptcy needed? because short sales could still leave money that is owed. even if the banks agree to write off the debt, which they don't

always do, the i.r.s. will then treat it as taxable income if it is not a primary residence. >> we're responsible for the difference of what the short sale is, and we couldn't -- >> you mean the deficiency of what was owed? >> and we wouldn't be able to pay that. the i.r.s. would come for the deficiency, and we couldn't pay that. >> so that's why we were told we had to put the condos into the bankruptcy. >> if you owed $100 on the condo, and it was worth $50, and you sold it for the $50, the difference -- the i.r.s. would send you a 1099 saying you have to pay income on that -- income tax on that. so that's what you threw into the chapter 13 bankruptcy. >> right. >> and so now, at this point in time, tell us about your present situation. >> the two condos are sold. we're in a home that we like. it still requires me to work two jobs to keep it up, you know? i have to keep it up. judy's working a lot of hours. >> yeah. >> but we're happy where we are, and it's what we had to do. >> well, we can see the light at the end of the tunnel. >> the short sales and bankruptcies allowed dennis and judy to get back on their feet. now they are rebuilding their

lives and paying off all of their debt. dennis and judy really thought out their strategy, and they used some really great real-estate professionals. and they did everything right. bankruptcies and short sales -- well, they're the last resort, and they're great options. and they can be very valuable. i have some great tips on how to do it right at... up next, we'll review what we learned today in the massi memo. [ woman vocalizing ] [alarm beeps] ♪ ♪

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those struggling to pay the bills. the lesson -- you got to protect yourself, and how do you do it? do your homework. today, we met a couple who really struggled to pay their bills when things went bad. but guess what. they did their homework, and they successfully, actually, did a tricky bankruptcy and two short sales. remember this -- bankruptcy should only be used as your last resort, and i call it hitting the restart button. the most common is a chapter 7. simply put, your liabilities are discharged, and you can rebuild your life. it may not be the best way for you to go all the time, so listen -- get a competent bankruptcy attorney, and they will help you decide what's best for you. up next, the property man -- well, i'm heading down south to florida. we have some fascinating property stories and information from the sunshine state, so stick around and see this sneak peek. we're coming right back. [ woman vocalizing ] you've finally earned enough reward miles on your airline credit card. now you just book a seat, right? not quite.

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♪ >> welcome back. i'm bob massi, the property man. well, i've shown you vegas, and now the property man is heading to florida -- tampa, orlando, palm beach, miami, and many stops in between. here's a sneak peek at what's coming up in season 2. what if you could build the ideal community from scratch? well, it's happening right now on a massive scale. >> lake nona is 11 square miles of an integrated, highly collaborative community. >> they've got schools and hospitals and neighborhoods and universities and recreation.

>> with a foundation of technology running through it. >> an entire city built from the ground up with the goal of improving how we live, and it's working. i'll take you behind the gates of some of florida's most exclusive luxury homes... >> welcome to one of the most pristine and private lakes on the lake butler chain. >> ...where cameras have not been allowed until now. >> ordinarily, we don't allow cameras in here to film these magnificent homes, but you're in for a special treat. >> florida is one of the many states that just seems to constantly take a beating from mother nature. but i've got the ways to keep your family safe. >> these rooms are engineered for 250 mile-per-hour winds. if the whole house collapsed around it, it is an entity unto itself. >> legendary coach lou holtz and his wife -- lucky to be alive after their home burns to the ground. >> this happens every day. i've been doing this 35 years. this is a very common occurrence.

>> it's taken a month to don in the difficult task we had ahead of us. >> where do you even begin after such a devastating event? i'll tell you. america's changing, and that includes where people live and how they get around. >> a new generation of workers -- the millennial generation all want to be close to where they work and close to where they want to play, close to where they want to shop. >> transit-oriented development could reshape how you live, work, and play, and sooner than you might think. all that plus how to sell your timeshare, how to shop for a home, the best landscaping tips, and much more. i'm gonna sit down with regular americans and help them through the same problems faced by millions -- foreclosure, divorce issues, h.o.a. battles, and on and on. there is lots to cover when season 2 of "the property man" starts this december. be sure to send me your questions or property stories at...

and check out our website at... i'm bob massi. i'll see you next week. [ woman vocalizing ] we have talked about anything that affected people and their money. from business headquarters in new york city, the new "wall street week." >> welcome to "wall street week" and a new home on the fox business network. i am anthony scaramucci and joining us is murray that -- maria bartiromo host of "mornings with maria" and gary kaminsky will be back with us next