Irvine Housing Blog

Even bears know how to relax…

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Collapsing stock market…

Collapsing credit market…

Collapsing real estate market…

We live in interesting times…
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Gorgeous remodel?? Huh, where? They certainly didn’t do anything to the outside. That classic 1970’s plywood garage door is to die for…... This home has less curb appeal than the average homeless shelter.

IR,

I love the cartoon… think you for brightening up this rainy, hot Raleigh day!  I can hear OC calling… at this rate I’ll be back in 09!  I thought Westpark… now I’m thinking Laguna Beach.  LOL

from 2nd loan, he/she covers the holding cost.
If I were the flipper, I would walk away , not wasting sweet 157.5K.
Bank is again the bagholder

...it also STILL has the wood-shake roof. This needs to be replaced and God knows what other damage there is on the roofing and exterior.

A professional inspection is a must here and since it was built in 75, I am sure the place needs to be tented. Notice the flat roofing above the garage. That needs a roof inspector.

Given the lot size, this looks like a detached condo. The HOA dues seem pretty high at 195.

LOL…Zillow values it at 688k.

Hmmmm, I wonder which back issued $0 down interest only jumbo loan in June 2007.  It must be CFC.  There goes another one in the hole, and BofA thinks its a good investment in CFC.  We all saw Enron.  We can smell some banks, brokers, and mortgage companines follow Enron all over again.

I think BofA is positioning itself to absorb the processing unit of Countrywide after the collapse. I don’t see it as an endorsement of Countrywide’s future but as a bet on its demise.

Since this is a bank Repo.  Can anybody confirm if opening bid at the trustee sale was $497,768.  And hence, nobody with the know how and cash roll to buy REOs wanted it at $497.768.01?

I’mnot 100% clear if the trustee sale records the price with the county at the outstanding loan balance, or the outstanding loan and fees which is opening bid at the trustee sale.  Can someone clarify?

As a minor note, since IHB is starting to have several REOs showing up, maybe making a format change for a REO property is in order to clarify it’s a REO.  Something like:

REO Asking Price: $619,000

Trustee Takeback price: $497,768

Trustee Date: 6/6/2007

Original Purchase Price: $630,000

Original Purchase Date: 3/9/2006

Yes, that would make it more clear. I will contemplate it…

Silly, silly bank.

I wonder what does it look like now, a year later?

Processing?  Are you meaning servicing or production?

I was thinking servicing, I personally think BofA has plenty of production people just fine.  There’s a loan producer for every 4 people in SoCal.  Just talk to him/her on your next visit to McDonalds.

Chuck Ponzi

Servicing. I should have been more clear.

WOAH!!  The best article I’ve ever read is on MSN today.  He basically explains in basic terms that we are all F’d.

http://articles.moneycentral.msn.com/Investing/SuperModels/RateCutsWontCureAilingMarket.aspx?GT1=10238

This is not a REO - someone did plunk down the cash to buy this house at the foreclosure auction.  He came up with $497,768.44 at the auction, which is one cent more than the amount of the unpaid debt & costs.  Since June 2007 he’s borrowed against the property, probably to perform the gorgeous “remodel”, and now obviously is trying to cash out.  Looks like the foreclosure flippers are coming out of the woodwork now.

tim b,

would you mind sharing with us how you got these info?

thanks!

I’ve been lurking since your mention in Newsweek (congrats on that by the way) and finally feel compelled to comment for the first time.  Yesterday, someone asked if Orchard Hills was on hold.  I’m an owner in Northwood Pointe, and I have seen the sign on Portola that says “Luxury Homes Summer 2008” for several months now.  Today the sign suddenly says:

Luxury Homes Coming 2009

It appears that Orchard Hills is indeed on hold, and I haven’t seen much action there in weeks.  Interesting!!

Thank you for posting.

I and not too surprised at the delays by the Irvine Company. When they are not selling houses in the projects they have, it makes sense to delay the next ones. If they open these new projects too soon, they will have a very difficult time closing out the old ones.

