How lucky can one guy be; I kissed her and she kissed me Like the fella once said, Ain’t that a kick in the head? The room was completely black I hugged her and she hugged back. Like the sailor said, quote, “Ain’t that a hole in the boat?” My head keeps spinning; I go to sleep and keep grinning; If this is just the beginning, My life’s gonna be beautiful. I’ve sun- shine enough to spread; It’s like the fella said, “Tell me quick Ain’t love like a kick in the head?”
Ain’t that a hole in the boat? When the boat (property) is underwater, it is dangerous to have a gaping hole either because the property has negative cashflow, or the ARM is about to explode. The reset is a kick in the head many have endured and many more know is coming.
With the impending doom of underwater owners, many are walking away before the resets hit. The negative impact of mortgage resets is being pulled forward into 2009 and 2010. This is market capitulation and the only way to clear out this bad debt once and for all.
Capitulation is painful; it is subordinating your will to the Will of the Market; it is the collapse of entitlement; it is the abandonment of dreams.
Beds 1 Baths 1 bath Size 934 sq ft ($284 / sq ft) Lot Size n/a Year Built 1994 Days on Market 3 Listing Updated 10/27/2009 MLS Number S594166 Property Type Condominium, Residential Community Airport Area Tract Met
According to the listing agent, this listing may be a pre-foreclosure or short sale.
Gorgeous 1 Bedroom Plus A Den/Office (could Be Bedroom), Neutral Beige Tones with Upgraded Carpet, Granite Counters In Kitchen & Bath with Tumbled Stone. Master Bedroom Has a Walk-In Closet with Built-Ins. Master Bath Has Walk-In Shower with Rain-Glass and a Large Separate Tub. Den Has Direct Bath Access for Guests. Crown Moulding in Living Room, 9 Foot Ceilings, Updated Fixtures, Lighting and Window Treatments. Refrigerator and Stacked Washer/Dryer Stay. Light and Bright with View of Trees. Set Back from the Street with a Large Private Balcony you can Access from Living Room or Master Bedroom. Two Deeded Parking Spaces. Beautiful Tropical Pool and Spa Area, Gym and Entertainment Room. 24-Hour Guard-Gated Entry. Great for the Corporate and Urban Lifestyle. Walk to John Wayne Airport, The Irvine Museum, and San Joaquin Wildlife Sanctuary. Drive to Balboa Island and Newport Beach in Minutes.
Why Is This In Title Case?
Urban Lifestyle. Walk to… Not in Irvine, not yet…
I don’t have the property records on this property, but it isn’t the only property for sale under duress in this complex:
Scouring the internet to bring you the constant variety of properties The thrill of schadenfreude The agony of kool aid The human drama of real estate markets This is the Irvine Housing Blog
The great part of Wide World of Sports was not always the events they covered; in fact, they were often quite boring. The show had a unique way of getting you to tune in each week, and sometimes you would stay and watch the entire show.
The opening sequence featured many different images of winning and losing, but none are more famous than ski jumper Vinko Bogataj, whose tumbling faceplant of March 21, 1970 was featured from the early 1970s onward under the words “…and the agony of defeat.” Bogataj’s fail is featured in Rich Hall‘s book Sniglets as “agonosis,” which is defined as “The syndrome of tuning in on Wide World of Sports every weekend just to watch the skier rack himself.” It is an indelible image that captures the complete failure of individual performance.
Sports provide a great microcosm of the struggles of life. The agony of defeat is something we all experience when an investment goes bad or a business deal doesn’t work out. Most of us suffer in obscurity and silence. The only evidence of the pain is the vapor trails on the web showing asking and sales prices and debt going bad. Far from being obscure statistics, these are our neighbors — or were our neighbors. It is hard to say where they end up after foreclosure.
Beds 3 Baths 3 baths Size 1,800 sq ft ($361 / sq ft) Lot Size n/a Year Built 2004 Days on Market 3 Listing Updated 10/27/2009 MLS Number S594108 Property Type Condominium, Residential Community Quail Hill Tract Ivwr
According to the listing agent, this listing is a bank owned (foreclosed) property.
