Shout at the Market

Today we have a big equity seller — or equity loser. The bubble was been unkind to banks and heavy-cash buyers from the bubble years.

821 YORKSHIRE Irvine, CA 92620 kitchen

Irvine Home Address … 821 YORKSHIRE Irvine, CA 92620
Resale Home Price …… $538,800


Sure you’ve heard it all before
He’ll be the risk in the kiss
Might be anger on your lips
Might run scared for the door
But in seasons of wither
We’ll stand and deliver
Be strong and laugh and

Shout shout shout
Shout at the devil

Shout at the Devil — Motley Crue

This owner should have known they were in trouble when the purchase price of the property was $666,000. It contains the Number of the Beast. It was certainly beastly to these owners. They are going to lose over $150,000 of their own money.

821 YORKSHIRE Irvine, CA 92620 kitchen

Irvine Home Address … 821 YORKSHIRE Irvine, CA 92620

Resale Home Price … $538,800

Income Requirement ……. $101,438
Downpayment Needed … $107,760

Home Purchase Price … $666,000
Home Purchase Date …. 9/7/2005

Net Gain (Loss) ………. $(159,528)
Percent Change ………. -19.1%
Annual Appreciation … -4.2%

Mortgage Interest Rate ………. 5.20%
Monthly Mortgage Payment … $2,367
Monthly Cash Outlays ………… $3,230
Monthly Cost of Ownership … $2,480

Property Details for 821 YORKSHIRE Irvine, CA 92620

Beds 3
Baths 2 full 1 part baths
Size 1,481 sq ft
($364 / sq ft)
Lot Size n/a
Year Built 1999
Days on Market 9
Listing Updated 11/3/2009
MLS Number P709388
Property Type Condominium, Townhouse, Residential
Community Northwood
Tract Grvl

Beautiful 3 bedroom townhome in a gated community. Extra Large corner lot with wooden deck for entertaining & grassy area for gardening. Open floor plan and south facing windows gives lots of light through-out the house. Generous size kitchen with granite counters and tile floors. Formal dinning room looks out to back patio,gorgeous wood floors in living & dinning room. Upgraded berber carpet covering stairs and upstairs. Charming master bedroom with celing fan. Spacious master bath with dual sinks. Travertine in all bathrooms and entryway. Extra features include recessed lights, designer paint and more.

When this property was purchased on 9/7/2005, the current owner paid $666,000. She took out a $170,000 first mortgage and a $496,000 downpayment. There was a refinance later for $320,000, and the husband was later added to title, but this property still have significant equity. As it stands, they are going to lose about $160,000.

I imagine they wished they had abused their HELOC….

71 thoughts on “Shout at the Market

  1. Freetrader

    Obviously, when someone loses a bundle of cash in a situation like this, there is no cause for gloating. However, if we assume that the cash taken out of this house will be reinvested into a home somewhere else (always a risking assumption, but still, probably the the norm) they essentially haven’t lost any real estate purchasing power. They should be able to buy a similar priced and quality property with the proceeds from the sale. However, they have lost a huge chunk of actual, real, money, which is too bad. The power of leverage (in that an increase in value is benefits the borrwer but not the lender) works both ways (a decrease in value wipes out the equity first.

    Which brings us to a philisophical question: here is someone who did everything right, who put in a lot of cash, and who is apparently going to lose over $150,000 of real equity when they sell. Would a rational person, or SHOULD a rational person, have leveraged up the purchase to the hilt, and then simply walked away? What does this person get for being a good citizen, except for the resigned knowledge that she at least is not a HELOC abuser with bad credit? In other words, isn’t it rational behavior to let the bank take all the risk?

    Subquestion: am I being a fool for paying down my mortgage?

    1. E

      Some of that large downpayment could very well have come from a previous sale of a former home.

      Easy come, easy go. :shrugs:

      I wonder how that person that purchased their old abode is doing.

      A “rational” person wouldn’t have bought anything this decade.

      Most people aren’t rational.

    2. Gemina13

      Well, answer these questions first:

      1) Do you love your home?

      2) Do you plan to stay there a while–say, 5 years at least?

      If your reply to both questions is yes, then no, you’re not a fool for paying down your mortgage. But if you bought during the bubble, I sympathize with your feelings right now–especially if you didn’t tap the HELOC ATM.

  2. AZDavidPhx

    $496,000 down payment

    Oh and I bet every penny of it came from years of saving.


    Ponzi Scheme.

