How do you think I’m going to get along
Without you when you’re gone
You took me for everything that I had
And kicked me out on my own
Are you happy are you satisfied?
How long can you stand the heat
Out of the doorway the bullets rip
To the sound of the beat look out
Another one bites the dust
Another one bites the dust
And another one gone and another one gone
Another one bites the dust hey
Hey I’m gonna get you too
Another one bites the dust
Another One Bites the Dust — Queen
Asking Price: $695,000
Income Requirement: $173,750
Downpayment Needed: $139,000
Purchase Price: $730,000
Purchase Date: 7/9/2005
Address: 7 Hawkcreek, Irvine, CA 92618
1st Loan $584,000
2nd Mtg. $146,000
Downpayment $0
Beds: 3
Baths: 2
Sq. Ft.: 1,750
$/Sq. Ft.: $397
Lot Size: –
Type: Condominium
Style: Mediterranean
Year Built: 2001
Stories: Three or More Levels
View(s): Hills
Area: Oak Creek
County: Orange
MLS#: P603968
Status: Active
On Redfin: 1 day
New Listing (24 hours)
From Redfin, “ABSOLUTELY GORGEOUS DETACHED HOME IN GATED OAK CREEK FEATURES: 3 FULL BEDROOMS & 3 BATHS, SPACIOUS FLOOR PLAN WITH MAIN FLOOR BEDROOM & BATH, LIVING ROOM W/ FIREPLACE, LIGHT & BRIGHT KITCHEN WITH BREAKFAST BAR, FORMAL DINING ROOM, MASTER BEDROOM WITH RETREAT ON TOP FLOOR WITH BEAUTIFUL PARK & HILL VIEW, LONG DRIVEWAY WITH 2-CAR ATTACHED GARAGE! UPGRADES INCLUDE HARDWOOD FLOORS, DESIGNER PAINT, NEUTRAL CARPET, AND CERAMIC TILE. ASSOC. POOL, CLUBHOUSE, TENNIS COURT – A MUST SEE!”
THE CAPS LOCK ATTACK. Am I the only one who finds that painful to read?
.
.
I know it is hard to believe, but I do not set out to find 100% financing deals gone bad. Lately, almost all of the properties up for sale as a short sale are 100% financing. That really should not be terribly surprising. Which homeowners have the least holding power? Those who bought with someone else’s money.
If this property sells for asking price, the owner stands to lose $0, and the bank stands to lose $76,700 assuming a 6% commission.
Are these posts getting redundant? Well, so is the market. Loser after loser after loser… Another One Bites the Dust.
Ok, so they’re taking a loss. Oops, the loss isn’t nearly enough.
How much should the bank lower the price to actually attract buyers?
Obviously the bank should offer its own favorable financing.
Would a reduction to $500,000 do it? With a fixed 6% loan? Would $450,000 do it with a fixed 5.5% loan?
If you liked this house IR, what price would you think fair?
And, by the way, what’s with the condominiumizing single family detached housing? What does it get the builder or buyer? It can be done, theoretically in Florida, but I don’t know a single time it’s ever been done here. Can you buy in Irvine in an area that doesn’t have a home owners assn? Developers in Miami still develop areas and advertise no HOA, for those, like me and my hub who don’t want all areas of our life regulated. We are willing to take the risk of neighbors who want to paint their houses purple.
—–
I think that if the bank put this home on the market at $475,000 it may sell in 90 days. In three years this place will be worth about $375,000 at the most.
As pointed out on these blogs; if you require a 10% or 20% down payment for purchase, places like this have no market. They are to expensive for a rental investment, they are not going to attract a move up buyer that already owns a condo., and fist time buyers rarely have the cash required for a down payment.
A product with no market, not a great asset.
I HATE CAPS LOCK & LOTS OF EXCLAMATION POINTS!!!!!!!!THEY ARE SO STUPID & I WILL JUST GLOSS OVER ANYTHING THAT IS WRITTEN!!!!!!!!!I STILL HAVE NO IDEA WHAT THE DESCRIPTION WAS!!!!!!!!!!!!!!!!!!!!!!!!
I would guestimate the rent on this house at $2750 per month. With a 160 GRM the value would be $440,000.
We do a lot of SFD condos here in Irvine because the product gives higher density while remaining detached.
