Irvine Housing Blog

“I imagine lenders will find a way to take bailout money for these losses. You are probably going to pay for Washington Mutual’s loss on this property with your tax money as part of the backstop agreement when Chase took WAMU over. “

You got that right.

We are all Newport Coast home owners now !!!

Another week, and more tax payer help for homeowners.  There is no end in sight.  Government sponsored principal reductions are just a hop, skip, and a jump away.

This will all blow up into major inflation 5 to 10 years from now.

IrvineRenter,
Why you heartless soul.  You’re likely picking on a single mother.  She only did what was legal and forced there by dead, divorce or stragetic separtation.  Only 3.2 million dollars in cash equity withdraw from a first with the banksters blessing. The $0.7 million HELCO is questionable, because that would create a recourse loan, but payment of 20 cents on the dollar, still a ROI of 500% for the HELCO.. :{

What’s it to you that she got the good deal from the bank?  $3.2 million in walk-away money and only one year plus free rent now.

It doesn’t matter what price she sells it at this point.  You’re assuming that she really wants to sell the place.  It likely a one action/non-recourse.  The game is to give the bank a reason to delay FC.  String the lowering of the price for another 3 years of free rent.  If it sells for $500 thousand or FC, it no skin off her back and that would be 4 years of free rent plus 3.2 million in walk-away money.  Maybe she can make some political contributions on behalf of GS for more bailout money for the banksters and expansion of non-recourse for all home loan, unless she’s a bankster.  Is she?

I would put some quotes of our founding fathers, but the OHS would like be shutting down your website. :}

If it had sold for $6.1 million, she would have gotten another $2.3 million on top of the $2.7 million in equity withdrawal. Great fantasy, but too bad life didn’t play along quite right. I guess some lawyers and debt collectors will take the time to look into this one eventually. Any Sugar Daddies out there?

I’m always compelled to post when you discuss Option Arms. 

Having worked in loss mitigation for a larger servicer, I was amazed at the number of Multi-million dollar option arms going bad… Especially in hard hit areas of FL.

One comes to mind: a single woman that work for a large TV network making $450,000/yr.

$3 million Option Arm with a teaser rate payment of about $10,000/mo. In Foreclosure. We offered to get her all caught up with a fully amortizing 2% rate which would keep her payment at about $10,000 (but no longer be neg am).  Rate would step up to a “normal” rate of 5% after 5 years.

She sued us. Case was still pending when I left.

Does this rich, saavy business woman deserve a 2% payment? Do YOU have a 2% payment on your $3million dollar home?

The whole mod business disgusted me, which is why I quit.

The 5% payment shocked her (about $16,000/mo), but what did she expect was coming on a 3 MILLION DOLLAR LOAN!

Why can’t she just go rent somewhere with her $450,000 ANNUAL SALARY! No, we “owed” her somehow.

No I’m mad all over again…

Alan,
If it sold for $6.1 million, she would be responsible for pay the REA and clearing the loan.  The net with the sale would be about only $1.8 million.  A walkawy with $3.2 million is $1.4 million more plus a few years of free rent. She only needs to do the math. 

The one action rule with a judical FC might keep her in the house for another 3 years and call the title into question for one year after JFC.  But then she could of hid the $3.2 million.

You can buy a lot of house for $3.2 million in 95% of the USA.  $3.2 million is a life time of rent, small house and retirement funds.

Sorry, Math mistake.  Net on sale for $6.1 million would be $4.5 million cause the property was purchased for 1.2 and she should have cash for the refinance what would be a wash.  But she at a point that the sale below her loan value would not likely be in she best interest.

JFC are a crap shoot.  Too much rest upon a judge that might have great sympathy for this poor single mother or buddies with her family.  The title/sale would still be in limbo for a year after JFC.

Not leagal advise, just looking over the possibilities.

While I enjoy IHB very much, I doubt that many people in the mid west are reading the blog.  Once everyone that rents, pays their mortgage, or owns their home outright truly understands this problem and has a way to express their displeasure, something big is going to happen.

Those are some mind blowing numbers!  Like you said, the tax payers will probably eat the loss.  When all the people in the midwest who live within their means figure out where their hard earned tax dollar is going…shit could hit the fan real bad.  It’s funny how the MSM doesn’t cover any of these stories because it would insite anger and possible violence.