    1. Gemina13

      They could have borrowed the down payment, back when anyone with a pulse could get a jumbo loan, or they could have tapped family for help on gathering so much cash. They might have been beneficiaries of a large inheritance. “Ponzi Scheme” isn’t the only option.

      It’s still one ugly, lousy RE “investment,” in my not-so-humble opinion.

      1. Geotpf

        Since this is not exactly a high end place, I would make a wild guess whoever lived here did not make a lot of money. Could be from family, could be that they moved from another part of the country and sold their house/condo there. The age of the buyer might be a clue-if they are older, probably a move, younger, probably the money is from family. Since she apparently got married after buying the property, probably younger.

        1. Lee in Irvine

          And that’s how stupid we’ve become here in Orange County. We now call $666,000 “not exactly a high end place”. Who the heck are we kidding here? LoL Incomes have not increased to a level to justify this massive run-up in real estate. I guess that statement would be legit if incomes in Irvine had tripled the last 9 years … or even doubled. LoL The only thing that changed was the availability to cheap money. As soon as rates started dropping, and affordability increased, home prices quickly rose and filled the gap. Now our entire economy is completely dependent on a 0% fed funds rate, and the govt spending 10%(+) more than they receive.

          $666,000 “not exactly a high end place”.<--Currently true, but still laughable

          1. Lee in Irvine

            I’m sorry I keep saying the same over and over. I’m just outraged that the federal govt is now doing everything it can to prevent the debt-holders from getting out of our homes. Obama bitched about a decade of irresponsibility, yet he approves Geitner and Bernanke to make things worse. I’m effing outraged by their irresponsibility.

          2. AZDavidPhx

            I still get a kick out the whole Obama election and how everyone allowed themselves to be romanced by his pillow talk and his lemmings tearfully chanting the ‘Yes, we can’ slogans.

            I called it one year ago that he would be just as inneffective as Bush with regard to the economy and I have been proven correct thus far. He has been in for a year now and nothing has been done to curtail the fraud or rein in the bad actors. Pretty pathetic reform.

            They are still perpetrating the same old lies and manipulating a largely and willfully ignorant public that has been trained from childhood that government exists to solve their problems leading to voters with a ‘what is he gonna do for me’ mentality rather than ‘my country’.

            It’s clear that there shall be no reform. ‘No we cant’. Message received.

          3. Lee in Irvine

            Hope? Nope!

            Though I didn’t vote for the teleprompter man, or the gray hair he ran against, I had a smidge of “hope” that Obama would do the right thing. I should have known better … after all, the whores at Goldman Sachs were the number one contributor to his campaign.

          4. Geotpf

            For Irvine, two thirds of a million dollars isn’t a high end place. This is a moderate sized three bedroom condo with a bad floorplan.

          5. Eat that!

            There’s no way to do the right thing in this scenario. Everything will be a clamity. It’s just a matter of time.

          6. norcal

            So are you just giving up on politics? Are you writing to or calling your representatives? Did you vote in November ’08 or November ’09?

            I don’t mean to pick on you personally, but I see a lot of people complaining about “government” as if it’s completely disconnected from us – as if we don’t encourage bad behavior by re-electing bad actors or hog-tying reformers by electing their opposition.

            Senator Chris Dodd has just introduced a big bank and credit reform bill. If you’re really concerned about reform, please contact your national representatives and tell them you’re for it!

          7. AZDavidPhx

            Oh yes! Contact your representatives! They want to hear your thoughts! Why just look no further than the bank bailouts as an example of the representatives ignoring the little people.

            It’s a big charade is what it is. You have no choice. They do what their handlers tell them to do.

            I did vote and for neither of the unworthy Diet Coke nor Diet Pepsi candidates that the media packaged up and sold to us.

          8. Lee in Irvine

            “For Irvine, two thirds of a million dollars isn’t a high end place.”

            Oh Really? The income for this zip code doesn’t justify a condo ever selling for $666k.

            2000 ~ $84,573
            2001 ~ $75,050<-Stock bubble collapse 2002 ~ $74,879 2003 ~ $77,501 2004 ~ $82,459<-House bubble starts 2005 ~ $93,768 2006 ~ $99,015 2007 ~ $100,436 2008 ~ ???? <-Data yet to be released I wouldn't be surprised if bubble rich 92620 (Irvine) income goes back to the year 2000. Now let's compare income for 92620 to this homes sale history: 2000 ~ $84,573 2001 ~ $75,050<-Sold for $321,000 2002 ~ $74,879 2003 ~ $77,501<-Sold for $439,500 2004 ~ $82,459<-Sold for $615,000 LoL 2005 ~ $93,768<-Sold for $666,000 WTF 2006 ~ $99,015 2007 ~ $100,436 2008 ~ Music stops Ponzi scheme ends. 🙄

      2. AZDavidPhx

        You think family helped them scrounge up a half a million dollars?

