Login
Subscribe
Recent Comments
- Lee Campbell on Uncovering the History of the Secret Garden
- Kelja on Uncovering the History of the Secret Garden
- Sylvia Walker on Irvine Housing by the Numbers - May 2012 Update
- Casual Observer on Irvine Housing by the Numbers - May 2012 Update
- Astute As It Comes on Open House Review: 35 Bella Rosa
- Sylvia Walker on Open House Review: 35 Bella Rosa
- Darin on Open House Review: 35 Bella Rosa
- Sylvia Walker on Investors Are Busy in Irvine's Low-End Housing Market
- Casual Observer on Investors Are Busy in Irvine's Low-End Housing Market
- irvine_home_owner on Tustin, but Irvine Schools
Recent Posts
- Uncovering the History of the Secret Garden
- Closed Sales from 5/10/2012-5/16/2012
- Open House Review: 52 Secret Garden
- Irvine Housing by the Numbers - May 2012 Update
- Paired Living with Privacy in Woodbridge
- Beige Ruth Sisters
- Closed Sales from 5/3/2012 to 5/9/2012
- Open House Review: 35 Bella Rosa
- Investors Are Busy in Irvine’s Low-End Housing Market
- Artist in Residence: Turtle Rock Glen Townhome
Categories
Archives
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- Rest of archives
Browse Homes
Irvine Homes
- Airport Area Homes
- El Camino Real Homes
- Northpark Homes
- Northwood Homes
- Oak Creek Homes
- Orangetree Homes
- Portola Springs Homes
- Quaill Hill Homes
- Rancho San Joaquin Homes
- Turtle Ridge Homes
- Turtle Rock Homes
- University Park
- University Town Center Homes
- West Irvine Homes
- Westpark Homes
- Woodbridge Homes
- Woodbury Homes
Newport Beach Homes
- Newport Coast Homes
- Crystal Cove Homes
- Corona Del Mar / Spyglass
- East Bluff / Harbor View Homes
- Lower Newport Bay / Balboa Island
- Balboa Peninsula Homes
- West Bay / Santa Ana Heights
- West Newport / Lido Homes
Other Cities
- Aliso Viejo Homes
- Anaheim Hills Homes
- Brea Homes
- Costa Mesa Homes
- Coto de Caza Homes
- Dana Point Homes
- Huntington Beach Homes
- Ladera Ranch Homes
- Laguna Beach Homes
- Laguna Hills Homes
- Laguna Niguel Homes
- Lake Forest Homes
- Mission Viejo Homes
- Orange Homes
- Rancho Santa Margarita Homes
- San Clemente Homes
- San Juan Capistrano Homes
- Santa Ana Homes
- Tustin Homes
- Villa Park Homes
- Yorba Linda Homes
Contact
.(JavaScript must be enabled to view this email address)
Foreclosures
Housing
- Talk Irvine
- IHB Forum Archive
- OC Housing News
- Coto Housing Blog
- Housing Kaboom
- Patrick.net
- Housing Chronicles
- Housing Doom
- Dr. Housing Bubble
- Manhattan Beach Confidential
- Burbed
- SoCal RE Bubble Crash
- Professor Piggington
- Real C'ville
- Westside Bubble
- Bubble Meter
- Portland Housing Blog
- Sacramento Land(ing)
- OC Register Blog
Econ/Finance/Other
- Calculated Risk
- The Big Picture
- Economist's View
- Mish's Blog
- Matrix
- Bakers' Stock
- ML-Implode
- Eschaton
- Best Mortgage Rates
- Crackerjack Finance
Latest REOs
- $199,900 :: 3125 Watermarke Pl, Irvine CA, 92612
- $349,900 :: 10 Greenleaf 16, Irvine CA, 92604
- $439,900 :: 61 Olivehurst, Irvine CA, 92602
- $889,900 :: 14 Upland, Irvine CA, 92602
- $429,900 :: 56 Great Lawn, Irvine CA, 92620
- $465,000 :: 212 Garden Gate Ln, Irvine CA, 92620
- $329,000 :: 1006 Terra Bella, Irvine CA, 92602
- $579,900 :: 8 Star Thistle, Irvine CA, 92604
- $458,500 :: 3 Ultimo Dr, Irvine CA, 92620
- $398,900 :: 191 Lockford, Irvine CA, 92602
http://www.politico.com/news/stories/0411/52704.html ; govt. shutdown , taking the FHA down w/ it , could ruin the housing market as we know it
Great post SGIP!
