Irvine Housing Blog

Congrats Irvine Renter!

Realtors dismiss complaint against blogger
Published on July 22nd, 2011
Written by: Marilyn Kalfus, real estate reporter

http://irvinehomes.ocregister.com/2011/07/22/19523/19523/

I love the “grievances are confidential” line.

I think this is OK in principle, until the point when the “grievance” becomes a “formal complaint” (in writing) and is issued externally to the subject from the OCAR organization. How can it still be regarded as confidential anymore. That’s sounds dumb.

I find it convenient for OCAR that the subjects of the grievance are named individually and publicly, but not the individuals within OCAR who drafted the complaint in the first place. 

I do have a question: Was the dismissal of grievances by OCAR accompanied by a written personal or public apology?

While dismissing the grievance is a positive development, without something official or in writing acknowledging OCAR’s “error”, I presume Shevy and Evergreen and IHB have to try and do business in OC with a scarlet letter.

My sign for shopping mall demonstration was going to say:

“OCAR: It’s OK. We know. Just apologize!”

Does anyone know what happened to the PIMCO guy who called the housing bubble in PIMCO articles around 2006?  He wrote about his own experience selling his Newport Beach home and moving his family into a rental home?  I wonder if he’s still at PIMCO and whether he’s purchased a home.

I’ve seen 80-10-10 products used fairly regularly.  The 2nd 10% loan is usually at a higher rate 1-2% above the 1st.  400k @ 10% down is now $2500/mo.  At 25% DTI, that’s 120k in income.  Say, 10%/yr towards 401k (with the possibility of a loan for a DP), and a $1250/mo rental banking the $15k/yr savings on housing, it doesn’t take long to get to a 40k DP.

With this the 2nd becomes something like a DP program.  It should have a shorter term than the first so that a bigger chunk goes towards building equity.  It is much easier to do this at lower DTIs.  The 35-45% DTI that gets talked about here seems dangerous to me, but I haven’t tasted the CA-RE punch.

“Realistically, the only way an Orange County resident is going to come up with enough money is if they first buy a home with an FHA mortgage of 3.5%, and that house goes up enough that they can sell and obtain the 20% equity for the next house.”

Now who’s being infected by the REIC meme, IR?? 

There is another way.  Buy a home with an FHA mortgage AND PAY THE MORTGAGE DOWN.  At some point the equity from that home will serve as a deposit for the move-up without any requirement for appreciation; in fact, the less appreciation the better since it will keep the changeover price lower.

Tot lots! AYYYY!

White House to tackle housing reform after debt ceiling fight (Jon Prior at HousingWire)

A spokesperson for Rep. Barney Frank (D-Mass.) told HousingWire Friday the Obama administration has begun work on a proposal to extend the conforming loan limits, which are set to expire in October….
However, funding for mortgages outside Fannie, Freddie or the Federal Housing Administration remains barren, even according to one of the industry’s largest trade groups, the Mortgage Bankers Association…
Rep. John Campbell (R-Calif.) and Rep. Gary Ackerman (D-N.Y.) introduced a bill last week that would extend the elevated loan limits for another two years.

“The Obama administration’s reported support of an extension of the conforming loan limits is welcome news for middle-class homeowners,” Ackerman said.

I love it when the analysts come out and state the rather obvious. If you gather the facts and do your own thinking, not much in this paper would’ve surprised you. But it’s comforting nonetheless to see a “pro” confirm what we either knew, suspected or otherwise predicted would happen.

Higher education is becoming increasingly more expensive, gone are the days when a Cal State education cost little more than books and materials, tuitions are continually on the rise. As pointed out, graduates are emerging with greater amounts of debt and worse, few job options. Servicing debt, paying more for essentials (even a cheap new car is $14-15K now) and stagnating wages have all but decimated any savings ideals. The idea of owning a home is a retreating mirage, ever unattainable.

IR said - “The change in buyer psychology resulting from a multi-year price decline will be difficult to overcome. In fact, I believe this will be the worst problem created by the false rally of 2009-2010. Because the government meddling sent a false buy signal and burned a group of cautious buyers, many will question the real bottom when it materializes.” I couldn’t agree more and to me, this is one of the most salient points made. Its my belief a fundamental shift is underway in how people will look at their housing options going forward ... I know I am.

Renting is losing its stigma (as has long been the case in Europe) and many are rethinking taking on the responsibilities that come with owning one’s home. Maintenance costs, insurance, appliances and major repairs dull the sheen of owning a home; considering a likely very slow appreciation in value for the foreseeable future, coupled to the risk, it simply may not be worth it.

Congrats.

One happy reader.

Congratulations on them dropping that silly action. Thanks for providing a place for us to have discourse. Best of luck to you!!!

$1.2 million mansion for $10K?
http://www.bankrate.com/financing/mortgages/1-2-million-mansion-for-10k/?ec_id=m1078089