Irvine Housing Blog

And the CC companies are sucking an additional 2-5% per transaction from the merchants or businesses from which these people are racking up continually more and more CC debt.  The responsible guy who pays his bill every month in full still provides them with the 2-5% in fees, but only a fraction of the total transactions each month since he’s not going deep into debt. And yeah, no 18% interest charges!

Sometimes I wish I owned a BMW dealership… so even if the debtor defaults on those payments, I’d send out the Repo Man to get my car back and then re-sell a “pre-owned” marked up vehicle or lease it out to a poser willing to pay more monthly debt service than he can afford. Then when the lease expires, sell it “pre-owned” again. What a deal!

In the cc world, the people who pay off the entire cc balance every month are call deadbeats.  People who carry balance are the good customers, who get more cc offers and raised limits.

A CA BK question:  How often does the court liquidate the house with high equility to pay for non-secured debt (even when the filer applied for Ch.7 instead of Ch.13?  Is it scamer who get the house-owner to file Ch.7 to pick up the house on the cheap?

It’s not all the same because of the different interest rates that are charged.  Mortgage lenders for the most part want you to pay because it’s just more trouble if you don’t - even when lending standards were better.  If a home is underwater, they need you to keep paying because of the magnitude of the loss.  With responsible lending 10-20% down, and healthy market appreciation rates, homeowners sell if they can’t pay anymore, and if the home does go to foreclosure, the bank will move quickly to save any equity they have in it.

My neighbor just did that last May, he dumped the underwater condo in lake forest, after he bought a nice SFR in Costa Mesa…good for him too…so banks still let this happened up until now?

Jaysen and I are meeting this evening. I think he plans to write about rentals next week.

It seems kind of funny to be selling real estate on a bear blog.  This blog is essentially saying “don’t buy now, real estate has more to drop, however, I do have this nice house over here you wanna buy it?”

weird man.

It doesn’t mean your advice isn’t appreciated IR.

Hi Darth;
  Thanks for the note. That is a great question. Both Larry and I practice what we preach, we both lease. In addition, if a seller asks us we give them fair and honest advise just as we do for buyers and just as the blog has done since 2006, when we see properties selling out of line with rental parity and we feel there is a bubble we advise our clients based upon what’s in their best interest, in some cases they are better of selling than holding a property.

    Most of our clients are buyers and if they asked us if they should buy a property that is not in line with rental parity and does not make sense for them financially we would tell them not to buy it. We do this weekly. On this flip side, many readers follow Irvine real estate because they own properties, some of which are still inflated, if they ask us our advice given their situation and property, it sometimes make more sense for them to sell. This blog helped dozens of people encouraging them not to buy during the bubble and for many people it’s still better to wait, in addition, it showed others that they would likely be better off selling during the bubble, renting, and waiting for prices to come down.

    Many sellers’ wish they would have started reading in 2006 and sold their house(s). If our advice and reach can help one of our clients that contact us for advice and services and give their property more exposure, then we do what is in our clients/readers best interest. Sellers’ recognize the value of the reach of the blog. We have thousands of well educated readers and clients, and hundreds of clients that seek our advice, however, there are also thousands of people that visit the site everyday that have an agent and/or do not want and will not take our advice, and many do not want our advice or do not agree with it. We do not know their financial situation and we may feel that some of our listings are not good purchases for the buyers, however, our duty is to our clients and those that want our advice, listen, and contact us for our services.

  The listings that we post are not on the MLS some will not be on the MLS for a short period of time, others will not be on the MLS for a longer period. Our goal is to provide market insight and value to our clients. If we have a client that wants to sell and can sell for above rental parity it is our duty and obligation to give them the best exposure that we can and help them sell their home faster and for more money, we do not refuse to give them advice or offer them service if we can provide them value, we give them our honest opinion and advice just as we do for buyers that want to work with us.

    The difference between what we do and New Century financial is that we advise buyers not to buy when it does not make financial sense and advise owners of real estate to sell when it does not make sense to hold, New Century, had a duty to their client, in that case the person getting the loan who was getting screwed.

Darth, there’s another one for $800/sqft.

The prices are going up, I tell ya!!!