Author Archives: IrvineRenter

Turtle REOck

Welcome to the new Irvine Housing Blog. We have changed from WordPress to Expression Engine as our blogging software. It is a more powerful platform, and it should allow us to introduce some new and exciting features. There will be some growing pains (as I am experiencing right now in getting to know the new blog entry interface) but in no time, we will all be enjoying the new and improved Irvine Housing Blog.

Its been such a long time
I think I should be goin, yeah
And time doesnt wait for me, it keeps on rollin
Sail on, on a distant highway
Ive got to keep on chasin a dream
Ive gotta be on my way
Wish there was something I could say.

Well Im takin my time, Im just movin on
Youll forget about me after Ive been gone
And I take what I find, I dont want no more
Its just outside of your front door.

Foreplay/Long Time — Boston

Asking Price: $674,900

Income Requirement: $168,725

Downpayment Needed: $134,980

Monthly Equity Burn: $5,624

Purchase Price: $564,678

Purchase Date: 1/25/2008

Address: 4992 Paseo De Vega, Irvine, CA 92603

Beds:	3
Baths:	2
Sq. Ft.:	1,414
$/Sq. Ft.:	$477
Lot Size:	4,914 Sq. Ft.
Type:	Single Family Residence
Style:	Contemporary
Year Built:	1973
Stories:	One Level
Area:	Turtle Rock
County:	Orange
MLS#:	U8001483
Status:	Active
On Redfin:	8 days

BY FAR, THIS IS ONE OF THE VERY BEST LOCATIONS IN IRVINE. THIS IS THE
HIGHLY SOUGHT AFTER AREA OF TURTLE ROCK. THE HOME IS A SINGLE FAMILY
ATTACHED PROPERTY THAT FEATURES THREE BEDROOMS AND TWO FULL BATHROOMS.
AN ENTERTAINERS DELIGHT WITH MANY UPGRADED FEATURES. YOU ARE CLOSE TO
ALL THE GREAT THINGS THAT LIVING IN IRVINE HAS TO OFFER; THE BEST
SCHOOLS, PARKS, RECREATION THE UNIVERSITY AND MORE. COME HOME TO TURTLE
ROCK, AND START LIVING THE IRVINE LIFESTYLE TODAY.

I like Turtle Rock too, but I don’t think it is fair to say it is “by far, this is one of the very best locations in Irvine.”

An REO in Turtle Rock? How can this be?

Sales History

Date	Price	Appreciation
Aug 20, 1999	$262,000	—
Aug 06, 2001	$395,000	23.3%/yr
Mar 11, 2002	$385,000	-4.2%/yr
May 04, 2004	$669,000	29.3%/yr
Dec 22, 2005	$695,000	2.4%/yr
Jan 25, 2008	$564,678	-9.5%/yr

As you can see, this property has changed hands many times. Perhaps there is a St. Joseph statue buried on the property? The lender must think they can still get peak prices in Turtle Rock. It will be interesting to see if they can. From the property records, it is not clear why the buyer let this property go into foreclosure. It appears as if he put 20% down. Maybe the lender won’t lose on this property. That would be a first.

Flying

Wouldn't it be nice if prices really did go up forever? Wouldn't it be great if none of us had to work, and we could all just live off the appreciation of our houses? There really isn't much difference between believing in the magical kool aid of the bubble and believing in other forms of magical thinking. It is a wonderful fantasy, and believing in endless price appreciation must feel very good. I guess perpetual house price appreciation is the adult version of Santa Claus or the Tooth Fairy. If I had been able to drink the kool aid, I would have been less distressed by what I witnessed in 2004 through 2006. Ignorance really can be bliss.

How many homeowners are out there waiting for the good times to come again? I think Tom Petty put it well:

Well the good old days may not return

And the rocks might melt, and the sea may burn

I'm learning to fly but I ain't got wings

Comin' down is the hardest thing

Well some say life will beat you down

Break your heart, steal your crown

So I started out for God knows where

But I guess Ill know when I get there

Im learning to fly around the clouds

But what goes up must come down

Learning to Fly — Tom Petty and the Heartbreakers

Asking Price: $544,000

Income Requirement: $136,000

Downpayment Needed: $108,800

Monthly Equity Burn: $4,533

Purchase Price: $645,000

Purchase Date: 3/16/2007

Address: 63 Burlingame, Irvine, CA 92602

Beds:	2
Baths:	3
Sq. Ft.:	1,475
$/Sq. Ft.:	$369
Lot Size:	–
Type:	Condominium
Style:	Contemporary
Year Built:	2001
Stories:	Two Levels
View(s):	City Lights
Area:	Northpark
County:	Orange
MLS#:	S521978
Status:	Active
On Redfin:	47 days

Corporate relocation home. Competely detached. Large wrap-around yard. View. New paint throughout. Gorgeous hardwood floors. 2 master suites plus den area. Gorgeous hardwood floors. Prestigeous guard-gated community.

