With all of the soon-to-be-former homeowners who spent their houses, you have to wonder if the good times they had while walking the path to foreclosure was worth it.
Asking Price: $514,800
Address: 149 Lockford, Irvine, CA 92602
{book5}
Shook Me All Night Long — AC/DC
Years ago there were occasions when I would party and drink myself into a stupor just for the fun of it. In fact, I have listened to today’s featured song inebriated far more often than not. I can’t do that anymore because the hangovers are too severe, but even in my carefree youth, the hangovers were not pleasant. I would party and have a good time knowing that I would have to pay a heavy price the next day.
Most people who spent their house had a great time, and most did not realize that house prices could fall and the party might end (that ignorance is astonishing, but very real). There were some that suspected the music would stop and didn’t care because they were having such a good time. Some people are still in denial about the end of the party, but soon enough it will become apparent to all.
Once the reality of the market is widely accepted, do you think those people who spent their homes will regret what they did? Or do you think they will think the spending and good times were worth the price they paid later?
Asking Price: $514,800
Income Requirement: $128,700
Downpayment Needed: $102,960
Monthly Equity Burn: $4,290
Purchase Price: $475,000
Purchase Date: 8/27/2003
Address: 149 Lockford, Irvine, CA 92602
| Beds: | 3 |
| Baths: | 2 |
| Sq. Ft.: | 1,752 |
| $/Sq. Ft.: | $294 |
| Lot Size: | – |
| Property Type: | Condominium |
| Style: | Other |
| Stories: | 2 |
| Floor: | 2 |
| Year Built: | 2002 |
| Community: | Northpark |
| County: | Orange |
| MLS#: | S569552 |
| Source: | SoCalMLS |
| Status: | Active |
| On Redfin: | 30 days |
enclosed bedrooms, nicely upgraded w/neutral carpet, decorator paint,
crown molding, built-in media center, grand rotundra entrance to great
room, open kitchen w/breakfast counter, G.E. appliance package, four
burner cook-top, walk-in pantry, recessed lighting, living room
w/fireplace/tile surround/custom mantel, dining room leads to view
balcony large enogh to entertain, lovely master suite
w/retreat/built-in display case extends to luxurious bath w/separate
shower, deep oval soaking tub, dual sinks, cedar-lined walk-in closet
w/organizer, interior laundry, two car side/side garage
w/overhead/vertical storage cabintry, resort lifestyle amenities:
pools, parks, spas, meandering greenbelts, gazebos w/fountains,
clubhouse, tennis/sports courts, close to Irvine/Tustin entertainment
complex.
That description has a few too many items in the list for each sentence, but the property is described well with few flowery adjectives and no realtorspeak (unless I missed it). Not bad.
There are a few misspelled words though: enogh, cabintry, and my personal favorite, rotundra
- This property was purchased on 8/27/2003 for $475,000. The owners used a $380,000 first mortgage and a $90,000 downpayment.
- On 12/30/2005 they took out an Option ARM with a 1.5% teaser rate for $552,000.
- On 7/18/2007 they opened a HELOC for $50,000.
- Total property debt is $602,000.
- Total mortgage equity withdrawal is $222,000 including their $90,000 downpayment.
All that money is gone. If this sells for its current asking price, the total loss to the lender will be $118,080.
So what do you think? If these people had not HELOCed themselves out of their homes, they would never have had the $222,000 to spend. Of course, they would probably be in a better financial position and possibly capable of keeping their home. Which is better: To spend the money and live for today? Or to be cautious and keep your home?
{book3}
Shook me all night long,
Yeah you, shook me all night long,
Knocked me out, I said you
Shook me all night long,
Had me shaking and you,
Shook me all night long,
Well you shook me,
Well you shook me…
Shook Me All Night Long — AC/DC
“Which is better: To spend the money and live for today? Or to be cautious and keep your home?”
Is this a trick question?