Beautiful 3BR/3BA detached home with views! Custom tile entry leads to open living, dining rooms. Living room has a large balcony and media niche. Nice upgraded kitchen with granite countertops and newer appliances. Each bedroom has it’s own private bath. There is a large master bedroom with ceiling fan. Lots of additional built in storage. Oversized 2 car attached garage with epoxy flooring.
This property was purchased on 6/23/2004 for $640,500. The bank just bought it at auction for $561,267, and now they are hoping to get their money back from the FED supported prices. When the property was originally purchased, the owner used a $519,272 first mortgage, a $97,363 second, and an $18,130 downpayment.
At some point, he knew he was in trouble, so he tried to sell it. He spend a year and a half listing, delisting and chasing the market down.
Date
Event
Price
Oct 27, 2009
Listed
$649,900
Aug 26, 2009
Sold
$561,267
Sep 16, 2008
Delisted
*
Sep 13, 2008
Price Changed
*
Sep 03, 2008
Price Changed
*
Sep 03, 2008
Price Changed
*
Aug 21, 2008
Price Changed
*
Jun 15, 2008
Price Changed
*
May 21, 2008
Price Changed
*
Apr 12, 2008
Price Changed
*
Feb 26, 2008
Price Changed
*
Dec 19, 2007
Delisted
*
Dec 06, 2007
Delisted
*
Dec 06, 2007
Listed
*
Oct 18, 2007
Price Changed
*
Oct 18, 2007
Price Changed
*
Sep 19, 2007
Listed
*
Sep 19, 2007
Listed
*
Aug 29, 2007
Delisted
*
Aug 28, 2007
Price Changed
*
Aug 23, 2007
Price Changed
*
Jul 01, 2007
Price Changed
*
Jun 30, 2007
Price Changed
*
May 30, 2007
Listed
*
May 20, 2007
Delisted
*
May 16, 2007
Price Changed
*
May 05, 2007
Price Changed
*
Apr 10, 2007
Listed
*
He finally gave up in late 2008 as evidenced by the final delisting and…
Foreclosure Record Recording Date: 05/28/2009 Document Type: Notice of Sale (aka Notice of Trustee’s Sale)
Foreclosure Record Recording Date: 02/26/2009 Document Type: Notice of Default
It looks to me like he defaulted as the moratorium was put in place and got a few extra months. Perhaps the banks were behind in processing? Perhaps he continued to make payments even after he delisted in late 2008?
The agony for this foreclosure statistic is apparent. He over-borrowed and over-bought, and the weight of payments was crushing, so he tried to get out from under the dead weight. The property is listed for sale, and the owner relinquishes his dreams of prosperity slowly as he chases the market down. When he finally realizes the piggy-bank is empty, he capitulates; Atlas lets the world fall.
Everyone is invited to our next IHB Block Party next Monday, November 9. 2009, at JT Schmids at the District.
The UCLA Anderson Forecast has deteriorated to market cheerleading and bottom calling. This year’s incorrect bottom call will not help their credibility.
I don’t mind the things that you say I don’t even mind going out of my way I try and do these things for you Why should I do it I’m always untrue Well, I did you no wrong
I attended the UCLA Anderson Forecast for Orange County last Thursday. The keynote speaker, Ramin Toloui an Executive Vice President for PIMCO, was very good. The speaker for the Orange County Outlook, Mark Schniepp the Director of the California Economic Forecast, was awful.
Commercial Real Estate Forecast
The forecast for commercial real estate was not very positive. The commercial real estate market is facing the same woes as residential, but with an 18-month lag. Rents are falling, vacancy is rising, financing is difficult to find, and most borrowers are over-leveraged. It will take many years for the commercial market to recover.