Competely Prestigeous.

Three and four word sentences. I like the economy of words.

The title history on this property is a bit unclear. Sitex still shows the 2004 purchaser as the current owner, and it does not pick up a 2007 transaction referenced in Redfin. If someone did pay $645,000 for this place in March 2007, the 2004 owner (whose outstanding debt was $619,800 after her refinance) got very lucky. Perhaps this was a corporate relocation. If so, the corporation is a bagholder, and they are going to lose at least $133,640 after a 6% commission.

I hope you have enjoyed this week at the Irvine Housing Blog. Come back next week as we continue chronicling ‘the seventh circle of real estate hell.’ Have a great weekend.

🙂

Rose

‘Tis but thy name that is my enemy;

Thou art thyself, though not a Montague.

What’s Montague? it is nor hand, nor foot,

Nor arm, nor face, nor any other part

Belonging to a man. O, be some other name!

What’s in a name? that which we call a rose

By any other name would smell as sweet;

So Romeo would, were he not Romeo call’d,

Retain that dear perfection which he owes

Without that title. Romeo, doff thy name,

And for that name which is no part of thee

Take all myself.

William Shakespeare — Romeo and Juliet, 1594

Turtle Ridge is a beautiful community, and although the houses are ridiculously overpriced, it does look like a nice place to live. I know one family who lives there, and they are exceptional people. There are undoubtedly others.

What is in a name? Does “Turtle Ridge” mean more than just a name. I suspect many who bought there believe the name carries prestige and the envy of the lower classes. Personally, I associate Turtle Ridge with pretense, nouveau riche conspicuous consumption, and the embodiment of all things housing bubble — granite tops, stainless steel appliances, Pergo floors, stone facades, gourmet kitchens, etcetera. Do you ever wonder if the residents have giant Roman banquets to impress the world with their wealth?

This may come as a foreign concept to some, but it is possible to feel contempt for conspicuous consumption without feeling envy. I would not feel envious of watching an ancient Roman citizen consume 10 pounds of meat in a single meal. The measure of a person’s character has nothing to do with the contents of their pocketbook, and being showy with money is revelatory of character — what it reveals does not impress me. There is nothing wrong with spending money and enjoying yourself. I do. It is spending money to impress other people that is an enormous waste, particularly when there are people like me on whom it has the opposite effect. I suspect some of the more pretentious residents would convince themselves everyone who claims not to be impressed is secretly envious. There are two types of people in their world, those who are envious, and those who pretend they are not envious. So be it.

So why is it so delightful when the vainglorious fall on hard times? Why is it so pleasing to see an REO in Turtle Ridge? Probably for the same reasons so many were contemptuous of the couple in the CNN article posted in the comments yesterday. You tell me…

Asking Price: $1,499,000

Income Requirement: $374,750

Downpayment Needed: $299,800

Monthly Equity Burn: $12,491

Purchase Price: $1,722,000

Purchase Date: 12/23/2005

Address: 30 Crimson Rose, Irvine, CA 92603

Beds:	4
Baths:	5
Sq. Ft.:	3,403
$/Sq. Ft.:	$440
Lot Size:	–
Type:	Single Family Residence
Style:	Tuscan
Year Built:	2005
Stories:	Two Levels
Area:	Turtle Ridge
County:	Orange
MLS#:	S523791
Status:	Active
On Redfin:	28 days

BANK OWNED !!! Stunning floorplan with a main floor master suite. Kitchen with center island, limestone flooring, stainless steel appliances, family room with wood flooring, media room, wine room plus a seperate Casita with private entrance and bath. Outdoor entertainment includes spa, built-in grill and a fantastic fireplace !

Does anyone remember the fun we had with this property last summer? It was one of our most widely read posts of the year.

