$595k was, in most cases, just the loan balance (primary mortgage). And, there was no independent party competing above this balance.
The listing is just a starting point for the bank to unload the REO.
A knife catcher probably can get this one near the auctioned price this selling season. By this winter, if it still sits in the market, then $500k-$550k can steal it.
Posted by NoWowway on 07/08/08 at 04:04 AM
Today’s listing agent has been invited to participate in discussions:
http://www.viewpointreo.com/
Posted by George8 on 07/08/08 at 05:01 AM
This home was sold for $300k in 1997 the previous low cycle. Following are the projected prices in the next low cycle in 2010 with 3%, 4%, and 5% compounded from 1997:
3%: $440,560
4%: $499,522
5%: $565,695
So, which is it going to be in 2010?
Posted by Larrygg on 07/08/08 at 05:38 AM
Prices are starting to settle down to the acceptable levels but still have a ways to go. At $700K selling price, even if you put down $200K the monthly payments are still way out of reach for most people. Then you add the fact that the economy is in the toilet and may be there through next year and most properties will sit. A few may be bought but the majority will just sit. And we haven’t even begun to comtemplate interest rates rising but that will most likely be the case in a year or two. 30 year mortgages will be up to 7 and 8 percent and that will force house prices even lower.
Chairman Ben S. Bernanke
At the Federal Deposit Insurance Corporation’s Forum on Mortgage Lending for Low and Moderate Income Households, Arlington, Virginia
July 8, 2008
excerpt on mortgage lending:
“The recent experience, including the broader turmoil we have seen in the financial markets, will have—indeed, is already having—important consequences for U.S. regulatory policy. First, regulators are taking action to strengthen consumer protections. Next week, the Federal Reserve Board will issue new rules on mortgage lending, using its authorities under the Home Ownership and Equity Protection Act. These new rules, which will apply to all lenders and not just banks, will address some of the problems that have surfaced in recent years in mortgage lending, especially high-cost mortgage lending. We received many helpful comments on our proposal and we incorporated a number of them into the final rules. In another effort to protect consumers, the Board has also recently issued proposals to substantially improve credit card disclosures and to address a number of unfair or deceptive acts and practices in credit card lending.“
Here’s hoping his new lending constraints are as close as possible to IR’s recommendations in his book.
Posted by beentheredonethat on 07/08/08 at 06:08 AM
Not really a deal when you consider that this place probably needs $400k of work.
Posted by beentheredonethat on 07/08/08 at 06:10 AM
PS- Can someone explain the price history? Why the low sale of 6/08?
Posted by msv on 07/08/08 at 06:23 AM
That’s when it went back to the bank.
Posted by AZDavidPhx on 07/08/08 at 06:28 AM
Racquel is pretty attractive.
She should have no trouble getting back in to bartending.
Posted by dada on 07/08/08 at 06:34 AM
“Racquel is pretty attractive. “
Valtrex all the way baby!
Posted by NanoWest on 07/08/08 at 07:47 AM
George8,
I know that this is not a very popular point of view…..but most likely housing values will not keep up with inflation for a long long time. If the credit markets do not get major relief from the U.S./World governments, there will be little money for mortgages for a long, long time. Soon we will see mortgage rates go up to a level that is commensurate with the risks involved.
There is a good chance as any that the homes in Irvine will be selling for 1998 prices in absolute dollars.
Posted by Laura Louzader on 07/08/08 at 07:47 AM
The place is old by Irvine standards, and is also fugly and weird.
If what I see of your selling prices is any guide, $200 sq ft max for this dump.
Posted by No_Such_Reality on 07/08/08 at 07:57 AM
This place went to foreclosure correct? So that $595K price was someone paying cash on the courthouse steps?
I think that is the more interesting story. If they aren’t their own firm, they’re gambling $600,000 to make $60,000.
That’s with no work done on it. IF they are their own brokers than a 3% comp and they’ve got $80,000 of bandwidth to sell, fix etc.
No holding costs if they didn’t refinance, other than HOA, insurance, taxes.