I would go for the former. The Fed & Govt are determined to keep today going with absolute no thinking of tomorrow. The public should be no different and better off aligning with govt. You get rescued if things don’t turn your way any way…
“I would go for the former. The Fed & Govt are determined to keep today going with absolute no thinking of tomorrow. The public should be no different and better off aligning with govt. You get rescued if things don’t turn your way any way… ”
Well, can you blame the Fed and the Govt? The entire freaking world practically gave them the printing machine so that they can buy their own debt.
If I had a printing machine, I would print myself to death 🙂
Let’s be realistic this wasn’t “Their home”.
These people were nothing more then renters. Actually they were House Sitters. Instead of paying rent since 2003 they were paid to House Sit for the bank. They were paid almost 2k a month for 5 and a half years to live there. That is much better then rent free!!!!
That’s right – it’s time to call a spade a spade and stop referring to these people as “home owners”. I am sick and tired of hearing the word “home owner” used over and over again to refer to a “faux owner“. It’s nothing short of lipstick on a pig; people with mortgages own nothing.
It’s time to bring some dignity and pride back to the term “home owner” and reserve it for people who actually own their homes “in the clear”. Make it something to strive for and achieve.
Disclaimer for any trolls who are going to act all high and mighty and start tossing around the R-word – the context is:
“To speak plainly – to describe something as it really is.”
Deal with it.
I missed the boat but what’s the R word?
Renter, rental or rental parity???
Actually this property owner is quite ‘conservative’ compares to other HELOC abused.
From 2005 to 2007, the owner ONLY get $50K from the house, and at the top of market, this condo can re-fin for $700,000. So they miss that $100K.
But ironically, at end of the end, the out come is the same. So the owner is not ‘smartest’ HELOC borrower. And because of their conservative, taxpayers can save $100K today.
And because of their conservative, taxpayers can save $100K today
I am feeling better already.
Wow….that $100k sound great until it landed on the C/BAC/AIG rescue package cesspool.
I don’t think it’s a slam dunk answer.
I have an acquaintance who was buying and selling houses (primary residences) for about 7 years from 2000 to 2007. He was buying a new truck every year. Motorhomes, boats, etc. I think every meal they ever ate came from a restaurant. He worked less than full time. We could never figure out how they did it. Now his empire has collapsed.
7 years of living like a king is pretty nice. I’m not sure what penalties he’s really going to have to pay for it. Now he’s driving old used cars (gasp!) and I assume he’s a renter, but not sure.
His credit must be trashed, but does it really matter much?
Aside from the moral or ethical implications, I think it would be a very tough decision for me to decide if I wanted to live like a king for 7 years only to be in a financial mess for 5-10 years afterwards.
Compare that to someone who saved and diligently buy stocks and stock MFs because the ANALysts said so from 2000 to ’07, lost his/her job at ’08, and diligently hold on to deal life on the advise of the same ANALysts such as….ahem….Cramer who said “Bear Sterns is fine…do NOT sell Bear Sterns!” and now have no other choice because of crappy job market and bills to pay…had to relinquish EVERYTHING back in March 8th of 2009 to pay the bills.
Hmm……I’ll take the motorhomes and the boats anyday.
To quote a song from the Dio years of Black Sabbath (Die Young):
Go to the wind, though the wind wont help you fly at all
Your backs to the wall
Then chase the sun, and it tears away and it breaks you as you run,
You run, you run!
[chorus]
So live for today
Tomorrow never comes
Die young
Behind the smile, theres danger and a promise to be told:
You never knew.
Lifes fantasy – to be locked away and still to think youre free
Youre free, were free!
[chorus]
So live for today
Tomorrow never comes
Die young
Die young, die young
Cant you see the writing on the wall?
Die young, gonna die young
Someone stopped the pain
I agree it is a dilemma. The problem is the hyped up, government supported markets incentivised people to take on debt they couldn’t repay — or even if they could, they simply didn’t have to.
Not to be moralistic but I do think it will be good for everyone (except the defaulters) if someone takes up the gauntlet on these HELOC abusers and pursues them to the ends of the earth. The idea that simply not paying your debts is a valid option is not a very healthy one for society. Maybe a series of prosecutions will make people think twice for awhile.
