For your weekend viewing pleasure, we have a bank owned property where the borrowers invested $200 and pulled out $145,500. No wonder houses are so popular in California.
Irvine Home Address … 49 BAMBOO Irvine, CA 92620
Resale Home Price …… $699,900
You're simply the best,
better than all the rest
Better than anyone,
anyone I've ever met
Tina Turner — Simply the Best
IHB News
We have been operating the brokerage, Ideal Home Brokers for nearly a year now. I have tried to keep references to the brokerage business to a minimum on the blog because none of us wanted the blog to change, particularly a change into an overt commercial enterprise. However, on the weekend open thread, I reserve this place to talk about the business.
Here is what our clients have been saying about us so far:
John B. (Orange County) – June 24th, 2010
Thanks for sticking with us for a long time. As you know I almost gave up finding a house due to lack of selections.
Both Rick and I enjoyed working with you through out the process and appreciate all you have done for us.
Sincerely,”
Chiaki R. (Irvine) – June 22nd, 2010
Ed H. (Crystal Cove) – May 21st, 2010
Gerard B. (Irvine) – April 13th, 2010
MRExpert (Tustin) – December 17th, 2009
Beverly K. (Irvine) – September 29th, 2009
I thank you. I consider my self being lucky to have known you not only because you found me this awesome house that everyone is envying me about but also because I know now that I have a new brother in OC. You are a wonderful person and an excellent Realtor whose professionalism shows in every aspect. I hope I can make more money so I can buy more houses through you. I hope and I know this one is not far fetched to see you running your own agency one day. You make me proud to say that you are a dear friend/brother and I can tell you that you will have enormous success in your future. The qualities personal and professional that you have are genuine and a rare currency in today's world. so keep up the good work and God speed.
Best Regards,”
Tamer K (Laguna Niguel) – May 21st, 2009
Andrew P. (Corona) – October 15th, 2008
Hong (Corona) – September 15th, 2008
Jill and Erik (Ladera Ranch) – August 1st, 2008
Writer's Corner
I had a great time on my vacation. I was able to completely clear my mind. I didn't check email, and I didn't even read the IHB (sacrilege, right?)
Part of my journey every time I go back is to climb the Friendship Mound. It is only about 300 feet high, and there are many pathways to the top.
The view of sleepy Friendship, Wisconsin, is always a place of reflection for me.
I spent a fair amount of time on the water this trip. Below is a dusk photo from the pond's edge.
One of the early mornings on the water was particularly still. I missed being the first boat on the water, so there are a few ripples. Ten minutes earlier, you couldn't tell the water from the sky.
An old cottonwood tree at Friendship park on its way to becoming woodpecker habitat.
Just south of Friendship is Wisconsin Dells, a tourist trap known for its beautiful rock formations.
A family of ducks was enjoying the solitude.
The ferns and trees cling precariously to the sandstone rocks covered with moss and lichens.
It is always fun and rejuvenating to go back to Friendship, but I am glad to be back where my life is now. Irvine is my home.
Housing Bubble News from Patrick.net
Fri Jul 9 2010
Biggest Defaulters on Mortgages Are the Rich (nytimes.com)
MA Buyers paid $39,000 extra in price to get $8,000 tax credit (bostonherald.com)
Subsidized mortgage lending: A government sanctioned Ponzi scheme (cisionwire.com)
Pending Houses Sales Crash in a Record Fall as Tax Break Expires (housingstory.net)
Las Vegas prices fall, benefitting buyers (lasvegassun.com)
South Florida house sales: 45 percent of May sales are for a loss (sun-sentinel.com)
Metro Vancouver new-house prices slow down in May (vancouversun.com)
Korean property bubble unstable (koreatimes.co.kr)
Mortgage rates drop to new low of 4.57%, increasing danger for buyers (finance.yahoo.com)
House prices will fall in 2011 (telegraph.co.uk)
Consumer borrowing down sharply in May (news.yahoo.com)
Joblessness and housing add risks to U.S. recovery (news.yahoo.com)
Sovereign Debt: The Death of Nations (zerohedge.com)
How Large is the Outstanding Value of Sovereign Bonds? (calculatedriskblog.com)
West looks for austerity lessons down under (businessspectator.com.au)
Waking Up to the Economic Depression (housingpredictor.com)
America plunges into Depression for real (thefirstpost.co.uk)
The highest rents are advertised on Sundays (patrick.net)
Free Trial of the Landlord's Property Finder
Thu Jul 8 2010
Housing Double Dip Appears To Be Underway (forbes.com)
San Diego Explained: The Housing Bubble (voiceofsandiego.org)
Price plunges on Sandra Bullock's former house (ocregister.com)
In a tough spot – so what's the answer? (patrick.net)
Illinois Stops Paying Bills, but Can't Stop Digging Hole (nytimes.com)
Detroit's Do-It-Yourselfers Provide City Services (online.wsj.com)
Office Vacancy Rate in U.S. Climbs to 17-Year High as Jobs Recovery Slows (bloomberg.com)
$3.5T in commercial real estate debt and $10.3T in residential real estate debt (doctorhousingbubble.com)
V-shaped recovery, where art thou? (csmonitor.com)
Housing Market Weighs on the Struggling Economy (pbs.org)
The economy as confidence game (washingtonpost.com)
Why you're not making more money than a decade ago (marketwatch.com)
The Craigslist Jobs Indicator (Mish)
FHFA Proposes Rule Clarifying Fannie Mae, Freddie Mac Conservatorships (housingwire.com)
Is Now a Good Time to Buy a House? (Charles Hugh Smith)
Rent comparison service is now working again.
