I’m going blind, please help.
There I sat until three,
gettin’ further behind myself.
Someday I will be free,
and there’ll be times, you just wait.
I will come to you, see,
what I’ll bring you when I get straight,
Oh it’s too late.
And I’m hung upside down.
And I’m hung upside down.
Hung upside down, said I’m
hung upside down, c’mon, c’mon.
Hung upside down.
Hung Upside Down — Buffalo Springfield
This is the story of many homeowners now that the market has started its downward spiral — hung upside down. Trapped in a property they cannot sell and cannot afford, they count the days until their mortgage resets and they face foreclosure. It is a bit like death row when you think about it. You know your sentence, it has a feeling of dread and finality, and you know the date when judgment will be rendered. You have your false hopes for a government reprieve, but after a time you become resigned to your fate.
Income Requirement: $150,000
Downpayment Needed: $120,000
Monthly Equity Burn: $5,000
Purchase Price: $610,000
Purchase Date: 6/30/2004
Address: 3 Carlina, Irvine, CA 92620
First Mortgage $495,000 – 1.5% teaser rate
|Lot Size:||4,420 Sq. Ft.|
|Type:||Single Family Residence|
|On Redfin:||30 days|
Seller super motivated. Make an offer, ANY offer on this Charming light and bright home located in a quite Cul-de-sac. Newer Kitchen cabinets and appliances. Large ceramic tiles in main areas. Above ground spa, Covered patio with skylight. Remodelled bathroom in master berdroom. Many nicely upgraded features thoughout this home. Interior and exterior painted a year ago. No mello roos or HOA. Low Property Taxes.
Make an offer, ANY offer. Do you smell blood in the water?
light and bright — This is nails on a chalkboard to me. Pet peeve, I guess.
Seller super motivated. If so, where are the obligatory three exclamation points?
berdroom? Is that like a birdroom?
This seller (or the lender if they maxed out the HELOC) is going to lose $46,000 after a 6% commission assuming they get their asking price. As you can see, we are moving past 2004 prices and heading downward.
These are the properties that are going to drive prices lower in Irvine. This isn’t subprime, this is just an ordinary buyer who bought too late, paid too much and cannot afford the home. There are many of these people in Irvine. We have profiled many here, and we will profile many more. The ones we have seen to date are the most distressed sellers with the shortest fuses on their time bomb loans, but there are many, many more of these people hoping and praying the market will come back to save them. Unfortunately, all the people with shorter fuses on their bombs are going to explode first and keep prices depressed in the process. This is the nature of “overhead supply,” and it is why a market needs capitulatory selling to clear it out before any appreciation can take place.