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Oh and you are walking distance to award winning schools too!
DAY-YAM! When can the lucky family move in?!
The lucky family have to be very tiny to fit in this “lowest price detached home”. Watch out you don’t knock yourself out when you stand up from eating your porridge
One thing the late 80’s bubble had in common with this one, is geographic dependence. NYC peaked sept 88, while LA peaked in July 1990. Charlotte never really peaked as their prices didn’t fall during that period.
It’ll be interesting if the wikileaks revelations say anything about shadow inventory strategy. In our area banks have moved on builders in high priced neighborhoods, foreclosed, got on the market and sold at pretty good discounts (but not bargain basement that I’ve seen in SoFla). If prices aren’t falling then there’s no reason to sit on inventory. Also, if there aren’t many foreclosures in an area, there is more local staff to attend to each deal (generous view of banks).
Shadow inventory will be the bane of new home construction. Prices will seem to rebound and then the bank will turn the spigot back on, and builders will get undercut.
You know how you can really tell if there was a bubble somewhere?
You look at the condos.
http://www.trulia.com/NC/Charlotte/#for_sale/Charlotte,NC/CONDO_type/price;d_sort/
Charlotte had bubble. Period. So did Asheville.
Why do you try to convince everyone on EVERY SINGLE THREAD that there wasn’t a bubble in NC?
There was. Deal with it.
Quick question…attempting to learn…
Had they initially walked away, would there be no repercussions (non-recourse loan?) They claim to have received a loan mod; again in trouble…would the loan mod now make this a recourse loan, can/will the bank come after them for years trying to get their money back?
http://www.radaronline.com/exclusives/2010/12/oc-housewife-alexis-bellino-foreclosure-drama
Just curious how something like this plays out.
Chances are about 99% that if the lender forecloses, it will go through a non-judicial foreclosure which precludes the lender from obtaining a deficiency judgement.
Exactly.
The clock is ticking though on the IRS and FTB debt forgiveness income tax relief which expires for debt discharged after 12/31/2012. If it takes two years for the servicer to foreclose and discharge the debt, you may have to consider living rent-free now.
Regarding loan mods and judicial vs. non-judicial foreclosure - I wonder if households not suffering financial hardship should even consider a loan mod application?
e.g. If your financials have improved through the Great Recession (less the home value decline), should you disclose your financials to the servicer in a mod app? Could that push a servicer into choosing non-judicial foreclosure (if the loan is recourse)? If you don’t apply for a mod, then all the servicer has is your credit report and financials from the original loan app. They may assume you’re in some form of financial hardship now (or you can claim such).
It doesn’t work that way, at least from all the real life modification stories I have read online, and even heard from friends/neighbors. You have to produce all your documents, W-2’s, paycheck stubs, bank statements, etc, and more often than not, produce these documents over and over again, while the bank decides, processes, or maybe just rolls a big gigantic roulette wheel in regards to your loan modification.
Some people get them, most don’t. One neighbor I know got a 40 year fixed loan, with some wild balloon payment at the end, while another was put on a 5 year ARM, and yet another got a fixed rate principal bearing loan, 2% for the first 5 years, then increasing 1% a year to a maximum of 5%.
Out of all of them, the only reasonable one is the last, yet all are still clearly underwater. Personally, I’d bail from the first two “modifications”, and I’d have to think long and hard on the last.
“High prices, low demand, and large supply means lower prices ahead”... or that it’s time to start restricting supply again see Irvine inventory chart.
But does that really apply to Irvine?
Prices are still high here, demand is high (depending on who you ask) and a blog post during the summer claimed that supply was going to keep going up (if I remember correctly… it’s rumored I have Alzheimer’s).
I do hope there are lower prices ahead… to hedge my best I even asked Santa for a 3CWG for Christmas.
Since demand had nothing to do with it, you should ask Santa for some of that magic pixie dust they used to sell all those new homes.
Supply and demand have everything to do with price supports for Irvine properties. See what happened to the Acacia tract in Oak Creek, Irvine in the last few months when supply out weighed demand. While in many other areas despite the economy, the state of California’s budget, large numbers of HELOC abusers, etc. demand is still holding strong relative to supply and prices are holding steady. In some areas these prices are still above rental parity.
it’s rumored I have Alzheimer’s
And a personality disorder!
I saw the Ben Bernak on 60 Minutes last night. OMG, what a complete disaster to see an obviously shaken Fed Chairman trying to instill confidence in the US economy. And to watch that weak suck interview, full of underhanded pitches makes me question, what has happened to the hardcore questioning that used to come from 60 Minutes? Jeeze, maybe they should have shaken the dust off of Mike Wallace, brought him in to ask the tough questions to The Ben Bernak.
Mike Wallace - “A lot of people may question you in your ability to prevent inflation and control monetary policy”
The Ben Bernak - “I am 100% confident”
Mike Wallace - “But you said there was no housing bubble, were you not 100% confident in that too?”