I’d like to set up a bad social security number. I can run up debt and then offload it to my by SSN. My current SSN would retain a good credit rating.
*bad SSN
SGIP, I wanted the whole 9 yards in one witty Haiku to lead.
Banks vast profits from
Gov spending “for the children”
Tax payers pay bill
Not witty, but realistic summary of every post
The canny atone
For the declassed faithless, lost
In travertine dreams.
Nice frak, I like it
Realist acknowledge
Bears and Bulls disappointed
Moderate outcome
*wink*
(not autobiographical)
Priced out. Forever.
The fear, the lust, not seeing
Bail outs. Forever.
Impressive, young Padewan.
SGIP
You excluded from the discussion those underwater homedebtors who do not have an agency loan, but do have a conservative 30-year fixed-rate loan(s) that was fully-underwritten. They’ll likely hear the same response from the servicers - “Sorry about your luck, but congrats on your responsible borrowing.”
The only silver lining for people in your circumstances would be if this does reduce the number of foreclosures and perhaps your home value will go back up sooner. Other than than, as a responsible borrower, you will pay much more interest and principal than your spendthrift neighbors, and you will be indirectly paying their debts through banking bailouts.
Next time you see a neighbor towing the HELOC boat behind his shiny new Escalade, reach into your wallet and hand him $100. You are supplementing his irresponsible spending with your money anyway.
I’d rather hand that $100 out to the next street person I encounter, than hand so much as a dime to the pigs who are buried in mortgages they KNEW were far over their heads when they assumed them and want you and me to subsidize their swinish lifestyles.
It breaks my heart to see the most defenseless people in the population, people who are so mentally skewed from congenital mental health problems that they were born with, like schizophrenia, be hacked to pieces on the streets of Chicago, until they finally have had all the abuse and pain they can bear and throw themselves in front of an el train, while I’m forced to subsidize hundreds of thousands of self-indulgent and dishonest swine in mortgages 7,8, or even 10X their incomes that they knew damn well were far over their heads.
We could help these relatively few people who cannot take care of themselves on any terms because of severe mental disability, but we cannot do that and subsidize our middle classes in every indulgence they seem to feel is a God-given entitlement. We can’t give everyone an ideal lifestyle on the taxpayer’s dime and we shouldn’t be trying to.
Foreign banks were also invited to the party.
Arab Banking Corp. and others tapped the FED’s discount window.
U.S. taxpayers are left holding the bag.
the E at the end of “Watermarke” is killing me. I’m flying into Orange County today just to crowbar that thing off. I hope they choke on their pretension.
When your done, go by Northwood Pointe and do the same thing.
“Irvin”
Thanks to IrvineRenter for the opportunty to kill a few pixels.
I had intended to title this “Why you were an idiot to take a 30 fixed loan in 2006” but IR prevailed.
When the principal reductions begin in earnest, my financial advice remains the same as it was when this solution was first suggested: Go long pitchfork and torch manufacturing companies. A “Revulsion Revolution” might start when the Rats and Pigs get their 40% principal haircut while you get squat. I know my next big purchase when my neighbor gets a PR on his BofA loan will be a one way ticket to the banks HQ and demand equality under the law.
Soylent Green Is People.
I’ll only be able to completely answer that question 5-10 years from now, but the tentative answer is yes.