I don’t believe there are any neighborhoods in Irvine without an HOA. El Camino Real might not, I am not sure. They don’t have much for common areas.
“Oops, the loss isn’t nearly enough.” This time you hit the nail dead center!
If the Bank is struggling to get any interest from buyers at $400K then I know we’re closer to the bottom.
I also feel cheated that it’s not immediately obvious that it’s a Bank owned property. I feel it should be disclosed in the listing. Also isn’t REDFIN some cheap do-it-yourself listing? Which would mean no 6% commission.
WHY DO YOU THINK REALTORS USE THIS TECHNIQUE TO LURE POTENTIAL BUYERS!!!!!!!!ARE THEY STUPID, OR DO THEY THINK WE’RE ALL STUPID!!!!!!
The house is at least $200K over valued. I doubt that a 1750 sq ft house could be very spacious.
Are these idiots not even aware that there is a brick wall at $521K? Jumbo loans are very expensive and very hard to come by now. They should lower it to conforming max to even generate any traffic.
I’m sure this has already been posted, back when I didn’t follow the IHB, but someone recently forwarded me the roller coaster real estate price video (its on YouTube now) and I thought it was great:
http://www.speculativebubble.com/videos/real-estate-roller-coaster.php
I aGrEe,
If ReAlToRs HaD a MiNd ThEy’D lOsE tHe AlL CaPs KeY oN tHeIr KeYbOaRdS!!
I wonder…when I am over 70 WILL ITYPE THE SAME WAY AS ALLTHESEREALTORS????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
I like this place — it would suit my wife and I and our 4 year old perfectly. If the listing agent/specialist is reading this, please reply with your contact information — I would like to offer you $450,000. My offer is good until Friday at 5pm. At that point it drops to $440,000.
IR,
When you say: “If this property sells for asking price, the owner stands to lose $0, and the bank stands to lose $76,700 assuming a 6% commission.”
I don’t understand how can the homeowner not lose anything? Isn’t he going bankrupt unless he has $76,000?
In theory, yes.
To date, banks have not been aggressively going after defaulting sellers for the balance of the second mortgage. It is widely believed among sellers that they are off the hook.
IMO, we will see more aggressive bank collection efforts in the future. Either that, or the banks will sell this bad paper off to a collection agency for a fraction of face value and these collection agencies will hound the borrowers into bankruptcy.
US Subprime Crisis Will Not Peak Until 2009: S&P
http://www.cnbc.com/id/21202780
Oak Creek is aging poorly. I drove through there recently, My God, the place needs works. The houses uniformly need paint, the yards are minimall maintained, the freeway noise it outrageous, and the units are packed in like sardines.
When they first built these places I couldn’t believe what they were asking. Oak Creek prices jumped when Shady Canyon and Quail Hill were built. Though I fail to see the correlation between a development in the flatlands right off the freeway(OC), and a community with a superior location (QH), much less a luxury gated community (SC).
I believe parts of the area between Yale, Culver and Walnut do not have a HOA. Don’t recall what the exact neighborhood is called. It’s older.
Personally would prefer no HOA, but your mileage may vary.
Sorry, off housing target but interesting
Cargo decline is another sign of slowing economy
http://www.latimes.com/business/la-fi-ports9oct09,0,7945935.story?coll=la-home-center
The falloff of goods from toys to kitchen tiles flowing into the L.A., Long Beach and other ports stuns observers.
There is a tale of two Oak Creeks. I suspect you were touring the area north of Alton. That part of Oak Creek feels very claustrophobic to me. The area south of Alton is much nicer.
Jumbo on the decline in O.C.
http://mortgage.freedomblogging.com/2007/10/08/jumbo-on-the-decline-in-oc/
Another interesting fact about the period: the percentage of Orange County homeowners using jumbo loans to buy a home dropped to 42.8 percent, down from 59.1 percent of loans from January through July.
Does anyone know exactly how this works in a short sale? Normally in CA a debt is collectible for 4 years after it first becomes due, and stays on your credit report for 7. If creditor is unable to collect for 4 years, the debtor is off the hook. Note that some creditors continue to make harassing calls even after a debt has become uncollectable.
I would imagine, though, that any unpaid amounts in a short sale would be forgiven at the time of sale. That would make the most sense anyway. It would allow the bank to close out the books on the whole mess.
