Category Archives: Uncategorized

HELOCs were often used to pay off credit cards. It seems logical to pay off high interest debt with low interest debt, particularly when you get a tax deduction on the low interest debt as well. Unfortunately, any way you look at it, Ponzi borrowing is stupid. Does it make sense to pay for consumer goods with 30-year debt? That is the net effect. When you think about it, does it make sense to finance any kind of consumer debt? I don't think so.

The owner of today's featured property has owned it for almost 20 years. She only sipped kool aid during the bubble, but she still managed to pull out nearly $100,000 for purposes unknown.

This property was purchased for $142,000 on 1/25/1991. The original mortgage information is not available, but it was likely a $113,600 first mortgage and a $28,400 down payment.

On 3/28/2002 she refinanced with a $125,000 first mortgage.

On 8/5/2002 she refinanced again with a $133,750 first mortgage.

On 10/20/2004 she refinanced with a $151,577 first mortgage.

On 1/25/2007 she obtained a stand-alone second for $50,000.

Total property debt is $201,577.

Total mortgage equity withdrawal is $87,977.

By Irvine standards, taking out less than $100,000 makes her a responsible homeowner — which says something about how low the bar is here.

Irvine Home Address … 195 BRIARWOOD Irvine, CA 92604

Resale Home Price … $339,990

Home Purchase Price … $142,000

Home Purchase Date …. 1/25/1991

Net Gain (Loss) ………. $177,591

Percent Change ………. 125.1%

Annual Appreciation … 4.5%

Cost of Ownership

————————————————-

$339,990 ………. Asking Price

$11,900 ………. 3.5% Down FHA Financing

4.71% …………… Mortgage Interest Rate

$328,090 ………. 30-Year Mortgage

$68,092 ………. Income Requirement

$1,704 ………. Monthly Mortgage Payment

$295 ………. Property Tax

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

$57 ………. Homeowners Insurance

$308 ………. Homeowners Association Fees

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

$2,363 ………. Monthly Cash Outlays

-$277 ………. Tax Savings (% of Interest and Property Tax)

-$416 ………. Equity Hidden in Payment

$21 ………. Lost Income to Down Payment (net of taxes)

$42 ………. Maintenance and Replacement Reserves

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

$1,734 ………. Monthly Cost of Ownership

Cash Acquisition Demands

——————————————————————————

$3,400 ………. Furnishing and Move In @1%

$3,400 ………. Closing Costs @1%

$3,281 ………… Interest Points @1% of Loan

$11,900 ………. Down Payment

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

$21,980 ………. Total Cash Costs

$26,500 ………… Emergency Cash Reserves

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

$48,480 ………. Total Savings Needed

Property Details for 195 BRIARWOOD Irvine, CA 92604

——————————————————————————

Beds: 3

Baths: 1 full 1 part baths

Home size: 1,135 sq ft

($300 / sq ft)

Lot Size: n/a

Year Built: 1978

Days on Market: 40

Listing Updated: 40492

MLS Number: S636940

Property Type: Condominium, Residential

Community: Woodbridge

Tract: Vg

——————————————————————————

Probably the nicest 3 bedroom upper unit ever offered in Woodbridge's Village Green. Beautifully remodeled kitchen with nice appliances and fixtures, plus lots of tile and designer carpets, fresh paint, new mirrored wardrobe doors, etc.

Probably the nicest 3 bedroom upper unit ever offered in Woodbridge's Village Green? Probably the dumbest realtor comment ever written in the MLS….

Jumbo Loan Limits Unchanged in 2011

I want to wish all of you a happy Thanksgiving holiday.

Irvine Home Address … 8 LA PALOMA Dr Irvine, CA 92620

Resale Home Price …… $250,000

5 little turkeys standing by door,

One waddled off, and then there were 4.

4 little turkeys under a treee,

One waddled off, and then there were 3.

3 little turkeys with nothing to do,

One waddled off, and then there were 2.

2 little turkeys in the noon day sun,

One waddled off, and then there was 1.

One little turkey better run away,

For soon will come Thanksgiving day.

Unknown — Five Little Turkeys

Jumbo loan limits remain the same in 2011

by CHRISTINE RICCIARDI — Friday, November 19th, 2010, 2:05 pm

The loan limits on jumbo conforming loans will remain unchanged for the first nine months of 2011 the Federal Housing Finance Administration said Friday. The agency recently enacted a congressional continuing resolution to maintain the limits.

The maximum jumbo loan limit is generally $417,000, but can go as high as $729,750. Loan limits vary by county and are the greatest in "high-cost" areas, meaning the top 20 major metropolitan areas across the U.S.

President and founder of Total Mortgage Services John Walsh told HousingWire in a recent interview he believes that the loan limit should extended to its fullest in every city.

"My thought is you should expand that increased conforming loan limit countrywide because a lot of people fall between $417,000 and $729,750," Walsh said. "It would put a lot more people in the purchase market that wouldn't necessarily qualify under the jumbo program."

A full list of conforming jumbo loan limits can be found here.

We had a recent discussion of A Plan to Transfer Losses on Jumbo Toxic Mortgages to Taxpayers. Raising the conforming limit is a bad idea.

Hope dies slowly

Many Californians believe in appreciating price with more faith than they have in their god or religion. When confronted with the reality their home values are declining, they hope that prices will come back and give them more of the HELOC money they are entitled to. Hope and denial are evident in the on-again off-again listing with its vacillating price levels.

