Sumac Attac

Guess what? I found another 100% financing deal where the borrower walked. What a surprise? The bulls must have a hard time ignoring the obvious with these 100% financing deals. When the going gets tough, the tough get… out. With the huge number of these deals during 2004-2006, how many of these properties will need to be absorbed by the market? How long will it take? If I were bullish, I wouldn’t be holding my breath.

Sumac Front

Asking Price: $759,900IrvineRenter

Purchase Price: $663,147

Purchase Date: 5/22/2007

Address: 14911 Sumac Ave., Irvine, CA 92606

Pre-foreclosure data:

Purchase Date: 10/28/2005

Sale Price — $795,000

1st Loan — $636,000

2nd Mtg. — $159,000

Rollback

Beds: 4

Baths: 2.5

Sq. Ft.: 2,350

$/Sq. Ft.: $323

Lot Size: 5,000 sq. ft.

Year Built: 1972

Stories: 2

Type: Single Family Residence

County: Orange

Neighborhood: Walnut

MLS#: U7002468

Status: Active

On Redfin: 35 days

From Redfin, “THIS IS WHAT YOU HAVE BEEN WAITING FOR. A HUGE FAMILY HOME IN ONE OF T HE MOST SOUGHT AFTER CITIES IN ORANGE COUNTY! THIS IS THE CITY OF IRVINE, WITH THE GREAT SCHOOLS, THE GREAT PARKS, AND SO MUCH MORE. THIS IS A TWO STORY WITH FOUR BEDROOMS AND TWO AND ONE HALF BATHS. .. ASSOCIATION PARKS. WALK TO SCHOOL AND SO MUCH MORE. HOME IS BEING SOLD ‘AS-IS’ WITHOUT WARRANTY. “

THE ALL CAP ATTACK!!!

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If the bank can manage to get their asking price, and if they only pay a 2% commission (banks are cheap), they will lose $50,298. A few more like this, and they will stop making 100% loans to people with poor credit — Oh wait, that has already happened. A few more like this, and they will stop making 100% loans entirely…

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Video link to Big Mac Attack Rap

Second Big Mac Attack Rap Video

22 thoughts on “Sumac Attac

  1. Incredulous

    How bad can it be that they don’t even run a picture? For three quarters of a million dollars, I would want to see a series of photos before I drive over there.

    FWIW, I never go view a house without a photo – my assumption is always that it is a pit. Just as bad as a for-sale sign on a car without a price – I always imagine it must be too expensive.
    —–

  2. Darini

    I noticed this MLS listing started with a U. I don’t get the impression that they are sequential so I presume that the first letter actually has a meaning.

    Anyone know what the first letter of the MLS relates to?

  3. Mr Vincent

    There is a pic of the front on the Redfin listing.

    Be your own judge.

    Something is not right about this place.

    5000 sq ft lot…..LOL

  4. IrvineRenter

    That image just got posted today. I will update the blog entry. Thank you for pointing it out.

    It certainly does appear to need some work, particularly the front yard.

  5. reason

    Asides from the price. The house looks nice from the outside. Too bad they didn’t take care of it. My gosh, for an Irvine home, just look at that front yard. Such a shame.

  6. Joe Cactus

    Is there a meth lab in the garage? This place does not looked live in.

    Also, what’s up with the 75K in the sale history?? I certainly wish they made that kind of typo in my assesment (if that’s what it is).

  7. No_Such_Reality

    Did the 1st foreclose or the 2nd? If the first, is the bank still looking to booked $100,000 over their initial loan?

    When will the bank madness stop? Nobody showed up at the auction to bid $663,147.01. Or was the initial bid $759,000 at the auction becuase of a Neg-Am loan and a year of missed payments, penalties and interest?

    This place is only about 100 yards from the train tracks, I can hear the morning Amtrak to San Diego blaring by just sitting at my keyboard.

  8. PurpleHaze

    What kind of warrenties come normally with a house?

    This question popped in my head when I read the disclaimer on this property that said sold as is without any warranties.

    Thanks in advance for a response.

  9. Mike

    Great Site…excellent posts, i am a first time visitor and i am hooked.

    I always wonder what builder and buyers are thinking, i was driving past Lennar Central Park. One row of condos faces a 4 story parking structure, one side looks at 405 and people are still buying it for crazy prices.

  10. Masterofdamoney

    IR,

    On the REO sales, the banks still pay 5-6% commission. 50/50 to the REO agent and the buyers agent.

