No matter how you slice and dice the mortgage data, it is a deteriorating picture punctuated by very large numbers of delinquencies and foreclosures.

Irvine Home Address … 15306 NORMANDIE Ave Irvine, CA 92604

Resale Home Price …… $995,000

I should have known better than to give a loan to you

That I would lose everything that you do

And I do, hey, hey, hey, and I do.

So, I should have realized a lot of things before

If this is a loan you've gotta give me more

Give me more, hey hey hey, give me more

Beatles — I Should Have Known Better

The banks should have known better than to underwrite the loans they did. Whenever I think about the greed and stupidity that overtook our lending industry — and the damage they have done to our society by creating a generation of Ponzis — I feel no compassion for their losses. Knowing my tax dollars are bailing them out irks me even more. In the ongoing debacle of lender creation, we are seeing further deterioration in loan performance. What a surprise.

Types of Borrowers

Do you remember the various borrower types: subprime, Alt-A, and prime? The ARM reset chart breaks down the outstanding ARMs by those borrower types and mixes in some types of loans (agency, Option ARM, and unsecuritized ARMs) just to make it a bit confusing.

The three main borrower classes can also be divided based on the size of the loan into conforming (up to $417,000), jumbo conforming ($417,000 to $729,750), and jumbo (over $729,750).

The stories forming the basis for today's featured articles examine the three main types of borrowers and separately the jumbo loan category.

As you may recall, subprime ARMs reset first. In 2007 and 2008, nearly all subprime loans reset, and the resulting wave of delinquencies and foreclosures trashed prices wherever subprime was found. From this the banks learned one important lesson: if you foreclose and dispose of the real estate, prices get crushed. Las Vegas proved that. Upon seeing the carnage, lenders opted for another strategy: amend-extend-pretend. As a result, the Alt-A, prime, and jumbo borrowers have similarly gone delinquent on their mortgage, but they have been allowed to squat so banks can preserve the illusion of value on their balance sheets. Homeowners are not complaining.

The problem for the banks is that failing to foreclose on people is causing distressed borrowers to strategically accelerate their default to take advantage of the bank's inaction. As we are about to see, Alt-A, prime and jumbo are on their way to becoming subprime; in fact, Alt-A is already there.

In worse-off states, Alt-A is becoming the new subprime

by CHRISTINE RICCIARDI — Tuesday, October 5th, 2010

Data released Tuesday by 1010data, in conjunction with the American Securitization Forum, CoreLogic and Equifax, confirmed what CoreLogic economist Mark Fleming mentioned during an interview with HousingWire one month ago — Alt-A loans are the new subprime. However, Alt-A mortgages passing 25% delinquency rates, levels similar to subprime loans, remain localized to only a few states.

The Market Review of Non-Agency MBS is the first in a series to be released by 1010data and the American Securitization Forum, which recently entered into a partnership. This report uses data collected through September and focuses on trends within the Alt-A category between 2004 and 2008, as well as jumbo and option ARMs.

Jonah Green, head of mortgage analytics at 1010data and contributor to the report, said the delinquency trends with Alt-A loans directly reflect a subprime attitude, or perhaps even worse.

"Alt-A is traditionally considered near prime collateral," Green told HousingWire. "But because of the housing crisis, the delinquencies you're seeing are so great that people are considering Alt-A, effectively, subprime."

According Green, 9% of Alt-A loans that were current six months ago are now delinquent.

Nearly 10% of all Alt-A loans that were current only six months ago are now delinquent. You don't have to run a 10% new delinquency rate very long before the entire pool of Alt-A loans goes bad. Those are horrendous numbers.

Approximately 40% of Alt-A loans originated in Nevada between 2004 and 2008 are more than 60-days delinquent or in foreclosure. Nevada is topped only by Florida, which has a reported 46.4% of issued Alt-A loans 60-days or more delinquent or in foreclosure. Twenty states have Alt-A delinquencies exceeding 25% (see map).

It doesn't look like I will be running out of Las Vegas properties to bid on any time soon.

Green said that state delinquencies north of 25% are high, even for a subprime deal. Not only that, but Green said jumbo loans could be next to follow suit. In Nevada, 24.4% of jumbo loans are 60-plus days delinquent or in foreclosure, followed by 20% in Florida.

"Jumbo prime is performing like subprime, Alt-A is performing worse than subprime and subprime simply isn't performing," Green said. "The private label deals weren't structured with types of delinquencies in mind."

Nobody was prepared for the collapse of the housing bubble. Most were in denial, and many still are.

August delinquency inventory falls on highest foreclosure starts since January: LPS

by CHRISTINE RICCIARDI — Friday, September 24th, 2010

More homes moved from delinquency into foreclosure in August, as the inventory of homes 30-plus days and 90-plus days delinquent decreased and foreclosure starts rose to the highest level since January, according to Lender Processing Services.

HousingWire reported the initial results of the report last week. The firm's final monthly mortgage monitor was released today.

The majority of foreclosure inventory included prime loans, which increased 106.4% over an 18-month period in the agency sector, 102.4% in the non-agency sector, and 107% in the non-agency jumbo sector.

Those are shocking numbers. We have doubled the foreclosure inventory of the best performing loans in the portfolio. When the bank's prime loans become toxic waste, what do they do then?

The numbers below paint an even bleaker picture. I don't see the light at the end of the tunnel yet.

According to CoreLogic, there are about 40 million prime loans in the marketplace, 6.2% of which were 60-days delinquent in June and 3% of which were 90-days delinquent.

CoreLogic analyst Mark Fleming said the percentage of delinquent loans in the prime space have been masked because the volume is so huge.

LPS reported 282,528 foreclosure starts last month, up 1% from July and 3.8% higher than the year earlier. The year-to-date foreclosure rate is now 20.4% higher than 2009. Thirty-day delinquent inventory fell to 9.22%, the lowest level in over a year. The percentage was 9.3% in July and 9.7% a year ago. The inventory of 90-day delinquent loans decreased to 8.22%, down from 8.3% in July. The percentage was 8% a year earlier.

Despite the spike in overall foreclosure starts, the number of starts within agency loans decreased in August for the first time in three months, to less than 140,000. Agencies also have accelerated foreclosures in late-stage delinquencies, six-month delinquencies decreasing to 60,000 from 65,000. Six-month delinquency volume is the highest on agency portfolio. Three-month delinquencies account for more than 30,000 loans and two-month delinquent loans have risen for three month to almost 20,000 loans.

If any of you spotted any good news in there, point it out. i didn't see any.

They didn't spend the house!

It's very rare that I find a mortgage history with no proven HELOC abuse. It looks like these people were frugal and paid down their mortgage, so I have given them a "B" for mortgage management. They did get a couple of HELOCs, but there is nothing to suggest they actually took the money and spent it.

• This house was purchased on 4/3/1990, the peak of the last housing bubble. I don't have their original mortgage data, but they paid $325,000, and they likely put at least 20% down.
• On 9/8/1998 there is a refinance of the first mortgage for $220,000.
• On 10/25/2000 they were approved for a $99,000 HELOC, but I don't think they used it.
• On 3/17/2003 they refinanced their first mortgage again for $212,000. This tells me they didn't use the HELOC and paid down the first mortgage.
• On 2/9/2005 they were approved for a $275,000 HELOC. Based on their past history, I will give them the benefit of the doubt and suggest that they have consistently reduced their indebtedness on the property.