Posted by Matt on 07/08/08 at 08:21 AM
Not necessarily…that $595 could have been the bank buying it back at auction, though that is often for the balance of the loan, which only has a 1/1000 chance of being divisible by 1000.
But, this whole property is odd. These entertainers put in a wet bar, nice hardwood floors, and left that kitchen UNTOUCHED? Who had the bright idea of putting a mirrored closet door RIGHT NEXT TO the glass door to the patio (pic 11)? Yeah, glare won’t be a problem there.
Posted by Agent#777 on 07/08/08 at 08:23 AM
Hey, thanks for the link to one of the most annoying web pages I have been on in a while! Did you catch that “search” page? It had perhaps one third of the frame as that page, and the rest was just some annoying message.
Posted by LC on 07/08/08 at 08:51 AM
This price almost seems reasonable, until you realize that the same is going for $575k next door in Lake Forest, and brand new in Ladera Ranch. Throw away $125k as a knife catcher…that is gonna hurt. Whoever is looking for a bargain is going to be looking in Lake Forest too.
Posted by AZDavidPhx on 07/08/08 at 08:59 AM
Very possible when a great deal of the Irvine fancy-pants real-estate, mortgage broker, etc jobs go away.
Median income could decline back to 2000 levels.
Posted by Blueberry Pie on 07/08/08 at 09:08 AM
Yes, Living Colour!
“Burnin” Vernon Reid rules!
Posted by Blueberry Pie on 07/08/08 at 09:13 AM
BTW, I saw a ReMax ad on TV last night. They said now is a great time to buy. So I’m gonna make the plunge. They wouldn’t lie.
Posted by shiny on 07/08/08 at 09:26 AM
ipop told me this place would be a steal at 800K so it should fly off the shelf at 699K. Gonna be in escrow tomorrow, for sure.
Posted by dada on 07/08/08 at 09:32 AM
“ipop told me this place would be a steal at 800K so it should fly off the shelf at 699K. Gonna be in escrow tomorrow, for sure. “
HAHAHAHAHAH ROFL! I think IPOOP is already the latest knife catcher.
Posted by tea on 07/08/08 at 09:51 AM
This house looks like crap to me. I bet it was a one story house before.
Posted by freedomCM on 07/08/08 at 10:35 AM
OMG, what a dumpy bad addition they did in 1975!
that huge second story overpowering the garage face (and no windows on the garage either?) is fugly!
and they haven’t done anything to the interior since the 1975 addition!
i predict that it will sit, and sit, and sit, and finally sell for $300k again. but the purchaser will need to do $100k in updating after that.
Posted by anybear on 07/08/08 at 10:48 AM
Tea and Laura are right. This place is beyond ugly and weird. ‘Perfect for entertaining.‘ Yeah, for a 70s party!
Posted by furious sugar on 07/08/08 at 11:12 AM
Fugly, yes…. but this is the first listing at $270 sq ft I’ve seen that was in OK condition. This breaks thru the $300 barrier in a big way.
Posted by No_Such_Reality on 07/08/08 at 11:44 AM
I think the new census numbers come out late August.
Posted by TurtleRidgeRenter on 07/08/08 at 12:19 PM
This house makes me sad. But the pool would be great for skateboarding!
Posted by Party Pooper on 07/08/08 at 12:41 PM
I thought he bought a while ago & was too embarrassed to admit it.
Posted by Not a big fool yet on 07/08/08 at 01:07 PM
And look what you can get in Corona for $508k. Grant it you will pay the difference in price for cooling but it is not too bad in the winter and spring…Do you think we will ever see prices for properties like this in Irvine?
I don’t think it’ll get THAT low. $133/sqft is lower than Irvine will get. I mean, I’m not the biggest Irvine booster (honestly, I don’t think more of Irvine than most places not on the coast in OC), but compared to IE? Given gas prices and everything that OC has that IE doesn’t (like weather), I just can’t see prices getting THAT bad.
Posted by Kirk on 07/08/08 at 02:28 PM
That would be nice, but I doubt it is going to happen. I had thought we’d see 2002 prices in absolute dollars, but I see that Lancaster and downtown San Diego are already flirting with 2001 prices. So, perhaps I’m not bearish enough.