Ramin Toloui was an excellent speaker. He explained the solvency
problem of over-leveraged borrowers facing refinancing (he was speaking
about commercial, but the same applies to residential). A property
purchased in 2007 for $100M may have $80M worth of debt (it probably
has even more). This debt will need to be refinanced during the next 5
years. The value of the property has cut in half, and the new lender is
demanding 30% equity. When this property needs to be refinanced, the
borrower’s loan will be capped at 70% of $50M which is $36M; they need to roll over
$80M. The gap is too large to be overcome. If the spread were smaller,
creative financing may be able to bridge the divide, but as it stands,
we are going to see massive deflation in the commercial lending market.
The problem of insolvency Toloui described is the same facing ARM
reset debtors in the residential market. A property purchased in 2006
for $1,000,000 with little or no money down will be worth about
$800,000 when the ARM resets. A lender will look at comps and limit the
loan to 80% of 800,000. The borrower will need to come up with the cash
to finance the difference between $640,000 and whatever they owe. Not
many will have $300,000 sitting around, and many who do will not want
to waste it by dumping it into a depreciating asset. The FED is trying
to solve the problem of residential insolvency by lowering interest
rates. The commercial loan market will have no such luxury.
This presentation was the best part of the morning.
“For fifty years, the UCLA Anderson Forecast has provided
forecasts for the economies of California and the United States. Founded by professor
Robert M. Williams in 1952, the national forecast has been recognized as one of the
most accurate, and has a reputation for being unbiased – a factor that the numerous
corporate and Wall Street forecasts cannot lay claim to. The UCLA Anderson Forecast
for California is the most widely followed and oft-cited in the state and was unique
in predicting both the seriousness of the early-1990s downturn, and the strength of
the state economy’s rebound since 1993.
“
I call bullshit.
What I saw on Thursday looked a bit like trained seals balancing a ball on its nose to get a feast of fish. Whatever objectivity and credibility they believe they have, it isn’t reflected in rigorous analysis leading to objective conclusions. Instead what is presented is a bit more like Gary Watts with a shotgun blast of statistics supporting a predetermined bullish(it) conclusion.
The main problem I have with forecasts like these is their lack of direct causation.
Once you have accurate data, the analysis of this data must focus on cause and effect. There must be direct causation linking a specific set of conditions to the outcomes these conditions will produce. A good analysis demonstrates this direct causal link in a clear and unambiguous manner. When an analysis relies on indirect causation, it is weak; when an analysis relies on implied causation, it is worthless.
In The Anatomy of a Credit Bubble, I demonstrated a number of direct causal links which impact how much people pay for houses:
House prices are directly correlated with amounts borrowed.
Amounts borrowed are directly correlated with the interest rate offered.
Amounts borrowed are directly correlated with the borrowers debt-to-income ratio.
Artificially low interest rates (reset issue) and exotic financing cause foreclosures.
Foreclosures cause higher interest rates.
Foreclosures above a certain threshold cause house prices to decline.
Declining house prices causes more foreclosures. (note the causally related downward spiral)
Declining house prices and increasing foreclosures cause lenders to lower debt-to-income ratios and raise interest rates.
Lower debt-to-income ratios and rising interest rates cause amounts borrowed to decline.
Less amounts borrowed (in conjunction with foreclosures) causes house prices to decline.
Notice the focus is always on correlation and causation forming a
chain of events leading to an inevitable conclusion. A good analysis
centers the debate around the premises. If the premises are true and
accurate, the conclusions cannot be denied.
In contrast, a bad analysis states a conclusion and offers support
through indirect or implied causation. When you read through the Gary Watts Real Estate Outlook 2007 you find yourself asking, “How does that impact house prices?” It is a question that is never answered.
The UCLA Anderson Forecast for Orange County is full of statistics just like a Gary Watts support, but the lack of direct causation weakens it significantly.
Residential Real Estate
I knew the presentation was in trouble when the speaker tells the audience to feel secure in buying a house because prices are at the bottom. I felt like I was being sold a used car or listening to a briefing by Baghdad Bob. He even called out the commenters on the blogs of the OC Register as “doom and gloomers.” I felt the camaraderie of the bubble blog world being challenged; besides, we were right.