Also, Congress is debating a change in the tax code to allow the forgiven portion of debt on a short sale to be non-taxable. Normally, forgiven debt is considered taxable income. But this wouldn’t be an issue at all if the banks weren’t forgiving debt pursuant to a short sale.
So, to continue my ramblings, it seems that the owners in a short sale would walk away without owing anything more for the house. Can someone confirm this?
“I would imagine, though, that any unpaid amounts in a short sale would be forgiven at the time of sale. ”
Think about the moral hazard this would create.
350k tops
This ain’t church. This is business.
And no, I’m not advocating dishonesty.
Sue,
This really is interesting news……and I suspect that the number of containers entering LB and LA harbors are a true indicator of what’s ahead for the economy.
QH is also packed like sardines 😆
Home equity loans drying up
As house values weaken, lenders start to say no to second mortgages
http://www.therealdeal.net/issues/October_2007/1191534734.php
U.S. Retail Sales Rise at Slowest Pace in Five Months (Update5)
http://www.bloomberg.com/apps/news?pid=20601205&sid=aveBca6W3uaw&refer=consumer
Thornburg Raises Loss Estimate From Mortgage Sales (Update4)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aDQTc6MUzhOs&refer=home
Thornburg Mortgage Inc., the Santa Fe, New Mexico-based lender, boosted its loss estimate to $1.1 billion from selling bonds backed by adjustable-rate home loans as rising defaults eroded demand for the securities.
The company previously calculated the loss at $863 million, it said in a statement today. Thornburg, which has fallen by more than half on the New York Stock Exchange this year, declined as much as 12 percent after the announcement.
You should try that.
I wonder what the REA would say…
What We’re Hearing
http://data.nationalmortgagenews.com/columns/hearing/
Meanwhile, the secondary market for delinquent second liens isn’t getting any better these days — unless you’re a buyer. Traders tell us that seconds that were part of 80/20 loan structures are selling for 10 to 15 cents on the dollar. Unsecured seconds are fetching just one to two cents on the dollar. “Debt collection agencies are the ones bidding on this stuff,” said one investor…
I believe in California the bank can only go after either the property or the borrower for re-payment….not both. So if they foreclose to take their collateral and then sell at a loss., they can’t then sue to borrower to make up the difference.
Several reasons – weak housing market, weak consumer demand, chinese lead paint problems, and weak dollar. Not a good mix for imports. But the export picture looks good.
Anybody out there a baseball fan? You know how there is a statistic for everything, right? Well, there is one in particular that comes to mind after reading this article. MLB (Stats, Inc) tracks how often hitter hit into double plays. Every year, without fail, a lead-off hiter for Team X leads the league in hitting into the least number of double plays. The point is this – OF COURSE A LEAD-OFF HITER WILL ALWAYS LEAD THIS STAT SINCE THERE IS NO ONE ON BASE IN AT LEAST 20% OF THEIR AT-BATS EACH GAME!!! Well, duh – right?
This article felt the same way to me. The dollar is plunging, foreign goods are much more expensive, and well, duh, imports are declining.
On second thought, maybe this house should only be worth $200k in light of this news.
; 0 )
This is true, but each mortgage holder has the same rights, so the first mortgage can foreclose and go after value in the property while the second mortgage holder goes after the personal assets of the borrower.
The “condoize” them because the lot size is so small, you can’t even meet the minimum setbacks. So, with the neighbors so close, you have to be a condo. Even though it’s a condo, there is in theory six inches between walls so it’s a “single family house.”
south of alton = even closer to 405 and choking smog.
Yes, in the context of a foreclosure (assuming the second is full recourse). But what about a short sale?
Not like it makes any difference. How many 100% financed owners who are forced to sell short will have an extra $150k sitting around to pay off the second? Makes me snigger just typing it.
I don’t understand all of the “this house is worth $400,000 tops” comments. If a SFR home in Irvine is worth 400k, how much is a 50 year old home worth in Garden Grove, La Mirada, Compton?
Do anyone posted here live in OC. Saying the place rent most $2750/mo is unrealistic. It will rent for at least $3000/mo easy. I say this from experience. And the last few times I saw Bank owned good deal listed on this blog, I actually called the agent and they all said they had mutliple offers much higher than the listing prices. So, saying the place will go for $440k is really day dreaming. You may not even want to buy it for $440K but there are plenty of people wanting to buy for just $50K under market.