There is no delinquency, and even if they maxed the HELOC, they are still sitting on a cloud of bubble equity.

Irvine Home Address … 15306 NORMANDIE Ave Irvine, CA 92604

Resale Home Price … $995,000

Home Purchase Price … $325,000

Home Purchase Date …. 4/3/1990

Net Gain (Loss) ………. $610,300

Percent Change ………. 187.8%

Annual Appreciation … 5.5%

Cost of Ownership

————————————————-

$995,000 ………. Asking Price

$199,000 ………. 20% Down Conventional

4.21% …………… Mortgage Interest Rate

$796,000 ………. 30-Year Mortgage

$187,902 ………. Income Requirement

$3,897 ………. Monthly Mortgage Payment

$862 ………. Property Tax

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

$83 ………. Homeowners Insurance

$0 ………. Homeowners Association Fees

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

$4,842 ………. Monthly Cash Outlays

-$914 ………. Tax Savings (% of Interest and Property Tax)

-$1105 ………. Equity Hidden in Payment

$300 ………. Lost Income to Down Payment (net of taxes)

$124 ………. Maintenance and Replacement Reserves

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

$3,248 ………. Monthly Cost of Ownership

Cash Acquisition Demands

——————————————————————————

$9,950 ………. Furnishing and Move In @1%

$9,950 ………. Closing Costs @1%

$7,960 ………… Interest Points @1% of Loan

$199,000 ………. Down Payment

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

$226,860 ………. Total Cash Costs

$49,700 ………… Emergency Cash Reserves

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

$276,560 ………. Total Savings Needed

Property Details for 15306 NORMANDIE Ave Irvine, CA 92604

——————————————————————————

Beds: 5

Baths: 5 baths

Home size: 3,700 sq ft

($269 / sq ft)

Lot Size: 6,315 sq ft

Year Built: 1971

Days on Market: 60

Listing Updated: 40459

MLS Number: P747674

Property Type: Single Family, Residential

Community: El Camino Real

Tract: Rc

——————————————————————————

Completely remodeled home with unique skylighted-attrium with surround hall way entry, open lighted plan. Travertine flooring, granite kitchen counter,center island gas cook top, new kitchen cabinetry, dual a/c and ON-Demand Electric Tankless water heater. Well kept home with salt water pool, Gas BBQ ready patio, fruit trees, low water usage landscape. Entire yard and driveway with concrete paint, finished garage with Epoxy coated floor. The house also features ceiling fans, new appliances and fire place. A large upstairs Den/Entertainment room with surround sound wiring. All rooms are cable ready. Features also include a main floor bedroom and bath. Spacious Master bath with jacuzzi tub and shower. The house is priced to sell. There is no association or mello roos on this house. Pride of ownerhship. Priced to Sell.

attrium? ownerhship? And Mello Roos is capitalized; it is the last names of the two legislators who introduced the bill. Why did the realtor say it is priced to sell twice?

Irvine Home Address … 18 DELAWARE Irvine, CA 92620

Resale Home Price …… $799,000

What a shame we never listened

I told you through the television

And all that went away was the price we paid

People spend a lifetime this way

And that’s how they stay

Oh what a shame.

Words come easy, when they’re true

Words come easy, when they’re true

Robbie Williams — Shame

realtors Debasing Themselves

Soylent Green is People emailed me a link to a story Realtor gimmicks and blue light specials reek of desperation. The story links to a site Real Estate Coupons (http://realtycoupons.com/).

Real estate coupons!? Please tell me this is a joke. RealtyCoupons.com says it “allows Real Estate Professionals to dramatically increase their Business and Production by offering Coupons for their Real Estate related business.” This is nothing but a cheesy gimmick aimed at despondent agents who think that lowering themselves to this level is going to procure business. What gets me most is that there are actually agents who buy into this and fork over their time and money. Glancing over the coupons posted by agents, it literally reeks of desperation. We do not need to stoop that low.

One of the more outlandish coupons offered is 50% off all real estate services, valid through 07/2012. It’s an agent firesale! Besides the fact you’ll probably go negative giving away half your earnings after factoring fees, taxes and expenses, you might as well strap a mobile police light atop your car, driving around the neighborhood with a speakerphone blaring “Attention Kmart Shoppers!” Who in their right mind wants to be known as the “Blue Light Special” Agent?

For those agents who are even remotely thinking about creating coupons, make no mistake… No client is ever going to have the following conversation with their friends and family:

“Sue is a great agent! You ought to give her a call”

“Wow, she must be an ethical and knowledgeable expert.”

“No, you silly. She accepts coupons! Here‘s one I clipped out for you. Hurry, though. It expires tomorrow.”

Furthermore, real estate coupons are a dangerous path to go down. One day you’re doling up coupons to drum up business, and pretty soon, you find yourself accepting food stamps for your commission. Have some standards, people! If you continue debasing yourself, you are going to find yourself one day blurting out “Yes, I do!” when a prospect asks you, “Can we pay you on layaway?” Where does it end?!

Who goes to realtycoupons.com to look for coupons anyway? If you have to coupon, at least look less desperate by putting on on your Google Places profile, on Yelp or Groupon. Please!

For the love of Lady Gaga, there is no need resort to these foolish antics. Instead of wasting time and money on real estate coupons (and incidentally demeaning your brand), allocate your resources elsewhere to attract clients. Can I get an Amen!?

IHB News

I bought another house in Las Vegas this week. I wasn't planning on buying another one, but the deal was so good, I couldn't pass it up. I picked up a 3,300 SF house with a 3-car garage in a nice neighborhood for $201,700. It comps for $285,000 to $300,000. It will take a few weeks before I get pictures for this one as it is currently occupied. I should have a post on the first property I purchased this week. It is being photographed Monday, and if I like them, I will put up the MLS listing in Las Vegas and profile the property here.

I spent most of the week getting my systems in place to analyze, acquire, and process these properties. As I go through the process with these first ones I will refine my systems to be prepared to process more. I originally planned to put these systems in place before acquiring any properties, but the deals I spotted were just too good to let pass.

The company I work with in Las Vegas has the ability to find last-second dropped bids. The property I bought for $201,700 was $15,000 under my maximum bid price. Since nobody else had a chance to check out the property, I was the only bidder. Banks are pretty stupid when it comes to late dropped bids. They could have gotten a significantly better price if they had given potential bidders more time to research the properties. I can't say it upsets me to profit from the stupidity of banks.

As I mentioned last week, the window is closing on the investment fund. The first property is being listed next week, and when it closes escrow, the fund is closed for good.

Writer's Corner

I went to Mickey's Not-So-Scary Halloween Party on Friday evening. It was a great family event, and a good time was had by all. I highly recommend it. I want to offer a special thanks to Jamie Griffin who gave me the tickets she was unable to use.