It appears the high end is not immune, it is just late to the party. Interesting that it took the bank 8 months to ready this property for sale. I wonder how many other empty, bank-owned properties are sitting out there waiting to be sold or rented? I can’t tell for sure how much money the bank will lose on this one. The owner who was foreclosed on had a $1,000,000 first mortgage and a $935,000 HELOC on the property. You have to think the guy took out most of it, or the property would not have gone into foreclosure. If this borrower took out the full amount before walking, and if Countrywide can get their asking price and pay a 6% commission, the Countrywide stands to lose $525,940. That is a half a million dollar loss on one property in Irvine, California. Last night when I checked their REO website, they owned 4,505 properties in California.

Angelo Mozilo will take his golden parachute from Countrywide and end up on the Greek island of Lesbos having gluttonous orgies. Justice will not be served.

Are you ready for the new sensation?

Well, here’s the shot heard ’round the world.

All you backroom boys salute when her flag unfurls.

Well, guess who’s back in circulation?

Now, I don’t know what you may have heard

but what I need right now’s the original goodtime girl.

She’s a vision from coast to coast,

sea to shining sea.

Hey, sister, you’re perfect host.

Show me your bright lights and your city lights, all right.

I’m talkin’ ’bout the Yankee Rose.

Bright lights in your city lights, all right.

I’m talkin’ ’bout it.

Yankee Rose — David Lee Roth

Stealth Rally

F117 Nighthawk

There must be a stealth rally happening in the Irvine housing market because I sure don’t see it. Perhaps it has just been a stealth market crash because today’s seller didn’t seem to notice. If you took the rally that lead up to 2006’s peak pricing and projected it forward into 2008, you might be able to come up with today’s asking price, but in our current market? WTF?

Asking Price: $1,999,000

Income Requirement: $499,750

Downpayment Needed: $399,800

Monthly Equity Burn: $16,658 or more

Purchase Price: $726,000

Purchase Date: 8/21/1998

Address: 111 Nighthawk, Irvine, CA 92604

Beds:	5
Baths:	4
Sq. Ft.:	3,900
$/Sq. Ft.:	$513
Lot Size:	–
Type:	Single Family Residence
Style:	Contemporary
Year Built:	1998
Stories:	Two Levels
Area:	Woodbridge
County:	Orange
MLS#:	S526976
Status:	Active
On Redfin:	3 days

Most Spectacular Home in the Woodbridge Reserve. Attention to detail throughout this incredibly gorgeous Home. Living Room with Fireplace and Cathedral Ceilings. Gourmet Kitchen with Granite Counters, Recessed Lighting, Tile Floors, and Custom Backsplash behind professional grade cook top. Formal Dining Room with Chandelier. Family Room with Media Niche and Second Fireplace, and One Downstairs Bedroom. Master Suite and Three additional Bedrooms upstairs. Oasis like extra deep Backyard with sparkling Pool, Spa, and Fountains. Covered Outdoor BBQ Area with recessed lighting, custom built granite and stone counters, and ceiling fan. Outdoor Fireplace with sitting area perfect for entertaining. One of the newest developments in Woodbridge by Standard Pacific Homes and NO MELLO ROOS!

When I first saw this listing, I figured it was just a vanity listing. By putting the house for sale for $2,000,000, some homeowner can believe their house is worth $2,000,000. Perhaps it makes everyone else in the neighborhood feel good as well, or perhaps a homeowner just wants to tell all his neighbors that his house is better than theirs.

However, when I looked at the mortgage data, I was astounded by the activity on this property. I can’t determine how much this homeowner really owes because the total of all the listed loans is $4,631,380. Hopefully, on one of the many refinances, some of these old loans were paid off. His mortgage broker must love him with all the fees this guy has generated. Apparently, he can handle the payments as there has been no activity since late 2004. This doesn’t appear to be a distressed sale, but it doesn’t appear this seller would get a $1,153,060 check at the closing either. Of course, at this WTF price, there will be no closing, but it makes for a nice fantasy.

You were the girl that changed my world

You were the girl for me

You lit the fuse I stand accused

You were the first for me

But you turned me out baby

You dropped a bomb on me, baby

You dropped a bomb on me.

But you turned me on baby.

You dropped a bomb on me, baby

You dropped a bomb on me.

