IHB News 2-27-2010

Today's featured REO looks like a 1992 rollback, but I doubt the number is accurate. Trustee sale deals are good, but not that good.

Irvine Home Address … 3832 COSLEY St Irvine, CA 92614

Resale Home Price …… $525,000


Three is a magic number,

Yes it is, it's a magic number.

Somewhere in the ancient, mystic trinity

You get three as a magic number.

The past and the present and the future.

Faith and Hope and Charity,

The heart and the brain and the body

Give you three as a magic number.

Bob Dorough — Three is a Magic Number

IHB News

As I review basic writing skills, I am bombarded with memories of Schoolhouse Rock jingles. It amuses when those old memory tapes play; Schoolhouse Rock is my generation's learning experience.

Today, 27 February 2010, is three years to the day I began writing for the Irvine Housing Blog. No nostalgia; it's still fun, and after 1,000 posts, I have more to write.

I have added more information to the property data for each post. In my previous version, I condensed too much. The additional detail is important as properties with high Mello Roos or HOA dues can add significantly to the cost of ownership, and raising public awareness of these costs is part of our mission. The additional information makes posts longer, but if the information does not interest you, scrolling past is not difficult so a post takes no longer to read.

Last week I mentioned that in my car I was listening to Classic Novels as a series of recorded college lectures. Well, I had an overdose of stuffy academics, so when my CD of George Carlin's Brain Droppings arrived, the college courses got ejected. I have had to turn off the CD to stop from laughing too hard. Personally, I have always liked George Carlin, and he would get my vote as the greatest comedian of the 20th century, for whatever that is worth. He resonates strongly with me now due to my obsession with words, and I will probably get more of his recorded material — that is if I can stop laughing and finish the one I have.

My favorite George Carlin linguistic tirade is his seven dirty words you can't say on television. The video is below, and it obviously has objectionable language. I was an early teen when I first saw the below performance on HBO, so I was at an impressionable age for this kind of humor, but as I age, I come to enjoy George Carlin's comedy even more.

Housing Bubble News from Patrick.net

Duck! Watch out for falling house prices (money.cnn.com)

Better to Wait Until House Buyer Tax Credit Expires? (blogs.wsj.com)

A second trough for U.S. new house sales in January (reedconstructiondata.com)

Most House Sales in CA Forced, Not Optional (centralvalleybusinesstimes.com)

Freddie Mac loses $7.8 billion, warns of foreclosure wave (mercurynews.com)

Maguire sells O.C. office towers at half off (lansner.freedomblogging.com)

New house sales hit record low in January (washingtonpost.com)

New House Sales Unexpectedly Plunge to Record Low; Fannie Mae, Freddie Mac Post Losses (Mish)

Mortgage Purchase Applications at Lowest Level Since May 1997 (calculatedriskblog.com)

11.3 million houseowners underwater on mortgage (marketwatch.com)

Million Dollar House or $3,500 a Month Rental? (doctorhousingbubble.com)

Regulators report 27 percent jump in problem banks (finance.yahoo.com)

Secret AIG Document Shows Goldman Sachs Minted Most Toxic CDOs (bloomberg.com)

A snapshot of income disparity (latimes.com)

Not out of deflation woods yet (bloomberg.com)

24% of residential properties upside down (blogs.reuters.com)

Shiller Says Government Support Is Tied to Housing Recovery (businessweek.com)

Mass Layoffs Summary (bls.gov)

Realtors Want Taxpayers To Guarantee Realtor Commissions Via Fannie, Freddie (online.wsj.com)

The Mortgage Bubble (Mish)

Bank lending plummets by $587B in 2009 (washingtonpost.com)

The Fed now owns more crap mortgages than Treasury bonds (money.cnn.com)

Selling mansion? Expect to wait 3 years! (lansner.freedomblogging.com)

Dry Your Eyes and Lower the Price, Fool (nytimes.com)

Bank-Owned Bargain in Long Beach (longbeachhousingblog.blogspot.com)

Bank-Owned Bargain even cheaper now (redfin.com)

House prices down in all Las Vegas codes in 2009 (lvrj.com)

Real Estate Looks Risky, but Less So for Value Investors (nytimes.com)

Lender's agent forecloses on Stuyvesant Town (reuters.com)

An Easily Understandable Explanation of Derivative Markets (hydle.com)

