Irvine Housing Blog

I also consider the option-arm as a form of equity withdrawal, as the principal owed increased.  It is roughly 10k/yr in extra cash.  Not huge in heloc terms, but a 10k/yr post-tax raise/bonus is real money to most people.

This property was bought at an REDC auction this summer.  The property was occupied and it was the responsibility of the new owner to evict the tenants.

Really nice use of the Megadeth video to illustrate this conflict of interest situation.

Anyone knows the answer to this:

when people short selling their homes, are they still paying their mortgage while waiting?

If they’re not paying, then wouldn’t that trigger foreclosure and not a short selling anymore? (unless the bank decides to extend and pretend)

It’s pretty sad that a flipper bought it for $267,000 just a few days ago and inflated his price so much, well it’s good for the flipper if he gets his asking price, but bad for a potential buyer who really likes the place but has to pay a $80K premium.

Regarding the down payment and income requirements, I don’t know a single person who has one year of their salary saved outside of their 401(k), especially Californians in the $70K household income bracket. That’s about $4K a month after taxes. It’s possible to save up a lot if you’re careful, but I’d wager that most people aren’t.

IR:

That’s a good idea for a post: in a squat, foreclosure and/or auction, what ranking do property taxes and HOA fees get compared to noteholders?

And what strategies are those parties using to squeeze the most blood out of the turnip?

A humorous take on the topic of lobbyists:

Includes irvine unified

Published: Sept. 10, 2010
Updated: 4:59 p.m.
ACLU suit: 6 O.C. school districts charge illegal fees
By FERMIN LEAL
THE ORANGE COUNTY REGISTER

http://www.ocregister.com/news/aclu-265945-unified-fees.html

NAR policies are a joke! Will Agents Stop Contributing to the Problem and Become Part of the Solution?
    Both the federal home buyer tax credit and the California home buyer tax credit were bad policy. Moreover, any legislation meant to artificially delay price depreciation or support the market only delays recovery and is bad policy for agents, their clients, and the American public. During the first time homebuyer tax credit I told my clients that prices would fall by at least $8000 soon after the tax credit went away. In many areas I told them that people were paying $30,000- $40,000 more to save $8,000 in taxes, this proved correct when demand dropped and prices are now following since the tax credit went away.
    Unfortunately for good agents, this policy was not only bad for America and their clients it will serve as more fuel for anti-agent sentiment. Despicably, many agents have become masters at creating an artificial sense of urgency to get their clients to buy. I saw numerous articles on active rain and in other places by agents describing to other agents how to use this tax credit to manipulate their clients. While if an agent is properly educating their client on rental parity, the importance of obtaining 15 or 30 year fixed financing, and the necessity to plan on a long term hold, ideally for the term of the loan, if the agent is in an area that the tax credit did not push the price up because of artificially low supply and shadow inventory, and the buyer is set on buying in the next 30-60 days regardless, there may be a reason for a buyer to take action this was probably not the case for 99% of agents that used this false sense of urgency.
  Moreover, this is not the first time NAR was tricked into supporting policies that hurt the general public, agents, and their clients, with the only benefit going to big banks. NARs continued support of loan modification programs that make loan owners indentured servants for at least the next 10+ years, limits loan owners mobility and economic opportunities, and if it accomplishes it’s goal will reduce transaction volume, it’s a lose-lose for everyone except for the banks.
  Moreover, the tax credit, is now hurting realtors that did not retire because there is an uncertainty in the market and many buyers are waiting for the next government incentive. If they come out with another incentive they will start a dangerous cycle. It’s also hurting flippers because demand was pushed forward and many flippers did not realize how much extra people would be willing to pay to save $8000 in taxes so they were buying in August use comparable sales from the tax incentive period and there’s less demand and more realistic buyers out there.
    In reality, buyers will buy a home based upon their income. If prices drop, new buyers will be able to buy a bigger home or in nicer areas that they deserve for responsibly saving and waiting. Moreover, responsible sellers that are looking to re-trade will also be able to have more selection if they are moving up. Furthermore, although if an agents has an area that they farm and focus on and only lists properties it may affect their listing fee, however, there will likely be more transactions and the market will eventually normalize instead of stagnate. 
    Americans in general are undereducated economically and financially. Instead of taking advantage of this or being ignorant and part of the problem, if agents want to be considered professionals they need to create a higher standard. Requirements to become an agent should be made tougher, no agent living month to month should be allowed to work on commission, CAR and NAR need to stop creating and supporting policies that artificially support market prices at the expense of everyone except the big banks, and most of all agents and their organizations need to take a long look in the mirror and start putting their clients first. The average American does not understand mortgages, amortization, credit cards, compound interest, or many of the most important principles that are key to economic success. If real estate agents want to stay viable, they need to understand and educate their clients rather than manipulate them. Unless something changes realtors will be left wondering why they are not longer needed and we are going to have a massive issue when the generations of American’s that live on credit cards and pay option ARM loans hit retirement age.