Date	Event	Price	Source
Nov 13, 2010	Price Changed	$250,000	CARETS #S617151
Nov 07, 2010	Price Changed	$350,000	CARETS #S617151
Oct 28, 2010	Price Changed	$387,000	CARETS #S617151
Oct 28, 2010	Price Changed	$390,000	CARETS #S617151
Oct 27, 2010	Price Changed	$400,000	CARETS #S617151
Oct 25, 2010	Price Changed	$390,000	CARETS #S617151
Sep 21, 2010	Price Changed	$400,000	CARETS #S617151
Aug 21, 2010	Price Changed	$399,900	CARETS #S617151
Jun 15, 2010	Price Changed	$400,000	CARETS #S617151
May 25, 2010	Price Changed	$575,000	CARETS #S617151
May 13, 2010	Listed	$630,000	CARETS #S617151
Jan 15, 2010	Delisted	*	Inactive Zillow #2
Dec 31, 2009	Relisted	*	Inactive Zillow #2
Dec 28, 2009	Delisted	*	Inactive Zillow #2
Nov 22, 2009	Price Changed	*	Inactive Zillow #2
Oct 15, 2009	Relisted	*	Inactive Zillow #2
Oct 14, 2009	Delisted	*	Inactive Zillow #2
Sep 03, 2009	Relisted	*	Inactive Zillow #2
Aug 29, 2009	Delisted	*	Inactive Zillow #2
May 21, 2009	Price Changed	*	Inactive Zillow #2
May 21, 2009	Relisted	*	Inactive Zillow #2
Aug 23, 2008	Delisted	*	Inactive Zillow #2
Aug 14, 2008	Listed	*	Inactive Zillow #2
Mar 15, 2006	Sold (Public Records)	$580,000	Public Records

The owner of this property paid $580,000 on 3/15/2006. She put $136,000 of her own money into it which is why the prices have danced for over two years. She started with an asking price in May that would have made her whole. She has since dropped her asking price by over 60%! As her foreclosure draws near, the desperation becomes obvious. She really wants an offer.

Foreclosure Record

Recording Date: 09/13/2010

Document Type: Notice of Sale

Foreclosure Record

Recording Date: 06/04/2010

Document Type: Notice of Default

Irvine may be special, but so far, no knife catcher has stepped up to grab this one. It is falling fast.

Irvine Home Address … 8 LA PALOMA Dr Irvine, CA 92620

Resale Home Price … $250,000

Home Purchase Price … $580,000

Home Purchase Date …. 3/15/2006

Net Gain (Loss) ………. $(345,000)

Percent Change ………. -59.5%

Annual Appreciation … -17.6%

Cost of Ownership

————————————————-

$250,000 ………. Asking Price

$8,750 ………. 3.5% Down FHA Financing

4.55% …………… Mortgage Interest Rate

$241,250 ………. 30-Year Mortgage

$49,146 ………. Income Requirement

$1,230 ………. Monthly Mortgage Payment

$217 ………. Property Tax

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

$42 ………. Homeowners Insurance

$285 ………. Homeowners Association Fees

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

$1,773 ………. Monthly Cash Outlays

-$113 ………. Tax Savings (% of Interest and Property Tax)

-$315 ………. Equity Hidden in Payment

$15 ………. Lost Income to Down Payment (net of taxes)

$31 ………. Maintenance and Replacement Reserves

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

$1,391 ………. Monthly Cost of Ownership

Cash Acquisition Demands

——————————————————————————

$2,500 ………. Furnishing and Move In @1%

$2,500 ………. Closing Costs @1%

$2,413 ………… Interest Points @1% of Loan

$8,750 ………. Down Payment

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

$16,163 ………. Total Cash Costs

$21,300 ………… Emergency Cash Reserves

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

$37,463 ………. Total Savings Needed

Property Details for 8 LA PALOMA Dr Irvine, CA 92620

——————————————————————————

Beds: 3

Baths: 2 baths

Home size: 1,391 sq ft

($180 / sq ft)

Lot Size: 3,301 sq ft

Year Built: 1978

Days on Market: 191

Listing Updated: 40500

MLS Number: S617151

Property Type: Single Family, Residential

Community: Northwood

Tract: Sd

——————————————————————————

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

THIS CONDOMINIUM IS SINGLE STORY UNIT. NOBODY IS ABOVE OR BELOW YOU. THIS IS A WONDERFUL OPPORTUNITY TO ACQUIRE A NICE PROPERTY IN A SAFETY AREA IN AN EXCELLENT SCHOOL DISTRICT. 3 BEDROOM 2 BATHROOMS WITH A GARAGE FOR 2 CARS. THIS IS AN END UNIT. ATTACHED ONLY FROM ONE SIDE. IT HAS BEAUTIFUL GRANITE AND WOOD FLOORS. NICE KITCHEN, HIGH CEILING. PATIO ATTACHED TO THE MASTER BEDROOM. IT HAS SOME COSMETIC DETAILS LIKE A BROKEN A MIRROR IN THE MASTER BEDROOM AND BROKEN COVERS AND 2 MISSING DRAWERS.IN THE KITCHEN. IN A QUITE AREA WITH SWIMMING POOL AND SPA. IN A VERY CONVENIENT LOCATION.ONLY BLOCKS FROM 5 FREEWAY, SHOPING CENTERS AND SCHOOLS.

A QUITE AREA? SHOPING?

ALL CAPS?

Happy Turnkey Day from the IHB

IHB News 11-13-2010

How a realtor demonstrates that they do not care about a listing.

Irvine Home Address … 57 ROCKWOOD 14 Irvine, CA 92614

Resale Home Price …… $275,000

'Cos I've been talking to the people that you call your friends

And it seems to me there's a means to and end.

They don't care anymore.

And as for me I can sit here and bide my time

I got nothing to lose if I speak my mind.

I don't care anymore I don't care no more

I don't care what you say

We never played by the same rules anyway.