        Nice family! Are they looking to adopt a son in AZ?

        1. mike92620

          There are actually a lot of well-to-do families who work hard to save up for their children’s well being.

          Most of my parents’ generation (I was born in 1972 and my parents were born during World War II), if they saved/invested well and spent wisely, are very capable of achieving this.

          1. AZDavidPhx

            I knew it – I just knew somebody was going to show up and deliver a sermon of Social Darwinism.

            So Mike, what do we tell Mrs. Smith who is teaching your children how to read? Do we tell her that she is not working hard enough? That she is not investing well?

            I would love to hear your plan for her.

          2. mike92620

            Now AzDavid,

            My response was in response to your inference that there must be some underhanded means of getting a large amount of cash.

            I can tell that you are a person of great bitterness towards those with wealth.

            Let’s take the Mrs. Smith example. Nowhere did I imply or mention that by working, Mrs. Smith is not investing or saving well. With proper spending and savings, Mrs. Smith can also achieve financial stability for the long term.

          3. AZDavidPhx

            Hang on there, I am responding to your claims of the hard working well to do families.

            You did not choose that kind of language by accident. You used an example to conjure up imagery that looks to be a survival of the fittest; those who spend and invest the best. You also said that a ‘well to do’ family is capable of this.

            Your problem is that we are talking about a modest tract house that no ‘well to do’ individual would dare be caught in. This is a Mrs. Smith house and you are going to expect that she just save up a half million dollars since your rich uncle was able to.

            Maybe you just entered the wrong conversation to go pontificating a tangent, I don’t know.

          4. norcal

            Guys, guys, guys….

            Mike’s parents and grandparents were born into economies that were expanding rapidly; Mrs. Smith doesn’t have the same opportunities as adults in the late 1940s and mid-late 1970s, because relative to expenses her teaching income has stagnated significantly.

            While the incomes of those in the financial services sector increased by 600% over the last 30 years, those of people who actually produced goods and practical services barely kept up with inflation. Mike’s family members would not do so well today, no matter how sterling their values and work ethic.

          5. mike92620


            I’m not implying, or least I did not mean to imply, that Mrs. Smith has saved up $500K just by working hard and being well to do.

            What I am saying, or at least that I was trying to say, is that this hypothetical Mrs. Smith may have been the beneficiary of a large sum of money as a result of her hard-working ancestors.

            By the way, I live in a modest tract house and I am fairly well-to-do.

          6. E

            Maybe he/she did get an inheritance.

            It’s really quite an odd number for a gift however.

            Regardless, I’m sure that there were far more move-up buyers using the proceeds from a previous sale as a downpayment than there would be buyers recieving half-million dollar lump sum gifts from relatives.

            With that said…whatever the case may be…as I said in an earlier comment…

            “Easy come, easy go”

        2. Gemina13

          Oh, hell yeah. It’s possible. I used to work with a woman when I lived in LA whose parents and extended relatives got her about $300,000 to buy a nice little house in Irvine.

          Sure, my family couldn’t do it, but my family is mostly made up of blue-collar workers. I’m the first high school and college graduate on either side, and I definitely couldn’t scrape up half a mil on my own. But there are a lot of families where the grandparents have nice nest eggs salted away, and extended family has done the same.

  3. Gemina13

    I won’t make a judgment on the owners without more information. Still . . . I have to ask, what were they thinking with this purchase? The townhome is bland at best, and the irregular kitchen and living room are unappealing. A media nook next to the fireplace?! Where does your living room suite go? Oh, wait, you’ll have to scatter it through the rest of the room and hope any visitors don’t think you’re an idiot for having to place the loveseat by the TV, the couch and table in the middle of the room, and any occasional furniture up against the walls.

    And I’m still amazed at the price these places command. You can explain to me about land prices, supply and demand, Greater Fool theory, etc., and I still will fail to see how people thought these Tract Palaces were worth more than the $100K apiece it cost to build them. Even with granite countertops and a bucket of KFC on top of them.

    1. Walter

      “I still will fail to see how people thought these Tract Palaces were worth more than the $100K apiece it cost to build them”

      In Irvine, the land rights cost more than the structure for most properties. I am sure this is one that falls in this category.