Wed Jul 7 2010
House prices could fall another 50% (finance.yahoo.com)
Vancouver House Sales Drop 30 Percent, Calgary 42 Percent (Mish)
Bulk Condo Sales Clear Supply — at a Cost – (online.wsj.com)
Low mortgage rates won't make up for tax credit (sfgate.com)
House Sale Blues: Foreclosures Up, Recovery Stalled (styleweekly.com)
New Loan Delinquencies on the Rise Again (cnbc.com)
Default debt lingers for refinanced mortgages (sfgate.com)
Foreclosure means tenant lives rent free for years! (hoocoodanode.org)
Housing price and rent graphs (patrick.net)
The Games Realtors Play With "Original Price" and Days On Market (rocktrueblood.blogspot.com)
Mood Swings and Lebensraum (theautomaticearth.blogspot.com)
Investors buying foreclosures in Phoenix (calculatedriskblog.com)
Investors Fear Rising Risk of US Regional Defaults (cnbc.com)
Economist Rogoff Gloomy on China Property (nytimes.com)
Wall Street donors annoyed at Democrats (washingtonpost.com)
Utility Consumer Advocates (turn.org)
Free Trial of the Landlord's Property Finder
Tue Jul 6 2010
House prices to turn down again; stock market to stall (msn.com)
Cities in Broward County consider tax increases and service cuts as property values plunge (sun-sentinel.com)
Mansion Foreclosures Surge (blogs.wsj.com)
Gov't owns nearly half of all foreclosed houses (csmonitor.com)
Mortgage rates scream buy, but who is listening? (news.yahoo.com)
Mortgage Rates Scream DO NOT BUY (patrick.net)
Record-low mortgage rates — who cares? (marketwatch.com)
U.S. housing market remains fragile despite low mortgage rates (washingtonpost.com)
Americans ramp up bankruptcy filings in 2010 (money.cnn.com)
California bankruptcies soar despite overhaul (sfgate.com)
Houseownership – A Milestone, Or A Millstone Around Your Neck? (blog.youwalkaway.com)
When Smaller Houses Were Better (opinionator.blogs.nytimes.com)
Slouching Toward a Double Dip or a Lousy Recovery at Best (robertreich.org)
Jobless rate falls as many quit looking (sfgate.com)
The Deceptions of Price Stabilization (patrick.net)
Dollar-Denominated Debt Deflation (theautomaticearth.blogspot.com)
A Market Forecast That Says "Take Cover" (nytimes.com)
With the US trapped in depression, this really is starting to feel like 1932 (telegraph.co.uk)
Crises of Capitalism (youtube.com)
Hey, Sometimes Government Works (tnr.com)
Typical Irvine equity robber
The owners of today's featured property took a free ride on their lenders in typical Irvine style.
- They purchased the property on 8/5/2004 for $720,000 using a $575,900 first mortgage, a $143,900 second mortgage, and a $200 down payment.
- On 7/29/2005 they refinanced with a $739,500 first mortgage.
- On 3/20/2007 they refinanced with a the second mortgage for $117,000.
- Total property debt is $865,500.
- Total mortgage equity withdrawal is $145,500.
- Total squatting time is at least 18 months.
