I thought to be considered an “estate” you would have to have something on at least a half-acre or more, not something less than 1/8 of an acre. Only in California…

I agree, an estate should have at least an acre, circular drive and of course a gate. Only in So Cal can one expect to fetch $1.1Mil for a stucco tract house. Once again these people are living in the past. This one will be a pretty good deal at about $800K in a year from now.

If they bought at 360k in 98 with 3% appreciation per year it would be 483k with 4% it would be $534 and with 5% it would be $586k this year.

The house would have to appreciate by 8% a year to be worth $777k today. 

I still may leave OC if this is a return to the fundamentals.

I’m not 100% sure, but this appears to be the same model home as 7 Green Hollow.

Wow, this house made it’s owner’s $86,000/yr tax free for 10 straight years.

Now if they had the foresight to put all the money into gold.

They have plenty of company.  There is one in Malibu purchased in 1994 for $550k going to auction this week.  They ran up loans + credit lines of $1.9 million.  The property, in good condition, might sell for $1.2 in the current market.  If abused or requiring major repairs, maybe $1.0 million, probably less.

Nice house.  Grossly overpriced. 

Once the financial crisis soaks in deep, this place should depreciate nicely.

Remember “The Ultimate Post”?
http://www.irvinehousingblog.com/blog/comments/the-ultimate-post/

Check out the overhead map on redfin.  These guys were backdoor neighbors.  Maybe they chatted about how much “income” they were making over koolaid.

Or, they paid the PMI+taxes+insurance with the Refinances and lived in the house for 10 yrs for free or ( $18,000 down). Now, with current prices they might just be able to get a free and clear house with the rent savings of 10 yrs.

SMART!!!!

This is absolutely pathetic.  My post is addressed to the “owners” of this Pottery Barn “Palace”. 

You were greedy and irresponsible, now the American people will have to bail you out.  Yeah, you got to live in your unrealistically perfect home for a while and you bought some nice toys, but at what price?  What sort of lesson is this for your kids?

I hope you enjoy moving back in with your parents, or better yet, living in that Mercedes you paid for with your HELOC money.

Sorry for the rant, but I feel better now.

It is the same model as 7 Green Hollow, a Winsome model Bainbridge tract.  The king of NW Pointe, Mike Dunn, has both listings…

Prices have been sticky there outside of the fairly recent REO comp on Green Hollow which doesn’t appear to have had a great effect on prices.  That one was $895K closing price for 2,650sf…

I’d buy this house for $900K today if they’d sell it to me for that much.

Probably a different situation.  The 3 Green Hollow house had an owner that was using his house to support a failing business.  They weren’t even putting money into upgrades…

One saving grace is that these greedy borrowers WILL pay a nice chunk of income tax and have no cash with which to pay it.

The price is wrong, it is currently up for sale for 1,199K not 1,119K

Just goes to show you how clueless or greedy these lenders were. On November 30th of last year they gave these folks $350K for house that was already worth less than the oustanding paper. God help us all!

Give it a shot
He’s got 9 Hibiscus as well.
Listed at $1.499M, hasn’t moved either.

also, they only had to pay property taxes on $430k, not $1.2 Mil.

Maybe we should change prop 13 so that your tax base changes every time you refi.  That might also have put a break on this bubble.

This was a pretty smart buy.

I like that idea.

While Congress is working on the bailout, watch out, IAC may start its own bailout plan too. IAC just write off some bad asset (layoff) and they are plotting some zone changes again. Basically, more high-rise, more 5 stories apt.

To me, zone changes more like when you play a baseball game at bottom of 9, 2 out, and you need to re-play from 3rd inning again because Irvine City Council rules that the previous call at 3rd inning is not right.

All this will make IAC the biggest winner at end of the game.

Sweet house.  Too far north and too $$$ for me though.

Maybe we should change prop 13 so that your tax base changes every time you refi.  That might also have put a break on this bubble.

Yep.  We have to reform our laws to make it so selfish people can’t take us all down like this anymore.

Interesting idea!  Long ago, when you re-fi’d your taxes did change, because you were doing the re-fi to add on to your house, not pay down your credit cards.

Spoken like a true renter.  Get back to work, those burgers are gonna burn.

So you’re telling me that this house appreciated nearly 10% per year from its purchase in 1998?  For pure entertainment’s sake, I really wish you would pay $900K for this house.  I’d definitely buy some popcorn.

On the “flip” side, it was pizza-brained thinking like yours that got us into this problem in the first place, so it’s hard to find enjoyment in the kind of behavior that’s hosed up our economy.

Fantastic idea! Seems to be a great comprimise… would not only help break the housing bubble, but should also help our local gov’t budget.

Email your congressmen.  Make sure they hear you.  Who cares if only a staffer reads the first sentence?  Make the first sentence count!

I emailed Campbell and I felt better….like I’m doing something.  I’m emailing Boxer and Feinstein tonight.  I also emailed radio station KNX when they did a stupid story today about this poor mortgage broker couple in Culver City who are in their 60’s and 70’s and who have to keep working because their house depreciated in value and there’s no business coming in.  I almost ripped the radio out of my dashboard…portraying them like a pair of elderly victims.  Give me a break!

You must miss spamming the OC Register blogs.

IR, doesn’t this property deserve the: WTF award?

Yes, it probably does.

and you say that some fool lent then a second for 350K in 11/07, and now i get to pay for it, thanks to the US Senate

I’ve noticed that some on KNX are now calling the bill the “financial rescue plan”.  What pansies!

Are there any homes in Irvine that come with a reasonable lot?

Hey people, unless you pay **EVERYTHING** by cash, and I do mean **EVERYTHING**, STFU.

Don’t tell me that all of you in this blog are Chinese who takes Cash Only on all transactions.