The presentation is a series of charts and graphs similar to my analysis posts. There were a number of slides on defaults and foreclosures that looked very much like mine in Shadow Inventory Orange County.
There was a moment when the presenter was commenting on how defaults keep rising, but due to moratoriums foreclosures dropped for a time. I was thinking, “yes, that is shadow inventory.” But with a wave of his hands, he stops and says, “don’t worry about it, foreclosures will go down.”
WTF?
Did I hear him properly? How can you lead people right up to the problem, show it to them, and then deny that it is there? He offered no explanation as to what happens to this inventory. He did say if there is any future inventory problem that it will be absorbed by rising prices.
Yea, right?
What is supposed to lead us to believe that the UCLA Anderson Forecast is correct? Their say so? That plus a report full of fancy graphs and trivial statistics is all you get.
Let’s say the UCLA boys had taken their wonderful data and applied some historic parallels and direct causation to call a bottom. That would have impressed me. The analysis might have looked like this (with some help from Calculated Risk):
Let’s look at the direct causation between these events and speculate on whether or not it should happen differently this time around.
The recession in the early 90s was caused by a slowdown in housing and real estate just like this one. That recession also saw slowdowns in defense contracting and other industries that made problems even worse. The recession ended in 1992, but the effect lingered as people had to be retrained to work in other fields, so unemployment did not peak until 1993. The delay between the end of the recession and the peak in unemployment is well documented.
There were many reasons for the foreclosure crisis of the mid 90s, and we have all of those problems back with more force. The foreclosures caused by unemployment do not occur on the day a borrower loses their job. The delay caused by draining all sources of savings, maxing out credit lines and utilizing legal maneuvers can slow the process for two or three years — as we have seen with properties profiled here daily; therefore, it is reasonable to assume foreclosures will peak two or three years after a major unemployment crisis. In fact, I would argue it is unreasonable to assume that foreclosures have peaked for this cycle — as the UCLA Anderson Forecast does — considering unemployment has not peaked, and the newly unemployed will cause defaults.
Last time around house prices bottomed as foreclosures peaked. It is unclear if either one caused the other. For example, if house prices bottomed simply because prices were affordable and supply was low, then foreclosures may peak not because borrowers are not distressed, but because distressed borrowers can sell into the resale market rather than go through foreclosure. Remember, foreclosures are not a sign of distress as much as they are a sign of distress that cannot be masked by selling in the open market.
The more commonly accepted conclusion is that once the pressure of distressed inventory was removed from the market — foreclosures ran their course — then prices rose because there was not overhanging supply keeping prices down. This explanation sounds reasonable, but is doesn’t explain why there was not a lag time between the peak of foreclosures and prices rising to work off the inventory. This lack of lag leads me to believe rising prices were partially responsible for falling foreclosures — something the UCLA Anderson Forecast is counting on this time.
Neither explanation of the coincidence in timing between the peak of foreclosures and the bottom of the market give us any indication of whether or not this phenomenon will repeat. I suspect it will not because the foreclosure volume is so large that there will be a significant period of time to work off the inventory, and contrary to the primary conclusion of the forecast, I do not think it is reasonable to assume that rising prices will magically absorb our shadow inventory because it is too large.
We will see who is right and who is wrong.
When will the housing market bottom?
I originally figured we would bottom in 2011. I was most recently quoted as saying I believe the bottom has been pushed back to 2012. Based on the facts and direct causations assembled above, when will the market bottom?
Well, we can throw out 2009 or 2010 because prices cannot bottom before unemployment peaks and foreclosures peak. On this basis alone, I am confident the UCLA Anderson Forecast is wrong. If unemployment peaks in 2010, and if there is a two or three year delay between the peak in unemployment and the peak in foreclosures caused by various delay tactics, then foreclosures should not peak until 2012 or 2013. If this corresponds to the bottom again, then we will bottom in 2012 or 2013. If we have a significant lag between the peak in foreclosures and the bottom of the market due to a glut of inventory, then we may not bottom until 2015.