If Fannie Mae and Freddie Mac fail then I’d buy into 1998 prices. Their failure is not an outlandish scenario.
Posted by NewToOC on 07/08/08 at 03:27 PM
All the comments about the house making me sad inspired me to look at the pics in detail and I agree. Reminds me of crime scene pictures from TV. What a great contrast to the fabulous pics of IPO’s house IR2 took/posted on the forum thread.
Posted by Forbear on 07/08/08 at 05:39 PM
I’m all over it at $269,900.00
Posted by Trooper on 07/08/08 at 05:41 PM
He just put his home on the market.
Posted by Jack Dawson on 07/08/08 at 06:24 PM
Nice big house.
Posted by orangeman on 07/08/08 at 06:56 PM
Nice home, but still too high. headed below $100/sq ft. Don’t know how low Irvine will go - however likely to go lower than anyone thinks. Don’t get fixed on price per sq.ft. At the bottom - price per sq.ft. won’t be linear. The larger the home the less it will sell per sq.ft.
Also don’t get fixed on $160 times current rent.
If we have a severe recession, rents will fall.
Posted by James on 07/08/08 at 07:24 PM
Thats funny you say that. Im from NorCal, and now living in the OC. Im amazed that so many hot women down here have herpies.
Be careful out there, when you meet a “hot” chick, always check their pocket book or medicine cabinet for Valtrex. No wonder they play that commerical so much on tv down here.
Posted by dick on 07/08/08 at 07:45 PM
“If we have a severe recession, rents will fall. “
We’re already in a severe recession. When BOTH housing, and autos are in the shitter, I dont care what the gobbermint says, we’re in a recession!
BTW, my rent has drop AGAIN this year. Renewal notice last week, minus(-$127) off per month to sign another 12 month lease. Hell yeah!
Posted by dick on 07/08/08 at 09:20 PM
Note to all those potential buyers out there for Ipop’s crib:
Remember: It’s YOUR JOB to INSULT the seller with a LOW BALL offer !
I put my place into escrow after 5 days on the market… I’ve been in a rental like my boy Shineola for a few weeks now. I’m gonna learn what’s it like to write that check for $3K every month Shiny with no tax deduction coming.
Sadly, we only had one lowball offer and they quickly increased by $50K when we told them we would not be countering.
Posted by Chris on 07/08/08 at 10:21 PM
*cough* *cough* Shill *cough* *cough*
Posted by George8 on 07/09/08 at 03:18 AM
ipo:
Congrats on the escrow. What are you going to do next? Going to Disney Land?
Did I miss your story somewhere? Have you purchased your dream house?
Check out the forums George, you can read all about it there…
Posted by Dave on 07/09/08 at 09:39 AM
I have been insisting this for the last 8 months, simply because 1998 is about the last year house prices had any shred of reasonability.
I’ll be a first time buyer, at this rate probably after I turn 50. At 1998 prices, I’ll be buying in cash. Feels good. Renting is still a great deal until then.
Actually, I want even more. I want the *sellers* to write me a personal letter explaining why I am the right person to purchase their home. How they feel I will be the most suitable owner. Stranger things have happened.
Posted by Major Schadenfreude on 07/09/08 at 02:45 PM
I’m afraid the “seller” will be a bank and they aint gonna be writing letters then. However, they will be on their knees asking for your cash!
Posted by Laura Louzader on 07/09/08 at 03:08 PM
Your landlord REALLY dropped your rent?
I must tell my Chicago landlord all about it. I never heard of a landlord in this city ever, ever dropping rent. I thought I’d scored a real victory when I got him to not to hike it last year.
But I didn’t escape a hike this year.
Posted by r€nato on 07/13/08 at 11:27 AM
they didn’t tell you for whom it would be a great time to buy, did they?
It’s always a great time to buy… if you’re the guy who makes 6% stupid money on the transaction.
Posted by George8 on 07/08/08 at 08:25 AM
$595k was, in most cases, just the loan balance (primary mortgage). And, there was no independent party competing above this balance.
The listing is just a starting point for the bank to unload the REO.
A knife catcher probably can get this one near the auctioned price this selling season. By this winter, if it still sits in the market, then $500k-$550k can steal it.