You were my thrills, you were my pills

You dropped a bomb on me

You turn me out, you turn me on, you turned me loose

Then you turned me wrong

You dropped a bomb on me, baby

You dropped a bomb on me.

You Dropped a Bomb on Me — The Gap Band

Fool's Gold

In retrospect, it is easy to see how many people who bought late in the bubble were chasing fool’s gold. The rainbow lead to a pot of gold for many, but many others have been left chasing the rainbow and wondering where their pot of gold lies. The map was easy to follow: you took out a large loan, waited a few months, then sold the property to someone else — the greater fool. The fool who was also chasing their fool’s gold. Everyone is still weighing out their gold as the rest of us watch them sink. The gold is always just around the corner, but in reality a breakdown is just around the bend. We all know where the market is going — down, down, down.

I’m no clown I wont back down

I don’t need you to tell me whats going down

Down down down down da down down down

Down down down down da down down down

I’m standing alone

I’m watching you all

I’m seeing you sinking

I’m standing alone

You’re weighing the gold

I’m watching you sinking

Fools gold

These boots were made for walking

The marquis de sade don’t wear no boots like these

Golds just around the corner

Breakdowns coming up round the bend

Sometimes you have to try to get along dear

I know the truth and I know what you’re thinking

Down down down down da down down down

Fools gold — Stone Roses

Today’s property demonstrates the distress of Woodbury. This property has been on the market for over a year, and the owners have managed to lower the asking price about 25%, and they still haven’t sold it. We have profiled this street in Woodbury before: here, here, here and here. Today’s seller is not the only failed flipper around.

Asking Price: $449,900

Income Requirement: $124,975

Downpayment Needed: $99,980

Monthly Equity Burn: $4,165

Purchase Price: $532,500

Purchase Date: 12/16/2005

Address: 124 Chantilly, Irvine, CA 92620

Beds:	2
Baths:	3
Sq. Ft.:	1,355
$/Sq. Ft.:	$332
Lot Size:	–
Type:	Condominium
Style:	Mediterranean
Year Built:	2005
Stories:	Two Levels
Area:	Woodbury
County:	Orange
MLS#:	S477411
Status:	Active
On Redfin:	396 days
Unsold in 90+ days

‘Pride of Ownership’ shows from the moment you enter from your own private courtyard. Your first floor has a ‘Great Room’ feeling with a gourmet kitchen, casual eating area and spacious living room with fireplace. Master suite with walk-in closet, secondary bedroom plus laundry area complete the second floor. Two car tandem garage features extra storage and has direct access. Sliding ‘hidden’ front door screen, wood window shades, security system are just a few of the upgrades.

‘Pride of Ownership’ — I am sure they are proud of the $100,000 they lost.

Do you get the impression they would have been happier if they had bought a boat?

This is probably the only kitchen in Woodbury without granite counter tops, but yet, this is a gourmet kitchen. I guess if the”gourmet” only needs about 4 square feet of white tile countertop space…

“Two car tandem garage” Always love those.

Today’s sellers put $975 down on the property, so I think we can call it 100% financing. This property has been on the market since October of 2006, and the initial asking price was $579,500. If these sellers obtain their asking price today of $449,900, their lender stands to lose $108,619, and our sellers stand to lose their $975.

I bet the lender is looking for the pot of gold too.

Since this is April Fool’s Day, I thought I might share with you the best April Fool’s joke ever played on me.

When my son was a baby, my wife called to me from the other room and said she thought my son might be sick. I went into his room to see what I could do. When I got there, my wife and my mother-in-law (I think they thought this one up together) were standing over my son who was lying down on the changing table. My wife said, “Come look at this.” I walked over to see my son’s diaper filled with a thick, brown gelatinous mass. The first words out of my mouth were, “What did you feed him?” My wife looked at me, looked down at the gigantic glob of goo, stuck her finger in it, and put it in her mouth.

My mouth dropped open…

I couldn’t believe what just happened…

OMG! Are you crazy?

Then my wife and my mother-in-law started to laugh. I stood there dumbfounded trying to figure out what was going on. Then the truth was told…

While I was not paying attention, they had made a warm batch of chocolate pudding, cleaned up my son really well, then filled a clean diaper with the chocolate pudding and positioned him over it as if he had been wearing the diaper and filled it himself. We all had a big laugh, including my son who had no idea what was going on. I remember that joke every year on April Fool’s Day, and I probably will for the rest of my life.