      If living in Irvine holds no value to you, you are right, it would be stupid to pay these prices for a stucco box.

      1. Happy Not In Cali

        Even then, I can’t imagine that living in Irvine is worth as much as some people seem to think. My house on an 8000 sq ft lot here in Montana cost just a little over 1/8 of the cost of this dump. This is in a city, in a decent neighborhood, with downtown bars, sushi, grocery stores and work all within a 10 minute drive. What can Irvine offer that my current lifestyle doesn’t? More time in traffic? Better selection of used 3-series?

        It’s all a matter of preference, I realize, but I am so, so, so, so glad I left California after law school in 2006. As a non-native who was constantly mocked for being from the midwest by smugly “superior” SoCal douchebags, the ensuing schadenfreude of watching California fall apart at the seams has been most delicious!

        1. Walter

          Time will reveal if the huge premium Irvine, or much of LA and Orange County commands, is worth it.

          My feeling is Irvine is worth some premium, but significantly less then the current amount.

          Do consider that the area offers a diversified job market, great weather and many natural attractions (beaches, hiking, skiing, etc.). What is that worth? That is for each person to decide.

          I hope it is a lot less, I am renting and waiting to buy.

          1. Shevy

            Great points Walter. For responsible homeowners and those of us that are renting it would be nice if they would quit trying to arificially support prices, and release shadow inventory, and quit with the loan mods, tax credits, and other artificial means of supporting prices so that those that want a home for their families do not have to worry about the potential of what will happen if they buy.

            I am originally from North Dakota and I miss my family and friends but I would have a hard time moving back. I still love to visit though.

          1. Happy Not In Cali

            I’m in Billings, but I’ve spent a lot of time in Bozeman and Missoula as well, and liked them all. The western part of the state in general has a lot more to offer in terms of scenery, but Billings is only about 45 minutes away from the Beartooth Mountains, and about 2-3 hours away from a couple other ski resorts, including Big Sky. Where did you guys visit?

            Shevy- I’m actually from Fargo originally, and went to college there! I never ran into too many Dakotans in my time there, but it was always a welcome surprise when I did. I didn’t necessarily miss the weather of North Dakota, but I always ached for having its 4 seasons. What would you say you miss about it?

          2. thrifty

            We visited the mountainous areas during a summer drive. OUr favorite was the Bozeman area, particularly Livingston (where Amazing Grace and Chuck was filmed – good movie for young teens and adults). Any idea how home prices are there now compared to Billings – sq ft to sq ft – for same house? They were relatively expensive in Bozeman 10-12 years ago; much of the building materials had to be hauled in from far away places.

          3. Happy Not In Cali

            Bozeman, Missoula and Kalispell and a few other more desirable places to live in Montana all had real estate bubbles of their own. I’m most familiar with Bozeman. At the top of the market some of the houses were probably pushing up on $300/sq ft. Now i’d say Bozeman is around 175-250. Billings is maybe closer to 100-150.

        2. anon

          It’s about the lifestyle here.

          This past Sunday I took my bike on a 12 mile ride around the back bay. It was 70 degrees and sunny. Views of the Ocean. I can do this pretty much all year except maybe for a cold (meaning 50 degree) February. Then I can drive a an hour or so for crappy skiing (Big Bear) or 7 for good skiing (Mammoth – a bit longer than you drive but it is available). I can also go boating, boogie boarding, deep sea fishing or other Ocean activities. I am an hour from LA or SD in good traffic so everything from ballet to the SD Zoo to pro sports is available. I can get direct international flights from LAX and direct domestic flights from SNA – and SNA is a whopping ten minutes from my house.

          I think if you don’t take advantage of all these things – if all you do is work and spend time in a house raising kids and hanging out, then, yes, live somewhere where you have a big house and can enjoy it. Or if you are only into skiing then go to Denver or Montana – there is no reason to be here outside of your job situation.

        3. Gemina13


          I’ve seen pictures of Montana, and I admit it’s beautiful. But when I consider moving there, I remember the joke a friend once sent me titled, “Christmas In Montana.” It’s great until the snow piles up at 30″ per snowfall, and just one 30-inch snowfall sounds like Hell on earth to me.

          (I spent my early childhood in Chicago. In ’79, when most of the city was covered by a lake-effect blizzard, Mom got down on her knees and vowed that she would get out of Chicago or die trying. We moved.)