Don’t do out and buy a house because you believe we are at the bottom. We aren’t.
Beds 3 Baths 2 full 1 part baths Size 1,689 sq ft ($293 / sq ft) Lot Size 2,462 sq ft Year Built 2005 Days on Market 8 Listing Updated 10/28/2009 MLS Number P708154 Property Type Single Family, Residential Community Walnut Tract Othr
HOME BUILT IN 2005 NEAR IRVINE HIGH SCHOOL. 3 BEDROOMS, 3 BATHS, BONUS LOFT/OFFICE WITH RECESS LIGHTING. MASTER SUITE HAS DOUBLE SINKS, SPA TUB AND WALK IN CLOSET. FORMAL AND CASUAL DINNING WITH FIREPLACE. LOW MONTHLY HOA THAT INCLUDES 2 POOLS, 2 TENNIS COURTS AND CLUB HOUSE. UPGRADED KITCHEN AND BATH WITH GRANITE COUNTER TOPS AND STAINLESS STEEL APPLIANCES.
ALL CAP
These undesirable properties are getting pounded. This infill site is between the 5, a shopping center and an old condo development next to the high school. It has every combination of negative.
To facilitate your home search, go to http://www.idealhomebrokers.com/ and set up a property search; this is a good idea for both buyers and sellers. As a buyer, you want to spend some time watching the market and see the location and the quality of properties that meet your search criteria. As a seller, you should also watch the market for properties because these are your competitors vying for the same buyers. Spending some time watching the market will help you understand the pricing dynamics in your neighborhood.
On the home page, you will see a box similar to the one presented above. This is your portal to the Multiple Listing Service (MLS). You can create custom property searches based on a variety of criteria, and with registration, you can save searches, and even have the results emailed to you or sent to an RSS feed.
At the top of the map, you see two tabs: one for the map view and one for a property detail view. Once you have selected a property in the map view, the program will automatically switch to detailed view and provide additional property data. To switch back to the map, click on the map tab.
The map itself can be navigated by dragging the map around with your mouse, and by zooming in to see specific neighborhoods and zooming out to see entire cities or regions.
There is also a link to register with the service to get listing updates, save searches and perform other tasks. Registration is very easy and requires little personal information.
Enter your name and email address and choose a password. That is it. There is no more information required than what you entered when you signed up for this email program.
In the upper right corner, there are 3 links, a quick-jump navigation box, a menu to change the underlying display, and a pop up with detail on the neighborhood being viewed.
Once you have set up an account, you will want to click the “login” link to access your saved searches and other tools. The “help” link brings up a box with pertinent help information. The “Chat with the Team” link will call up a box allowing you to chat with a representative of Diverse Solutions the provider of the mapping system. This chat function will not link you to a member of the IHB.
If you want to quickly zoom to a particular city, zip code or MLS listing, you can directly put this information in the “jump” box and press “enter.” The system will automatically take you to this location without having to navigate the map.
You can view the map as terrain, an air photo, or a hybrid between the two. It is very similar to how Google Maps or other mapping applications present their data.
Once you are zoomed in to a specific area, you can click on the “map statistics” link on the side of the map, and various statistics about the area will be displayed.
The default settings will show you every property for sale in the mapped area. You will want to narrow your search to view only properties you are interested in.
On the left side of the map is a series of boxes and sliders that allow you to input your search criteria. You can either manually enter information into the boxes, or you can use your mouse to adjust the sliders beneath the boxes, and the software will automatically put numbers in the boxes for you.
Whenever you are searching for properties in a market, it is wise to broaden your parameters to see properties just outside your range of consideration. Oftentimes what happens is that you see a fantastic property outside of your normal parameters that catches your attention. This may reveal the parameters you thought were important may not reflect your true needs and desires. If you set your parameters too tight, you might have your ideal home filtered from your view.