The last one I remember was a northwood 2000sf for $629K or something. I stated detached but attached by garage. And the day I saw the blog I went to see it, it’s in bad shape, but the agent got 5 offers, best one close to $700K.
Let’s paint a fair picture. I am not saying the price won’t be $375k in a few years, because I don’t know what the world will be like in a few years, but saying that will sell for under $440K is non-sense.
Found this with a Google search. I take no responsibility for its accuracy:
1. In California, purchase money loans (e.g., money you borrow to outright purchase your home) are generally non-recourse in nature – as a matter of law. This means that the lender can not come after you for payment in a foreclosure action.
2. Refinanced purchase money loans and home equity, line-of-credit loans are generally recourse in nature (e.g., you could potentially be held liable for repayment in the event of foreclosure), however, as the loan proceeds were not used to actually “purchase” the residence. But, to collect the lender must usually obtain a monetary judgment against you by going through what is referred to as a judicial foreclosure. Virtually all foreclosures in California are of the non-judicial type — meaning the lender gets the house back very quickly and the debtor walks away from personal liability for the repayment of the debt, even though it is of recourse nature.
IMO, this Oak Creek house profiled is very “median” for Irvine. Based on all of the great analysis done by IR and others out here, I have come to the personal conclusion that the Irvine median will fall back to roughly $450K in the 2010 timeframe. Some think the Irvine median will bottom out at a higher number, others lower. That’s just my number. So FWIW, assuming Irvine is at $450k in 2010, I can’t imagine a 1955-65 median house in those cities you mentioned going for more than $200 – $250k in a few years.
Right now, comparable SFRs (in terms of size only) in the GG are listed in the mid to high $400’s and not selling. Their market value right now is probably in the $300s and will be in the mid to high $200s before this correction is over.
There are always suckas to buy places on the way down… But at some point there will be a bottom and I think high $300s to low $400s is right for this property.
I guess most posters live in Irvine if it is considered a part of OC.
the answer to rental rate is very simple, do a quick search for comparable house to validate your estimate. it would also be appreciate if you can be more specific on what house went for more than 10% over asking price nowadays.
the fair and realistic picture is we have over 15 month supply of homes in OC, to deplete that price has no way but down down down
Why, yes — I live less than 5 minutes from Oak Creek, and as a matter of fact was at the CVS in Oak Creek Plaza at about 7pm last night. So yeah, I know the area. $440K is a completely plausible price for this place, once the dust settles in a couple of years. $695K is not. Sure, there is a fool out there who would be willing to pay that much for it, if someone were to give them the money. But who is going to give them the money these days?
Just to give you some perspective, I am someone who would snap up a house this size in a minute if it were priced right. I could qualify today for the $695K price (based on IR’s numbers above) — but even though I could afford it, why would I piss $250k into the wind? Although this is probably the type of house I will ultimately go for (because its all I need — not all I can afford), I have a lot of better uses for the extra $250k. And I think a lot of people are saying that same thing these days.
I remember reading somewhere (no idea if it’s accurate, not my area of law) that the non-recourse nature of the purchase money loan is vitiated by either HELOCing the place or by fraud in obtaining the loan.
So, for all of our stated-income borrowers, and perhaps also for our Hummer-driving equity cashouts, better watch out, if your tax returns show different numbers than you gave the bank, that non-recourse loan may not be…
I don’t know anything about debt collection. Would your “more agressive bank collection” phrase include wage garnishment? Is wage garnishment an option to those who have received a judgement?
But, but, but…the realtor said they got multiple offers on it – for more than asking price!
LOL!!!
You need a judgment to garnish wages.
Creditors usually don’t bother getting a judgment when (i) the debtor has no assets, or (ii) there is a real possibility the debtor will just flip a BK and leave them holding the bag for the original debt AND their legal fees.
That said, it does happen.
Hey, hey, hey there Lawyerliz is 61 & doesn’t intend to be senile at 70. Lawyerliz’s mom is 84 and absolutely definitely not senile
tho occasionally a pain in the patoot.