Phil Collins — I Don't Care Anymore

Housing Market News

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Fri Nov 12 2010

House Values Near Unprecedented Decline as Hints of Stabilization Wane (zillow.mediaroom.com)

House Prices Fall in Half of US Cities (bloomberg.com)

Million dollar house owners unable to pay mortgage (doctorhousingbubble.com)

Million-dollar houses: Massive discounts (money.cnn.com)

80% of Las Vegas houseowners underwater on mortgage (lasvegassun.com)

Courts Helping Banks Screw Over Houseowners (rollingstone.com)

October Foreclosure Didn't Really Drop; Lenders Just Slowed Down (realestatechannel.com)

William K. Black: Lenders Put the Lies in Liar's Loans, Part 2 (huffingtonpost.com)

FDIC pretends to crack down on officials of failed banks (but only small banks) (latimes.com)

Outrageous CEO Perks: This Year's Top Picks (dailyfinance.com)

Victims and Martyrs of the Housing Bubble (irvinehousingblog.com)

Ireland 10 Year bond yields go vertical as default looms (bloomberg.com)

Ireland on Brink as Beggar' for Aid After Losses by Fingleton (bloomberg.com)

In a tough economy, old stigmas fall away (news.yahoo.com)

Wall Street Collects $4 Billion From Taxpayers as Swaps Backfire (bloomberg.com)

The Recklessness of Quantitative Easing (hussmanfunds.com)

Chinese credit risk group not happy with QE2 (PDF – dagongcredit.com)

Rumblings of inflation grow louder (latimes.com)

Gold as a safety net (nytimes.com)

How to Survive the Great Depression of 2011-2012 (politicalgateway.com)

Thank You Denise S. ($5) for your kind donation.

What's it really worth?

Wed Nov 10 2010

Uneasy future for Mass. housing market (boston.com)

At Legal Fringe, Empty Houses Go to the Needy (nytimes.com)

Foreclosure Case May Set Anti-Bank Precedent; Restoring Equity vs. Penalization (Mish)

Banks' mortgage practices reap more lawsuits (news.yahoo.com)

Over 7 Million 'Shadow Houses' May Take 40 Months to Clear (realestatechannel.com)

Mortgage-servicing conflicts baked right into the cake (voices.washingtonpost.com)

Close Fannie and Freddie, liquidate bubble debt (housingstory.net)

Banks Had A Plan To Create The Housing Bubble and Foreclosuregate (businessinsider.com)

Fed: Banks expect tight lending standards for foreseeable future (calculatedriskblog.com)

New ways bankers are spying on you (finance.yahoo.com)

A Superpower in Decline: Is the American Dream Over? (spiegel.de)

Government, Scars from Housing Bubble Both Raising Unemployment (theatlantic.com)

Rising prices not seen through the consumer price index (mybudget360.com)

To Hell Through QE (ritholtz.com)

This Is How a Dollar Bill Lives and Dies (gizmodo.com)

More Americans opt for high-deductible health insurance plans (latimes.com)

Hooters Shows Why Deflation May Never Go Away (bloomberg.com)

A Recipe for Fascism (truthdig.com)

What's it really worth?

Tue Nov 9 2010

The Housing Market Is Officially Split (patrick.net)

How Texas avoided the worst of the real estate meltdown (thebigmoney.com)

First-Time Mortgage Defaults in U.S. Rise for 1st Time in Year (bloomberg.com)

The Boiling Frog: Effects of QE2 On Bottom 80% of U.S. Population (gonzalolira.blogspot.com)

No, $600 Billion of Quantative Easing Won't Make Your House Price Go Up (bayarearealestatetrends.com)

Our Fed-Inspired Bubble, Crash, Bubble, Crash, Bubble (zerohedge.com)

The 9 Reasons Why Quantitative Easing Is Bad For U.S. Economy (businessinsider.com)

Ireland Debt Swaps at Record High as Allied Signals 62% Chance of Default (bloomberg.com)

If you thought the bank bailout was bad, wait until the mortgage defaults hit (irishtimes.com)

Swiss property market may be a bubble about to burst (fly-2let.co.uk)

Housing Bubble and Currency Controls in Poland (Mish)

Rejected for a mortgage because of a house's shape (washingtonpost.com)

Fannie Mae Is Now The Largest Landscaping Company In The U.S. (dailybail.com)

Foreclosure crisis reveals shocking unfairness in how law treats houseowners (slate.com)

Video Deposition of Dhurata Doko of Nationwide Title Clearing (4closurefraud.org)

Ex-regulator: Obama 'cover up' prevents toxic loan losses from being recognised by banks (gfsnews.com)

BNY Mellon CEO Says U.S. National Standards Are Needed for Mortgages (bloomberg.com)

Regulators flawed in foreclosure oversight (washingtonpost.com)

Regulations? We don't need no stinkin regulations! (dvorak.org)

What's it really worth?

Mon Nov 8 2010

Housing will rebound when jobs do (sfgate.com)

Condo, co-op and townhouse owners could end up paying their neighbors' bills (latimes.com)

Big Isle, Kauai housing hits bumpy spell (staradvertiser.com)

Palo Alto high speed rail to burst Silicon Valley housing bubble (stanforddaily.com)

House Prices in Chicago and the Suburbs (chicagomag.com)

Is Economics a Science? (american.com)

Bernanke's Solutions Are the Problem (mises.org)

Morgan Stanley's Flanagan Expects QE3 (yes, number three) (bloomberg.com)

German Finance Minister calls Fed "Clueless" (Mish)

America's Two Economies, and Why One is Recovering and the Other Isn't (robertreich.org)

Wall Street still hasn't taken responsibility (cjr.org)

Bankers Gorged On Record $144 Billion Bonuses And No One Noticed (dailybail.com)

It Was the Banks (commondreams.org)

Bank of America Fights Pressure To Buy Back Mortgages (nytimes.com)

French website advocates bank runs as protest (sos-crise.over-blog.com)

Faithful mortgage payments may hobble economy (contracostatimes.com)

Houseowners Say Loan Mods Led Them To Foreclosure (npr.org)

Taking on a Second Mortgage to Pay the Foreclosure Lawyer (nytimes.com)

Obama's Asian Trip – $200 Million per Day? Actually, no. (snopes.com)

Maine Seeks U.S. Waiver for Blackstone's "Junk" Health Insurer (bloomberg.com)

Thank You Steven B. ($20) for your kind donation.

