Irvine Housing Blog

WOW!!  Flippers 0-2 on this one.

I don’t think anything can illustrate the downward spiral better than this property is doing.

Another flipper turned rental? No photos of interior? 4 bed and 1 bath? Is this correct?

This flipper is flopping big. Another dumb knife catcher with dumb money at $660k at this time will be hard to come by. Well, that is what I think.

In a great day, she will lose $120k in 6 month. In a bad day, she will lose all her money in this plus endless emotional torture until it ends.

I love this site but I must protest - Mack the Knife is one of my favorite songs of all time, as performed by the late great Bobby Darrin, not old blue eyes (despite the fact that he covered every song known to man).

I’d hedge my bet that the 120K down payment was nothing more than some bubbly froth from a 2006 sale.  That would explain the rapid progression through the denial stage; the loss being more paper in nature.

I’m in amazement that someone would purchase a house in Orange County in DECEMBER of 2007! Not only that, but that she would try to do it as a flip.

I could probably understand purchasing, if it were a home you really wanted to live in, and you planned on staying there. But buying it as an investment is just dumb.

Wow.

who would flip a house with 20% down? they she also get a 30 year fix loan? it doesn’t make sense at all. ....

IR wrote: “One of the myths of the real estate bulls is the rich-foreigners-will-save-us fallacy. This myth has a hint of racism to it: foreigners must be culturally superior to have the money to come to the rescue of us poor Americans”.

This from bloomberg.com: “The $2.19 trillion of government debt held abroad was equivalent to 16 percent of the $13.6 trillion GDP as of March 31. The last time foreigners owned so much U.S. debt was in the mid-19th century, when state and corporate bonds for the construction of railroads, canals and highways were purchased by Europeans, said Taylor, the University of California professor.”

Great point about the real estate market.  Hopefully that same logic does not hold true for our massive debt (last time I checked $30,903 per citizen).  After all, someone needs to finance the loans (stimulus checks), wars and entitlement programs bankrupting this country.  It isn’t so much “poor Americans” as it is spend-happy Americans.

Ahhhhhhhh, the foriegn money that’s supposed to come flooding in and rescue all the developers and flippers!

It’s just another rescue fantasy of the type people have when they are in very deep trouble. Miami and Chicago high rise condo developers are sitting there praying for all this Euro money that’s surely going to come in and soak up all that inventory at ask prices, just like I’m gonna win the megamillions in tonight’s drawing- except I’m not buying any tickets, and the handful of European investors eyeballing these condos are very scared and skeptical, and want to buy for 15 cents on the dollar, with guarantees against any future liabilities for the building as a whole.

The amazing thing is that the wannabe-flippers don’t even negotiate their purchase prices.They just buy at the same price the place has not sold at for 8 months and wonder why they can’t sell even higher.

Of all the properties we’ve seen with HELOC abuse or ill-timed attempted flips, this is the first one that makes me truly wonder if it wasn’t an attempted flip. That there’s some backstory here that would make sense. It is head-scratching as to why she would pay so much over the auction price at a terrible time in the market. Put 20% of her own money. And then be selling so quickly. One can only speculate in thought as to why she would speculate in Real Estate.

Redfin says sellers entertain lease offers.  Any idea of what $ they would lease for?

I suspect that the rental equivalent value is still in the $450,000 range.

I’m sure that most of us are aware that “Mack the Knife” is from Kurt Weill’s “Three Penny Opera”?  He used the same tune in the finale, and here are the words (my translation - no attempt at a “singing translation”):

And so it comes to a good end,
Everything under one roof.
If the money is good,
The end is usually good.

Will the story stand as a hint,
Or as a threat?
Finally united at the table of the poor,
they eat bread.

Because on one hand, some are in the dark,
And others are in light.
And you watch in the light
What we see in the dark.

My Offer
After giving this property a thorough look, my offer today is $264,100.00. I believe this is what this property is worth.

Based on info on lexis.com, the buyer purchased the following properties:

Garden Grove in 11/2007
9342 CENTRAL AVE, GARDEN GROVE, CA 92844 from PMC Bancorp, same as the Irvine lender.

Antioch, CA in 11/2007
5652 LEITRIM WAY, ANTIOCH, CA 94531 from PMC.

Oakland, CA in 11/2007
7823 NEY AVE, OAKLAND, CA 94605-3309 from PMC.

Drums, please!

Ladies and Gentleman.

I’d like to take this opportunity to propose the creation of a new honor at the Irvine Housing Blog: The Chainsaw Catcher.

This dubious distinction goes to all the flippers that were living under a rock (I can’t find other explanation) and decided to “invest” in this declining real estate market ignoring all the media headlines about real estate bubble bursting, foreclosures, credit crunch, etc. and they gambled anyways, which they started to show up after the credit crunch officially started on 08/2007.

IR—>That knife was quite sharp.

you mean that AXE was quite sharp  

I’ve got to wonder if this was some inside fraud re-flip to a relative.

Weirdly, this MLS listing has the exact same photo as was used in the attempted short sale last spring.

Either this is a truly lazy real estate agent who stole the photo from last year instead of driving over to take a new one, or a seller supplied photo.

“Either this is a truly lazy real estate agent who stole the photo from last year instead of driving over to take a new one, or a seller supplied photo”

I would bet its a truly lazy realturd.

Something tells me this wasn’t a flip-gone-bad. No flipper on earth would EVER put 20% down in a declining market.  To me, it smells like a divorce.

I’m thinking $408,000.00 and falling to about $390,000.00

Only 1 bath?

This is a really nice house, but i like the mercedes e-class better:) I´ve got the same.