Spanish Lace — Gene McDaniels
The name Spanish Lace sounds delightfully exotic and enticing, doesn’t it? I imagine the gentleman who bought today’s featured property on Spanish Lace was quite enamored with the property when he got it; however, now he is out $93,236, and he has bad credit. The collapse of housing prices has taken its toll.
For most of the summer, I was profiling small condos and other low-end properties as these where the ones showing distress. Lately, problems at the mid to high end of the market are becoming more apparent. Today’s featured property is a nice, 4-bedroom new home in Woodbury selling at 26% less than its peak sales price. The Villages of Woodbury, Quail Hill, and Northwood II will be where the mid to high end stress will show up first because all of these owners paid bubble prices and they are currently under water. The price collapse in these neighborhoods will spread to others around Irvine. A buyer shopping in the $650,000 to $700,000 price range will be able to get more for their money in these neighborhoods. This will take buyers away from the more established neighborhoods causing transaction volumes to drop off even more. When sellers in the more established neighborhoods become more motivated, they will find competition from the collapsing upstarts.
Asking Price: $689,900
Income Requirement: $172,475
Downpayment Needed: $137,980
Monthly Equity Burn: $5,749
Purchase Price: $933,500
Purchase Date: 3/10/2006
Address: 120 Spanish Lace, Irvine, CA 92620
| Beds: | 4 |
| Baths: | 4 |
| Sq. Ft.: | 2,300 |
| $/Sq. Ft.: | $300 |
| Lot Size: | – |
| Property Type: | Condominium |
| Style: | Other |
| Year Built: | 2005 |
| Stories: | 2 Levels |
| Floor: | 1 |
| Area: | Woodbury |
| County: | Orange |
| MLS#: | U8003891 |
| Source: | SoCalMLS |
| Status: | Active |
| On Redfin: | 10 days |
with many upgrades.Beautiful flooring thru out.Stonetree model # 3 with
4 bedrooms 3.5 baths with a big living room that flows into the
gorgeous kitchen area.Large master suite with a balcony and marble
master bathroom.Green belt view and you can walk to all the community
has to offer.
This is REO and not a short sale, so there will be a transaction somewhere near this relatively low asking price. If the property sells for asking price, and if a 6% commission is paid, the total loss on the property will be $284,994. The original owner put 10% down, so he is out $93,236. Washington Mutual is going to eat the rest.
I would like to thank Britney for providing me today’s listing. It is good to have you back…
.
She was standing there, so beyond compare, in Spanish lace
My heart touched the sky, captivated by her angel face
Dancing neath the moon I soon discovered the new world that
lovers always
find When I saw her there, so beyond compare, in Spanish
lace
We danced away the night, until the morning light said Time
to go
I knew wed have to part, but sadness filled my heart, I
loved her so And
now that love has flown, alone, I think of the heartaches
that I will have
to face Dreaming of that night, the stars that shone so
bright, and
Spanish lace
And now that love has flown, alone, I think of the
heartaches that I will
have to face Dreaming of that night, and stars that shone so
bright, and
Spanish lace
Dreaming of that night, and stars that shone so bright, and
Spanish lace
Dreaming of that night, and stars that shone so bright, and
Spanish lace
Spanish Lace — Gene McDaniel
Who hacked IHB? Was there a reason? Or, was someone out to get us?
This house still seems outrageously high to me.
What per cent of Irviners could afford it, now that there are no more teaser toxic loans?
A CR blogger who dips a toe into the broker boards sez that they are not happy about the F & F talkover and are scared.
Maybe this is actually an effort to put them into runoff immediately even tho it says not. Congress might have to autherize the extra money for loans, and the losses would be explicit enough the congresspersons may run away from having to make an explicit decision.