Agree, if you also prosecute the lending institutions that facilitated / enabled this abuse.
And not every bank / lender participated in this insanity. I bank with USAA and last year tried to open a very small HELOC (<10K) to improve my home.
DENIED - and I have substantial equity! So I found another financing source (not some guy named Vinny) - actually they did me a favor as the interest rate I eventually obtained was half that of the HELOC.
Thank you USAA for protecting me from my myself.
What to do with the financers is another issue. I would argue that you only prosecute the financer if they then flipped the loan on the secondary market and it was clear from the documentation that the loan was bad. Otherwise, they were stupid, not criminal — besides, how do you prosecute the person who got ripped off? It was the borrowers choice not to pay back the loan, because it was “rational” not to. Also, Freddie and Fannie created this monster. You can’t always blame the bank.
government supported markets incentivised people to take on debt they couldn’t repay
Just look at what the government has done with FHA to continue the fleecing of the people:
The Next Housing Bust Article
MAY 5, 2009
Printed in The Wall Street Journal
Everyone knows how loose mortgage underwriting led to the go-go days of multitrillion-dollar subprime lending. What isn’t well known is that a parallel subprime market has emerged over the past year — all made possible by the Federal Housing Administration. This also won’t end happily for taxpayers or the housing market.
Last year banks issued $180 billion of new mortgages insured by the FHA, which means they carry a 100% taxpayer guarantee. Many of these have the same characteristics as subprime loans: low downpayment requirements, high-risk borrowers, and in many cases shady mortgage originators. FHA now insures nearly one of every three new mortgages, up from 2% in 2006.
taxpayer losses are mounting on its $562 billion portfolio. According to Mortgage Bankers Association data, more than one in eight FHA loans is now delinquent — nearly triple the rate on conventional, nonsubprime loan portfolios. Another 7.5% of recent FHA loans are in “serious delinquency,” which means at least three months overdue.
The FHA is almost certainly going to need a taxpayer bailout in the months ahead. The only debate is how much it will cost.
as subprime lending took off, banks fled from the FHA and its business fell by almost 80%. Under the Bush Administration, the FHA then began a bizarre initiative to “regain its market share.” And beginning in 2007, the Bush FHA, Congress, the homebuilders and Realtors teamed up to expand the agency’s role.
The bill that passed last summer more than doubled the maximum loan amount that FHA can insure — to $719,000 from $362,500 in high-priced markets. Congress evidently believes that a moderate-income buyer can afford a $700,000 house. This increase in the loan amount was supposed to boost the housing market as subprime crashed and demand for homes plummeted. But FHA’s expansion has hardly arrested the housing market decline.
Even more foolish has been the campaign to lower FHA downpayment requirements.
Because FHA also allows borrowers to finance closing costs and other fees as part of the mortgage, the purchaser’s equity can be very close to zero. With even a small drop in prices, many homeowners soon have mortgages larger than their home’s value
reforms have long been blocked by the powerful housing lobby — Realtors, homebuilders and mortgage bankers, backed by their friends in Congress. They claim FHA makes money for taxpayers through the premiums it collects from homebuyers. But keep in mind these are the same folks who said taxpayers weren’t at risk with Fannie Mae and Freddie Mac.
A major lesson of Fan and Fred and the subprime fiasco is that no one benefits when we push families into homes they can’t afford. Yet that’s what Congress is doing once again as it relentlessly expands FHA lending with minimal oversight or taxpayer safeguards.
Original article at:
http://online.wsj.com/article/SB124139474675481713.html
The government is now the new straw buyer.
It definitely shows you who the government is working for.
David, thanks for pointing out the FHA. I don’t think many people realize the FHA is the new subprime. I read somehwere that some 25% or so of current loans now in CA were FHA loans. That is a similar percentage of loans to what options arms represented.
Asking a little bit around here in Irvine, I can see that people are relying on FHA loans to be able to afford homes here in Irvine.