          1. Happy Not In Cali

            30″ per snowfall, huh? Yeah, that’s totally what we get here. Absolutely. Like every day. Completely.

            I remember growing up in Fargo there used to be these buttons people would pin to their heavy winter coats that said “35 below keeps the riff raff out.” Not too many things more true than that that I have ever heard or read in my 27 years on this earth.

            All that said, I do miss the ocean. Nothing compares to the ocean.

            Except maybe mountains.

          2. thrifty

            I was in Indianapolis during the winters of 1978 (coldest on record – one 30 day period where it never got above freezing – and wind chill factors to 70 below) and 1979 (most snow on record). Did not wait around to see what the next winter would provide!

        4. Freetrader

          Well, Montana has its charms, but it is in Montana, with all that goes with that location. And I certainly don’t respect “Coastal” types who look down on those who, for whatever reason, don’t happen to live in their favored land. But if you are going to get all wet about the “most delicious” experience of “watching California fall apart”, then you are probably a douchebag yourself.

          1. Happy Not In Cali

            Well schadenfreude isn’t generally the nicest of emotions to express, but I don’t know that it makes me a douchebag overall. I do know that I would be a liar if I said I didn’t think California had it coming. The “coastal types” you describe are not exactly an endangered species in the Southland.

            Shevy – I graduated from North in 2000

  4. Geotpf

    Look at this game of musical chairs:

    Date Event Price Appreciation Source
    Nov 02, 2009 Listed $538,800 — CARETS #P709388
    Sep 07, 2005 Sold (Public Records) $666,000 6.3%/yr Public Records
    May 18, 2004 Sold (Public Records) $615,000 46.7%/yr Public Records
    Jul 03, 2003 Sold (Public Records) $439,500 23.3%/yr Public Records
    Dec 31, 2001 Sold (Public Records) $321,000 12.7%/yr Public Records
    Feb 26, 1999 Sold (Public Records) $228,500 — Public Records

    Four people cashed out with big profits; the last sucker was just standing when the music stopped.

      1. Geotpf

        Here’s my favorite house sale record, for a dump out in Palm Springs:

        Date Event Price Appreciation Source
        May 04, 2009 Sold (MLS) $32,375 — Inactive CARETS #7
        Feb 08, 2008 Sold (Public Records) $399,479 -8.3%/yr Public Records (bank taking it back)
        Sep 22, 2006 Sold (Public Records) $450,000 28.4%/yr Public Records
        Sep 20, 2005 Sold (Public Records) $350,000 63.3%/yr Public Records
        Jul 30, 2004 Sold (Public Records) $200,000 89.0%/yr Public Records
        Oct 06, 2003 Sold (Public Records) $119,000 24.3%/yr Public Records
        Oct 11, 2002 Sold (Public Records) $96,000 114.3%/yr Public Records
        Jun 28, 2001 Sold (Public Records) $36,000 -26.2%/yr Public Records
        Apr 16, 2001 Sold (Public Records) $38,250 — Public Records

  5. lowrydr310

    “Since this is not exactly a high end place, I would make a wild guess whoever lived here did not make a lot of money.”


    So people who make a lot of money only buy high end places? Here’s a little secret for you – you don’t get rich by spending your money.

    Relatives of mine lived in Irvine and were very well off (4-5x the median income at the time), yet lived in a reasonable home built in the 1970s, drove modest cars, and saved/invested most of their money. They didn’t drink any kool aid, in fact a job transfer forced them to sell in 2002 (missing the peak, but still double what they paid in the mid 90s)

  6. newbie2008

    I know a few extreme savers who do save that much. However, they would not buy for $666,000.

    The current 3.5% donw payment for FHA encourages walkaways. That poor fellow is losing his own money and not the bank’s/taxpayers’ money with his large downpayment.

    A large downpayment is the cure for walkways and overprice RE ($450 per sq ft in 2005).

    Freetader’s question on wisdom of paying down the mortgage, it depends on your cash reserves, investment and interest rate. Is it owner occupied? Can you refinance at a lower rate? Will refinancing be at a higher rate? How much is the cost and of the balance?

  7. IrvineRenter

    Great article from a couple of days ago:

    Banks hold few foreclosures

    The latest foreclosure figures from First American CoreLogic show a growing divergence in what’s happening to problematic mortgages in Orange County.

    The ratio of bank-owned houses and condos, known as REO, against all outstanding first mortgages declined for the 13th straight month to just 0.26% in September — the lowest in 26 months. That sounds like a good thing for the housing market and economy.