Variable processing times

The banks play Russion Roulette with borrowers. Some are allowed to squat for years, and some are processed quickly. Lenders do this to terrorize the herd and keep them guessing. If everyone knew they would get years of free housing, everyone would accelerate their defaults, and many would truly stategically default to take advantage. By random violence against delinquent borrowers, lenders hope to keep borrowers paying.

The owners of today's featured property paid $335,000 on 1/24/2004. They used a $268,000 first mortgage, a $33,500 second mortgage, and a $33,500 down payment.

On 9/23/2005 they refinanced with a $309,000 first mortgage.

They didn't get to squat long.

Foreclosure Record

Recording Date: 09/23/2010

Document Type: Notice of Sale

Foreclosure Record

Recording Date: 06/21/2010

Document Type: Notice of Default

This property was sold at auction to a third party for $230,000 on 10/13/2010.

Irvine Home Address … 57 ROCKWOOD 14 Irvine, CA 92614

Resale Home Price … $275,000

Home Purchase Price … $335,000

Home Purchase Date …. 1/24/2005

Net Gain (Loss) ………. $(76,500)

Percent Change ………. -22.8%

Annual Appreciation … -3.3%

Cost of Ownership

————————————————-

$275,000 ………. Asking Price

$9,625 ………. 3.5% Down FHA Financing

4.21% …………… Mortgage Interest Rate

$265,375 ………. 30-Year Mortgage

$51,933 ………. Income Requirement

$1,299 ………. Monthly Mortgage Payment

$238 ………. Property Tax

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

$46 ………. Homeowners Insurance

$316 ………. Homeowners Association Fees

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

$1,899 ………. Monthly Cash Outlays

-$117 ………. Tax Savings (% of Interest and Property Tax)

-$368 ………. Equity Hidden in Payment

$14 ………. Lost Income to Down Payment (net of taxes)

$34 ………. Maintenance and Replacement Reserves

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

$1,463 ………. Monthly Cost of Ownership

Cash Acquisition Demands

——————————————————————————

$2,750 ………. Furnishing and Move In @1%

$2,750 ………. Closing Costs @1%

$2,654 ………… Interest Points @1% of Loan

$9,625 ………. Down Payment

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

$17,779 ………. Total Cash Costs

$22,400 ………… Emergency Cash Reserves

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

$40,179 ………. Total Savings Needed

Property Details for 57 ROCKWOOD 14 Irvine, CA 92614

——————————————————————————

Beds: 2

Baths: 2 baths

Home size: 917 sq ft

($300 / sq ft)

Lot Size: n/a

Year Built: 1980

Days on Market: 40

Listing Updated: 40449

MLS Number: S634008

Property Type: Condominium, Residential

Community: Woodbridge

Tract: Pr

——————————————————————————

Short Sale $$$ Great Starter Home in the Hurt Of Irvine, close to the 405 frwy, very close to U C I and I V C, also walking distance to swiming pool and parks, Woodbridge High school just down the street. great ivestment or a home to live in.

The Hurt of Irvine? LOL! I wonder if that is a Freudian slip?

ivestment? swiming?

Based on the photo and description, I surmise this realtor diidn't care much about this listing. I don't blame him. This had little chance of selling as a short sale, and the bank processed the foreclosure quickly.

Victims and Martyrs of the Housing Bubble

Everyone has a sob story from the housing bubble. Many have cast themselves as victims and martyrs. Most are victims of their own lack of financial sense.

Irvine Home Address … 39 SONGSPARROW Irvine, CA 92604

Resale Home Price …… $674,000

The crown of emptiness,

As night descended slowly

Maybe it's an illusion,

One fake dream, one grey plastic

Reality of tears and of repentance.

I felt my life crossing like

A stream of sadness

Wearing a martyr's crown

The crown of sadness

The crown of emptiness

Nightrage — Wearing a Martyr's Crown

Why do people tell sob stories? Is their real motivation to appeal to the sympathy of others in order to gain some special advantage? Should we feel bad for people who borrowed too much and give them a break? Should we let people experience the consequences of their poor decisions? If we give in to the victim mentality, we encourage people to engage in risky and foolish behavior. Why wouldn't they if they believe others will bail them out?

Woman Holds Hunger Strike To Stop Foreclosure

Baltimore Resident Wants Audience With Governor

POSTED: 6:44 pm EST November 8, 2010

BALTIMORE — A Baltimore woman fighting to keep her home has set up a mini-residence outside the state capital and is on a hunger strike in hopes of bringing more attention to the effects that foreclosure has on people.

Lauren Rymer, of Baltimore, said she's watched how the economy and other issues have forced people out of their homes.

The primary issue that has forced people out of "their" homes is the fact that they quit paying on the massive debts they took on to acquire them. Remember, Responsible Homeowners are NOT Losing Their Homes.

She started a hunger strike against foreclosure and said she's prepared to remain at the corner of Maryland Avenue and State Circle — right across the street from the state house in Annapolis — for as long as needed.

"I feel like I'm really representing a lot of people out here," she said.

Yes, there are many people just as foolish as this woman.