About brokers being nervous about this takeover. I think that the biggest risk here concerns what happened to the preferred shares of F&F. These are very similar to bonds from certain points of view and were pretty much wiped out. Preferred shares have been one of the few ways left for troubled companies to raise desperately needed capital and many of these same companies have been seen as possible bailout candidates. This deal may make it much harder to raise money with preferred shares because investors now know what will happen in a bailout. It has potentially moved the crisis into the bond market. It seems to me that the USGov is trying to kick the can down the road by temporarily propping up housing prices that are still too high and in so doing, may move the crisis into the broader bond market potentially freezing the credit markets even more. This is worse because instead of having an inability to buy an essentially unproductive asset (housing), there will be an inability to finance our productive assets (manufacturing, etc). I think this is a very bad trade off if it occurs especially since it is only a delay tactic. They seem to have have left an out by including a provision where the new F&F can purchase unlimited amounts of mortgage backed securities from troubled firms for the next couple of years. This is truly horrible from a taxpayer standpoint but may keep the bond market from collapsing. Remember that the economy wasn’t too bad after the equity crash in 1929, but once the bond markets seized a couple of years later, we entered the Great Depression.
It has potentially moved the crisis into the bond market.
This is truly horrible from a taxpayer standpoint but may keep the bond market from collapsing.
Kinda contradict yourself there. The whole point is to bailout the bond and MBS holders to keep the credit markets from completely seizing. I’ll tell you what else needs to be done to get these markets really moving again. High yields.
What is lacking in the current downturn is a dead cat bounce. This latest Govt. stunt may spark a bit bounce if rates come down by 1% point, however, this will potentially be disasterous as there are tonnes of folks who will try to cut loses and get out of the flood gates. FRE/FNM ownership of Govt. now has marked out march towards depression.
Not to mention, all of us on this board who are yet to own homes for our families have been forced to own homes debt without owning the actual home, we are all long on GSE’s now without choice, very long, infact $5 trillion long with this bailout!
On the inside this is a pretty nice place, but the outside makes me think of a hostel for some reason.
I was thinking brothel.
Is it because it is on an alley?
Mostly that deck thing on the second floor, completely useless for anything other than standing; or flashing at Mardi Grass. Haven’t quite figured out the window arrangement in the front, reminds me of something I seen in Amsterdam. Lastly, it’s on a street corner.
Didn’t see the alley, that could come in handy for political customers. 😉
Someone drive by and throw some beads up there.
I agree that in theory your thesis that price collapse will spread to other neighborhoods is correct, IR, and that is my only chance of being able to afford a home in Irvine in the future. It is a slow process though. Prices in the the neighborhoods that I have been watching for a year now (UP, TR) are off only about 15% and inventory is very, very low. I still can’t afford even a starter home in these neighborhoods and I’m wondering if next spring will be any different. Seems to me that most of the trouble in Irvine housing is in Northwood and Quail Hill.
Yep. You will need to be patient. Foreclosures and must-sell inventory impact the rate of decline, but they don’t have as much impact on where the bottom occurs. These new neighborhoods will drop faster, but they will all equal out again given enough time.
Patience will be an even more important virtue now with the F&F bail out celebration. It may stop the the total collapse of the financial market, but it will prolong the agony of this bubble deflation.
Dow is up 250 points, but I am feeling really down and sorry for this great country we have. Shall we bail out the GM, Ford and the rest of the auto makers next?
I did some stats over the weekend and was surprised to find that Malibu’s price decline has been very similar to LA County in general. Malibu also had a very similar runup in prices from 1997 to 2006.
Malibu has a moderate amount of short sales and foreclosures. However, it also has an immense supply of homes for sale. A 32 month supply at the current rate of sales, and that is for August. Similar things are happening in many other high end communities.
The homes that almost stopped selling in Malibu are on the low end. I am guessing that’s because the price differential is so big with similar homes in neighboring communities (e.g., 3000 sq ft, no view, big lot).
The first exploding option ARMs and tapped out home equity loans are many of the desperate sellers so far.
Many upgrades. Since 2005? Upgrading things that are 3 years old??
However they appear to have left out the usual stainless steel microwave and refrigerator.