The first data point is the location where you wish to search. The MLS allows you to search by city, community, tract name or zip code. As you type the software fills in potential locations that match your query. The database is extensive.
The next data point is the price range for your search. The IHB learning center has information on how to properly estimate the amount you should pay for a home based on your savings and income. For purposes of watching the market, you may wish to extend these ranges a little below and a little above your intended price range to get a better understanding of how location and quality impact pricing for properties that are in your price range.
The next data point is the number of bedrooms and baths you require. Note that this is what you require, not necessarily what you desire. For example, if you want a 4 bedroom, but you only really need a 3, you should set this at 3 bedrooms to see the full range of available housing opportunities. If you set it at 4 bedrooms, you will not see the available 3 bedroom properties, and you may miss the right property for you.
The next data point is the size of the home. My advice is to leave this as wide a range as possible. Telling yourself you must have a 3,000 SF home because you have too much furniture is like having the tail wag the dog. Bigger is not always better.
The range of lot sizes is next, and I also recommend you leave this as broad a range as possible. Also, lot size can be misleading. A house with an alley may have a large lot but not have a useful back yard.
In my opinion, the “days listed” data point is rather meaningless. If a house has been on the market for a long time, it is likely overpriced, but to filter out these properties can be counterproductive, particularly if the seller suddenly and dramatically lowers the asking price.
I also recommend leaving the range for year built as wide as possible. You may find a home that is either newer or older than what you were looking for is actually better suited to your needs. Many older homes have been tastefully updated and present as well as new homes.
Another search tag is to show only those properties that have a certain percentage price drop recently. This is a good filter to have, particularly on an email update. It is common for homeowners to give up holding out for a high asking price and dramatically reduce their price. This is generally a sign of a motivated seller ready to negotiation a sale in earnest.
There are also a series of check boxes to expand or limit your searches to include many different property types. This can be useful if you have very specific features you are looking for. Also, you can set up different searches to show both the for-sale market and the rental market for a given set of search parameters. That information can be very useful for establishing comparative rents and determining fundamental valuations.
You can also filter your search results to only display properties within a specific school district. This is a very important feature among many buyers. It it important to note that school district boundaries do not necessarily follow city boundaries. For example, areas within Irvine are serviced by the Santa Ana and Tustin school districts as well as the Irvine school district.
The Walk Score is a subjective measure of how easy it is to live a lifestyle without an automobile. Many downtown urban areas earn high walkability scores because the conveniences of modern living are readily accessible on foot. Most suburban areas score poorly for walkability. With the reliance modern society has for automobiles, holding out for a high walkability score will filter most properties.
As a sign of the times, there is a filter where you can see only short sales and preforeclosures or properties owned by lending institutions.
You can also opt to see listings on Zillow. There is value in this, if you are looking for properties offered for sale by their owners.
The final checkbox tells the software to only search in the mapped area. There are times when the area you are interested in does not have a specific geographic designation. You can use this checkbox when you have zoomed in to a specific area or neighborhood and you only want to see properties in that location.
The lower left button will reset all the parameters to their default values. Don’t press this button by mistake or you will lose all the settings you input.
The lower right button tells the software to run the search and return your properties on the map display.
The search tool on the home page of Ideal Home Brokers is very powerful. You can see all properties that meet your criteria and find your ideal home.
Thank you again for allowing us the opportunity to present ourselves to you in this manner. We look forward to working with you.
Sincerely,
Larry Roberts
When you are ready to buy or sell a home, we are here to serve you.
It’s so dreamy, oh fantasy free me So you can’t see me, no not at all In another dimension, with voyeuristic intention Well-secluded, I see all With a bit of a mind flip You’re there in the time slip And nothing can ever be the same You’re spaced out on sensation, like you’re under sedation Let’s do the Time Warp again!
For those of you looking for something interesting to do for Halloween, I suggest you attend the Rocky Horror Picture Show. There is a midnight showing on Halloween.