Rymer works for a nonprofit agency. She said she bought her two-bedroom southeast Baltimore home with an interest-only loan and still owes more than $200,000 on the mortgage.

In other words, she couldn't afford this house from the beginning. The only reasons people use interest-only financing is because they are ignorant, or they can't afford the fully amortized payment. Since she works for a non-profit, she doesn't make much money, and she doesn't have prospects for a big raise any time soon. Why would she take out an interest-only mortgage under those circumstances? Do you think she was banking on future mortgage equity withdrawal? I do.

She claimed she doesn't live beyond her means and sought help after the property taxes on her home went up 55 percent in the past couple of years.

The taxes are paid with her mortgage bill. Rymer said when it jumped from an affordable $1,500 a month to $2,100 a month, she couldn't keep up.

This womans taxes went up $7,200 a year during a period when home values declined. I call bullshit on that one.

She said she didn't realize she could have challenged the property tax assessment until it was too late.

"I just didn't understand why — at this time when times are so rough and the governor called three weeks before for (federal) banks to stop moving forward with foreclosures on their clients — the state government was moving forward with a foreclosure on mine without trying every possible channel to help me stay in my home," she said.

Borrowers are now entitled to have lenders and the government go to extreme lengths to help them, right? Is that the new entitlement that has come out of the housing bubble?

Rymer said her mortgage had been bundled and sold several times, finally ending up in the hands of the Maryland Department of Housing and Community Development. In less than 45 days, she could lose the house she's owned for four years.

Wait a minute. She hasn't owned anything. She is renting money from the bank with an interest-only loan. Further she is underwater and has no equity. She owns nothing. (see Money Rentership: Housing and the New American Dream).

She is being evicted from a house that has her name on the title because she is failing to make her rent payment on the money she borrowed. This is closer to an eviction than a foreclosure.

The foreclosure notice was taped to her front door on Election Day, she said. Rymer said she wants a few minutes with Gov. Martin O'Malley to tell him it's not just about the amount of foreclosures.

"Everyone that's being affected is a human being … are people that want to have a home, and that's why they bought homes," she said.

The MDHCD told 11 News that it can't discuss a homeowner's file but it will always work with homeowners to explore every viable financial option. The agency said it has set up a meeting with Rymer about her problem.

And at that meeting they will tell her that if she catches up on her mortgage payments she can keep living in the house, and if she doesn't, she needs to get out to make room for someone who can. What else is there to say to her?

Viewer Stories: Housing Market Victims

Our culture of victimhood has plenty of great stories from the housing bubble. Some of these stories are sad, but most are people dealing with the consequences of their poor decisions.

Brenda from Las Vegas I have read all the stories and really do completely understand the concerns of all. My husband, son and I moved from California to Las Vegas in 2001 when the housing market was just starting to climb. We sold our Cali house in 3 days…made a little profit and purchased a new home in Vegas for a good deal. Hubby had a job as Engineer for Lucent Technologies and made 90K so I didn't have to work anymore. It was heaven! Then 9/11 came to pass… 25 percent of his department was laid off so we went from living really well to being financial paupers overnight. It took him over a year to find a job that paid less than half of what he had been making… and I went to work for the Clark County School District being severely underpaid for my skills. We had to re-fi our home twice to make ends meet and not lose our home. Now our house payment is 3K a month plus utilities and many bills. We are deep in debt just surviving day to day fighting to hang on as we don't want to walk away. We would re-fi again to lower the payment but our home will not appraise for the amount we need in order to do so at this time. We purchased our home for 274K and now owe 390K. If not for taking out a monthly sum from his retirement portfolio of 2,500 we would have lost all.

So somewhere along the way did this family ever consider cutting back on some of their entitlements? Perhaps a loss of income should be matched with a decline in spending? They took out $116,000 and still couldn't make ends meet? What didn't these people do wrong?

Denise from Indianapolis Two years ago I bought my home on a two-year arm, being convinced by the mortgage company I would be able to refinance before the two years were up. Well, the two years were up in September and no one will touch it. I am now being told I owe more than my house is worth. On Sept. 1 my payments went from $850.00 a month to $1,233.00, and Nov. 1 it's going up another $50.00. I am a single mom and only bring home $1,500.00 a month. I am now two months behind. The mortgage compant is not willing to work with me at all. Their only advice was to conact a realtor, which I have to pay for, and try to do a quick sale. If I can't pay my payments, how can I pay a realtor? I am losing a home that I love. The American dream is huge joke!

Listening to mortgage brokers was her mistake. Not understanding the terms of the contract she was signing was another. Those mistakes are costing her the family home.

Justine from Greeley, Colo. I have been in the mortgage industry for 40 years this fall. I have been dedicated to responsible lending. Because of the greed of the CEO and upper management of mortgage companies and banks, who left with their millions in salary and bonus each year, those of us dedicated to financing homeownership responsibly are now faced with loss of income. And I am personally faced with providing for an invalid husband and trying desperately to hold onto my own home.

How many other mortgage brokers feel the same way?

Shannon from Kansas City, Mo. My stress levels are so high that Xanex have become my best friend. My husband and I are in our mid-30s with 4 children. We both work in the corporate world and I attend college for my bachelor's degree at night because we cannot afford for me not to work while I go to school. We fell into one of those adjustable mortgages and were completely scammed to the point our mortgage went up $900 more per month and we were forced into foreclosure and bankruptcy. The bankruptcy courts do not allow us any extra money for savings so when things like life occurs and gas prices, grocery prices, cars breaking down,death in family, medical bills occur we are just completely screwed.

If two corporate employed working Americans can't make it, how do people in third world countries get by? Letting go of a few entitlements would probably help get off the Xanax.

"Average Joe" from Georgia I am 35 years old and working since high school. In the heat of the moment, I purchased a pricy home, expensive home gadgets and a porsche. Now I am bankrupt.