FHA is not as bad as options arms or subprime, but it is helping keep homes at elevated prices here in Irvine. It is the only way a poor hard working engineer making “only” 110k a year can afford a half-million no patio 3/2 townhome.
These loans will blow up too. Although I imagine the default rates will be in the 10-15% as opposed to 90% for subprime loans (after reset). Anyway, significant enough for the thing to blow off.
“Not to be moralistic but I do think it will be good for everyone (except the defaulters) if someone takes up the gauntlet on these HELOC abusers and pursues them to the ends of the earth”
How is this moralistic?
These people stole money that we are being asked to re-pay!
The problem with this description is that it raises expectations of quality which this condo doesn’t have. Other than tasteful paint colors, which hello? It’s paint! You all know how to paint, right? this place has nothing special to offer. Nothing looks upgraded other than possibly a shower…
I disagree – I think this place looks pretty nice. I wouldn’t offer a penny over 175K, but I’m sure others will, given access to enough Monopoly money and a nice payment plan.
$320k on this one. Wait until it gets there.
What if the median house price drops to 400K (assuming Irvine levels out at 100K median family income)? Aren’t places like this going to find it tough to command 320K seeing as how they are apartments?
I’m wondering if anyone has noticed a significant increase in the number of new and “was contingent – now active” listings in Irvine. I’ve seen a doubling, at least, of such listings in San Clemente on Redfin in the last 4 days. The new listings generally fall in the 700K-1.5M range. This is a significant change compared to the last 6 mos or so.
Aye aye. This activity has increased twofold in AV, LR, and MV recently. There have been a few occasions
What happened?
Aye aye. This activity has increased twofold in AV, LR, and MV recently. There have been several occasions I’ve seen a load of houses go contingent and I’ve thought, “Sonnavabitch, who’s buying these?!” Well, no one because a week later they’ve all gone back to active.
[quote]
To spend the money and live for today? Or to be cautious and keep your home?
[/quote]
Live responsible and NOT get thrown out of your house. If you want to party all night and don’t give a rats butt about yourself or your family…
Go back to college and live in a Dorm 🙁
Hi IR,
How come the latest listing is not updating anymore since last weekend? thanks.
I don’t understand your question.
The “Latest Listings” link (list of houses for sale in Irvine) on the right side of the page, below the “Archives” link.
Oh, I don’t know what is going on. It is supposed to be an automatic feed. I will have Zovall take a look.
Screw this listing and screw HELOC abuse.
“I would party and drink myself into a stupor”
What I want to know more about is IR gettin’ all loaded and scopin’ the scene for broads. A half-drunk swarthy swagger up to his target, with warm, slurred PBR breath, “Listen baby, come back to my pad and I’ll show you rental parity.” “I’ll give you some appreciation that’ll beat inflation anytime.” Or if he’s been hittin’ the tequila and someone spills his drink, “You want a piece of this?! I’ll give you some real HELOC abuse, mother f!”
How did you know I was a PBR fan?
When I lived in Wisconsin, the drinking age was still 19. I just made the cutoff before Reagan threatened to take away highway funds and the whole nation went to 21. I was a bartender from 20-22. Those were some good times.
How did you know I was a PBR fan?
Who isn’t? /incredulous
“Listen baby, come back to my pad and I’ll show you rental parity.”
L M A O
Newport beach refi tale – things are not as simple as all that
http://www.bloomberg.com/apps/news?pid=20601087&sid=aXIKT1zzD4.g
I had to fetch some tissues while reading about this dumbass. Thanks for the laughs.
http://www.crackthecode.us/images/cry.jpg
Chuck Dayton put down a quarter of the $950,000 purchase price when he bought his house in Newport Beach, California, in 2004. He was making $500,000 a year with his drywall company and he expected home values to keep rising.
http://www.crackthecode.us/images/DealOrNoDealLoL.jpg
Then the mortgage market collapsed, new construction stopped and builders no longer needed his services. Dayton, 43, went into default four months ago because he couldn’t afford payments on the three-bedroom home, located within a block of the Pacific Ocean. He hopes his lender will agree to sell the seven-year-old house for less than he owes to avoid a foreclosure.