We weren’t “smart enough” to consider an option-ARM. However, we did consider a 3/1 ARM. Had we chosen that option, the rate in the fixed 3-year initial period would’ve been 75 bps lower, thereby costing us ~$14k less.
Then, the rate would have adjusted downward 200+ bps (on average) over the last year costing us another $8k+. If rates stay lower over the next few years than our 2007-fixed-rate, then we keep multiplying that $8k+ loss every year!
Thankfully the mortgage payments are less than 17% of our gross income…
We can cry to the bank until we’re blue in the face. Good luck
The only way to vote is with your pocketbook. go to the bank and withdraw all of your Federal Reserve Notes and exchange them for physical gold and silver. Until you do this, nothing will change.
No pitchforks needed.
Congratulations: this is the most outrage-inducing entry in the history of this blog.
I can’t think of anything which pisses me off more than a wave of principal reductions. It might soon be time to face a cruel fact: we who avoided real estate and debt because it wasn’t sensible are the losers. The people who thought that real estate can never go down, and who signed up for as much debt as they could grab, won. Because the government takes care of the stupid.
I feel like an idiot for believing the correct predictions of a crash and selling. I suspect that I should continue to rent for the long term. A smart move might be to jump in now, and figure on more handouts should prices drop further, but I can’t bring myself to sink to that place morally.
I wish I could dump a barrel of disinfectant over every bank manager, loan officer, and realtor in town right now. This is lawlessness.
Ugh.
The idea of principal reductions infuriates me so much that I can’t discuss it with anyone I know without my voice rising uncontrollably, and turning a reasoned discussion into a fight. I’m sorry, I’m just can’t control my rage at being forced to subsidize people who are likely far better off than me to live in over-sized, over-priced houses they can’t afford, while I pay rent and am not offered any breaks on my CC debt.
Worse, I see people on minimum wage struggling to keep a shared roof over their heads while they subsidize the “poor” in Section 8 housing they themselves are too “well off” to qualify for, and are forced also to subsidize well-off middle class people who could live extremely well in good rentals if they were forced out of their overpriced houses by foreclosure.
When do I get to spend my own money for my own purposes? I manage to live very comfortably on an income reduced as my hours and pay were mulceted 40%, but I count every single penny and have cut my expenditures to food from Aldi’s, and to barest repair and replace of necessary clothing. I have no car and use public transit. I refrain from running my A/C until the temp is 95 degrees with the humidity at 80%. If I can adjust, why can’t these people? Fresh cut flowers for the house, meals out at moderate-priced restaurants, new books, and stylish new clothing are all off my menu until I find a better job, yet these people who cannot pay for their houses want principal reductions so they can continue to live the 3000 sq ft house-with-pool-and-4 cars lifestyle. Why should we be forced to enable a few select people to live beyond their means while we get only what we pay for and count every dime that passes through our hands?
Sorry LL. The banks look at the struggling and ask themselves first this question: Will I profit by helping this person? It’s a money framed question, not a moral one.
Help will never come for the responsible. Thanks for playing.
Soylent Green Is People.
Any advice for the renters, SGIP?
I can’t see where there is justice for those who chose to sit this out. I cannot imagine participating in the destruction of property through rioting or vandalism of debtors homes, but if called to judge those who take pitchfork-and-torch action, I will be highly sympathetic to the defendants.
It’s something, I guess, that I still think vigilantism is unacceptable.
Read through the early days of the Revolutionary War. There were quite a few Tory’s that wound up being tarred and feathered. Barbaric? Absolutely. Effective? Yes. Today those people are fondly remembered as “Patriots”.
It’s been said by some that if you put he head of Goldman Sachs in a PMITA prison for 6 weeks, all of this sh..stuff… will stop. It would be nice to test that theory.
I don’t advocate LA Riot style public resistance, but the day is coming where enough pissed people will finally take a stand.