Lawyerliz’s hub is nearly 65, works for NASA, has a Phd & JD &
just won 2nd place in a toastmaster’s humorous speach contest and shows no indication of being senile. In fact, shows no indication of being 65 either, with a full head of dark hair (white forelock, Jay Leno in reverse.
So, no ageism please!!!!!!!
Oops!
Oops, “speech”
Totally off subject, but I when driving up from San Diego yesterday, I couldn’t believe the amount of smog in the air north of the 405 interchange.
Yellow, nasty haze. Disgusting!
“and I suspect that the number of containers entering LB and LA harbors are a true indicator of what’s ahead for the economy.”
Not only this, but this is the time at which retailers begin to start initial and largest receipts for Christmas. The stock rooms are usually bursting at the seams right around Halloween, so my guess is that retailers are expecting an average season at best.
Hold on it’s going to get bumpy!
Ahh, setbacks. That makes sense.
In a governmental sort of way.
For a while in Broward County, where Ft. Lauderdale is, was allowing 2 units condos which were duplexes. Naturally the buyers didn’t need or want a condo after purchase, so the condos would just go dormant. So instead of changing the setbacks, they required condo-ization.
By the way, deficiency judgments are allowed in Fla, but almost never asked for, even in previous house deflation go-rounds. The same banks who would sue for a deficiency on an upsidedown car, would never do so for a house. Never made sense to me, except for public relations purposes.
You have to go back after (judicial) foreclosure and prove you didn’t get your money back and ask the (whimsical) judge for the difference.
Just getting a judgment is one thing. Trying to enforce it is a whole ‘nother thing. Florida is very debtor friendly, but once you get over that hurdle, you have to find some assets.
I was in court, trying to collect a judgt, and the debtor walked in wearing some obviously expensive jewelry. I asked for it in part payment. The judge refused to award it to my client. My client loved that I asked. I offered to take it in escrow to have it evaluated by a jeweler, but the judge still refused. Really, there was no logical reason not to award this asset.
I have sat in motion calendar and heard the previously scheduled lawyer arguing that the creditor should be able to take the debtor’s expensive furniture, judge said no (homestead lets you keep a grand or 2). No reason for that either. You can garnish bank accounts, but they can be hard to find. And guess what, debtors, when asked about their assets, lie. I know you all are shocked by this. (Many, many !!s)
I lived in Miami in a very nicely laid out house at almost exactly this number of square feet. It felt spacious. But it also had a lot of nearly 10,000 square feet, which included a nice pool, and a deck, which after Andrew, had very nice brick pavers.
But 1750 square feet is certainly not McMansion sized.
You might get lucky and rent it at $2750, but I doubt it. More importantly, in a year, I doubt you’ll find anybody willing to rent at $2750 that you’d be willing to rent it to.
I’d go with $2500 and frankly, I wouldn’t pay more that PITA = $2500. HOA is $133/month. Sounds low for Irvine. Mello Roos are another $1800/year or $150/month. Property tax is another 1.03%. Using a 6% loan and assuming no-down since lost opportunity cost is high. I get $323,000. At $2750, I get $363,000. Adding a 10% down doing an 80/10/10, I’d get $375K assuming $2750 in rent, $350K at $2500.
I’ll go with MMG, $350K tops.
Santa Ana winds.
So what you’re saying is:
The Bigger Fool Theory will keep starter detached condos $100K above the price range for the median income for the OC.
Excellent.
No worries, people! The bubble will go on!
Baloney.
Look at craigslist. Here’s a similar model, $3000, posted Oct 3rd. http://orangecounty.craigslist.org/apa/439167741.html
Here’s the exact same post, originally posted 8/27. http://orangecounty.craigslist.org/apa/407228695.html
The same house.
Tic Toc.
Oh, here’s the search for Irvine, 3br and a max $2500. Only 407 results… http://orangecounty.craigslist.org/search/apa?query=irvine&minAsk=min&maxAsk=2500&bedrooms=3
off the topic:
5 close by neighbors in TRidge in search of buyer:
1
46 CRIMSON ROSE
$1,550,000
Beds/Baths: 3/4
Sq. Ft.: 2,863
2
47 CRIMSON ROSE
$1,975,000
Beds/Baths: 3/4
Sq. Ft.: 2,900
3
28 CRIMSON ROSE
$1,799,000
Beds/Baths: 5/6
Sq. Ft.: 3,091
4
35 CRIMSON ROSE
$2,495,000
Beds/Baths: 5/6
Sq. Ft.: 3,200
5
37 CRIMSON ROSE
$1,949,000
Beds/Baths: 3/4
Sq. Ft.: 2,900
any taker?