The Ben Bernak - “This interview is over”
He’s also in full-political mode now. He is trying to shape public opinion. He is even misrepresenting the facts. He said last night that the Fed is “not printing money.” Of course the journalist doesn’t understand the topic, so he didn’t push further. Otherwise, the follow-up to that answer would have been, “So where did the money come from to add all of these Treasuries to the Fed’s balance sheet?”
The Fed doesn’t actually “print money”. The US Treasury owns the printing presses. However, The Bernak’s definition of QE, is kinda like Bill Clinton’s definition of sex.
Quantitative Easing is when The Fed buys gov’t bonds from banks and insurance co’s. They simply deposit the money into the brokers account ... the money is nothing more than a push of the button, and a billion dollars can appear from nowhere. They simply make deposits, without any backing. They devalue the US dollar, by making more of them available to be loaned out.
So in all reality, The Fed isn’t actually “printing dollars”, but they are attempting to devalue the dollars worth.
That IS “printing” money. No one ever refers to printing money in the physical sense.
That interview was way too easy for Ben. Then again, most average Joe’s in America will probably believe that idiot. It might not be printing money in the physical sense, but it is creating money out of thin air with just a couple strokes of the keyboard. Same result!
Then again, most average Joe’s in America will probably believe that idiot.
Been to your local mall lately? You should go sometime. Pick someone out of the crowd at random and ask yourself how often you think that that person thinks about economic theory as opposed to making babies or wanking himself in the bathroom with the Victoria’s Secret catalog.
AZDave, I agree 100%. The common person in this country has no idea who Benanke or the Federal Reserve is. The government wants it that way. An ignorant, uneducated populous is an easy controlled populous.
George Carlin nailed it in his reason that education sucks bit.
“Nobody seems to notice…”
“Nobody seems to care…”
Not sure education is the core problem - I think it’s more the ancient Roman “Bread and Circuses” distraction. Keep the plebians happy with enough bread - which we clearly have - and provide circuses to distract them from bankers’ malfeasance. Circuses = Fox news, reality TV, Glenn Beck, Rush Limbaugh, Victoria’s Secret, etc. - all spouting sex and slogans, fact-check-free.
To everyone above….excellent posts.
I believe the problem IS education, or the lack thereof. There was a 1999 Report done by Gary Hart, Newt Gingrich, and a host of other politicians, and in that report they stated the lack of a good education system, posed more of a threat to our national security than terrorism. That was in 1999.
How much money have we poured into scholastic uses, versus, let’s say, all the wars and military spending since then?
Your average Joe does not even know who Ben Bernanke is.
The Bernake interview needed a real interviewer:
do norcal lefties ever think of anything else besides Fox News? it is an unhealthy obsession. read your NY times, vote for your Pelosi’s and convince yourself that you are not the duped one.
what a complete disaster to see an obviously shaken Fed Chairman trying to instill confidence in the US economy
Oh don’t worry about it, Lee. Fundamentals are strong!
Hello All -
I think the writting is on the wall.
Bernanke and informed others are far more afraid of deflation of leveraged assets like housing than they are in the obvious commodity inflation. The middle class will get continuously squeezed. Housing that deflates and grinds lower over the next decade while gas, and food grow more expensive daily and wages stagnate b/c of a huge problem with structural unemployment - poorly educated populus who used to earn big dollars laying tile and now cant even compete for a job paying 1/4 as much at Starbucks.
As much as I disagree with what he is doing he is doing the only thing he thinks he can. He is pushing on a string but, if he didn’t rates would be at least a point or two higher. That would make housing and refinancing even more difficult and put even more deflation of leveraged assets on the horizon.
CA and other ‘high priced’ markets will be Japan for sure. We pulled forward decades of appreciation during the bubble. Prices now will correct to CA historic multiples or even lower to that which exists in the rest of the nation.
Median housing prices should reflect median incomes. They simply don’t now but, will….
Just my .02
BD
You all hopefully realize that the entire world of finance is predicated on assumptions on ‘future rate of return’. Public and private pension plans which are already underfunded dramatically have 7-10 percent rates of growth in their assets plugged into the models.
If Bernanke doesn’t do what he is doing the short falls will be even more dramatic. This will force major restructuring and lots of pain. This includes the federal gov. IR has posted many times the charts showing that assets have declined in value but, debt has not. This debt must be refinanced at much lower rates or there must be major restructures.
We are on the verge of states looking very much like the countries in the EU. CA, NY, IL, and others are too big to fail but, will…. that is they will bet a federal bailout.
Let’s hope that the debt and deficit commision can come back with their proposals. Otherwise we are just postponing the ineveitable. CA RE is just a symptom of the problem.
Timber! Look out below.
BD
High RE prices do help many people and so do low RE prices. It all depends on who you want to help. Those working on the RE commis and banking fees or the general public? The Democrats and Republican have both shown who they want to help— The RE commisers and bank fee collectors.
The private employer defined benefits pension plans are almost extinct. Generous penisons are still available from government work and executive work. I just need to crack that barrier before I retire.
I’ve notice that higher education and thought are frowned upon in many corporate enviroments. A yesman or henchwomen will go further.