Dayton said he financed the purchase of his home, 40 miles south of Los Angeles in Orange County, with a payment-option adjustable-rate mortgage now serviced by JPMorgan’s Washington Mutual. The option allowed him to pay less each month than the interest on the loan, with any unpaid amount added to his debt.
Dayton refinanced in February 2007 with a $1 million loan from Washington Mutual, and used some of the proceeds for business expenses, said Robin Milonakis, his agent at Altera Real Estate in Dana Point, California. He also took out two private mortgages and now has a balance of $106,000 on those loans, she said.
Dayton went into default on Jan. 29 and owes $46,584 in delinquent payments and penalties,
California is hardest hit by luxury-home foreclosures.
Dayton said he doesn’t know when he’ll restart his drywall business, which he shut down in November for lack of work.
“This market is not even close to bottoming out, in my opinion,” Dayton said. “It continues to drop.”
Cry me an ocean.
The Bloomberg article is empty – it just says ‘article to follow’ and has 4 pictures – none of them from Newport Beach. Can you check the link?
Took me a minute to understand the Rotundra graphic. It was worth it. How cool is it that this site gives free info, free education, and free but subtle polar bear jokes?
I’m ok with the bears drinking, I’m ok with their use of fire, but I can tell you with almost certainty that no polar bear has EVER eaten a penguin. I think it’s a redlining thing….
Homes being bulldozed in Victorville. Click link in my name for video.
With hindsight being 20/20 vision…..I should have joined the real estate orgy and partied as well.
Instead I saved my hard earned money and “invested” it into the stock market which is now worth 1/3 of what I put in. My business has slowed to the point of where I lost money last year and this year is not looking any better.
Add to that my taxes are going up to pay for all the bailouts that I did not participate in, so in the end……
I am in the same boat, broke and renting, lost my “downpayment” in the stock market but got nothing in return.
As usual, I am the sucker.
…but your credit is still good. You can hit the next bubble even harder. 😀
The stock market has killed me as well.
The next bubble will not happen for another 8-10 years. Just in time for the foreclosure peeps to polish up their credit again.
I think that if you missed this last party, you for sure will get burned in the next. No two parties play out the same.
We were all taken for suckers.
I still remember back when people were predicting government bailouts and even I did not think that we would ever see anything on such a horrendous scale of moral dilemma that we have now been led into by our leaders.
I don’t think that I have ever felt so ashamed to be an American as I do today after all that has transpired.
I like to think that we are on the brink of a massive social change in this country, but then I hear people talking in bars, at restaurants, etc and realize that we are nowhere near it.
The average person on the street does not read, does not think critically, does not ask questions, does not know anything about history.
Rather, he just helplessly consumes food and entertainment, exhibiting the same behavior as a rat sniffing the wind and searching a maze for a piece of cheese that is picked up and moved around from time to time by his master.
“I like to think that we are on the brink of a massive social change in this country…”
I was thinking maybe Obama could represent this change. Instead, turns out he was bought and sold by Goldman Sachs just like the last guy and the rest of DC.
If there will be a big change, the momentum will start with sites like this which daily chronicle the systematic rip off of the honest taxpayer.
Perhaps the change will play out like that video that was on Youtube titled “Battle at Kruger”. It showed a pride of lions (Wall St. & Washington) attempting to kill a Cape buffalo calf. The herd (taxpayers) surrounded the pride and finally one bull rushed the pride, flipped a lion and then the rest of the herd charged and chased the pride away.
This video reminds me of the present situation and how it could play out. Hopefully this will be peacefully conducted through the electoral process. However, it is great to see the long-antagonized buffalos finally giving the lions their comeuppance!