Looks like typical appliances lost in a granite tile jungle.
My first reaction is that the overall construction looks cheap. Typical stick and stucco tinderbox. Probably cost the builder around 200K to throw down and then flipped for big dollars to today’s screwed seller.
93K. Poof. Bad move.
Another one bites the dust.
I am pretty sure the upgrades are from the builder and not the previous owner.
Yea, I know. My gripe is that nothing has really been “upgraded” – it includes all of the original stuff that the builder used.
The builders and the realtors construct a magical meaningless word called an “upgrade” to snare the brainless.
It’s like me buying a car with automatic windows instead of manual windows and then selling the car claiming that the car has “UPGRADED WINDOWS!!!!” when in fact it’s really just the same 5 year old windows that came with the car.
Under the realtor/builder/idiot logic, everything in the house that is not a single atom is an “upgrade”.
AZDavid, I think you are confusing the term “upgrade” with “remodel.” An upgrade is, for example, Caeserstone countertops, versus the standard white tile option. Or hardwood flooring rather than cheap carpeting. The builder does install these items, sure, but they are “upgrades” because the buyer paid extra for them.
That’s exactly my point – I paid more for automatic windows on my 10 year old car.
So now do I go and try to sell it claiming that the car has “upgraded” windows and expect the buyer to be happy when one of the windows breaks a month after buying the car?
Your notion of an “upgrade” is completely meaningless – what matters is how old the stuff is and its current condition.
I don’t care if 5 years ago some mortgage owner paid a builder extra money for counter tops that are now older and considered “used”.
There is no upgrade – it’s still the same old stuff that came with the house.
If it helps, I’m seeing this all over the place in Dallas, too. Between flippers and the heirs of houses owned by the recently deceased, the “For Lease” signs are popping up in neighborhoods where you’d never have expected to see one five years ago. At this point, the owners aren’t even expecting to make their mortgage payments in rent: they just want to have warm bodies with stable rent histories chipping something toward the payment, in hopes that they might be able to sell to the renter in a couple of years. It’s too late for REOs, as the banks have realized that they’re never going to make their money back, and that any potential buyers are going to make any number of ridiculous and unreasonable demands before purchase, so the rent sign goes up. It’s going to be good times for anyone who wants a good house but doesn’t want to get stuck paying pre-bust prices…
I actually looked at this property two weeks ago thinking I could put in a low offer. It looks great inside, but I found it hard to believe that it was worth almost $690K. I later heard from a realtor that they had gotten an offer for $720K.
Crazy!
Yea, sure. 720K that’s rich. Good luck getting that loan.
This place is in escrow now…
You may be able to afford the new lower price but look at the Mello-Roos ~ $4K/year + HOA $225/mo. You still pay a premium for relatively brand new homes in Irvine.
I think these kinds of properties had similar HOAs even in the late 90s. No way to get around it.
There’s a lot of “that’s a really ugly house” here and on all the RE sites. While I think most of that is just reaction, not real objective criticism I can say that might be one of the ugliest exteriors I’ve ever seen here on the IHB. I mean, ugly-ugly.
I think that the majority of the time when you see people going off about the ugliness of a house – it’s not so much that the house is ugly, it’s just the shocking realization of what huge sums of money really buys you in a Kool-Aid market.
When most people think of a 700K price range, they imagine fancy posh houses with extravagant fittings on huge lots – certainly not a crude stick and stucco box that is 5 feet from the neighboring house and looks identical to every other house on the block as though it was plopped right out of the cookie cutter.
If the house were appropriately priced down at 350K then it would appear more in-line with the perceptions of what people associate with that price level and you wouldn’t see all of the negative comments since people aren’t going to expect perfection for “only 350K”.
That being said – this house does look pretty dumb.
Ugly-ugly?
I’ve heard houses called ugly, pug ugly, fugly, pug fugly….but never ugly-ugly.
I must be the only one who gets that reference to Moe. Well done.