Can you ever really call it a bargain to lose $10,000 a month? That is the value proposition that these sellers are offering.
Don’t even get me started on that whole bidding war BS. All involved should be locked up; the realtors for being criminal, the sellers for being an accomplice and the buyers for being retarded. Maybe a forced lease of a short bus would be more appropriate for the latter.
$695k for that POS above? Yeah right. If the bank had any brains they’d ditch it right now to some knife catcher for $584k, if they can even get that for it.
Yes, if a loan is refinanced, then it is no longer a purchase money loan and loses that protection. And fraud is a defense a lender can use to collect on a purchase money loan (there’s always an exception for fraud).
The interesting question is, if the lender is making no-doc loans, then aren’t they complicit in the fraud, and therefore lose this exception?
Is this detached condo part of a cluster? If so, how does it have a driveway?
Does it share a courtyard somewhere?
The defaulting borrower’s asset is his wage earnings. Borrowers are defaulting because they can’t afford their rate-adjusted payments, not because of an economic downturn and a subsequent job loss. So a second lien holder of a non-purchase money loan would at least want to evaluate the possibility of “investing” thousands of dollars in legal fees in order to receive a wage garnishment.
For $3,200-3,500 you can rent a decent 2,200-2,600 SFR with yard, driveway, 4 bedrooms, etc. in Irvine. I just had a realtor search MLS for me a month or two ago when I was considering selling and renting…
It would be very hard to rent a 1,700 sf condo for $3K per month. My house (in Irvine) is very similar in size, age, etc. and it has rents for between $2,500-2,700.
I think IR was dead on with his guesstimate above that this place would have a market rent of about $2750. And applying the 160 multiplier placing value at $440k is probably about dead on, too.
Recent Financial Developments and the U.S. Economic Outlook
Speech to Town Hall – Los Angeles
By Janet L. Yellen, President and CEO, Federal Reserve Bank of San Francisco
That said, most of these data are too early to reflect the effects of the financial turmoil, and those effects are more likely to show up in data for the current quarter. Indeed, the financial shock seems likely to intensify an already steep downturn in housing. As I noted, mortgage interest rates have risen and these increases seem likely to exert some negative impact on this sector. More important, in my view, are the potential effects stemming from disruptions to the availability of credit and the tightening of mortgage lending standards that are occurring. The illiquidity in many segments of the market for mortgage-backed securities seems likely to limit credit flows and therefore to have at least some negative effect on real residential construction, depending on how long the disruptions persist. A key point is that, even as liquidity in mortgage-backed securities markets improves, the risk spreads incorporated in mortgage rates will likely remain higher on a long-term basis than they have been in recent years, and this could prolong the adjustment in the housing sector.
Indeed, forward-looking indicators of conditions in housing markets were pointing lower even before the financial market turmoil began. Housing permits and sales were trending down. Inventories of unsold new homes remained at very high levels, and they will need to be worked off before construction can begin to rebound. Finally, most measures of house prices at the national level fell moderately. Notably, despite these declines, the ratio of house prices to rents—a kind of price-dividend ratio for housing—remains quite high by historical standards, suggesting that further price declines may be needed to bring housing markets into balance. This perspective is reinforced by futures markets for house prices, which expect further declines in a number of metropolitan areas this year. The downturn in house prices would likely be intensified by a simultaneous decline in employment, should that occur, since significant job loss would weaken demand for housing and raise foreclosures.
Here in California, the rise and fall of house prices has been much like the nation’s, only more so. In 2004 and 2005, many homeowners gleefully watched the meter tick up and up and up on their house values. But since then, things have changed dramatically. The pace of home sales has slowed substantially, and virtually every metropolitan area in California has seen much larger downward swings in the pace of house price appreciation than the nation. In fact, the majority of them have recorded outright declines in average house prices over the past year. As I’m sure you know, these developments have hit close to home here in Southern California, where the once hot housing markets have cooled considerably.