The woman featured has zero ethics or morals.  But she is business savy and knows how to game the system…that is what sets her apart from the rest of the Oprah watching, cheesy poof eating regular working class.

Thank you for this post. 

I will be printing it out and sending it to elected officials along with a letter explaining why their heads should be more or less lopped off.

This story will be in support of just one bullet point of many in that letter.

She even better.  The listing has a lease option while in default.

Taking 3.2 million in cash, not paying and maybe have someone to pay her by leasing the house.  It doesn’t get much better than this bailout.

Say $10,000 month plus deposit for leasing.  Plus prepayment of rent and deposit?  The bailouts are really reeking of greed.  Will the leasee get stiffed?  I hope the laws have been changed to protect the leasee for FC.

The large families in the midwest are needed.  Who else is going to pay for all these bailout?

wow, this is just gross .

shouldn’t there be some kind of law ?

Hmmmph.

Interesting.

I did a little noodling around on the internet.

Looks like this person *may* also be the owner of a $1,640,000 Sunny Isles Beach, Fl condo bought in 2008.

I wonder if she’ll “homestead” her condo and get to keep it for free.  I think that’s how it works in FL.

Bitch.

Ohmygod, I am beyond disgusted.

I am a renter and I have just been informed that my job in financial will go away next month, or the following month.

Let me tell you that I will not get the forbearance from my landlord that this woman has gotten from the system, and I don’t make anything like $450K a year. My landlords are great people but even THEY are not in this woman’s income bracket,nowhere near, and they cannot afford to carry a 42-unit building full of unemployed freeloaders.  I wish I could tell you she is the only rich person living on welfare in a palatial home, but I personally know of a couple such here in Chicago.

This woman should be prosecuted for bank fraud and made to move out of this house and to pay back as much of her debt as she is able to. That means that she should be left about 20% of her income to live on, about $90K, which last I heard was well above the poverty line. Maybe she should be left $45K, which is ample for her needs. That will get her a nice rental in FL and pay her car expenses. She should have a lot of nice clothes and jewelry left to show for her HELOC spending binges- but the jewelry should be hocked to help pay the debt.

And she should be made to perform Community Service. I would suggest she be put to work in a homeless shelter, so she can meet people who’ve really been had by our rotten system.

OOps, why did I say FL? This house is in CA. Oh well, she can get a livable rental somewhere in SoCal for $1100 or so, I’m sure, though I do not know your market.

Where she really ought to be living is in a jail cell. This was HELOC fraud, pure and simple.

Here is a nice Irvine rental for a thou a month.

Now, it’s a studio, and I have no idea how the neighborhood is. But it is on the 2nd floor and looks fairly break-in resistant, if you put a good stout deadbolt lock on the door. It has a tennis court and a pool and parking and is close to everything.

http://www.realtor.com/realestateandhomes-detail/264-Streamwood_Irvine_CA_92620_1115400302

I found many other nice cheap places in the Los Angeles area. Very nice little places in charming, well-kept, secure old buildings for as little as $667 a month. Granted, they are not in choice neighborhoods, but if you are careful and alert, you can live safely in these areas.

While I’m sure it’s not a great apartment and it probably isn’t in a desirable location, it is still far from being a slum. You can paint the place and make it charming, with a little imagination and almost no money, especially if your are already loaded with luxe furniture left over from your binge-spending days.The location also might make up for what it lacks in desirability in its proximity to retail and recreation.It beats the hell out of a prison cell. Many people who used to live far better would now be grateful to live this well.

But this lady probably has closets bigger than this place so she will have to sell a lot of her nice designer duds to fit into the joint. She shouldn’t feel bad- it beats living in a Tent City

Here is another cheap Irvine rental:

http://www.realtor.com/realestateandhomes-detail/2253-Martin-212_Irvine_CA_92612_1117304059

How is this neighborhood, does anyone know? This looks like an attractive complex, but from the listing I can’t tell how the maintenance is, or anything about the neighborhood. But from this distance (Chicago) this looks OK for a single woman with no kids.

This place has a one bedroom for $1100 and it looks nice. Is this a bad part of town? Is it an inconvenient place to live?

http://www.apartmentguide.com/apartments/California/Santa-Ana/The-Court-At-Artists-Village/63644/