I am a Disney regular. We have season passes, and my son and I go nearly every Sunday morning. We like to arrive just as the park opens and go on his favorite rides before the lines get too long. It is the high point of my week, and my son and I have many fond memories of Disney. Sometimes, we go on Splash Mountain first thing, and if there is no line, we stay on the same log and go over and over again. There are some aspects of Southern California life you can't duplicate in other places.

Housing Bubble News from Patrick.net

Fri Oct 1 2010

Price slide likely to continue as shadow inventory comes to light (chicagotribune.com)

Central Fla. House Prices To Take Major Dive (msnbc.msn.com)

Study Finds Sharp Rise in Mortgages 90-Plus Days Delinquent (nationalmortgageprofessional.com)

Foreclosure postings on million-dollar Dallas houses on the rise (housingwire.com)

Distressed Houses Sell at 26% Discount in U.S. as Supply Swells (bloomberg.com)

More Foreclose Sales Will Drive Down Prices (theatlantic.com)

43% of CA. houses sold in foreclosure (mortgage.ocregister.com)

More than 1 in 3 South Florida house sales are foreclosures (miamiherald.com)

When Foreclosure is a Good Option (money.usnews.com)

Ohio Foreclosures and How They Work (stockmarketsreview.com)

Sale prices lowest on bank-owned houses (pe.com)

More Hawaii houseowners doing short sales to avoid foreclosure (staradvertiser.com)

Kaboom! Referral of Chase to federal prosecutor (4closurefraud.org)

J.P. Morgan Chase to freeze foreclosures over flawed paperwork (washingtonpost.com)

Should Treasury Help Investors Become Landlords? (blogs.wsj.com)

You're going to be paying your neighbor's home-equity loan (dailybail.com)

Highest property taxes in the country (money.cnn.com)

Patrick.net Now Has Health Insurance Forum (patrick.net)

Is it time to be your own landlord yet?

---

Thu Sep 30 2010

NODs and NOTS continue to stunt California real estate "recovery" (firsttuesdayjournal.com)

Forth Worth Area foreclosures may reach all-time record in 2010 (fwbusinesspress.com)

Census snapshot of S. Florida: Poverty up, wealth down (miamiherald.com)

Florida's 'Amendment 4' Would Give Voters Say on Overbuilding (theatlantic.com)

Case Shiller Index Overly Optimistic and Quite Misleading (boombustblog.com)

GMAC's Robo-Signers Draw Concerns About Faulty Process, Mistaken Foreclosures (propublica.org)

Banks Just Counterfeit Documents… No, Really! (market-ticker.org)

JPMorgan halts 50K foreclosures for possible flaws (sfgate.com)

Lost in the system that took the house (washingtonpost.com)

Government Must Continue To Subsidize Debt-Trap, Bankers Tell Lawmakers (bloomberg.com)

William K. Black on Banking Rackets. Too big to JAIL (dailybail.com)

Iceland ex-PM faces possible charges in meltdown (news.yahoo.com)

Tokyo Landlords Lose Century-Old 'Gift Money' as Rents Slump (bloomberg.com)

U.S. Dollar One Step Nearer to Crisis as Debt Level Climbs, Yu Says (bloomberg.com)

Money manager Bruce Fred Friedman arrested in France, faces fraud charges (latimes.com)

Open Dissent at the Fed: Charles Plosser Philly Fed Opposes QE2 (Mish)

Economic Outlook and the Current Tools of Monetary Policy (minneapolisfed.org)

Prominent Tiburon, CA realtor dead in apparent suicide (marinij.com)

Find cashflow-positive property easily. Free Trial

---

Wed Sep 29 2010

House Prices to Take Hit Next Year in Many Markets (nytimes.com)

Newport Coast land in foreclosure $6 million (mortgage.ocregister.com)

SF Bay Area Housing Graphs (patrick.net)

5 reasons why renting in California today makes sense over buying (doctorhousingbubble.com)

Hawaii residential subdivision heads for auction (staradvertiser.com)

Foreclosed houses headache for neighbors (but do they want prices low enough to sell?) (thegazette.com)

Case Says Housing Will Grow Slowly After Free-Fall (bloomberg.com)

Tax auctions look 'like government-sponsored loan-sharking' (bnd.com)

QE Engine Revs, Car Goes Nowhere (Mish)

Will quantitative easing 2 bail out commercial real estate market further? (mybudget360.com)

U.S. Household Income Falls for 2nd Straight Year (bloomberg.com)

Savers told to stop moaning and start spending (telegraph.co.uk)

China illegal immigration: Vietnamese pour into China seeking work (latimes.com)

Former bank rep gets the runaround from Capital One (latimes.com)

The Left Right Paradigm is Over: Its You vs. Corporations (ritholtz.com)

Patrick.net forum now has user search (patrick.net)

Thank You Cudick A. ($50) for your kind donation.

Find cashflow-positive property easily. Free Trial

---

Tue Sep 28 2010

House prices need to go down (cnbc.com)

Credit Scores May Hamper Housing Inflation (blogs.wsj.com)

Foreclosure Flaws May Slow House Price Fall, Delay Recovery (bloomberg.com)

Calif. houseowner optimism plummets (lansner.ocregister.com)

From $740,000 to $540,000 and still overpriced (doctorhousingbubble.com)

California is in trouble, more forecasters say (latimesblogs.latimes.com)

How Americans' Love Affair with Debt Has Grown (theatlantic.com)

Student loans have terms the mafia would love (studentloanjustice.org)

Housing Cash Flow and Rental Yields (deptofnumbers.com)

Walking away from a mortgage might make sense (mercurynews.com)

Housing less affordable in Ontario (yourhome.ca)

House prices fall across all of England (telegraph.co.uk)

Chinese Property Bust Like Cooking Crabs (bloomberg.com)

China: Proudly Demolishing Buildings Before Completed (zerohedge.com)

Raters Ignored Proof of Unsafe Loans (nytimes.com)

Where Are All the Prosecutions? (dealbook.blogs.nytimes.com)

What the Rich Don't Need (nytimes.com)

Hedge Fund Crackdown May Snare European Real Estate Investors (bloomberg.com)

Failed Banks Graphic (s.wsj.net)

Zombie Bank Song (dailybail.com)

Thank You Damon S. ($20) for your kind donation.

Find cashflow-positive property easily. Free Trial

---

Mon Sep 27 2010

Denver high-end housing market falling (denverpost.com)

New US House Sales Hold at Second-Lowest Level Ever (bloomberg.com)

August house sales rebound will be short lived (housingwire.com)

House sales on pace to finish year as bad as 2009 (finance.yahoo.com)

Housing Prediction: Bottom in 2014, Then Decade of Stagnation (Charles Hugh Smith)

Only one fix for housing crisis (hotair.com)

Walking away with less (washingtonpost.com)

LA housing bubble not dead yet (patrick.net)

Condo prices plummeted in Florida (gainesville.com)

Gung-ho' house repo agents change the locks even before foreclosure (miamiherald.com)

Tax credits leave housing inventory higher, not lower (newsok.com)

Australian housing bubble debate boils over (au.finance.yahoo.com)

To buy or not to buy? The Japanese Experience (japantimes.co.jp)

Trashing the dollar to save the economy (latimes.com)

What does it cost to produce an ounce of gold? (from 2009) (miningweekly.com)

Shopping Patterns Show When the Government Checks Come In (Mish)

Average property-price gap in US cities varies by more than $1M (guardian.co.uk)

Widening gap between rich and poor Americans (sfgate.com)

The Angry Rich (nytimes.com)

The cost of buying in a flat market

The best case scenario of prices while the banks dispose of their inventory is for prices to remain flat. Even if the banks can manage to engineer that miracle, there is still a cost to buyers who need to sell during the flat period: broker's commissions.