California also has played a significant role in the problems with subprime mortgages that have swept the nation. This state used to have one of the lowest subprime delinquency rates in the U.S., but more recently it has seen them increase dramatically, so that now California ranks about in the middle of the states on this scale. Moreover, within the state, the various regions exemplify a wide range of experiences with problem loans. By one measure of delinquencies on all types of mortgages, three metro areas—the Inland Empire and Merced and Stockton in the Central Valley—are in the top ten in the entire U.S. In contrast, here in the Los Angeles-Long Beach area, delinquency rates are running at about the middle of the pack among metro areas for the country.
Sorry, forgot the link to the speech
http://www.frbsf.org/news/speeches/2007/1009.html
Where will mortgage rates be in the coming years?
http://thegreatloanblog.blogspot.com
The Mystic with the crystal ball is on staff now.
These aren’t clustered homes with common auto courts. They are detached condos with driveways and small backyards. They don’t share any walls. Tightly packed but they are least set back from the street a bit.
There are still people making offers out there. I bet this one gets some buyer interest in the $600-625K range. I have a 1,622 sf short sale in my area, 3, 2.5 also, that had had multiple offers recently at $600K but the bank wouldn’t budge from their $630K number. Not sure why people just don’t wait for another 6-12 months and pick these up at $500-550K…
Just want to respond to the rental value posting. I am a realtor but I only rent for myself and past clients, or friends. The last few Irvine rentals I closed in the last few months. (3 from craigslist, 2 rented through MLS with other realtors involved, usually multiple applications received in 1 week)
Irvine: studio (no washer/dryer hookup, window A/C, 29 years old condo in Streamwood) $1095/mo.
Irvine: 2 Br, 2ba nice townhome 2 garages. Frig. W/D included. $2800/mo. 26 years old complex.
Mission Viejo: 2 Br, 1 Ba, 24 years old complex $1295/mo.
Ladera Ranch: 4Br 3 Ba. 2 Garage. 4 years old house 2300sf, $3200/mo.
Irvine Northpark: (this is similiar to the Oak Creek posting) detached 1635sf condo. 3 Br+ library, 4 yr old. $2995/mo.
Irvine Woodbridge: 3 Br. 2.5 Ba townhome 20+ years old. $2450mo.
* I personally handled and leased these properties.
And these are good tenants, mostly with credit score 700+ with no pet. except cat on the Northpark one.
You will only know how hard to find decent rentals if you tried. By the way, I am not saying you should buy it at $650K, I am just telling you there are plenty of people willing to buy. And when I called and was told there are 5 offers already, I was also told by the listing agent that don’t bother submitting an offer unless it is close to $700K. So I don’t think he was B.S me to create the sense of urgency.
” I am just telling you there are plenty of people willing to buy.”
Yeah, that is what I am hearing, reading, and seeing; plenty of people willing to buy. NOT
So, your friends actually appreciate this kind of advice?
I’d prefer someone who would put my interests above theirs & do the hard work to get me the best deal. Those rents are ridiculous.
Why?
Could you define “plenty”? If they are willing to buy, why do I keep seeing all the negative %’s under the sales categories in the newspaper?
Maybe they are willing to buy, but just can’t find the right place? That’s probably it — with only about a 2 year inventory on the market and all these competitive bidding wars, I can imagine how stressful it must be to find the right place.
Thank you. These would seem a lot nicer than the new 4-8 clustered homes in Portola or Woodbury.
NSR
I am surprised at the 3Bdr search results. I went through it four months ago and the rates are certainly lower now than when I was in the market. There are a lot more supplies, too.
Interesting news story that bears on this
How to lose your home in a few easy steps
http://www.msnbc.msn.com/id/21082646/
The only way she could sell was if the two lenders agreed to a “short sale” — taking less money than what they were owed. The principal lender, Countrywide, agreed, but Wells Fargo, which held a second loan worth $82,000 rejected the terms because the lender would have gotten only $10,000.
Then the agent found another buyer, who also offered $350,000. This time, Countrywide said yes if Toothman would come up with another $10,000 to pay Wells Fargo more. But Wells Fargo declined the offer.
“They figured I would make more money eventually, and they could take it out of me,” said Toothman, “because if they agreed to a short sale, then they had no (legal) recourse to come after me for the $82,000.”