Do you think he sees any cause and effect in his actions and the outcome?

Mike from Merced, Calif. My wife and I bought a house we could afford. Had a 30-year fixed. We made all the payments, never refinanced. Then we got divorced and needed to sell the house. Fifteen months later, we have our second offer. Due to all the forclosures we are losing around $60,000 just to get rid of it. $6,000 out of pocket at closing, the rest is the 20 percent, plus down payment and the $13,000 worth of loan we paid down. We were responsible. We paid. Now we are losing what we had invested. Those of you who banked on good interest rates "down the road" have taken the rest of us down with you. Additionally, everyone is talking about bailing out those near foreclosure, but who's helping those who did it right, but lost tons of money? I can't even write it off as a loss on my taxes!

That is a sad story. These people did nothing wrong, but they are being wiped out anyway.

Remember, The Face of Housing Entitlement Today?

Jennifer from Red Lion, Pa. Because of the housing slump our family was able to finally afford our dream home. There are two sides to every story.

Amen, Jennifer. Amen.

Four years squatting… and counting

Today's featured property is playing the short-sale game. It appears on the MLS periodically while the negotiations over who loses what goes on. It was listed last week when I spotted it, and now it is gone again.

The property was purchased on 4/8/1999 for $349,000. The owners used a $313,920 first mortgage and a $35,080 down payment.

On 1/31/2000 they refinanced with a $346,500 first mortgage and got back most of their down payment.

On 8/30/2000 they obtained a stand-alone second for $35,000.

On 6/27/2001 they refinanced with a $388,000 first mortgage.

On 9/3/2004 they got a $162,500 stand-alone second.

On 7/8/2005 they refinanced with a $765,000 first mortgage.

On 9/29/2005 they got a $42,500 HELOC.

Total property debt is $807,500.

Total mortgage equity withdrawal is $493,580.

Total squatting time is 48 months so far.

Foreclosure Record

Recording Date: 09/28/2010

Document Type: Notice of Sale

Foreclosure Record

Recording Date: 10/14/2008

Document Type: Notice of Sale

Foreclosure Record

Recording Date: 07/19/2007

Document Type: Notice of Sale

Foreclosure Record

Recording Date: 02/26/2007

Document Type: Notice of Default

This guy went delinquent sometime before November of 2006. He has not made a mortgage payment for as long as the IHB has been around.

How many rent or mortgage payments have you made while you have been an IHB reader?

Irvine Home Address … 39 SONGSPARROW Irvine, CA 92604

Resale Home Price … $674,000

Home Purchase Price … $349,000

Home Purchase Date …. 4/8/1999

Net Gain (Loss) ………. $284,560

Percent Change ………. 81.5%

Annual Appreciation … 5.6%

Cost of Ownership

————————————————-

$674,000 ………. Asking Price

$134,800 ………. 20% Down Conventional

4.21% …………… Mortgage Interest Rate

$539,200 ………. 30-Year Mortgage

$127,282 ………. Income Requirement

$2,640 ………. Monthly Mortgage Payment

$584 ………. Property Tax

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

$112 ………. Homeowners Insurance

$80 ………. Homeowners Association Fees

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

$3,416 ………. Monthly Cash Outlays

-$433 ………. Tax Savings (% of Interest and Property Tax)

-$748 ………. Equity Hidden in Payment

$203 ………. Lost Income to Down Payment (net of taxes)

$84 ………. Maintenance and Replacement Reserves

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

$2,522 ………. Monthly Cost of Ownership

Cash Acquisition Demands

——————————————————————————

$6,740 ………. Furnishing and Move In @1%

$6,740 ………. Closing Costs @1%

$5,392 ………… Interest Points @1% of Loan

$134,800 ………. Down Payment

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

$153,672 ………. Total Cash Costs

$38,600 ………… Emergency Cash Reserves

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

$192,272 ………. Total Savings Needed

Property Details for 39 SONGSPARROW Irvine, CA 92604

——————————————————————————

Beds: 4

Baths: 2 full 1 part baths

Home size: 1,946 sq ft

($346 / sq ft)

Lot Size: 5,136 sq ft

Year Built: 1976

Days on Market: 81

Listing Updated: 40464

MLS Number: Y1005246

Property Type: Single Family, Residential

Community: Woodbridge

Tract: Cust

——————————————————————————

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

Huge price reduction! Seller eager to sell property. Beautiful house located in a highly desirable area of Woodbridge. Very quiet neighborhood. Close to shops and schools. Seller had plans to add almost 400sq feet of living area. Blueprints will be provided to buyer at no cost. HOA provides many amenities including community swimming pools, two man-made lakes, tennis courts, sand volleyball courts plus much more! Big backyard!

IHB News 11-6-2010

Keep Wednesday evening November 10 open. You might get a chance to be on national TV.

Irvine Home Address … 105 FALLINGSTAR 59 Irvine, CA 92614

Resale Home Price …… $299,000

Hey, look me over

Tell me do u like what u see?

Hey, I ain't got no money

But honey I'm rich on personality

Hey, check it all out

Baby I know what it's all about

Before the night is through

U will see my point of view

Even if I have 2 scream and shout

Prince — Baby I'm a Star

IHB News

At the IHB Block Party we had on June 16, 2010, Pat Regnier from Money Magazine attended to do research for a story on Orange County real estate. That story is due to appear in the December issue. I may be quoted in the story.

On Friday afternoon, I received a call from a producer from CNN/Money asking me if I could arrange an IHB meeting for Wednesday evening. This producer talked to Pat Regnier, and she is planning to bring a camera man to do a story on our little gathering. I don't know if this story will appear on the web, or if it may make national TV (it probably depends on how it turns out).

