Irvine Home Address … 3 HAGGERSTON AISLE Irvine, CA 92603

Resale Home Price …… $599,900

They're playing my song

Ya know I'm gonna be okay

Yeah!

It's a party in the USA!

Yeah!

It's a party in the USA!

Miley Cyrus — Party in the USA

IHB News

We are hosting a new event on Sunday, August 1, 2010. I will informally address all interested attendees on how they can profit from opportunities in the trustee sale market. I have already met with many people individually, and there will be plenty of time and opportunity to talk with me one-on-one to ask questions. At this event, I will have a calendar for people to sign up for individual follow-up meetings on Tuesday or Thursday evenings where you will have a half hour of my undivided attention.

I have profiled dozens of trustee sale flips. It is obvious that investors are operating in this market through purchasing properties with cash and flipping them to buyers who require financing. There are ways that individual investors can band together to participate in this market and diversify their risks and lower their capital requirements. I will describe one particular method in detail.

I have arranged to have an appetizer station set up for us at JT Schmids. If you provide some basic contact information, I will give you a card for a free drink at the bar. Technically, that means the drink isn't free, but as any economist would tell you, there is no such thing as a free drink.

I hope to see all of you next Sunday.

Housing Bubble News from Patrick.net

Fri Jul 23 2010

Stop Subsidizing Housing Industry with Tax Deductions (blogs.wsj.com)

Fannie Mae and Freddie Mac: Unfinished business (economist.com)

Federal Reserve printed $1T in cash to buy worthless mortgages. Now what? (nytimes.com)

The Housing Bust Did Not Deflate The Mortgage Bubble (irvinehousingblog.com)

U.S. entering deflation trap, to print more money (news.yahoo.com)

August Fed Policy Statement Leaked! (timiacono.com)

Boomers retire, and California trembles (firsttuesdayjournal.com)

Existing House Sales decline in June (calculatedriskblog.com)

Housing Sales Slump After Tax Credit Expires (npr.org)

No Wonder House Sales Are Plummeting: Look Who Was Buying (Charles Hugh Smith)

Seller, reduce: 5 signs you need to cut your asking price (sfgate.com)

For Bakersfield Builder, Rentals Are "Cutting-Edge" Solution (blogs.wsj.com)

Rent appreciation is pretty much non-existent (centralvalleybusinesstimes.com)

Unemployment claims increase (ows.doleta.gov)

Index of U.S. Leading Economic Indicators Fell 0.2% (bloomberg.com)

14 Charts That Show China's Dangerous Housing Bubble Is Far From Over (businessinsider.com)

Commercial real estate: Offices at the top are going empty (latimes.com)

Watch out, great $50bn commercial property unload about to begin (telegraph.co.uk)

Americans' economic insecurity at 25-year high (marketwatch.com)

Gold Makes Dead Portuguese Dictator Top Investor Without Gains (bloomberg.com)

Are you paying too much rent?

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Thu Jul 22 2010

Banks Can't Hold Back Highend Mortgage Foreclosures For Long (businessinsider.com)

WSJ: Housing Market Stumbles (calculatedriskblog.com)

Gov't watchdogs: mortgage program is not working (finance.yahoo.com)

Helping houseowners or the banks? (guardian.co.uk)

Banker Bailout exceeds entire US Federal Budget (reuters.com)

Next after Obama signing of financial reform bill: Fannie Mae, Freddie Mac (csmonitor.com)

Weakening Demand, Increasing Supply Cause Widespread Asking Price Reductions (irvinehousingblog.com)

Rentals: The Future of Real Estate in CA? (firsttuesdayjournal.com)

Miami Beach buyers turn to all-cash deals (therealdeal.com)

Sharks Are Back, Working Inside Deals With Banks (newsjunkiepost.com)

U.S. Housing Starts Drop to Lowest Level Since October (bloomberg.com)

China House Sales Plunge 44% in Xiamen; Bubble Busts in Tianjin (Mish)

Sydney house price falls a 'near certainty' (smh.com.au)

Two jobs, two salaries, for San Juan city manager (taxdollars.ocregister.com)

California Official's $800,000 Salary in City of 38,000 Triggers Protests (bloomberg.com)

Bell city government: The bleeding Bell blues (latimes.com)

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Wed Jul 21 2010

We Can't Afford To Subsidize Real Estate (article.nationalreview.com)

Real Estate Market is Already in Depression (finance.yahoo.com)

Dramatic price reductions for house in Guerneville, CA (patrick.net)

House prices drop again in San Joaquin County (contracostatimes.com)

Prime Loan Delinquencies Increase for 37th Straight Month (irvinehousingblog.com)

America's new debtor prison: Jail time for those who owe (walletpop.com)

FHA only starting to tighten loan standards (doctorhousingbubble.com)

Countrywide VIP Loan Program Gave Fannie Mae Employees 'Sweetheart Deals' (huffingtonpost.com)

Double dip looks doubly certain (marketwatch.com)

The economy: Weakening recovery brings deja vu (latimes.com)

Charts Show Analysts Historically Overestimate Corporate Earnings by 100% (Mish)

Goldman Sachs and AIG Settle Fraud Suits (bullionbullscanada.com)

How the rich are winning (marketwatch.com)

Bush Tax Cuts For The Very Rich: To Extend or Not to Extend? (newsweek.com)

Cities in US ranked by education (brookings.edu)

A City Outsources Everything. Sky Doesn't Fall. (nytimes.com)

US Credit Rating Is Busted In Land of Bubbles (thejakartaglobe.com)

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Tue Jul 20 2010

More million-dollar-plus houses in Dallas area in foreclosure (dallasnews.com)

Millionaire foreclosures on Nantucket (money.cnn.com)