Posted by NoWowway on 07/08/08 at 04:04 AM
Today’s listing agent has been invited to participate in discussions:
http://www.viewpointreo.com/
Posted by George8 on 07/08/08 at 05:01 AM
This home was sold for $300k in 1997 the previous low cycle. Following are the projected prices in the next low cycle in 2010 with 3%, 4%, and 5% compounded from 1997:
3%: $440,560
4%: $499,522
5%: $565,695
So, which is it going to be in 2010?
Posted by Larrygg on 07/08/08 at 05:38 AM
Prices are starting to settle down to the acceptable levels but still have a ways to go. At $700K selling price, even if you put down $200K the monthly payments are still way out of reach for most people. Then you add the fact that the economy is in the toilet and may be there through next year and most properties will sit. A few may be bought but the majority will just sit. And we haven’t even begun to comtemplate interest rates rising but that will most likely be the case in a year or two. 30 year mortgages will be up to 7 and 8 percent and that will force house prices even lower.
Posted by cara on 07/08/08 at 05:52 AM
Bernanke’s latest speech
Chairman Ben S. Bernanke
At the Federal Deposit Insurance Corporation’s Forum on Mortgage Lending for Low and Moderate Income Households, Arlington, Virginia
July 8, 2008
excerpt on mortgage lending:
“The recent experience, including the broader turmoil we have seen in the financial markets, will have—indeed, is already having—important consequences for U.S. regulatory policy. First, regulators are taking action to strengthen consumer protections. Next week, the Federal Reserve Board will issue new rules on mortgage lending, using its authorities under the Home Ownership and Equity Protection Act. These new rules, which will apply to all lenders and not just banks, will address some of the problems that have surfaced in recent years in mortgage lending, especially high-cost mortgage lending. We received many helpful comments on our proposal and we incorporated a number of them into the final rules. In another effort to protect consumers, the Board has also recently issued proposals to substantially improve credit card disclosures and to address a number of unfair or deceptive acts and practices in credit card lending.“
Here’s hoping his new lending constraints are as close as possible to IR’s recommendations in his book.
Posted by beentheredonethat on 07/08/08 at 06:08 AM
Not really a deal when you consider that this place probably needs $400k of work.
Posted by beentheredonethat on 07/08/08 at 06:10 AM
PS- Can someone explain the price history? Why the low sale of 6/08?
Posted by msv on 07/08/08 at 06:23 AM
That’s when it went back to the bank.
Posted by AZDavidPhx on 07/08/08 at 06:28 AM
Racquel is pretty attractive.
She should have no trouble getting back in to bartending.
Posted by dada on 07/08/08 at 06:34 AM
“Racquel is pretty attractive. “
Valtrex all the way baby!
Posted by NanoWest on 07/08/08 at 07:47 AM
George8,
I know that this is not a very popular point of view…..but most likely housing values will not keep up with inflation for a long long time. If the credit markets do not get major relief from the U.S./World governments, there will be little money for mortgages for a long, long time. Soon we will see mortgage rates go up to a level that is commensurate with the risks involved.
There is a good chance as any that the homes in Irvine will be selling for 1998 prices in absolute dollars.
Posted by Laura Louzader on 07/08/08 at 07:47 AM
The place is old by Irvine standards, and is also fugly and weird.
If what I see of your selling prices is any guide, $200 sq ft max for this dump.
Posted by No_Such_Reality on 07/08/08 at 07:57 AM
This place went to foreclosure correct? So that $595K price was someone paying cash on the courthouse steps?
I think that is the more interesting story. If they aren’t their own firm, they’re gambling $600,000 to make $60,000.
That’s with no work done on it. IF they are their own brokers than a 3% comp and they’ve got $80,000 of bandwidth to sell, fix etc.
No holding costs if they didn’t refinance, other than HOA, insurance, taxes.
Posted by Matt on 07/08/08 at 08:21 AM
Not necessarily…that $595 could have been the bank buying it back at auction, though that is often for the balance of the loan, which only has a 1/1000 chance of being divisible by 1000.