I am trying to arrange an event for Wednesday, November 10, 2010. Our usual venue is not available on short notice, so I am looking into other locations. Any suggestions in the comments would be helpful. Dave and Busters at the Irvine Spectrum is a likely candidate, but the person I need to speak to will not be in until Monday. This is not an investor meeting; although, I should have time to discuss the fund with anyone looking to make a last-minute investment.

I will provide more details as they become available, but I will appreciate everyone who attends to show support for the IHB. It should be fun, and you might get on national TV.

Housing Market News

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Fri Nov 5 2010

Gearing up for housing correction version 2.0 (doctorhousingbubble.com)

Bank of America Edges Closer to Tipping Point (bloomberg.com)

No free pass in the mortgage foreclosure debacle (heraldonline.com)

Foreclosure shadow inventory will take more than 40 months to clear (housingwire.com)

Fitch Ratings Predict Longer Recovery Period For Housing Market (rejournalonline.com)

Corporations, wealthy dominating politics (mcclatchydc.com)

Where do we go from here? (sanders.senate.gov)

2 More Nails In Dollar's Coffin: Republican "Victory", and Fed's QE2 (gonzalolira.blogspot.com)

Bernanke Admits Targeting Stock Prices (Mish)

Nic Lenoir Interprets The Oracle's Words (zerohedge.com)

The Fed's $600 Billion Statement, Translated Into Plain English (npr.org)

As Fed Policy Sinks the Dollar, Prices of Essentials Soar (dailyfinance.com)

Who really runs Economy money amp; Banking system (youtube.com)

Federal Reserve celebrates 100 years of dominating America (youtube.com)

Bernanke & FED Warlords Head Back To Jekyll Island To Celebrate 100 Years Of Printing (dailybail.com)

America's Alarm Clock Has Rung: Time's Up (4closurefraud.org)

America Has Been Checkmated By China (patrick.net)

What's it really worth?

Thu Nov 4 2010

7 Million Noncurrent Loans, 2 Million Foreclosures (Mish)

Trump to sell California estate at huge loss: paid $27M, asking $12M (housingwatch.com)

Why Las Vegas Property Tax Assessments Will Exceed Market Value (nreionline.com)

Experts Scuffle Over Australian Housing Market (blogs.wsj.com)

New rule to cool property speculation in Malaysia (btimes.com.my)

On The Reality Of Depressions; Bernanke's Folly (market-ticker.org)

The Fed's big gamble.. even lower interest rates (patrick.net)

Huge bank profits needed to protect the public. Right… (theage.com.au)

Make Rogue Corporations Pay for Foreclosure Crisis (news.yahoo.com)

Stalemate seen in Congress on banking and housing (reuters.com)

Freddie Mac Posts Net Loss of $4.1 Billion (nytimes.com)

Housing Recovery Stalled: Freddie CEO (thestreet.com)

Nancy Pelosi on Jon Stewart (dailybail.com)

Should the IRS Give Taxpayers an Itemized Receipt? (taxprof.typepad.com)

Discussion of Land Tax in Ireland (long video – smarttaxes.org)

Fraud Started At the Very Top: With Government Leaders (washingtonsblog.com)

Mortgage Lending Catching Up to Politicians in Legalized Corruption Department (sites.google.com)

Why not just mortgage your children? (salon.com)

What's it really worth?

Wed Nov 3 2010

Selling $4M-plus house? Wait 6 years! (lansner.ocregister.com)

9 Years of Housing Backlog at Current Sales Pace (Mish)

Houseownership Rate at 1999 Levels (calculatedriskblog.com)

Housing's Head and Shoulders Formation Bay Area Real Estate Trends (bayarearealestatetrends.com)

How the Election Will Affect Housing (newsweek.com)

Houseownership Stays At Lowest Level In A Decade (huffingtonpost.com)

18.8 Million Vacant Housing Units Mean Housing Bottom Still Far Away (economicpopulist.org)

1 out of 21 distressed properties show up on the MLS for Pasadena (doctorhousingbubble.com)

Why interest rates make it a bad time to buy (market-ticker.org)

Bernanke Will Cause "Massive Shock" To The Hong Kong Housing Bubble (businessinsider.com)

Bank of India hikes short-term rates, tightens housing loan norms (thehindubusinessline.com)

Collapse of Irish Economy Predicted in 1998 (RTE on youtube.com)

Irish, Greek bonds drop (marketwatch.com)

England Housing Prices Out Of Reach For Many First-Time Buyers (nuwireinvestor.com)

First-time House Buyers – Gazundering is your friend (firsthomebuyer.co.uk)

Gaming the New Rules of Health Insurance (kiplinger.com)

The Real Estate Market in 2030 (zerohedge.com)

Fixing The Deficit By Taxing The Rich (dailybail.com)

What's it really worth?

Tue Nov 2 2010

U.S. house prices expected to slide another 8% (money.cnn.com)

Robert Shiller Sees More Housing Pain Ahead (kiplinger.com)

Number of Californians entering foreclosure rises 19% (latimes.com)

Indians investing in US foreclosures (indiatimes.com)

The foreclosure effect on house prices (baltimoresun.com)

Estimating Impact of Land Regulation On House Cost (newgeography.com)

Extreme Readings in Bullish Investor Sentiment, Insiders Bail at Highest Rate Ever (Mish)

Personal income drops unexpectedly (money.cnn.com)

Millions of houseowners keep paying on underwater mortgages (latimes.com)

Two views of the post-housing bubble apocalypse (latimes.com)

Housing Matters Little to U.S. Consumers' Wealth (bloomberg.com)

Quantitative Easing QE2 Won't Necessarily Lead To High Inflation (minyanville.com)

Conflict of interest continue at the banks (nytimes.com)

William Black testimony to Financial Crisis Inquiry Commission (patrick.net)

Mortgage bond insurer Ambac misses bond payment. Oh the irony. (news.yahoo.com)

Republicans Now Best At Taking Bribes From Finance and Real Estate Interests (realestatechannel.com)

Well, try reverse again. (dvorak.org)

36 Ind. unemployment officers to have armed guards (chicagotribune.com)

Thank You Marc D. ($50) for your kind donation.

