Irvine Housing Blog

Second Home Communities Are Ravaged by Foreclosures

Properties in second-home communities are falling into foreclosure at high rates. Unlike Irvine where a substitute buyer may be active in the market, second-home markets cannot be supported by the local population making a fraction of the money the original owners make.  

Irvine Home Address ... 12 HARTFORD Irvine, CA 92604
Resale Home Price ...... $299,000

There are 3,600+ Distressed Properties in Irvine

Many are celebrating the end of the real estate bust. But what about all those delinquent borrowers? Isn't that still a problem? 

Irvine Home Address ... 19 BENNINGTON Irvine, CA 92620
Resale Home Price ...... $632,400

The California Legislature Moves to Slow Foreclosure Process Again

There are a number of housing bills moving through the California State legislature. Their effect if passed will be to further delay the foreclosure process. 

Irvine Home Address ... 20 ROSE TRELLIS Irvine, CA 92603
Resale Home Price ...... $1,250,000

Can the GSEs Exist Outside of Government Conservatorship?

The GSEs were government entities for years, then the government attempted to take them private and deny taxpayers were on the hook for a collapse. Now that we know that illusion was a fantasy, are we going to try to spin the same yarn? 

Irvine Home Address ... 8 CALICO Irvine, CA 92614
Resale Home Price ...... $699,000

Safe Haven Buying: Kool Aid Intoxication of the Housing Bust

High-end squatters are starting to be pushed from their houses. Will the added inventory bring down high-end prices, or will the high end be a safe haven? 

Irvine Home Address ... 65 GRANDVIEW Irvine, CA 92603
Resale Home Price ...... $2,799,000

Preventing the Next Housing Bubble - Part 2

Regulatory Solutions

The regulatory solution proposed herein is simple, yet far reaching. It comes in two parts, the first is to limit the amount lenders can loan to borrowers with a rather unique enforcement mechanism, and the second is to increase the penalties for borrowers who commit mortgage fraud. The following is not in legalese, but it contains the conceptual framework of potential legislation that could be enacted on the state and/or federal level. A detailed discussion of the text follows:

Loans for the purchase or refinance of residential real estate secured by a mortgage and recorded in the public record are limited by the following parameters based on the borrower’s documented income and general indebtedness and the appraised value of the property at the time of sale or refinance:

1. 1.       All payments must be calculated based on a 30-year fixed-rate conventionally-amortizing mortgage regardless of the loan program used. Negative amortization is not permitted.
2. 2.       The total debt-to-income ratio for the mortgage loan payment, taxes and insurance cannot exceed 28% of a borrower’s gross income.
3. 3.       The total debt-to-income of all debt obligations cannot exceed 36% of a borrower’s gross income.
4. 4.       The combined-loan-to-value of mortgage indebtedness cannot exceed 90% of the appraised value of the property or the purchase price, whichever value is smaller except in specially sanctioned government programs.

Any sums loaned in excess of these parameters do not need to be repaid by the borrower and no contractual provision is permitted that can be interpreted as limiting the borrower’s right to exercise this right, make the loan callable or otherwise abridge the mortgage agreement.

IHB News 6-5-2010

I have scheduled a party night at JT Schmids for Wednesday 16 June 2010 at 6:30 - 9:00. You are invited. I hope to see you there.

Irvine Home Address ... 208 GUINEVERE Irvine, CA 92620
Resale Home Price ...... $469,000