But, this whole property is odd. These entertainers put in a wet bar, nice hardwood floors, and left that kitchen UNTOUCHED? Who had the bright idea of putting a mirrored closet door RIGHT NEXT TO the glass door to the patio (pic 11)? Yeah, glare won’t be a problem there.
Posted by Agent#777 on 07/08/08 at 08:23 AM
Hey, thanks for the link to one of the most annoying web pages I have been on in a while! Did you catch that “search” page? It had perhaps one third of the frame as that page, and the rest was just some annoying message.
Posted by LC on 07/08/08 at 08:51 AM
This price almost seems reasonable, until you realize that the same is going for $575k next door in Lake Forest, and brand new in Ladera Ranch. Throw away $125k as a knife catcher…that is gonna hurt. Whoever is looking for a bargain is going to be looking in Lake Forest too.
Posted by AZDavidPhx on 07/08/08 at 08:59 AM
Very possible when a great deal of the Irvine fancy-pants real-estate, mortgage broker, etc jobs go away.
Median income could decline back to 2000 levels.
Posted by Blueberry Pie on 07/08/08 at 09:08 AM
Yes, Living Colour!
“Burnin” Vernon Reid rules!
Posted by Blueberry Pie on 07/08/08 at 09:13 AM
BTW, I saw a ReMax ad on TV last night. They said now is a great time to buy. So I’m gonna make the plunge. They wouldn’t lie.
Posted by shiny on 07/08/08 at 09:26 AM
ipop told me this place would be a steal at 800K so it should fly off the shelf at 699K. Gonna be in escrow tomorrow, for sure.
Posted by dada on 07/08/08 at 09:32 AM
“ipop told me this place would be a steal at 800K so it should fly off the shelf at 699K. Gonna be in escrow tomorrow, for sure. “
HAHAHAHAHAH ROFL! I think IPOOP is already the latest knife catcher.
Posted by tea on 07/08/08 at 09:51 AM
This house looks like crap to me. I bet it was a one story house before.
Posted by freedomCM on 07/08/08 at 10:35 AM
OMG, what a dumpy bad addition they did in 1975!
that huge second story overpowering the garage face (and no windows on the garage either?) is fugly!
and they haven’t done anything to the interior since the 1975 addition!
i predict that it will sit, and sit, and sit, and finally sell for $300k again. but the purchaser will need to do $100k in updating after that.
Posted by anybear on 07/08/08 at 10:48 AM
Tea and Laura are right. This place is beyond ugly and weird. ‘Perfect for entertaining.‘ Yeah, for a 70s party!
Posted by furious sugar on 07/08/08 at 11:12 AM
Fugly, yes…. but this is the first listing at $270 sq ft I’ve seen that was in OK condition. This breaks thru the $300 barrier in a big way.
Posted by No_Such_Reality on 07/08/08 at 11:44 AM
I think the new census numbers come out late August.
Posted by TurtleRidgeRenter on 07/08/08 at 12:19 PM
This house makes me sad. But the pool would be great for skateboarding!
Posted by Party Pooper on 07/08/08 at 12:41 PM
I thought he bought a while ago & was too embarrassed to admit it.
Posted by Not a big fool yet on 07/08/08 at 01:07 PM
And look what you can get in Corona for $508k. Grant it you will pay the difference in price for cooling but it is not too bad in the winter and spring…Do you think we will ever see prices for properties like this in Irvine?
http://www.redfin.com/CA/Corona/2096-Peony-St-92882/home/12270407?utm_source=myredfin&utm_medium=email&utm_campaign=email_this_listing&utm_nooverride=1
Posted by Matt on 07/08/08 at 01:20 PM
I don’t think it’ll get THAT low. $133/sqft is lower than Irvine will get. I mean, I’m not the biggest Irvine booster (honestly, I don’t think more of Irvine than most places not on the coast in OC), but compared to IE? Given gas prices and everything that OC has that IE doesn’t (like weather), I just can’t see prices getting THAT bad.
Posted by Kirk on 07/08/08 at 02:28 PM
That would be nice, but I doubt it is going to happen. I had thought we’d see 2002 prices in absolute dollars, but I see that Lancaster and downtown San Diego are already flirting with 2001 prices. So, perhaps I’m not bearish enough.