During the last period of flat to slowly declining prices in the early 90s, the most common lie realtors told their victims was that prices would rise 4% to 7% next year. The reason for this particular brand of bullshit is the need to convince a buyer that the commissions will be covered if they need to sell. What happens when prices don't go up?

You lose the amount of the resale commission….

Irvine Home Address … 18 DELAWARE Irvine, CA 92620

Resale Home Price … $799,000

Home Purchase Price … $805,000

Home Purchase Date …. 1/30/2008

Net Gain (Loss) ………. $(53,940)

Percent Change ………. -6.7%

Annual Appreciation … -0.3%

Cost of Ownership

————————————————-

$799,000 ………. Asking Price

$159,800 ………. 20% Down Conventional

4.74% …………… Mortgage Interest Rate

$639,200 ………. 30-Year Mortgage

$160,579 ………. Income Requirement

$3,331 ………. Monthly Mortgage Payment

$692 ………. Property Tax

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

$67 ………. Homeowners Insurance

$75 ………. Homeowners Association Fees

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

$4,165 ………. Monthly Cash Outlays

-$804 ………. Tax Savings (% of Interest and Property Tax)

-$806 ………. Equity Hidden in Payment

$288 ………. Lost Income to Down Payment (net of taxes)

$100 ………. Maintenance and Replacement Reserves

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

$2,942 ………. Monthly Cost of Ownership

Cash Acquisition Demands

——————————————————————————

$7,990 ………. Furnishing and Move In @1%

$7,990 ………. Closing Costs @1%

$6,392 ………… Interest Points @1% of Loan

$159,800 ………. Down Payment

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

$182,172 ………. Total Cash Costs

$45,000 ………… Emergency Cash Reserves

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

$227,172 ………. Total Savings Needed

Property Details for 18 DELAWARE Irvine, CA 92620

——————————————————————————

Beds: 4

Baths: 3 baths

Home size: 2,800 sq ft

($285 / sq ft)

Lot Size: 4,419 sq ft

Year Built: 1985

Days on Market: 66

Listing Updated: 40431

MLS Number: P745761

Property Type: Single Family, Residential

Community: Northwood

Tract: Cs

——————————————————————————

This gorgeously upgraded and expanded Courtside home, full of natural sunlight, has over $100,000 in recent upgrades: dazzling travertine floors, white plantation shutters, crown molding, recessed lighting, a gorgeously remodeled kitchen with golden topaz granite, tumbled stone backsplash and top-of-the-line Bosch appliances, and three FULL elegantly remodeled baths with a spa tub in the master. For an older parent or visiting guest there is a convenient bedroom and full bath downstairs. So much livable space! In addition to the spacious downtairs family room with wet bar, there is an additional big crafts/study room leading to the backyard, another family room upstairs with wood flooring, and an upstairs landing off the bedrooms which is suitable as a T.V. room. Vaulted ceilings and skylights allow maximum vibrant sunlight into the home. This beauty is located next to a greenbelt/walking path, with additional side privacy and frontal privacy with no houses facing it across the street!

Fannie Mae is providing incentive for REO brokers to sell to owner occupants. Will it stop the decline in home ownership rates?

Irvine Home Address … 417 East YALE Loop Irvine, CA 92614

Resale Home Price …… $629,000

Move right outta here baby. Go on pack your bags.

Just who do you think you are?

Stop acting like some kinda star.

Just who do you think you are?

Take it like a man baby if that's what you are.

M People — Moving On Up

The declining home ownership rate is a serious concern for government policymakers. Increasing home ownership has been a policy of the US Government since the 1920s. The precipitous decline in home ownership caused by the tsunami of foreclosures has government officials groping for policies to stabilize the trend.

One year of First Look: Fannie Mae sells 29,000 REOs to owner occupants

by JON PRIOR — Monday, September 20th, 2010

A year into its First Look program, Fannie Mae vendors have sold 29,000 REO properties to owner-occupants and 5,000 to public entities under the Neighborhood Stabilization Program.

Fannie launched First Look in August 2009 to allow both owner occupants and those using NSP grants to submit offers 15 days ahead of investors. Fannie extended it to 30 days in Nevada.

"While investors play an important role in the REO market, homebuyers who intend to occupy a home make an immediate and lasting commitment to the community and therefore merit priority consideration in the REO sales process," said Jay Ryan, vice president for alternative REO dispositions at Fannie Mae.

Roughly 70% of the 123,000 Fannie Mae REO sales in 2009 went to owner-occupants. Not all of those were sold through the First Look program.

More than 800 public entities using the more than $7 billion in NSP grants have made purchases through First Look. Ryan said these entities are also working to rehabilitate and stabilize neighborhoods.

The government can't seem to accept the fact that its policies over the last several years were a failure. They took good renters and made them into bad homeowners. People can either make consistent monthly payments or they can't. If they can't they shouldn't become homeowners. Years of experience has shown that about 64% home ownership rate is stable. The increase from 1994 to 2006 was largely due to subprime lending, and as it turns out, many of those people shouldn't have been given title to real estate.

Fannie Mae adds broker bonuses, downpayment aid to move REO

Fannie Mae will give REO agents and brokers who sell a previously foreclosed property to an owner-occupant a $1,500 bonus per sale.

The government-sponsored enterprise will also give qualified homebuyers 3.5% of the final sales price that can be used toward the closing cost, including home warranty. Eligible offers must be submitted on or after Sept. 23 and must close by Dec. 31, 2010. Fannie said the sale must close within 60 days of the accepted offer.

Terry Edwards, executive vice president of credit portfolio management at Fannie, said more than 87,000 families have purchased a Homepath property in the first half of 2010. Homepath is the in-house manager of the Fannie Mae foreclosures. It hires vendors and agents to rehabilitate the home and ready it for the market again.

"We continue to look for ways to stabilize neighborhoods and offer incentives to qualified buyers who will occupy these properties over the long-term and help support their communities," Edwards said.

Fannie Mae, Freddie Mac and many lenders have instituted a First Look program to give owner-occupants a head start ahead of investors to buy these previously foreclosed homes. In one year of the First Look program, Fannie has sold more than 29,000 REO to owner-occupants.

I think giving owner-occupants a first look at properties is a good thing. Families should not have to compete with investors for properties. I never liked that aspect of resale flipping (and yes, I do see trustee sale flipping as being different). I am troubled about giving brokers a financial incentive to push properties to owner-occupants. Shouldn't they try to get the best price? After all, we are paying for the losses as taxpayers. Do you want to subsidize an owner occupant when an investor was willing to pay more money for a property.