Greed is to blame for all of the country’s woes right now, no one is innocent of this, if you were in the stock market or RE, you were making money. But now the tide has come and washed everything clean again. Until individuals start realizing that they are worth more as human beings, than the things they buy or have, greed will always be the problem. One must ask themselves, when they are laying on their death bed, what will come to mind? That Mcmansion you lived in, that new car you drove? Or fond memories of love for family and friends, charitable acts taken to better our world for our children and grandchildren. Memories and feelings are all that will matter when your time comes.
Very well said – Wouldn’t it be nice if we had a leader who would stand up and say that?
You think about all those fools who went out and voted for Obama thinking that they were part of some new world order and about to see all this radical change only to have their prince turn into a pumpkin as business just went on as usual.
Time for the Democrats and Republicans have to go. Is anyone ready for some real leaders yet?
There was no choice but to continue pumping the economy falling into a black hole was not the option.
We all have to pay for the greed of others and it’s terrible but the huge numbers affected the overall economy more than any one ever imagined.
This implosion would have done damage that was too great for the overall welfare of the state.
When it was finally reconized that we could not contain the losses that is when the banks finally had to be controlled and pushed to drive down interest rates so those who could would refinance and keep up the economy from imploding.
Credit had to be created and freed. The banks lost it all from all the losses in RE.
I hear you but the problem is also us not the leaders. Imagine if, say, John Kerry in 2004 had received from the future the 2009 posts of IHB (but couldn’t share them) thus had said look were on a path that will lead to no good, we need to act now to stop the bubble before we see massive foreclosures, bank failures etc etc. He would have been thought a fool and Bush 43 would have won in a 50 state landslide.
I’m not saying our politicians are the greatest but I just can’t see how anyone would have let any politician or leader stay in office if they were trying to pull away the punchbowl.
What we did was take advantage of a situation of deregulation, easy money, fraudulent loans. I don’t think any one in government expected the American people to exploit the system in such huge numbers and the amount of cash.
And this is very evident in the timing and speed it too to react to this. No one believe the amounts would be in the trillions.
We have done this to ourselves people—-
“I don’t think any one in government expected the American people to exploit the system in such huge numbers and the amount of cash.”
Nobody in government was thinking about the Amercian people because DC is/was owned by Goldman Sachs.
Henry Paulson worked for Goldman Sachs and lobbied to get the industry deregulated. When he left he bagged $500,000,000 dollars. He then became the Secretary of the Treasury and told the taxpayers they must fork up billions because of the financial environment he helped create!
If an honest man created this kind of mess, he would figure that he didn’t deserve the HALF BILLION made from the mess and would forfeit a lot of it back somehow.
Has Paulson given any of these ill-got gains back to the taxpayer? I highly doubt it!
Don’t you know it was ok when Wallstreet and others were exploiting the system with their millions and billions in pay ( years of this)—couldn’t agree more it just became not ok when American’s did it to the tune of larger numbers in amounts and figures.
Worse yet, did you know that Paulson, because he took the position as treasury secretary, was allowed to sell his 400 million of stock tax free? Nice isn’t it?
AZDavePhx,
With your last comment, you go to the top of the HSA list for possible right wing extremist terrorist. All you need to ensure your spot is to attend a TEA party rally.
Come mainline some Obamaium and experience the light of living under BO, GS and Citi (the new trinity). All people had to do in 2008 was to follow the money or who made the political contributions.
Each refi or sales the banks can collect 1% fee (0.25% to the loan officer for comm). RE 5% on the sales, and taxpayer est a negative 20% on each round of foreclosure for the bailout and fees. I hope you, your children and grandchildren like to work to pay off the bailout and fees to loan officers and RE.
FHA and FANNIE and FREDIE Rrefinancings are ways to remove a bad loan from the banks responsibility and have the taxpayer responsible for the bad loan.
Instead of impressing people with ones deeds we come to use objects instead. The car we drive, the house we bought, the clothes we wear. Our society has really evolved into an empty one. Money and possessions have become our goals. It’s pretty funny when you go to other states and they so look to California for the next newest thing to buy, do or become.