    At least that’s what I’ve been seeing on every REO lately.

    Just FYI.

  11. IrvineRenter

    I imagine this will be true for a few more months. None of the banks have the staff to deal with REOs, particularly the huge numbers of them on the way. Once they get staffed up to handle the volume, they will start cutting out the realtors.

  12. William Jones

    Irvine Renter…have you thought of an update visit to the high-rise condos off of the 405 Freeway near Jamboree? As I recall those were called “North Korea” because so many were dark at night.

    Also, there were some very high end condos called the Watermarke built along Jamboree, closer to MacArthur Blvd…they had ENORMOUS prices. I wondered what happened there. I loved the pretentious spelling with the added “e” at the end. Every time I see an English spelling on an American subdivision I feel like screaming…Harbour Court (or how about Harbour Courte?), CentrePointe, etc.

  13. Doctor Housing Bubble

    Time to gear up for the driving in reverse REO game brought to you by your local bank and lenders. Simply put, any short-sales hitting the market, the bank is looking at peak sales data and using that as their reference point. Basic but ingenious method of market analysis. I love the “dirt” look they have with the lawn; very appealing for a home that will run you $750,000+! You would think they can spend $400, run to the local HomeDepot and slap on the grass. But this is Irvine therefore you can charge whatever you want even with Death Valley as your yard.

    Time for the short-sale game to begin. We’re only entering the first stage of this great unraveling.

  14. fumbling

    Is this house a flip? It was bought at a “bargain” price of $633,147 in May 2007 and now two months later it’s asking $759,900? Does this flipper know it’s 2007 and not 2005? Reminds me of the commercial where the guy wins an auction and then tells the auctioneer to sell it again.

  15. fumbling

    I second that motion by William Jones, I have walked through the Park Place and Plaza Irvine high rise condos and cannot understand how they can justify the prices they are asking. The 1500 sf Park Place homes are so small I can’t imagine how people can live there without going crazy from claustrophobia. The 1675 sf Plaza Irvine homes feel much bigger even though they only have 175 more sf, but even then, I don’t see how older empty nesters who can afford the $1 million that these condos are listed for, can downsize to such little space if they are used to a 3000 sf suburban home, and I don’t see how younger couples can pay the $1k/mo HOAs. The larger 2000+ sf high rise condos start feeling a lot more livable, but then they’re asking close to $2 million plus the $1k/mo HOA. Seems like the price would be reasonable if they were cut in half. In fact I would seriously consider a 2000 sf condo if the price were $1 million (around $500/sf). Are all these condo holders really holding out for their wishing prices no matter what the monthly holding costs are? How many of them are there and how long have they been waiting to sell? Inquiring minds want to know…

  16. biscuitninja

    Wow, I hate to say it, but it looks like a hole…. not something I would pay 750k for. I MAY pay 400k in a month or so, but that’s just me. Like time I picked up a house it was 200k for something similar to this. And I sold it for 585k and still made 200k. This place looks that bad.
    -bix

  17. Major Schadenfreude

    “As I recall those were called โ€œNorth Koreaโ€ because so many were dark at night. ”

    LOL!!!!

    That is too funny!

  18. tonye

    HEHEHEHe, How true. ;-0

    I think we should live in Ye Turtle Rocke, we should have the North Broadmoore, Centre Terrace, etc.. etc…

    We joke that every such preposterous “e” or “re” is worth like a 5% bump on the old homestead price.

    The Watermarke was one of our favorites to note.

    By way of contrast, “Vista Verde” sounds so Costa Mesa like. ;-P

    Hmmm… Doesn’t Irvine end on an “e” too? ๐Ÿ˜‰

  19. Mendelssohn

    I think this neighborhood is called College Park, not Walnut or El Camino Real. Most houses in that area is more than 30 years old.

  20. tonye

    Yes. It is College Park and yes, those homes are over 30 years old.

    The prices in that part of town, College Park and Walnut are not as high as in other places. Heck, the area around Walnut and Jeffrey looks like a dump.

    So, at $270 per sq/foot I think College Park is still overpriced, no matter what the bubble did. If TR goes back to the mean at around 350->450, then I figure College Park should go for no more than 225. tops.

    That’s the history of Irvine homes, folks.

    Also, does any one what the Mobile Home States on Jeffrey are going for? Now, that’s an oxymoron, huh? A mobile home park in Irvine.

    The way it’s going, I better sell my house now and get me a nice triple wide with white rocks and gravel out front! ๐Ÿ˜‰

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