If Fannie Mae and Freddie Mac fail then I’d buy into 1998 prices. Their failure is not an outlandish scenario.
Posted by NewToOC on 07/08/08 at 03:27 PM
All the comments about the house making me sad inspired me to look at the pics in detail and I agree. Reminds me of crime scene pictures from TV. What a great contrast to the fabulous pics of IPO’s house IR2 took/posted on the forum thread.
Posted by Forbear on 07/08/08 at 05:39 PM
I’m all over it at $269,900.00
Posted by Trooper on 07/08/08 at 05:41 PM
He just put his home on the market.
Posted by Jack Dawson on 07/08/08 at 06:24 PM
Nice big house.
Posted by orangeman on 07/08/08 at 06:56 PM
Nice home, but still too high. headed below $100/sq ft. Don’t know how low Irvine will go - however likely to go lower than anyone thinks. Don’t get fixed on price per sq.ft. At the bottom - price per sq.ft. won’t be linear. The larger the home the less it will sell per sq.ft.
Also don’t get fixed on $160 times current rent.
If we have a severe recession, rents will fall.
Posted by James on 07/08/08 at 07:24 PM
Thats funny you say that. Im from NorCal, and now living in the OC. Im amazed that so many hot women down here have herpies.
Be careful out there, when you meet a “hot” chick, always check their pocket book or medicine cabinet for Valtrex. No wonder they play that commerical so much on tv down here.
Posted by dick on 07/08/08 at 07:45 PM
“If we have a severe recession, rents will fall. “
We’re already in a severe recession. When BOTH housing, and autos are in the shitter, I dont care what the gobbermint says, we’re in a recession!
BTW, my rent has drop AGAIN this year. Renewal notice last week, minus(-$127) off per month to sign another 12 month lease. Hell yeah!
Posted by dick on 07/08/08 at 09:20 PM
Note to all those potential buyers out there for Ipop’s crib:
Remember: It’s YOUR JOB to INSULT the seller with a LOW BALL offer !
Take it, or leave it.
Nuff said.
Posted by ipoplaya on 07/08/08 at 09:56 PM
I put my place into escrow after 5 days on the market… I’ve been in a rental like my boy Shineola for a few weeks now. I’m gonna learn what’s it like to write that check for $3K every month Shiny with no tax deduction coming.
Sadly, we only had one lowball offer and they quickly increased by $50K when we told them we would not be countering.
Posted by Chris on 07/08/08 at 10:21 PM
*cough* *cough* Shill *cough* *cough*
Posted by George8 on 07/09/08 at 03:18 AM
ipo:
Congrats on the escrow. What are you going to do next? Going to Disney Land?
Did I miss your story somewhere? Have you purchased your dream house?
Posted by ipoplaya on 07/09/08 at 09:00 AM
Check out the forums George, you can read all about it there…
Posted by Dave on 07/09/08 at 09:39 AM
I have been insisting this for the last 8 months, simply because 1998 is about the last year house prices had any shred of reasonability.
I’ll be a first time buyer, at this rate probably after I turn 50. At 1998 prices, I’ll be buying in cash. Feels good. Renting is still a great deal until then.
Actually, I want even more. I want the *sellers* to write me a personal letter explaining why I am the right person to purchase their home. How they feel I will be the most suitable owner. Stranger things have happened.
Posted by Major Schadenfreude on 07/09/08 at 02:45 PM
I’m afraid the “seller” will be a bank and they aint gonna be writing letters then. However, they will be on their knees asking for your cash!
Posted by Laura Louzader on 07/09/08 at 03:08 PM
Your landlord REALLY dropped your rent?
I must tell my Chicago landlord all about it. I never heard of a landlord in this city ever, ever dropping rent. I thought I’d scored a real victory when I got him to not to hike it last year.
But I didn’t escape a hike this year.
Posted by r€nato on 07/13/08 at 11:27 AM
they didn’t tell you for whom it would be a great time to buy, did they?
It’s always a great time to buy… if you’re the guy who makes 6% stupid money on the transaction.