SGIP
“the day is coming”
no it ain’t
for if “inside job” can come and go and no one gives a sh*t , no one gives a sh*t
Public resistance can be a peaceful boycott of federal reserve notes and banks via savings accounts.
step 1 = Go to the bank and withdraw most of your money. That’s as nonviolent as it gets. soccer moms do it daily. step 2 = exchanging paper dollars for physical gold and silver bullion. most wont do step 2, for various reasons, but getting people to do step 1 isn’t too much to ask as both the left and right are not so happy with bankers. as people see cash losing value in real terms and gold and silver continue to rise in nominal terms, hopefully more people will make the connection and choose real money over devalued paper dollars.
at this point in the game, this is our only option for effecting change. until we do this en mass, the wealth of our citizens will be siphoned away. and ethan allen is mostly right, few give a sh*t, but once people start to go hungry, they’ll give a sh*t. at that time, the problem will be blamed on something else and .gov will ride to our rescue
I have questions about this strategy even though I have done plenty of it myself - I have $50K in bullion stashed.
The one nice thing about removing your bank deposits is that it contracts the available supply the banks have to lend against. This gives me great pleasure to contemplate.
Once you turn around and exchange the cash for bullion, however, it is deposited into the bullion dealer’s bank account, and is again available to the bank for lending, with all that implies in terms of the economics 101 money supply multiplier effects.
So it seems that bullion is a good choice for hedging against some nasty future situations - particularly currency destruction - but does little or nothing to fight the power of the banks.
it is a vote for a gold standard or bimetallic standard when you choose physical over paper. voting in a booth is futile.
a gold standard severely curtails lending and spending.
Yes, the cash will be floating around in the system, just dont be the one holding it. there will be winners and losers.
Don’t vote tea party
Tea Party: Don’t Let Renters Vote
http://moneywatch.bnet.com/saving-money/blog/home-equity/tea-party-dont-let-renters-vote/3350/
The Tea Party is an utter failure, being made up of morons who are easily subverted by neo-feudalists like the Koch Brothers, and by the banker class. Anyone who can honestly believe that some idiot with nominal home ownership by means of a mortgage is somehow a more competent citizen by virtue of the fact that he “owns” property, than a renter who not only lives within his means but may possess a considerable asset base that he doesn’t feel like chancing in the overpriced real estate market, is someone who will believe that the Koch Brothers and Glenn Beck are Jeffersonian idealists.
These people have no concept of individual rights, or what it took to make this country into a nation that fulfills the promise of individual freedom. These fools will not help us restore the freedoms we’ve lost or voluntarily relinquished through the foolish desire to get something for nothing, but will only push this country that much faster into full monty fascism.
Thankfully, the Tea Party is fading fast, now that their real agenda and beliefs are becoming known.
Off topic, but interesting.
Naked Man With AK-47 Fires At SWAT Robot
http://www.youtube.com/watch?v=4YDWuhIUal0
Nice paint job, or how to give your HOA a fit.
Sign of the times? Thousands willing to plaster home with billboard
http://realestate.msn.com/blogs/listedblogpost.aspx?post=ed79c32b-2ecc-4cb7-94c9-bfca06f7727c
“They’re out of money, so you lose.”
First time I saw that cartoon - wow.
China Airlines is running an in-flight short documentary on the history of Wall St. and the Fed.
Essentially it’s a similar story to “the circle of life” above, except that the early USA used a good currency-bad currency method to remonetize the crushing debts of the War for Independence.
It’s an excellent movie with a neutral POV, if you get a chance to see it.
Yikes…$429,000 for a one bedroom…my head hurts when I think about that…
I wouldn’t expect anything else of the banks, and I don’t ask any private for-profit entity to “help” me and am not setting up my own business for philanthropic reasons, either.
I expect fairness and justice on the part of our lawmakers and policymakers, mainly respect for individual rights along with a dedication to upholding the law, and refusal to condone theft by one class of people while setting up another for victimization.