The quality of life here has changed so much it’s become do whatever it takes to make more money and live richer. Many of us either joined this game or decided to play it. So many became real estate agents the easy money was too luring. We fueled this entire region on rising prices of RE. Agents that were doing well were seen driving Mercedes. It was their bio! And the homeowners that took out the heloc’s all bought Land Rovers and BMW’s.
The OC just became an extension of LA. We could live the life by buying and flipping homes. The reality TV shows pop up to reflect this as well. Along with the many mortgages and finance companies that bought up the sky line.
Now we seeing some reality in pricing and those still holding are in a panic to get out. But the real question remains who will buy these homes now? Who will buy all those cars sitting on the lots. Who is going to fill those empty buildings in Irvine? What and Who is going to restart this economy?
So the question remains will we change? Did we learn anything from this moral hazzard. Or is the lure of more money still what drives us all?
I agree with the content of your statement but disagree on the cause. I dont believe it to be greed, I believe it to be discontentment.
What is it that soceity has been telling us we need to be happy?
Is it a 1500 SF 3/2 with tile counters?
I regular looking healthy wife?
A middle class wage earner husband?
Kids that are healthy with decent grades?
Marketing and advertising over the last 40 years have convinced us that whatever we have, whatever we have attained is not good enough, there is always a new gizmo, more weight to be lost, better cars to drive, etc.
It is how they have turned us into a disposible society. My wife is considered “frugal” for the OC, but she buys plates, rugs, towels and shit like you cant believe. The new shit goes in the front door, the old shit goes into the garage, then onto a charity. We used to have garage sales, but even the garage sale people dont buy used shit anymore.
Don’t even get me started on kids, they have more at 12 then I had at 25 and they think they are poor and are never happy.
That is why I get pissed when people bag on homes on this site, it’s so efin elitist that it makes me sick. Don’t get me wrong, the prices are wacked but to call them dumps and make the rude statements that people make about location, size, etc is just plain arrogant.
fyi-
How I taught my children to appreciate society is for them to wait tables in high school. I made them to do this. Also they worked in food kitchens, tutored other students, worked in a law office and for a senator. I sent them overseas as well. My daughter worked in Tanzania as a teacher for aids relief. ECT.
When you open their eyes to see the real world and real problems they will grow up to be real people.
The point of the post was not that my children were spoiled or unaware of the realities of the world, it was that discontentment has permiated every rung and age group of society.
Some senior citizens are going to lose everything because they took risks that they never would have taken 30 years ago because they believe to be truly “happy” in retirement you have to travel, play golf, have a giant house with guest rooms for “entertaining” and set up a trust fund so the grand chilren can take the three week european vacation when the graduate high school.
You have superior parenting skills, thank you for sharing with the class.
I didn’t disagree with your other thoughts on the subject just added what might help in regard to Americans Children who are unaware of the realities of the World.
Once you take one of these kids and show them what it’s like somewhere else/ anywhere else they really do change the way the view the world–they open their eyes.
Oh, my bad. I thought you were listing achievments with the comments about tutoring, senators, law offices, sending overseas and a teacher for AIDS relief.
Nevermind.
“That is why I get pissed when people bag on homes on this site, it’s so efin elitist that it makes me sick. Don’t get me wrong, the prices are wacked but to call them dumps and make the rude statements that people make about location, size, etc is just plain arrogant.”
Can’t speak for anyone else, but you misread my intent, when I make such comments. I live in a modest, middle class apartment in a solidly middle class neighborhood. From the prices that people have paid in Irvine and are asking now for some properties that have either glaring problems or are simply very ordinary, it seems that the arrogance and elitism is to be found a bit elsewhere.
Alan’s right. The arrogance is with the sellers and their prices in relation to what they’re selling. This goes for the knife-catchers as well that will invariably pick up one of these places and perpetuate and prolong this debacle. That circle jerk is well worth any ass whooping they get here.