I work for a title company so I have access to property records in Southern California.  I also have a lot of time lately to research properties on this blog—by the way I think this blog is fantastic…

Thank you, if you have any other information you want to share on any properties, you can post here or email me. I use FastWeb to obtain my data, and it is often slow to update and incomplete. It is far better than Redfin or other free sources, but it isn’t near as good as a live title company database.

Nice, but I think he is partly wrong. I don’t think the Fed cares much about those cash strapped companies. But if you look at the business climate last week, it was almost a panic. Investors were making irrational decisions not to buy anything, even if the papers or whatever looked perfectly healthy in the current situation.

He is right that the Fed wants to prevent a big SPLAT, but imo and it seems in the Feds opinion too, a big splat would be more costly than the slow death of non-performing economic actors.

A slow death (say 100 lenders going under over 2 years) is much less noticed and has less impact on the rest of the economy than a huge wave of bancruptcies within 1 or 2 month. In that case I think many other parts of the economy would also freak out even though they shouldn’t.

Just my 2c

Here is a happy analogy

If you slowly strangle two people to death in the basement of your home (20% down and the rest as a 30 year fixed interest loan), fewer people will notice it (maybe the families and freinds of those you killed) than if you publicly execute two people with a handgun (in this case you don’t have a house b/c you took out an option ARM and it got REPOed).

Ouch,  how much has been borrowed against.  I don’t see much listed other than carpet, countertops, appliances and paint. 

That’s maybe $7000?  Okay, okay, countertops implies minor kitchen remodel, $20,000 totall.  Unless it’s a Flip That House TV contestant in which case $40,000.  Plus two months hold, but I assume he paid cash?  Hope he’s an agent, otherwise the 5% will hurt.

Why take that risk for 10%?

Is there a link to the Newsweek article?

This article was picked up by Newsweek and the Washington Post:

http://www.slate.com/id/2171235/fr/flyout

Here is the Newsweek link:

http://www.msnbc.msn.com/id/19983608/site/newsweek/page/0/

That’s a 180 degree viewpoint from this one. 

http://www.federalreserve.gov/boarddocs/speeches/2004/200403022/default.htm

Impac cuts jobs
Two lenders in Irvine are rocked by credit turmoil. BNC Mortgage is closing, and Impac laying off workers.

http://www.ocregister.com/money/mortgage-credit-loans-1818576-bnc-irvine

Mortgage mess claims new victims
Bracing for a flood of layoffs: The 21,000 job cuts this month in the housing and finance industries almost equal the number for all of 2006.

http://articles.moneycentral.msn.com/Investing/Extra/MortgageMessClaimsNewVictims.aspx

Just a few years ago, mortgage salesman Terry Orlowski rode the housing boom and a six-figure income down to the car dealership and bought a new Audi A6.

Now, the soaring market and the fast car are gone. Last week he lost his job, along with 6,000 other employees of First Magnus Financial, a mortgage lender. Now driving a 1999 Dodge Grand Caravan, he plans to move back in temporarily with his ex so their two children can stay in private school.

CEO calls for broker reform

Washington Mutual’s chief seeks improved education and standards for those who supply home loans.

http://www.latimes.com/business/la-fi-loans22aug22,1,790951.story?coll=la-headlines-business

Now the chief executive of the nation’s largest savings and loan, saying lending standards became irrationally lax in recent years, is supporting stricter professional requirements for mortgage brokers.

“They should have something like stockbrokers—licensing, testing, higher standards,” Washington Mutual Inc. Chief Executive Kerry Killinger said in a recent interview.

Sign of the times

Just got an Realtors card in the mail which reads as follows

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Dear Homeowner,
Are You Interested In Selling?  We Have Buyers Looking In This Area!

Now Could Be The Right Time For You To Sell!
Please Call Us For A Confidential Evaluation Of Your Property’s Value.

You Have The Home…
We Have The Recipe For Success!
Let’s Work Together!
——————-

All good, except I live in a rental apartment complex ....

Sue

That’s pretty funny. I got a flyer on my doorstep informing me that two Remax (tm) Realtors (tm) “Have the keys to my new home!!” I also got a solicitation the same day from a mortgage broker informing me I had been “pre-approved for a $100,000” Heloc on my home that I don’t own. I wonder if I fill it out he’ll send me the check anyway?