Real Estate Developers Push To Rebrand Murder Heights Neighborhood (theonion.com)

Irvine Home Address … 3832 COSLEY St Irvine, CA 92614

Resale Home Price … $525,000

Income Requirement ……. $110,196

Down Payment Needed … $105,000

20% Down Conventional

Home Purchase Price … $200,000

Home Purchase Date …. 4/2/1991

Net Gain (Loss) ………. $293,500

Percent Change ………. 162.5%

Annual Appreciation … 5.2%

Mortgage Interest Rate ………. 5.12%

Monthly Mortgage Payment … $2,286

Cost of Ownership


$525,000 ………. Asking Price

$105,000 ………. 20% Down Conventional

5.12% …………… Mortgage Interest Rate

$420,000 ………. 30-Year Mortgage

$110,196 ………. Income Requirement

$2,286 ………. Monthly Mortgage Payment

$455 ………. Property Tax

$0 ………. Special Taxes and Levies (Mello Roos)

$44 ………. Homeowners Insurance

$75 ………. Homeowners Association Fees


$2,859 ………. Monthly Cash Outlays

-$393 ………. Tax Savings (% of Interest and Property Tax)

-$494 ………. Equity Hidden in Payment

$211 ………. Lost Income to Down Payment (net of taxes)

$66 ………. Maintenance and Replacement Reserves


$2,249 ………. Monthly Cost of Ownership

Cash Acquisition Demands


$5,250 ………. Furnishing and Move In @1%

$5,250 ………. Closing Costs @1%

$4,200 ………… Interest Points

$105,000 ………. Down Payment


$119,700 ………. Total Cash Costs

$34,400 ………… Emergency Cash Reserves (6 Months Net Salary)


$154,100 ………. Total Savings Needed

Property Details for 3832 COSLEY St Irvine, CA 92614


4 Beds

1 full 1 part baths Baths

1,538 sq ft Home Size

($341 / sq ft)

6,000 sq ft Lot Size

Year Built 1970

2 Days on Market

MLS Number Y1001152

Single Family, Residential Property Type

Westpark Community

Tract Othr



This photograph annoyed me because it is showing the neighbor's front lawn and passing it off as if the greenery were on the featured property, but then I saw why the realtor did it….

There is no front yard.

Redfin shows this as selling recently or $220,000, but that amount is suspect. I doubt this was a 1992 rollback. It is, however, real estate owned.

Foreclosure Record

Recording Date: 05/27/2009

Document Type: Notice of Sale (aka Notice of Trustee's Sale)

Foreclosure Record

Recording Date: 02/25/2009

Document Type: Notice of Default

For any of you who remember 1980:

19 thoughts on “IHB News 2-27-2010

    1. AZDavidPhx

      Fannie Mae will seek $15.3 billion in U.S. aid, bringing the total owed under a government lifeline to $76.2 billion, after its 10th consecutive quarterly loss.

      For the full year, Fannie Mae’s loss widened to $74.4 billion from $59.8 billion in 2008.

      After the next government payout, Fannie Mae’s borrowings will carry an annual dividend cost of $7.6 billion, which the company said it will repay by borrowing


      more money from the Treasury.

      The company said the ability to tap continuing cash infusions from the Treasury this year “is critical to keeping us solvent and avoiding the appointment of a receiver.”

      The Treasury on Christmas Eve removed a $200 billion aid limit on each company, extending unlimited backing through 2012.

      The two companies own or guarantee more than $5 trillion in U.S. residential debt, and were responsible for as much as 75 percent of the new mortgages made last year.

      Fannie Mae’s net worth, or the difference between assets and liabilities, was negative $15.3 billion as of Dec. 31, compared with negative $15 billion on Sept. 30 and negative $10.6 billion on June 30, according to company statements.

      For the fourth quarter, Fannie Mae decreased reserves for future credit losses to $64.9 billion from $65.9 billion in the previous quarter.

      The amount of nonperforming loans that Fannie Mae guarantees for other investors rose to $174.6 billion from $163.9 billion in the third quarter, according to the filing.

    2. AZDavidPhx

      American International Group Inc. posted a wider-than-expected loss after setting aside more reserves for insurance claims and paying down bailout debts.


      “While we are not out of the woods by any stretch, these numbers represent a substantial improvement from just one year ago,” Benmosche said today in a recorded message on AIG’s Web site. “We believe we are on our way to regaining our stature as one of the world’s largest and most successful property-casualty insurance operations.”