What's it really worth?

Mon Nov 1 2010

Foreclosure Freeze Cuts Sales, Supply in Hardest-Hit States (bloomberg.com)

Foreclosure Mess Even Worse in 'Nonjudicial' States (dailyfinance.com)

Amid mortgage mess, owners blindsided (washingtonpost.com)

Orange County daydreaming prices to increase 50 percent by 2016 (doctorhousingbubble.com)

Housing Question From Down Under (Mish)

Australians swoop in on U.S. foreclosures (money.cnn.com)

Don't Think Housing Matters Like It Used To (businessinsider.com)

To keep college debt to minimum, don't think of it as surefire investment (boston.com)

Keep government out of housing (commercialappeal.com)

Hedge-fund Manager Criticizes Bernanke, Warns Of Hyperinflation (nasdaq.com)

US Hears Echo of Japan's Woes (nytimes.com)

BOA Gets $20 Billion Warning Letter From Insurance Industry (livinglies.wordpress.com)

How the Banks Put the Economy Underwater (nytimes.com)

On election day, make sure we don't throw the bums in (latimes.com)

3.8% tax on real estate transactions applies ONLY to PROFITS over $500,000 (snopes.com)

White collar recession, blue-collar depression (marketwatch.com)

Do the Rich Need Coddling? (motherjones.com)

How to End the National Debt in One Day (youtube.com)

Thank You Brad D. ($20) for your kind donation.

What's it really worth?

Another Option ARM implosion

It is a consistent pattern among HELOC abusers to refinance over and over and finally implode with an Option ARM. Contrary to the myth that Option ARMs were pushed on unsuspecting borrowers, many Ponzis chose Option ARMs because it allowed them to increase their cash-out activities while decreasing their payment. The terms didn't matter; borrowers were being offered free money and a lower payment. Few said no.

Today's featured property was purchased on 9/13/2002 for $278,000. The borrowers used a $269,500 first mortgage and a $8,500 down payment.

On 6/27/2003 they refinanced with a $273,000 first mortgage.

On 12/21/2004 they obtained a $50,000 HELOC. I bet that was a prosperous Christmas….

On 8/15/2005 they refinanced with a $384,000 Option ARM with a 1% teaser rate.

No NOD has been filed, but their option ARM is 5 years old now, and they are likely approaching their LTV limit when the loan recasts into a fully amortizing payment. Perhaps they make 30% more than they did in 2004 and they can afford the new mortgage. I doubt it.

Irvine Home Address … 105 FALLINGSTAR 59 Irvine, CA 92614

Resale Home Price … $299,000

Home Purchase Price … $277,273

Home Purchase Date …. 9/13/2002

Net Gain (Loss) ………. $3,787

Percent Change ………. 1.4%

Annual Appreciation … 0.9%

Cost of Ownership

————————————————-

$299,000 ………. Asking Price

$10,465 ………. 3.5% Down FHA Financing

4.29% …………… Mortgage Interest Rate

$288,535 ………. 30-Year Mortgage

$57,005 ………. Income Requirement

$1,426 ………. Monthly Mortgage Payment

$259 ………. Property Tax

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

$50 ………. Homeowners Insurance

$335 ………. Homeowners Association Fees

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

$2,070 ………. Monthly Cash Outlays

-$129 ………. Tax Savings (% of Interest and Property Tax)

-$395 ………. Equity Hidden in Payment

$16 ………. Lost Income to Down Payment (net of taxes)

$37 ………. Maintenance and Replacement Reserves

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

$1,600 ………. Monthly Cost of Ownership

Cash Acquisition Demands

——————————————————————————

$2,990 ………. Furnishing and Move In @1%

$2,990 ………. Closing Costs @1%

$2,885 ………… Interest Points @1% of Loan

$10,465 ………. Down Payment

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

$19,330 ………. Total Cash Costs

$24,500 ………… Emergency Cash Reserves

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

$43,830 ………. Total Savings Needed

Property Details for 105 FALLINGSTAR 59 Irvine, CA 92614

——————————————————————————

Beds: 2

Baths: 2 baths

Home size: 997 sq ft

($300 / sq ft)

Lot Size: n/a

Year Built: 1985

Days on Market: 79

Listing Updated: 40469

MLS Number: H10087361

Property Type: Condominium, Residential

Community: Woodbridge

Tract: Othr

——————————————————————————

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

Condominium in Good Condition, very nice area. One bedroom down and one bedroom upstairs. Laminated floors in first floor, carpet on second floor, laundry room right off the kitchen. Located by de pool with visitor parking just a few steps away. Short Sale.

Located by de pool? What's dat?

Irvine Housing Blog

Established September 2006

Category Archives: Uncategorized

IHB News 12-11-2010

Housing Market News

A little HELOC dependency is okay, right?

Jumbo Loan Limits Unchanged in 2011

Jumbo loan limits remain the same in 2011

Hope dies slowly

Happy Turnkey Day from the IHB

IHB News 11-13-2010

Housing Market News

Variable processing times

Victims and Martyrs of the Housing Bubble

Woman Holds Hunger Strike To Stop Foreclosure

Baltimore Resident Wants Audience With Governor

Viewer Stories: Housing Market Victims

Four years squatting… and counting

IHB News 11-6-2010

IHB News

Housing Market News

Another Option ARM implosion