Real Estate Doldrums on Gulf Coast Beaches (nytimes.com)

House Builders See Demand Further Weaken (theatlantic.com)

Homebuilders losing confidence in the recovery (news.yahoo.com)

Has Uncle Sam Finally Grown a Spine? (tycoonreport.tycoonresearch.com)

The Rise and Fall of Global Trade (theautomaticearth.blogspot.com)

For first time, banks, mutual funds buying more Treasuries than Wall Street (bloomberg.com)

The Real Reason Geithner Is Afraid of Elizabeth Warren (huffingtonpost.com)

Frustration with banks reaching boiling point (pressdemocrat.com)

John Paulson, central to Goldman deal, buys Aspen house (coloradoindependent.com)

Destitute in Dubai: One man's story (bbc.co.uk)

Fighting Back Against Realtor Signs (patrick.net)

Stimulus 5.0, due back with interest (dailybail.com)

Free Trial of the Landlord's Property Finder

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Mon Jul 19 2010

10,300 jobs gone from SF Bay Area in June (contracostatimes.com)

Biggest Mountain View, CA property assessment drop since Great Depression (mv-voice.com)

Biggest SoCal rent decline since 1940 (lansner.ocregister.com)

Office occupancy rates, rents drop in Southern California again (latimes.com)

Foreclosures drag down DC housing market (washingtonexaminer.com)

Strategic mortgage defaults: The price we pay for housing folly (articles.latimes.com)

1,000,000 Foreclosures in 2010 and Three More Years of Pain (irvinehousingblog.com)

Condos and lenders shun property receivers (therealdeal.com)

Housing Bubble Leaves $4 Trillion Hangover (bloomberg.com)

Housing, Leading Index in U.S. Probably Slumped in Sign Recovery Slowing (bloomberg.com)

Spanish property: 'There's a lot of over-priced rubbish out there' (guardian.co.uk)

China – The Mother of all bubbles (realestatebuzz.com.au)

Is the U.S. Following in Japan's Deflationary Footsteps? (buygoldandsilversafely.com)

Skating closer to happy deflation (latimes.com)

Time for a Dollar Bounce (Mish)

Goldman's fine for mortgage fraud: only 10.2 days of loot (dealbook.blogs.nytimes.com)

Goldman paying only 3% of their bonus pool as fine (theautomaticearth.blogspot.com)

Americans Blame Bush, Not Obama, for Deficit, Jobs, Afghan War (says bloomberg.com, not some leftie!)

Who is sinking the boat? (dvorak.org)

Giving it back to the lender

There is no shortage of accelerated default in Irvine. Today's featured property was purchased in 2004, and after the owner extracted what he could, he is leaving the rotting carcass for the lender.

• This property was purchased on 3/26/2004 for $645,000. The owner used a $516,000 first mortgage and a $129,000 down payment.
• On 3/22/2005 he obtained a HELOC for $150,000, but he didn't use it.
• On 3/15/2007 he refinanced the first mortgage for $552,500.
• On 3/27/2007 he obtained a $200,000 HELOC.
• On 6/8/2007 he obtained a third mortgage for $125,000.
• Total property debt is $877,500.
• Total mortgage equity withdrawal is $361,500 including his down payment.
• The notice of default was filed 6/1/2010

Irvine Home Address … 3 HAGGERSTON AISLE Irvine, CA 92603

Resale Home Price … $599,900

Home Purchase Price … $645,000

Home Purchase Date …. 3/26/2004

Net Gain (Loss) ………. $(81,094)

Percent Change ………. -12.6%

Annual Appreciation … -1.0%

Cost of Ownership

————————————————-

$599,900 ………. Asking Price

$119,980 ………. 20% Down Conventional

4.62% …………… Mortgage Interest Rate

$479,920 ………. 30-Year Mortgage

$118,898 ………. Income Requirement

$2,466 ………. Monthly Mortgage Payment

$520 ………. Property Tax

$0 ………. Special Taxes and Levies (Mello Roos)

$50 ………. Homeowners Insurance

$448 ………. Homeowners Association Fees

============================================

$3,484 ………. Monthly Cash Outlays

-$414 ………. Tax Savings (% of Interest and Property Tax)

-$618 ………. Equity Hidden in Payment

$208 ………. Lost Income to Down Payment (net of taxes)

$75 ………. Maintenance and Replacement Reserves

============================================

$2,734 ………. Monthly Cost of Ownership

Cash Acquisition Demands

——————————————————————————

$5,999 ………. Furnishing and Move In @1%

$5,999 ………. Closing Costs @1%

$4,799 ………… Interest Points @1% of Loan

$119,980 ………. Down Payment

============================================

$136,777 ………. Total Cash Costs

$41,900 ………… Emergency Cash Reserves

============================================

$178,677 ………. Total Savings Needed

Property Details for 3 HAGGERSTON AISLE Irvine, CA 92603

——————————————————————————

Beds: 3

Baths: 3 baths

Home size: 1,730 sq ft

($347 / sq ft)

Lot Size: n/a

Year Built: 1991

Days on Market: 28

Listing Updated: 40365

MLS Number: S622412

Property Type: Condominium, Residential

Community: Turtle Rock

Tract: Tst

——————————————————————————

According to the listing agent, this listing may be a pre-foreclosure or short sale.

This property is in backup or contingent offer status.

The Most Desierd 2 Story Floor Plan In The Heart Of Turtle Rock. Open Views Of Hills & Greenery. Gordeously Landscaped And Hardscaped Yard Done By 'rogers Garden'. Large Master Suite W/Plantation Shutters And Mirrored Wardrobe Closets. Main Floor Bedroom And Bath. Association Pool And Spa. Award Winning Schools This One Is A Great Buy For Turtlerock! No Mello Roos

Gordeously? Desierd?