Foreclosure Record
Recording Date: 08/06/2009
Document Type: Notice of Sale
Foreclosure Record
Recording Date: 04/23/2009
Document Type: Notice of Default
Irvine Home Address … 49 BAMBOO Irvine, CA 92620 
Resale Home Price … $699,900
Home Purchase Price … $720,000
Home Purchase Date …. 8/5/2004
Net Gain (Loss) ………. $(62,094)
Percent Change ………. -8.6%
Annual Appreciation … -0.5%
Cost of Ownership
————————————————-
$699,900 ………. Asking Price
$139,980 ………. 20% Down Conventional
4.61% …………… Mortgage Interest Rate
$559,920 ………. 30-Year Mortgage
$138,556 ………. Income Requirement
$2,874 ………. Monthly Mortgage Payment
$607 ………. Property Tax
$200 ………. Special Taxes and Levies (Mello Roos)
$58 ………. Homeowners Insurance
$291 ………. Homeowners Association Fees
============================================
$4,030 ………. Monthly Cash Outlays
-$689 ………. Tax Savings (% of Interest and Property Tax)
-$723 ………. Equity Hidden in Payment
$242 ………. Lost Income to Down Payment (net of taxes)
$87 ………. Maintenance and Replacement Reserves
============================================
$2,947 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$6,999 ………. Furnishing and Move In @1%
$6,999 ………. Closing Costs @1%
$5,599 ………… Interest Points @1% of Loan
$139,980 ………. Down Payment
============================================
$159,577 ………. Total Cash Costs
$45,100 ………… Emergency Cash Reserves
============================================
$204,677 ………. Total Savings Needed
Property Details for 49 BAMBOO Irvine, CA 92620
——————————————————————————
Beds: 4
Baths: 4 baths
Home size: 2,492 sq ft
($281 / sq ft)
Lot Size: n/a
Year Built: 2004
Days on Market: 18
Listing Updated: 40361
MLS Number: P740526
Property Type: Condominium, Residential
Community: Northwood
Tract: Seri
——————————————————————————
According to the listing agent, this listing is a bank owned (foreclosed) property.
Popular Northwood II Gated Community Upgraded Unit; Gourmet kitchen with a center island, granite counters; stainless steel applinaces;recessed lighting. Open to Spacious family room combo dining area. Downstair Master Bedroom with full bathroom double vanity; Separate guest bedroom downstairs with common bathroom; full size laundry room; Upstair open to great loft/retreat area. Upstaris with a Master Suite and Upgraded master bedroom with a walk-in closet; roman oval bathtub; double vanities; Plus a 2nd bedroom upstairs with a private bathroom. Assoication Pool and Spa. Centrally located to shopping center, schools and freeway access. Propety is Being sold As IS conditions, no warranties, express or implied. Agents: See remarks
This property went back to the bank at auction on 4/14/2010 for $725,000. They will likely unload it this summer for whatever they can get.
Why do these people get an “E” grade and not an “F”?
Do you happen to have any more info about their loans? Were their incomes verified, for example? Their credit history? Were the loans IO, or pay option ARM, or can you tell?
Can you know if these people have the money to pay their mortgages?
It is still hard to believe that so many blatantly unqualified people got so many large loans. I knew many people who were turned down for 30-year and 25-year fixed because the DTI was just a little over their heads, like 3.5X, or they had $10,000 in credit card debt. I guess the difference was the lender- reputable lenders had standards but there were plenty out there who would write you if you agreed to a loan that paid more fees.
LL,
Sad but true. And some didn’t even charge the borrower a fee. Likely front end loaded. Why should they care, they got paid and left the lender holding the bag. The lenders CMO them on WS and left others holding the bag. But since the originators made defective loans, they can be sued–but that might take time, effort and squeezing blood from a stone. Solution: refinace with no defective loans that will default and will have the taxpayers holding the bag. IMHO: Irvine equity robbers are amateurs comparied to NPB equity robbers.
They only got a E for effort? Only 18 months of squatting and $110K on the second, which has recourse. They sould take lessons from the NPB woman with 3+ million (on the first) and going on 4 years. Your tax dollars at work.
IR,
I think you and your reader’s might get a kick out of this video my friend made… “explaining a loan mod to a home debtor”.
It’s absolutely accurate! I had similar conversations with borrowers seemingly EVERY DAY when I was working at a lender in the past two years (before I got fed up with the whole loan mod thing) 🙂
https://www.youtube.com/watch?v=WlEiMkrCIxs&feature=youtube_gdata
OR,
Very funny script.
Many people still believe that they can still get negative downpayment loans. They can get almost no down (3.5%) but negative downs are a thing of the past. Well almost (new development with credits/cash for improvement to be completed upon closing by the developer). TG. IMHO even 3.5% should be increased to 20% to prevent walkways or free squatting for years.
FoolishRenter
PS your photos are beautiful! Nice vacation.
We own a home in this neighborhood. Unlike many of our neighbors we put 20% down and bought one of the least expensive homes in 2004. Not that it matters now. We are completely underwater due to the number of shortsales and foreclosures. There are 3 houses surrounding ours that have been vacant for over 1 yr. Homes 2x the size of ours are listed at far below our purchase price.
It’s wrecking us to keep the house and it will wreck us to walk away. The house itslef is terrific – but not in this environment. It’s so discouraging when you do the right thing but are killed by the greed of others.