Like the many other government manipulations of the housing market, I really think they should just stay out. What great societal need are we serving here? If the home ownership rate drops to 61% from 69%, are we going to have riots and vandalism? Doesn't having a mobile society that is able to move to take a job also have value?

The way you're supposed to manage your mortgage (almost)

Every once in a while, I come across a property where the owners didn't abuse HELOCs. It's rare, but it does happen. Today, I thought I would feature one just to remind everyone what good financial management is about.

• This property was purchased on 4/29/1994 for $272,000. The owners used a $217,600 first mortgage and a 54,400 down payment.
• On 1/29/1998 they refinanced for $212,650.
• On 6/3/2002 they refinanced with a $187,700 first mortgage.
• On 10/22/2002 they refinanced with a $181,500 first mortgage.
• On 10/22/2003 they refinanced with a $165,000 first mortgage. That is ten years of declining mortgage balances.
• On 10/27/2004 they refinanced with a $206,900 first mortgage. An increase, but still less than their original mortgage.
• On 5/14/2010 they obtained a stand-alone second for $57,500 which was likely put into the property renovation prior to listing.

These owners owe a little over $260,000, so if they want to sell, they can lower their price to find a buyer. So far they have been lowering their price $10,000 a month, just as a patient seller would. Despite the ridiculous HOA fees, this house is priced close to rental parity with today's super low interest rates.

Irvine Home Address … 417 East YALE Loop Irvine, CA 92614

Resale Home Price … $629,000

Home Purchase Price … $272,000

Home Purchase Date …. 4/29/1994

Net Gain (Loss) ………. $319,260

Percent Change ………. 117.4%

Annual Appreciation … 5.1%

Cost of Ownership

————————————————-

$629,000 ………. Asking Price

$125,800 ………. 20% Down Conventional

4.31% …………… Mortgage Interest Rate

$503,200 ………. 30-Year Mortgage

$120,205 ………. Income Requirement

$2,493 ………. Monthly Mortgage Payment

$545 ………. Property Tax

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

$52 ………. Homeowners Insurance

$438 ………. Homeowners Association Fees

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

$3,529 ………. Monthly Cash Outlays

-$412 ………. Tax Savings (% of Interest and Property Tax)

-$686 ………. Equity Hidden in Payment

$196 ………. Lost Income to Down Payment (net of taxes)

$79 ………. Maintenance and Replacement Reserves

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

$2,706 ………. Monthly Cost of Ownership

Cash Acquisition Demands

——————————————————————————

$6,290 ………. Furnishing and Move In @1%

$6,290 ………. Closing Costs @1%

$5,032 ………… Interest Points @1% of Loan

$125,800 ………. Down Payment

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

$143,412 ………. Total Cash Costs

$41,400 ………… Emergency Cash Reserves

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

$184,812 ………. Total Savings Needed

Property Details for 417 East YALE Loop Irvine, CA 92614

——————————————————————————

Beds: 4

Baths: 3 baths

Home size: 2,400 sq ft

($262 / sq ft)

Lot Size: n/a

Year Built: 1985

Days on Market: 39

Listing Updated: 40443

MLS Number: S629750

Property Type: Condominium, Residential

Community: Woodbridge

Tract: Ge

——————————————————————————

Absolutely the Best Value in Woodbridge. 4 Bedrooms with One Bedroom and Full Bath Downstairs Now Used as Den. Beautiful Formal Living Room with Vaulted Ceilings. Fully Upgraded Gourmet, Eat In Kitchen with Cooktop on Center Island, Granite Counters & Full Backsplash, Quality Appliances and Remodeled Cabinets. Separate Breakfast Nook Opens to Oversized Family Room with Fireplace and French Doors to Beautifully Landscaped, Relaxing Patio with Fountain. Romantic Master Suite with Window Shutters, His and Her Closets, Soaring Ceilings, Large Bath with Tub and Separate Shower. Hardwood Floors Downstairs. Newer Double Paned Windows and Custom Window Blinds Throughout. Custom Paint Throughout. Newly Refinished Wood Floors Downstairs. 2 Skylights – Stairwell and Master Bath. A/C 5 Years New. Furniture Negotiable. Lifetime Roof. 2(Two)Fireplaces! Within Walking Distance to Parks, Closed to Stonecreek. Woodbridge Amenites Include Lagoons, Beach Clubs and Dozens of Parks.

Absolutely the Best Value in Woodbridge? Yeah, right.

Why is this description in title case? Why would anyone write in title case except to write a title or a headline. Personally, I find reaching for the shift key is a pain, and it slows up my typing. It must have taken forever to write that description. Do you think they wrote it in Microsoft Word then changed it to title case? I doubt is considering they misspelled Amenites.

I hope you have enjoyed this week, and thank you for reading the Irvine Housing Blog: astutely observing the Irvine home market and combating California Kool-Aid since 2006.

Have a great weekend,

Irvine Renter

It's another wishing price weekend. I hope you are enjoying your holiday.

Irvine Home Address … 11 MONTIA Irvine, CA 92620

Resale Home Price …… $1,888,888

IHB News

The flipping fund closes to new investment in two weeks. If you are thinking of investing, time grows short.

In related news, I am in negotiation with an established operator in Las Vegas to provide deal flow for cashflow properties. Once I know I can deliver these properties, I will be able to offer them to fund subscribers and IHB readers.

The IHB had tremendous traffic again this week. Several posts were picked up by Patrick.net, and Barry Ritholtz at the Big Picture linked to the IHB too. Our RSS feed climbed to over 4,000 this week as well.

My favorite cartoons of the week were the one above, and the one below from the Life of Brian series. My Photoshop skills are improving. I think the realtor logo blended into the hat well enough that it looks like it was part of the photo.

Housing Bubble News from Patrick.net

Fri Sep 3 2010

Does The MLS Lie about Existing House Prices? (zerohedge.com)

Housing Numbers – Are They Being Cooked? (market-ticker.org)

Why can't I make a fortune on these? (patrick.net)

Real estate investor files for bankruptcy (sanluisobispo.com)

Burglarized House? Oakland Police Want You to Know 'We're Not Coming' (legalblogwatch.typepad.com)

Serial Killer's Former California House Sells (blogs.wsj.com)

California economy destined for years of slow growth, declining house values (doctorhousingbubble.com)

What happens when your HOA becomes hostile? (sfgate.com)

Foreclosures soar in Mass. in July (boston.com)

Employed, but still stressed by joblessness (vcstar.com)

Housing Can Find a Home Without Fannie, Freddie (bloomberg.com)

The Upcoming Collapse of the Banking Cartel (irvinehousingblog.com)

Mortgage modification ends in foreclosure filing (signonsandiego.com)

How Obama Got Rolled by Wall Street (newsweek.com)

Bernanke Rejects Criticism Of Fed As Cause Of Financial Crisis (rttnews.com)

Rumors that China's central bank chief defected; $430 billion loss on U.S. Treasuries (au.ibtimes.com)

Ron Paul questions whether there's gold at Fort Knox, NY Fed (thehill.com)

Are We a Kleptocracy and What Does That Mean Anyway? (alternet.org)