If I were trying to sell something for almost $700,000, I would take some nice pictures of it. This person took a few badly lit pictures, mostly of the floor. Did they spend more than five minutes on it?
Two shots of the toilet seat as well.
I would think that photos of used toilets would create negative visual associations in the mind of the person looking at the ad.
It’s like putting up a big neon sign that reads “Not much else worth photographing in this house, but hey, you can crap in it at least.”
At least they had the toilet seat lids down in these photos. I give the realtard props for that, since 90% of the time they don’t even have the seat down, let alone the lid.
Certainly for a house that someone paid almost a million dollars for a few years ago has something going for it other than the porcelain toilet..
Take some pictures of the HUGE backyard
Take some pictures from far back that show the huge plot of land that the house is sitting
Take some pictures of the underground bowling alley
Oh wait, I forgot, it’s just another tract house jammed into subdivision like a sardine in a tin can. What was I expecting for a million dollars. My bad.
It is a condo. And it is basically in the middle of nowhere. You need to drive everywhere, and anywhere of significance is about 15 miles one way. The world is really changing people — you need to change with the times.
Yeah, I love how the listing notes it’s a “detached house.” What they fail to mention is that the lot is SO SMALL it has to be classified as a friggin’ CONDO. Oh, yeah, we let four inches between the two places so it’s a “detached house.” The only thing that is detached here is that they want $700,000 for a CONDO in Irvine.
It never ceases to amaze me — after all the effort that is put into slicing and dicing and packaging property in Irvine, that the major benificiary is always the Irvine Company or the developers — hardly ever the homeowner. If you want to live in in alley, this is the perfect place for you. “Planned community?” — they quit using that slogan. Who could “plan” some of these housing catastrophes that they put up for sale in Irvine? Just sad.
I think you have it exactly right LC.
It’s the fault of the people who live there and spend money (create demand) for it.
As Dave Chappelle would say “Gotcha bit**!”
I remember a poster from awhile back who said it best “bend over and say Moo”
Whose your daddy?
Wait a second…
Are you talking about the house in today’s post? Anywhere of significance is about 15 miles away?
A major university is 6 miles away.
A major airport is 8 miles away.
Laguna Beach – 13 miles away.
Major employment center is less than 5 miles away
Like most properties in Irvine, this has a lot going for it location-wise.
I drove out to Woodbury one time, to those that leave near the coast/civilization it really does feel like 15 miles from anywhere. On the plus side, you can actually see stars at night there. The neighborhood is another monument to the real estate bubble, the homes are so close together it looks like one colossal apartment complex. That is what kills me about this unholy bubble: you can tout a price a few ticks under 700K for this condo as if it were some kind of bargain.
I don’t think it’s all that ugly.
But then, I don’t think it’s an almost
700k house either.
CONGRADULATIONS!!!! THANKS TO FANNIE AND FREDDY AND GOOD OLD UNCLE SAM, WE ARE ALL HOME OWNERS AT LAST, even if you don’t actually own a home we are all paying for one now. Isn’t so nice that our government worries about how much China will lose in their investments that they are willing to break our backs (tax payers) and make us pay for their bad investments? They keep talking about how bad it would be? But for who? As far as I can see the only one that would be left holding the bag would be foreign investors, so what. Thats what investing is all about. So anyway, when should we start redecorating our new homes?
If the government really wants us all to be homeowners so bad, I guess I’ll be buying sooner rather than later… This is going to delay and/or string out further price declines. Might as well take advantage of 30-year fixed rates in the 5’s while they are here.
LMAO! Let us know how that works out for you.
Beinformed –
Don’t worry, I’m sure that once these two companies get back on their feet and start earning a profit again, we will all start receiving checks for our share of the spoils. I mean come on, it would not be fair for us to share in the losses and not the profits; the government will surely look out for us to make sure that does not happen.
Don’t be so negative.
To be fair, we will be earning 10% yield off of the preferred shares of the GSE’s. That is if the next president doesn’t dismantle the companies entirely.