Off topic,via Atrios, from the WSJ Blog
The homeowner association delinquency rate can serve as a leading indicator of sorts because homeowners usually stop paying dues before they stop paying their mortgage. The 90-day delinquency rate on dues for the 260 homeowner associations in California managed by Merit Property Management jumped to 5.3% in March from 2.8% last June. Delinquencies first spiked to 2.6% in December 2007 from 0.8% in March 2007.
The Journal looked at how banks were beginning to ramp up foreclosures after holding off for several months. Pre-foreclosure notices in California spiked in March after a state law had suppressed foreclosures at the beginning of the year.
Merit manages the master associations that cover tens of thousands of units and many smaller associations as well. This level of delinquency is remarkable and has almost doubled since last June.
There’s a big wave of foreclosures coming.
There is certainly the beginnings of a tsunami out there, of foreclosures and battening down of the hatches by those that profited from all of this bubble. Even the King of RE agents – -big ticket guy I’m sure you all know by name — is renting a house!! Plus the King of Mercedes here in Newport is selling his house. If things were booming, they would be owning the Portobellos of the OC. Not happening. This is the beginning of more to come in 2009/2010 here in the OC. Many are still in denial, but the signs of an implosion are there…
The weak hands are indeed beginning to show.
Rent for my apartment off Superior dropped $100. Last year, this time, they jacked it. This year, they forfeited it back. Next year I expect more capitulation.
Agreed – Rent for my Newport Beach apartment dropped over $200 and they allowed a shorter term, which I gladly accepted knowing I wouldn’t have to wait another year to get a further reduction in my rent.
Anyone in the market for a condo (particularly if they are paying cash) should meet with an officer of the HOA and find out what the delinquency rate and foreclosure rate in the association are. Also, what percentage of units are rentals. These are often the first categories failing to pay monthly assn fees. Those unpaid fees are split among the remaining owners since costs continue and must be paid in a timely fashion.
this home is headed to auction on May 13, amount owed: $632K.
http://irvinehomes.freedomblogging.com/2009/04/24/32-irvine-homes-headed-to-auction/
So much for the short sale. Next stop, REOville! Be aware that there may be a three to six month delay while this sits on the siding waiting for the first class Powers That Be Express to pass on by and let this one through.
I can’t get over all of the giant condos going up in the industrial part of Irvine. And many of them look totally stalled — no work being done for many weeks now. What really strikes me is that these were all started when housing became sky high expensive. It really had nothing to do with creating walkable livable human scale organic cities. Mixed used became a trend only when the bottom line dictated. And now they are going to be stuck with thousands of units. Nobody lives in the many completed units that were purchased by speculators, but there are no speculators to buy these places. What is going to happen to Irvine?
Prices will go from absurdly expensive to just fairly expensive?
“It’s the sign of the times….” but this time the signs and change are:
1. Massive implosion in the subprime loans in 2005-7 — who would have guessed?
2. Changing the reserve requirement for banks and seeing that they are insolvent.
3. Direct bailout of the investment banks, retail banks, and insurances,
4a. FHA loans for refinancing the bad loans — another private bailout for the leaders and WS. Bill the party to the taxpayers with subsidized interest now and defaults later. At least the banks are off the hook. The borrower are now with a recourse loan with no chance of paying back. Take house and retirement accounts a year from now at BR.
4b. Having declared no FC for 3 months and then after a month announce that FC are down from a month ago and lower for the whole quarter
5. Govt realization the deep of the insolvency and allowing creative account back to fool the retail investors.
6. ARM, option-ARM, no-doc loan coming up for a reset. Hold back FC/REO homes from the market to make it appear that demand is greater than supply, so #5 can continue a little bit longer and higher prices.
7. Announce that the recession will be over by the end of 2009 if all goes well, but unemployment will continue to rise. Notice inventories (except auto) has gone down and 2006/2007 type clearance sales are rare now.
8. Repeat #7 and have the stock market rise on good bank earnings (vapor values) and announce a slight rise in purchases over prior month as a great sign that consumer confidence is back. (People eventually need to replace consumed items in your household. Nov/Dec buying was extremely low.
9. Have RE announce there are bidding wars on homes again. Repeat #5 and on.