      Fitch Ratings said today that it may downgrade AIG’s property-casualty businesses because the $1.8 billion charge raised “concerns about AIG’s reserve adequacy and underlying profitability, primarily on long-duration casualty business lines.”

      Competitors including Chubb Corp. and Liberty Mutual Group Inc. have said that AIG, in an effort to keep customers, is slashing its prices to levels that may be inadequate to cover claims.

      AIG’s Financial Products unit, the derivatives trading business that pushed its parent company to the brink of collapse in 2008 with bets on subprime mortgages, reported $80 million in fourth-quarter operating profit

      AIG’s so-called partnership investments, which include private-equity and hedge-fund holdings, posted their second straight quarterly gain

      1. AZDavidPhx

        I am glad to see that the casino games made a nice profit for AIG last year. Good for them! Just don’t try to file an insurance claim.

      2. tonye

        Ahhh Baghdad Bob. I got that same picture in my office at work. The only other item in there other than my twin monitors ( I use a laptop ).

        My refers to the software schedule…. You know, the Pointyhead boss from Dilbert?

  1. tonye

    This place in NOT really Westpark. It was built as one of the first subdivisions in Irvine. I think around the same time they build out University Park (UP for short) and started on UCI. TR and WB (Woodbridge) were built later.

    They renamed themselves much later to gather “prestigue” from the Westpark name. I think they call themselves Westpark II. The RE Agent lied in the listing.

    It’s damn close to the freeway and it was built toward middle class working people. Hence the normal sized houses. I didn’t realize they had an HOA. If so, it’s probably like the ones in TR for SFHs…. weak HOAs (thank God).

    The whole place is close to the freeway and access to Culver Dr. is a pain in the ass.

    1. dirk

      Believe me… the folks in Culverdale would have liked to have kept that name. Thank the Irvine Co for the name change.

      There is lots of prestige in Culverdale. Come to think of it, Will Ferrell lived in Park West and got is early education at Culverdale Elementary. Can’t be all that bad.

      BTW, that home has a very large back yard. And the neighbor is fully cool. He’s renovated about 3-4 late 50 Chevys (you can see one car parked on the street but covered). And he organized the last few 4th of July gatherings there… with his cars leading the parade. Great family.

    2. ockurt

      Westpark II actually starts right around Barranca and goes up to Irvine Center Drive or so.

      It has to be a bitch to pull onto Culver from this neighborhood…when I’d drive down Culver in the a.m. to the freeway I’d see a line of cars trying to get out. Back in the day it probably wasn’t so bad, but now there’s so much traffic in Irvine that exit has probably gotten worse.

      1. ockurt

        But I’d add, if you can live with the proximity to the freeway and the dated design of the ‘hood, this is actually a good value for a family looking to buy in Irvine. The lots are larger than average and you are in central Irvine so you are close to everything.

  2. tonye

    You CNN link:

    “Where are the best bets for recovery? Tacoma, Wash., tops the rebound list.”

    ROTFLOL… I spent four long years in Tacoma going to UPS.

    With the exception of the North End and parts towards Gig Harbor, which were bubbly btw, the whole place is a dumpster. That’s the reason why the place did not participate in the bubble.. I mean, there has to be some measure of desire to live in a place in order for buyers to compete.

    So, I guess that the places that did not participate in the bubble and which are from a strict financial viewpoint the “best bets for recovery” are also the places where no one really wants to live in.

    And, as a landlord, err.. slumlord, why would you want to deal with that type of renter?

    1. IrvineRenter

      Conjunction Junction, what’s your function?
      Hooking up words and phrases and clauses.
      Conjunction Junction, how’s that function?
      I got three favorite cars
      That get most of my job done.
      Conjunction Junction, what’s their function?
      I got “and”, “but”, and “or”,
      They’ll get you pretty far.

  3. newbie2008

    It sounds as if the financial companies receiving the bailouts are excellent places to work. Increase bonus and more bailout money. Where do I sign-up?

    With all the money for lending, where the money for the small business loans and non-FHA housing loans?

  4. LC

    Anybody notice the 15 story tall apartment building that fell in the Chilean earthquake? The place was brand new. Anybody notice the similarity to the towers that the Irvine Company has been building?

Comments are closed.