Irvine Home Address … 30 BLAKELEY Irvine, CA 92620
Resale Home Price …… $879,900
Long term owner goes Ponzi
I am always saddened by the cases of home owners who bought before the 00s who doubled or tripled their mortgage balances and lost their houses. I can understand the Ponzis of the 00s. The new loan owners of that era saw mortgages as consumption and didn't know a different market. The people who weathered the storm of the early 90s were forced to be frugal because there was no appreciation to spend. They did not form bad habits from the beginning. Their spending sprees were learned behavior. They knew better.
- The previous owner of today's featured property paid $290,000 on 12/29/1995. Their mortgage information is not available, but it was likely an 80% mortgage and 20% down.
- They refinanced on 8/12/2002 with a $300,000 first mortgage.
- On 1/30/2004 they went Ponzi and refinanced with a $585,000 first mortgage.
- On 4/29/2005 they followed with a $131,416 HELOC.
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Total property debt was $716,416.
- Total mortgage equity withdrawal is $484,416.
- Total squatting time was about 16 months, assuming the NOD was filed 3 months after the borrower went delinquent.
Foreclosure Record
Recording Date: 01/28/2010
Document Type: Notice of Sale
Foreclosure Record
Recording Date: 09/09/2009
Document Type: Notice of Default
The new owner is a flipper. It appears they paid for a full renovation of the property. They are also looking for a healthy profit. Will they get it?
Irvine Home Address … 30 BLAKELEY Irvine, CA 92620 
Resale Home Price … $879,900
Home Purchase Price … $671,000
Home Purchase Date …. 10/1/2010
Net Gain (Loss) ………. $156,106
Percent Change ………. 23.3%
Annual Appreciation … 84.1%
Cost of Ownership
————————————————-
$879,900 ………. Asking Price
$175,980 ………. 20% Down Conventional
4.78% …………… Mortgage Interest Rate
$703,920 ………. 30-Year Mortgage
$177,656 ………. Income Requirement
$3,685 ………. Monthly Mortgage Payment
$763 ………. Property Tax
$0 ………. Special Taxes and Levies (Mello Roos)
$147 ………. Homeowners Insurance
$0 ………. Homeowners Association Fees
============================================ 
$4,594 ………. Monthly Cash Outlays
-$892 ………. Tax Savings (% of Interest and Property Tax)
-$881 ………. Equity Hidden in Payment
$321 ………. Lost Income to Down Payment (net of taxes)
$110 ………. Maintenance and Replacement Reserves
============================================
$3,252 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$8,799 ………. Furnishing and Move In @1%
$8,799 ………. Closing Costs @1%
$7,039 ………… Interest Points @1% of Loan
$175,980 ………. Down Payment
============================================
$200,617 ………. Total Cash Costs
$49,800 ………… Emergency Cash Reserves
============================================
$250,417 ………. Total Savings Needed
Property Details for 30 BLAKELEY Irvine, CA 92620
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Beds:: 5
Baths:: 3
Sq. Ft.:: 2962
$0,297
Lot Size:: 5,500 Sq. Ft.
Property Type:: Residential, Single Family
Style:: Two Level, Other
View:: Faces South
Year Built:: 1985
Community:: Northwood
County:: Orange
MLS#:: S644516
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Wow, amazing home that you will have to see to believe! This home is move-in ready and totally turnkey! Just bring your toothbrush & you're home! Everything you could want in your new home & more! 5 bedroom, 3 bathroom, 3 car garage home w/ sparkling pool and spa! What more could you ask for? Newer modern construction with greatroom effect downstairs! Beautifully remodeled kitchen w/ granite slab countertops & stainless steel appliances, including microwave hood and professional quality 5 burner gas stove! Polished marble floors, New designer paint w/ tall white accenting baseboards. Brand new neutral carpeting upstairs! All-new windows throughout! White raised-panel doors throughout! Mirrored wardrobes in all the bedrooms! Downstairs bedroom has double-door entry & it's own bathroom! Master suite is to die for-Double-door entry, vaulted ceilings, & huge master bath! Seperate roman-oval tub & shower, huge walk-in closet! SPARKLING POOL! NO HOA/MELLO ROOS! 3 CAR GARAGE! COME SEE TODAY!!
3 CAR GARAGE! That is a BIG selling point, right IrvineHomeOwner?
No HOA and no mello roos tax in Irvine?
That’s going to save the new owners $500 – $800 a month.
That’s similar to a $100-150K loan.
The new owner could buy a house in Las Vegas or Riverside with their mello roos and HOA savings.