3 Congressmen Under Investigation For Bribery In Financial Reform Vote (dailybail.com)

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---

Thu Sep 2 2010

For Case-Shiller Housing Prices, October Is The "Witching Hour" (businessinsider.com)

43.4% of Sacramento-area mortgages "underwater" (blogs.sacbee.com)

Houseowners feel stress of life 'underwater' (msnbc.msn.com)

US Housing Still In Uncertain Waters (indexuniverse.com)

A nation of renters: Houseownership not worth the cost? (articles.moneycentral.msn.com)

Renting could ease foreclosures, help housing market (thehill.com)

House Sales Drop 27 Percent In July And Things Are Only Going To Get Worse (english.pravda.ru)

Last Remaining Hopes Crushed, Homedebtors Defend House Ownership (irvinehousingblog.com)

Owners of Rumson mansion reduce price from $29.9M to $19.5M (app.com)

Housing bubble threatens to burst in six Canadian cities (sudburystar.com)

Vancouverites could lose $200,000 on average if housing bubble bursts (bivinteractive.com)

Does pricey Vancouver have a U.S.-like housing bubble? (blogs.marketwatch.com)

Housing bubble threat resurfaces in Canada (fftimes.com)

No talk of new homebuyer tax credit: Obama's housing adviser (reuters.com)

Why Obama's mortgage-relief program failed (sfweekly.com)

Drowning in debt: top 15 states for underwater mortgages (sfgate.com)

America's Biggest Jobs Program — the U.S. Military (robertreich.org)

How Much Is Enough? America's Runaway Military Spending (hnn.us)

Market Data Firm Spots the Tracks of Bizarre Robot Traders (theatlantic.com)

Final Resting Place, In Foreclosure (voices.washingtonpost.com)

Find cashflow-positive property easily. Free Trial

---

Wed Sep 1 2010

Use Caution Reading Tuesday's Case-Shiller Report (blogs.wsj.com)

Housing markets: Return of the boom? Not so fast. (economist.com)

Housing quagmire: Is it time to remove "relief"? (money.cnn.com)

Fewer interested in houseownership (signonsandiego.com)

Where's Housing Headed? (newsweek.com)

Fed sees 'quite soft' housing market (ocregister.com)

Economists See More House Price Declines Ahead (money.usnews.com)

San Diego condo gives back buyer deposits (signonsandiego.com)

The ocean view did not get $1 million better from 2001 to 2010 (doctorhousingbubble.com)

Optimistic Housing group gives four-year negative equity warning (bbc.co.uk)

Mortgage lending down amid warnings of second house price crash (telegraph.co.uk)

Bubble case-studies: Ireland and Canada (theautomaticearth.blogspot.com)

Why the "Hindenburg Omen" is Wrong (dailyfinance.com)

Wall Street Insiders Want Out, Selling $100 Million in Stock (cnbc.com)

Wall Street Early Early Bonuses Dodge Repeal Of Tax Cuts For The Richest (huffingtonpost.com)

Schaumburg man living in his driveway after eviction (dailyherald.com)

Find cashflow positive property easily. Free Trial

---

Tue Aug 31 2010

The answer to a housing recovery: LOWER PRICES (pragcap.com)

Fix the Housing Market: Let House Prices Fall (irvinehousingblog.com)

SF Bay Area Prices Keep Drifting Downward (patrick.net)

Desperate Consumers Stop Paying Mortgage to Pay Credit Cards (dailyfinance.com)

Reluctant landlords in metro Detroit rent to pay mortgages (freep.com)

Housing Market: What's Ahead? (curiouscapitalist.blogs.time.com)

Housing: The Un-American Dream (forbes.com)

Paying Off the House in 15 Years (online.wsj.com)

The Unbearable Lightness of the Bank Accounting Cover Up (dailybail.com)

Banks Recruit Investors to Oppose Honest Valuation of Assets (Mish)

To Overhaul GSEs, Divide Them into Three Parts (aei.org)

Corruption Reform: Reduce Government Housing Subsidies (nbnnews.com)

Asset Bubble Addicts Just Can't Shake the Habit (bloomberg.com)

Japanese vs American stock bubble crashes graph (dshort.com)

Rebuttal Of The "Bond Bubble" Talk (businessinsider.com)

REITs Attract Yield-Hungry Investors (businessweek.com)

Another Housing Tax Credit? (calculatedriskblog.com)

Ignore Talk of a Housing Tax Credit Revival (blogs.wsj.com)

Renters' Rights: The Basics (free book – nolo.com)

Ore. man pleads bankruptcy fraud, hiding gold (seattlepi.com)

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---

Mon Aug 30 2010

Widespread Fear Freezes Housing Market (nytimes.com)

Procrastination on Foreclosures, Now Blatant, May Backfire (americanbanker.com)

One in 10 houseowners with a mortgage face foreclosure (contracostatimes.com)

Mauis foreclosure picture not pretty (mauinews.com)

Iowa: Foreclosure rate hits record level (thonline.com)

Foreclosure "Relief": Good for Banks, Lousy for Borrowers (dailyfinance.com)

Banks' Self-Dealing Super-Charged Financial Crisis (propublica.org)

Housing's new nightmare (money.cnn.com)

Why Housing Is Even Worse Than You Think (money.usnews.com)

Architectural gems languish on Calif. house market (news.yahoo.com)

CA Central Valley awash in worthless houses (centralvalleybusinesstimes.com)

More SF Area Housing Bubble Value Wiped Away (pacificariptide.com)

Two Charts: All You Need To Know About Canada's Housing Bubble (vreaa.wordpress.com)

Email From "Morally Conflicted" One Year After Walking Away (Mish)

Fed Assets Decline to $2.3 Trillion as Housing Securities Fall (bloomberg.com)

Commercial real estate failures are easier to spot than residential woes (dallasnews.com)

Housing, job market fates tied (gainesvilletimes.com)

Devalued Houses Anchor Prospective Job Seekers (npr.org)

Flipper Cash Propping Up Housing Market (npr.org)

China's Hu Jintao Asks Obama about US debt (very rude – dailybail.com)

10% a year appreciation

When asked about the rate of appreciation they expect, new home buyers consistently say they believe they will get 10% annual appreciation. Since wages don't go up 10% per year, I don't know how that is supposed to occur, but that's what people believe.

Perhaps that particular form of innumeracy also applies to long-term home owners who live in Irvine….