    But the number of bad loans in limbo continues to escalate.

    In fact, the proportion of 90-day late loans has increased each month for more than three years (beginning in April 2006) and hit 6.96% in September.

    The chart (not shown) reflects a number of trends. For one thing, more troubled properties are selling at auctions, known as trustee’s sales, and thus are not going back to the bank as REO.

    Sam Khater, senior economist with First American CoreLogic, said in an email:

    The reason REOs have declined is that flow of distressed properties into REO has been artificially restricted due to local, state and GSE foreclosure moratoria, loan modifications and servicer backlogs. This has led to a drop in the supply of REO properties, while at the same time sales (including REO sales) increased due to the artificially low rates and first-time homebuyer tax credits, which further depleted the supply of REOs. This dynamic has led to the rapid improvement in home prices over the last six to eight months.

    However, the mortgage distress is high and rising as is evident by the 90+ day category, which means the pending supply is building up due to high levels of negative equity and rising unemployment. So we have a situation where at the back end (ie REOs) it appears as if it’s getting better, but it’s really a mirage as we know that the pending supply pipeline default (ie 90+ day DQs) is looming larger.

    Yup, at some point, we should see more short sales and foreclosures. Maybe early next year?

      1. AZDavidPhx

        Can’t you just visualize the tide retreating and a bunch of naked swimmers beginning to flounder on the beach?

        This party is just starting in Irvine. I predict a tough slog coming up in 2010.

    1. thrifty

      To and

      Have you contacted First American Core Logic to inform them there is no shadow inventory in Irvine?? See below

      Astute Observation by tkaratz
      2009-11-05 08:14 AM
      Really? I thought this was the Irvine Housing Blog, not the broad ambiguous commentary blog.
      There is no shadow inventory in Irvine.

      Astute Observation by Geotpf
      2009-11-05 10:21 AM
      But, for now, it is true there is basically zero actual shadow inventory (defined as properties that are bank owned, and are not on the market or actively being prepared to be put on the market), in Irvine or anywhere else.

      1. Geotpf

        The article quote agrees with me. There is no shadow inventory in Irvine. Ok, no exactly 0.00%-the actual number is 0.26%, the lowest in 26 months.

        1. Geotpf

          Wow, let’s correct some typos and stuff:

          The quoted article agrees with me. There is no shadow inventory in Orange County. Ok, not exactly 0.00%-the actual number is 0.26%, the lowest in 26 months.

          1. thrifty

            I see what you mean about no more than 0.26% shadow inventory, particularly the statement:
            “So we have a situation where at the back end (ie REOs) it appears as if it’s getting better, but it’s really a mirage as we know that the pending supply pipeline default (ie 90+ day DQs) is looming larger.”
            They surely wouldn’t mistakenly classify that “pending supply” as shadow inventory, would they?

      1. AZDavidPhx

        More proof that the Shadow Inventory is a figment of the imagination and right up there with UFO’s.

        1. AZDavidPhx

          No problem, someone just needs to sneak some more wooden arrows legislation into the next bill that is voted on before everyone goes on vacation.

  8. shevy

    Interesting info on short sales.

    Secretary Geithner of the U.S. Department of the Treasury announced details on the expansion of the Making Home Affordable (MHA) program to include short sales under the new Foreclosure Alternatives Program. Financial incentives for the lenders include $1,000 for a successful short sale, and borrowers may receive up to $1,500 to assist with relocation expenses.

    1. AZDavidPhx

      LOL I love it.

      Why doesn’t the government just promise to use FDIC to backstop all future real estate losses for all knife catchers who will buy today?

      These schemes that they keep pushing are becoming more and more perverse (and hilarious).

      Making homes affordable via lowering prices is just not an option for these pinheads (Yet).

      1. newbie2008

        They have. It’s called FHA loans with 3.5% down and 1.5% fee. That’s a loss limit of 5%. After that just walk away with a year free rent and taxes (tax-free too).

  9. shevy

    Exactly- At least this does not push to keep people in a home that they never should have bought in the first place. Better than pushing mods.

    Let prices come down and they will be more affordle? That’s crazy. Don’t buy stuff that you can’t afford? That’s crazy.

    1. AZDavidPhx

      I think they just realized loan mods were a waste of time since most of the FB’s just ended up jingle mailing the bank after the mod was completed.

      Right now the game is all about catching the too-eager beavers sitting on the fence. Anyone with a down payment to forfeit is the target.

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