Although this bailout sucks, it is needed for **CREDIT** to continue to exist. Think about it hard before spewing unfounded truth.

Let’s see you try to buy a house with 100% down (and don’t give me that I rent bullcrap).

BTW, my next house is being paid for by 100% cash transaction since that country’s mortgage payment deduction sux.

It’s nice when you have 7 figures and not tied to the stock market.

You’re as smart as a congressman as far as I’m concerned considering your knowledge of both Irvine and this bailout in general.

Sorry about your equity man.  I know it hurts, but try not to be bitter.

You don’t understand what it takes to live in Irvine. I had an elementray when I was in chemistry. It is where we put all of our elements after we were done with our experiments. Next, TREMENDOUSLY SPECTACULAR PALACIAL ESTATE is clearly evident from the photos—the view—as if you are in the air, and your own tennis courts and olympic sized swimming pool are included, no charge. You don’t understand that Irvine is different.

LOL

the wankers like Chris are starting to come out of the woodwork

Let’s up the ante on this BS talk on asking congresspeople to reject this $700 Billion bailout.

Let’s call congresspeople to scrapping GAAP. No more Liability section since Liability = Credit. Asset = Stockholders’ equity (for those that didn’t study for MBA, look it up). Everyone pay by cash. No more this credit/mortgage/borrowing bullcrap. Everyone deleverage so that everyone paid CASH for EVERYTHING!! You can’t pay cash for a house? Tough shit. You can’t pay cash for a car? Tough shit (I’m sure there are some, including me, that pay car by cash only). You can’t find a job because businesses can no longer extend the Asset section of GAAP because there is no longer a Liability section so that they can’t extend their businesses by hiring more people? Tough shit.

Go live like Amish.

“Although this bailout sucks, it is needed for **CREDIT** to continue to exist.”

Baloney! 

Business always boils down to transactions between people.  If the person extending credit KNOWS the recipient is good for it, then the transaction happens.  The finance world is just about to re-learn this fundamental.  No more Chinese peasants unwittingly lending money through multiple blood sucking middlemen to our gardeners to buy homes they can’t afford. 

Welcome to the new old paradigm.

I’m also here thank you very much. Unfortunately you have came out of your rear end too late.

Anytime you people don’t know what the hell you’re talking about while complaining and asking people to call congress to reject something that will save not wall street but main street credit, you’re simply destroying the very fabric that, unfortunately, is holding this economy together, namely, CREDIT.

I actually am glad the House rejected the first version. However, something must pass. This govt can no longer sit around doing nothing while nobody, not even businesses with GREAT book (cooked or not), cannot even get a single loan.

And if you work, you’re a wanker. Why don’t you NOT work and simply live on what you got? Oh so you need work…well tough shit…can’t because there is no longer a thing called CREDIT. Everyone pay by cash and no cash for you.

BS. No banks anymore because there IS NO FREAKING CREDIT (why bother having banks at all?). Credit Unions are also maxed out (they don’t have earnings and so all their money belong to members and members got no stinking cash…Americans live on CREDIT remember? So try to borrow from Credit Unions when there are no more banks left in this country.)

The entire world economy relies on credit, liability, etc. You can’t just have asset and no liability. Without credit, let’s see if any company can offer bonds. Nope, ain’t gonna write that bond…no security/insurance for that underwriting. Can California write bonds? Nope, ain’t gonna write that bond either since there is no security/insurance for that bond underwriting.

Unemployment is here to stay if you guys want govt to do nothing. Don’t push it or otherwise you ain’t seen nothing yet.

Re:  No more Liability section since Liability = Credit. Asset = Stockholders’ equity

Chris, you are on a roar to support the imbeciles with Harvard, MIT business degrees who have fucked up big time.  You also love it when these same bank/treasure robbers try to do just that through legalized/organized crime.

Just look at the most successful companies in the silicon valley, how many are in debits?  I will bet you a vast majority of them have cash in the banks that you wish to have just a tiny percentage.

As far as industrialization goes, please do not confuse debt with venture capital.  Debt leads to slavery while venture capital leads to innovation.

Except I can afford it…  $500K mortgage at 6% interest rate for 30 years, fixed.  I don’t think mortgage interest expense, pre-tax, of $2500 per month “got us into this problem”.  Fortunately this pizza brain bought in 2001 and have banked that equity…

very funny.

just because you can afford it doesnt mean its a good decision but again you make your own decisions. you are in a good position, dont rush

The company I work for does not borrow money.  It has managed to survive.

It all depends on how incompetently managed the company is.  Poor management means it is going to borrow (leverage) itself into trouble.

People like Chris talk a good talk, but unfortunately many people think like he does and believe that the world cannot operate unless everyone pays for things with IOUs.

We need to get Chris a nice job in government so that he can contribute to the problem.

I’m not.  $900K is $300K off asking.  I don’t think that is going to happen anytime soon.

Wait ‘till the REO.

This place will be 900K, maybe not the next knife catcher, but the next second next in two years.  I feel that.

Interesting thing about credit.

I have had a Citibank credit card since 1987.  I haven’t used it for like 9 years but they had no problem with that.

Today I got a letter saying that because of non use they are closing the account in 30 days.

Hmmm… maybe I should go charge a couple of double doubles and ask them to increase the credit limit to 50K. ;-D

What do you guys make?

Smoke Gila monster pate and old tequilas?

Mexican jumping beans?

No need for credit there.  Just ask Juan for some pesos to make the payroll in an old day.

Since the original purchase price was $360,000 and they have outstanding loans in 1,207,500, if they just walk away, do they pocket $847,500 ?

Do the banks/lenders have any ability to go after the $847,500?

A Newbie.