I went to see this movie in the mid 1980s. I remember taking a bag of supplies including newspapers, squirt guns, toasted bread, really unusual items that would be needed at different times during the show. It was true audience participation, and you don’t see that often anymore, particularly at the movies.
People who have seen the movie dozens or hundreds of times shout questions that are answered — out of context — by the character on the screen. Some of the comedic quips are really funny.
It is one of those experiences you do once (maybe twice) because it is fun and unique, but the movie is really bad, and depending on the theater where you see it, you may get wet, peppered with ice and toast, and be overwhelmed by the mob. Some theaters really make it a loosely controlled scrum. It reminds me of the OC Mud Run. I would have hated to have cleaned up the mess in the theater where I watched this movie….
Yes, that is Susan Sarandon, and no, that is neither Freddie Mercury nor Bill Gates.
IHB News
I added functionality to the calculator. I added a section for loan qualification based on current market DTIs. If some lender would post or email me an more accurate and current standards are, I can update the calculator. I have also added a new spreadsheet below the original calculator that calculates the Time To Payoff.
The IHB did a report on a property in Redlands. IHB Fundamental Value Report Redlands Property.pdf Whenever we do these reports locally, properties almost always are selling for more than the IHB Fundamental Value. This property in Redlands is typical of what you find in Riverside County: poperties trading for 30% less than they should be — or to be more accurate, they are trading at their bottoming price even at natural interest rates. In markets like Las Vegas and Riverside County, prices have overshot fundamentals. The ruinous supply will take its toll in these markets, but with affordability being so good, people will step up to buy these properties.
If there are no changes in behavior among these actors now, when the wreckage of the housing bubble is everywhere, then it is a safe bet that the market is …
Nevada has been hard-hit by the bursting of the housing bubble. The chamber’s top Republican, Senator Mitch mcconnell, also said most senators support the …
It creates another housing bubble by providing a crutch to the market, which in turn again over-inflates the values of houses, which will lead to another …
Christopher Thornberg, a Los Angeles economist who was an early predictor of the housing bubble, disagreed. “I can’t emphasize enough how this rally in the …
The last time the monetary spigot was wide open it led to a credit bubble, a stock bubble, a private equity bubble and a housing bubble–and we all know how …
… into the teeth of down cycle in commercial real estate — where the bulk of bubble-era loans are due to be repaid or refinanced between 2010 and 2012. …
Beds 3 Baths 2 full 1 part baths Size 1,681 sq ft ($312 / sq ft) Lot Size 2,459 sq ft Year Built 1978 Days on Market 87 Listing Updated 9/28/2009 MLS Number P697141 Property Type Condominium, Residential Community Woodbridge Tract Othr
According to the listing agent, this listing may be a pre-foreclosure or short sale.
Woodbridge is a very desirable area in Orange County. This house has a great floorplan, high ceilings, lots of light coming through. Kitchen has granite tile countertop. Spacious master. Enjoy all the amenities that the Lake has to offer: pool, spa, tennis and sports court, club house and the the beautiful Lake.
and the the beautiful Lake. Is the listing agent stuttering?
This property was purchased at the peak for $634,000. The owner used a $475,500 first mortgage, a $158,500 second mortgage, and a $0 dowmpayment. On 2/13/2007, she refinanced with a $636,500 Option ARM with a 1.87% teaser rate, so she did manage to extract $2,500 plus reduce her payment to where she was saving hundreds over renting with the minimum loan payment.
Now that owners like this one are faced with the prospect of actually having to pay back the large sums they borrowed, they are walking away.
How lucky can one guy be;
Ain’t that a hole in the boat? When the boat (property) is underwater, it is dangerous to have a gaping hole either because the property has negative cashflow, or the ARM is about to explode. The reset is a kick in the head many have endured and many more know is coming. 
Scouring the internet to bring you the constant variety of properties 
The great part of 
He finally gave up in late 2008 as evidenced by the final delisting and…