Irvine Home Address … 11 MONTIA Irvine, CA 92620

Resale Home Price … $1,888,888

Home Purchase Price … $665,000

Home Purchase Date …. 9/28/1999

Net Gain (Loss) ………. $1,110,555

Percent Change ………. 167.0%

Annual Appreciation … 10.0%

Cost of Ownership

————————————————-

$1,888,888 ………. Asking Price

$377,778 ………. 20% Down Conventional

4.34% …………… Mortgage Interest Rate

$1,511,110 ………. 30-Year Mortgage

$362,262 ………. Income Requirement

$7,514 ………. Monthly Mortgage Payment

$1637 ………. Property Tax

$267 ………. Special Taxes and Levies (Mello Roos)

$157 ………. Homeowners Insurance

$400 ………. Homeowners Association Fees

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

$9,975 ………. Monthly Cash Outlays

-$1471 ………. Tax Savings (% of Interest and Property Tax)

-$2048 ………. Equity Hidden in Payment

$596 ………. Lost Income to Down Payment (net of taxes)

$236 ………. Maintenance and Replacement Reserves

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

$7,287 ………. Monthly Cost of Ownership

Cash Acquisition Demands

——————————————————————————

$18,889 ………. Furnishing and Move In @1%

$18,889 ………. Closing Costs @1%

$15,111 ………… Interest Points @1% of Loan

$377,778 ………. Down Payment

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

$430,666 ………. Total Cash Costs

$111,700 ………… Emergency Cash Reserves

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

$542,366 ………. Total Savings Needed

Property Details for 11 MONTIA Irvine, CA 92620

——————————————————————————

Beds: 5

Baths: 4 full 1 part baths

Home size: 4,200 sq ft

($450 / sq ft)

Lot Size: 11,000 sq ft

Year Built: 2000

Days on Market: 4

Listing Updated: 40422

MLS Number: S630687

Property Type: Single Family, Residential

Community: Northwood

Tract: Arbc

——————————————————————————

***MAGNIFICENT MINI-ESTATE IN AWARD WINNING ARBOR CREST***Gated and located near end of cul-de-sac, this recession proof and feng shui positive semi custom home has more upgrades than this software will allow. Features cathedral ceilings in living, dining and foyer, incredibly light and bright with maximum east facing sun exposure, upgraded marble flooring, granite counters, custom paint and backyard features custom built-in BBQ, spa and a gazebo with a huge grassy area. This home also features private access to the world famous Hicks Canyon Trail, site of the 2008 OC Marathon. Community amentites include Meadowood swimming facilties, Citrus Glen Tennis Center and NW Montessori Pre-School.

Recession Proof? Sometimes, Mike is really funny. How about those great amentites?

I have an extremely overpriced Turtle Rock home for you to giggle about this weekend.

Irvine Home Address … 4 SUNPEAK Irvine, CA 92603

Resale Home Price …… $2,745,000

One foot on the brake and one on the gas, hey!

Well, there's too much traffic, I can't pass, no!

So I tried my best illegal move

A big black and white come and crushed my groove again!

Go on and write me up for 125

Post my face, wanted dead or alive

Take my license n' all that jive

'cause I can't drive 55!

Sammy Hagar — I Can't Drive 55

IHB News

The flipping fund closes in 3 weeks. I reported two weeks ago that firm commitments were over $1,000,000. Now that number stands at $1,425,000. I still believe I will reach $2,000,000. There are still 19 Sophisticated investor spots available.

I had been falling behind in my library updates, so Zovall developed an automated system that keeps me up-to-date at all times. For those of you wanting to find a post in the archives, it is now much easier to locate what you are looking for.

Writer's Corner

I cleaned out my office at work this week. I am still doing hourly work and helping with business development, but I no longer go to an office every day. I don't know what my future will be with the land development industry. I enjoy design work, but over the last 3 years, I haven't done very much of it — and neither has anyone else. I am still seeing no green shoots in the homebuilding or development industry.

It's sad really. You spend your adult life gaining experience and increasing the depth and scope of your knowledge in a given profession, and suddenly that skill is no longer in demand. Perhaps if demand picks up, I may go back to that work, or at least do some hourly work on interesting projects. For now, I am focusing my energy on establishing a fund and creating a new professional life. I am not the only one in my industry that has been compelled to find other methods of making a living.

This new venture is very exciting. I am still mourning what may be the passing of my past career, but I am very excited about this new challenge. I feel like a sportscar that has been kept in the garage too long. In fact, last week I had a dream that I was driving a lime-green Lamborghini. I remember taking it out and fumbling with the gears and feeling a bit lost in a sea of gauges. I didn't get it up to top speed, but after a few minutes of driving, I felt like I was in control of the vehicle, and the power was exhilarating.

In my dreams, I have noticed that vehicles I drive are often symbolic of how I view my own life. I don't want to own a lime-green Lamborghini, but as a symbol of refined power with unique style, I can't think of a more appropriate automobile. If my subconscious views my new life this way, it stands in stark contrast to the sense of helplessness I felt at times during the recession. I guess part of me is more excited about the future than consciously I realize. I want to thank all the fund subscribers who have expressed their confidence in my ability to make this venture a success. I am looking forward to hitting top gear.

Housing Bubble News from Patrick.net

Fri Aug 27 2010

Pierce the Housing Bubble! (nytimes.com)

House Prices May Drop Another 25% (theatlantic.com)

Another Record Low for Housing (economix.blogs.nytimes.com)

Burning Down the House; New House Sales Consensus 330K, Actual 276K, Record Low (Mish)

Rosenberg Explains Why Not One New House Priced Over $750,000 Sold In July (zerohedge.com)

Housing market continues to decline (csmonitor.com)

Lack of Jobs, Foreclosures May Keep U.S. Housing Depressed (bloomberg.com)

New Foreclosure Numbers Reverse MBA Survey's "Bright Spots" (cnbc.com)

Experts Say Housing No Longer Builds Wealth (irvinehousingblog.com)

An unsupportable American dream (nationalpost.com)

The Housing Bubble: The Economists Should Have Known (newgeography.com)

After Housing Bubble, the Dark Side of Houseowner Dreams (time.com)

Treasury Admits Program for Struggling Houseowners Just a Ploy to Enrich Big Banks (alternet.org)

The Fed's Monetary Insanity (atimes.com)

Great Firewall of China Blocks Posting To Patrick.net (patrick.net)

Commercial Property Owners Choose to Default (online.wsj.com)

Living For Free: No Mortgage Payment In 32 Months And Not Kicked Out Yet (dailybail.com)

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---

Thu Aug 26 2010

July new house sales fall to slowest pace on record (sfgate.com)

New-House Sales Declined Sharply Last Month (nytimes.com)

Existing-House Sales Sink to Lowest Level Ever Recorded (irvinehousingblog.com)

Slightly lower prices and rates can't slow fall in house sales (finance.yahoo.com)

Why nobody wants to buy a house (marketwatch.com)

Are slow housing sales always a bad thing? Hell no! (blogs.forbes.com)

It's okay to walk away (finance.yahoo.com)

Inventory Explodes Past the Worst of the Housing Crash (housingstory.net)

House Sales: Distressing Gap between new and used (calculatedriskblog.com)

The Newest Rip-Off in Housing: Builder's resale fee, forever (market-ticker.org)

Fed's Evans Says U.S. Recovery Uncertain as Housing Not Out of the Woods (bloomberg.com)

Federal Reserve Can't Do Much More to Boost Job Growth, Economy (dailyfinance.com)

Hard-nosed Fed sends global markets reeling (telegraph.co.uk)

Why does a tiny Tel Aviv flat cost as much as a house in Florida? (haaretz.com)

Foreclosures on rise in Oregon (spotlightnews.net)

Home is where the hurt is in today's housing market (suntimes.com)

Congress got loans from Countrywide in exchange for corrupt lawmaking (washingtonpost.com)