Looks like the fliptastic flipper has a slam dunk here, easy money.
“3 CAR GARAGE! That is a BIG selling point, right IrvineHomeOwner?”
3 car garages may not be for everyone. But when it is time for me to buy, I am only considering houses with 3 or 4 car garages. Not so much for the cars, but for my side business.
IHO is probably already under contract.
This 3CW without mello roos and HOA is equivalent to a $750K 3CW in Irvine.
A side business is the best use of the 3CW, the garage can pay for the house.
3 car garage’s are great!!!!!
Bicycles, table saws, workbench, golf clubs, even 3rd cars…
You renters don’t know what your missing..
Please keep buying stuff, so the rest of us can pick up your expensive goodies for pennies on the dollar at the community garage sale/Craigslist when nothing more will fit in all those garages.
Also be careful of how much “stuff” you collect. Your HOA just might want to see all you’ve got…
http://www.ocregister.com/news/hoarding-284501-board-policy.html?plckOnPage=2
Again, I know this is an Irvine blog, but 3-car garages are hardly considered luxuries in most of the rest of the country (where, not accidentally, HOAs are considerably less common).
oooooooohhhhhhh
I’m so scared I’m going to loose my “expensive” schwinn bikes for the me, the wife and kids and my prized mountain bike which I keep becuase I’m a horder. And I really can’t throw out that table saw I paid $150 for Westlake…
Get a grip. Three car garages are very common in the real world (real world = anywhere but Irvine)
I’m so glad Irvine has people like Feral
IR, why are you posting that LAME article by AOL Daily Finance? Yeah, it was all the banks’ fault, LOL.
I am working on posts today, and that article is the basis for the post I have scheduled for Tuesday. I agree with their big-picture view that lenders are more responsible than borrowers, but the reasoning they use to support the point in the article is wanting.
Apparently the market is starting to turn around… the CAR says so. That means it must be true right?
Home sales on upswing:
http://www.sbsun.com/news/ci_17164287
“It’s clear to me that we’ve seen things stabilize,” Kleinhenz said. “When you look at the array of economic, indicators, I think we’ve got some hopeful signs….”
How many times has CAR said the market is starting to turn around in the last three years? 🙂
“I think we’ve got some hopeful signs”
If they cherry pick data to suit their purposes, there are always good signs. If there are no good signs, that is a contrarian signal that it is the best time to buy. They can spin any data, even the absence of it.
“3 CAR GARAGE! That is a BIG selling point, right IrvineHomeOwner?”
Dang… I got a shout-out!
3-car wide garages (even the tandem ones) are becoming an endangered species in Irvine. None of the 2010 Collection had one and it doesn’t look like any 2011 ones will either.
A benefit of the 3CWG is the extra wide driveway… but that takes up too much precious TIC land. And while not the prettiest style of home to look at… since we don’t have basements here, it’s the closest you’ll get to a mancave.
We drove by this house last year during one of their original short sale listings, great neighborhood. These type of homes were supposed to get to the low $700ks by the bottom, not too sure now.
What would this rent for?
The $3252 monthly cost of ownership smells like rental parity. I imagine this rents for $3200 – $3500
3000 sq ft, remodeled, Irvine, what does that rent for?
I’ve been keeping my eye on this rental lately:
http://www.realtor.com/realestateandhomes-detail/23-Foxboro_Irvine_CA_92614_M25148-32839
It’s not exactly the same as 30 Blakeley, but they’re in the same class. The asking rent is $3825 a month, however they’re chasing the market down now so that likely is too high. $3200-$3500 seems reasonable so I’d have to agree with your point about being close to rental parity. Granted, I’ll caveat that with: the mortgage is only this cheap due to historically low interest rates; if those rates rise a bit, home values will have to fall correspondingly to keep it at rental parity.
It’s more complicated than you are making it out to be.
Don’t forget that the tax benefit mutes minor changes in interest rates. When interest rates go up the tax benefit goes up to counter balance a portion of the interest rate rise. In addition rising interest rates suggest inflation, and that includes inflation in revenue and salary for the people who buy $800,000 houses. People tend to dumb down the interest rate impact. History will show that more times than not rising interest rates accompany rising nominal price.
Regardless this house remains at rental parity for whoever buys it no matter what happens.
That rental parity will quickly disappear as rents continue to fall in Irvine.
What kind of chump pays $3500/month to rent a house?
If it costs you $7000/mo to buy the house next door, who’s the chump! Not that this is happening now, but it was happening 4, 5, 6 years ago.