Fannie Mae Eases Credit To Aid Mortgage Lending (From 1999 – nytimes.com)

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---

Wed Aug 25 2010

Overpriced-house Sales Plummet – Which Was The Statistical Blip? (bayarearealestatetrends.com)

Existing overpriced-house Sales Plunge 27%, Worse than Every Economist Forecast (Mish)

Overpriced-house sales plunge 27 pct. to lowest in 15 years (sfgate.com)

Overpriced-house Sales at Lowest Level in More Than a Decade (nytimes.com)

Houses will still sell, but only at LOWER PRICES (poughkeepsiejournal.com)

Frightened Sellers Who Missed the Market Lower Prices in a Panic (irvinehousingblog.com)

Will Growing Rental Trends Undermine US Overpriced-house Sales? (realestatechannel.com)

The Renting Alternative Will Undermine Housing Bubble For Years (businessinsider.com)

Double-dip in housing prices may be around the corner (money.cnn.com)

Mortgage Fraud Is Rising, With a Twist (finance.yahoo.com)

Woman Wall Street Hates Most Is Suited for Job (bloomberg.com)

Economists blew the bubble (bostonherald.com)

Judges Taking Tougher Line on Bank Bailouts (blogs.nytimes.com)

The other trillion dollar bailout (mybudget360.com)

How To Be Homeless In America (patrick.net)

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---

Tue Aug 24 2010

Let the Housing Market Normalize! (paul.house.gov)

How houseownership fetish hurt American dream (washingtonpost.com)

15 Signs US Housing Market Headed For Complete And Total Collapse (businessinsider.com)

Housing Fades as a Means to Build Wealth (nytimes.com)

Housing Is No Longer An Attractive Investment, Now What? (theatlantic.com)

Now they tell us experts say housing is a lousy investment and always will be (finance.yahoo.com)

The Shills Are Still Shilling Housing (market-ticker.org)

The Ones That Gave & Took Away Your Equity (blog.youwalkaway.com)

House sales collapse in the Triangle (newsobserver.com)

Even high-end properties can't escape foreclosure wave in Palm Beach County (palmbeachpost.com)

Happy 5th Birthday Housing Crash! (bayarearealestatetrends.com)

Housing Slide in US Threatens to Drag Economy Into Recession (bloomberg.com)

Housing already in double-dip (cnbc.com)

Housing inflation ramped up starting in the 1990s (doctorhousingbubble.com)

Australia's real estate bubble (ibtimes.com)

Debt's Deadly Grip (nytimes.com)

House resale fees: latest rip-off (money.cnn.com)

Foreclosure process doesn't stop during short sales (rgj.com)

Brokers See a Rise in Clients' Hostility (nytimes.com)

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---

Mon Aug 23 2010

One Couple's New American Dream: Rent, Don't Buy (npr.org)

Seven Reasons Why You Shouldn't Buy a House (dailyfinance.com)

N. Calif house sales drop 23 percent in July (sfgate.com)

SF Bay Area and Calif. continue to lose jobs in July (contracostatimes.com)

Big California Earthquake May Come Sooner Than Expected (aolnews.com)

Texas actually not immune from housing crash (Mish)

Mansion squatters return in a big way (seattletimes.nwsource.com)

Housing Double Dip Is Not Just Tax Credit Hangover (cnbc.com)

Your House Might Be Underwater for Years (bloomberg.com)

Housing affordability through LOWER PRICES not even considered by govt (theautomaticearth)

Ireland to make house sale prices public by law (Irish with subtitles – tg4.ie)

Government Robs Working Renters to Subsidize Unemployed Homedebtors (irvinehousingblog.com)

Banks want federal guarantee of mortgage profits (contracostatimes.com)

How Pimco Is Holding the American Houseowner Hostage (minyanville.com)

Treasury yields fall to 17-month lows amid economic woes (money.cnn.com)

Interest rates 'may hit 8pc' in two years (telegraph.co.uk)

Commercial Real Estate Price Index declines 4% in June (calculatedriskblog.com)

Rising pay, benefits drive growth in military towns (usatoday.com)

"National Security Letter" Makes You Disappear (sott.net)

'John Doe' Who Fought FBI Spying Freed From National Security Letter After 6 Years (wired.com)

Irvine Home Address … 4 SUNPEAK Irvine, CA 92603

Resale Home Price … $2,745,000

Home Purchase Price … $1,679,000

Home Purchase Date …. 1/2/2008

Net Gain (Loss) ………. $901,300

Percent Change ………. 53.7%

Annual Appreciation … 18.3%

Cost of Ownership

————————————————-

$2,745,000 ………. Asking Price

$549,000 ………. 20% Down Conventional

4.50% …………… Mortgage Interest Rate

$2,196,000 ………. 30-Year Mortgage

$536,471 ………. Income Requirement

$11,127 ………. Monthly Mortgage Payment

$2379 ………. Property Tax

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

$229 ………. Homeowners Insurance

$269 ………. Homeowners Association Fees

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

$14,004 ………. Monthly Cash Outlays

-$1716 ………. Tax Savings (% of Interest and Property Tax)

-$2892 ………. Equity Hidden in Payment

$915 ………. Lost Income to Down Payment (net of taxes)

$343 ………. Maintenance and Replacement Reserves

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

$10,654 ………. Monthly Cost of Ownership

Cash Acquisition Demands

——————————————————————————

$27,450 ………. Furnishing and Move In @1%

$27,450 ………. Closing Costs @1%

$21,960 ………… Interest Points @1% of Loan

$549,000 ………. Down Payment

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

$625,860 ………. Total Cash Costs

$163,300 ………… Emergency Cash Reserves

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

$789,160 ………. Total Savings Needed

Property Details for 4 SUNPEAK Irvine, CA 92603

——————————————————————————

Beds: 5

Baths: 4 full 1 part baths

Home size: 4,782 sq ft

($574 / sq ft)

Lot Size: 8,000 sq ft

Year Built: 1996

Days on Market: 70

Listing Updated: 40416

MLS Number: S621933

Property Type: Single Family, Residential

Community: Turtle Rock

Tract: Cust

——————————————————————————

HUGE PRICE DROP. Live at the pinnacle in the hills of Turtle Rock. Beautiful custom home, tastefully remodeled in the last 3 years. On a coveted street where homes rarely come of the market, this jewel estate enjoys panoramic views of rolling hills of Shady Canyon by day & twinkling city lights by night. Classic exterior architecture is complemented with elegant interiors. The one of a kind floorplan is ideal for multi-generational living and provides flexibility with 3 potential master suites, including one downstairs! The grand entry foyer greets you w/a sweeping staircase, 2 story high ceilings adjoining to the immpresive formal great room. Entertain in the huge family room which includes an oversized built-in bar w/granite counters and seating for 6, walk in wine closet, built-in entertainment center, even room for a game table! A chef's dream kitchen has it all & includes 2 islands. Dine in the sunny nook or intimate dining room. Ideal dwnstrs home office/den. Even 4 fireplaces!

immpresive?

HUGE PRICE DROP? LOL! This property is at least a $1,000,000 overpriced. It desperately needs a huge price drop.