This is a regular equity sale. It is not a short sale or bank owned property. You can be living in your new home in 30 days or less. This end unit has a large patio and has been completely remodeled featuring a new kitchen with new cabinets, granite counter tops, back splash, flooring, stainless steel appliances, updated lighting and more. The ceilings have been scraped and feature a knock-down texture, there are washer and dryer hook ups in the unit, a walk-in closet in the master bedroom, and the flat screen TV in the kitchen is included with the home. Features high ceilings and the community has two pools and is walking distance from parks and the grocery store.
The result of the amend-extend-pretend dance is shadow inventory. Lenders cannot waive a magic wand or bury their heads in the sand and make delinquent loans disappear. People are not paying their mortgages; in fact, more people are not paying their mortgages every day. Delinquency rates are still rising with no end in site. Unemployment is often blamed, and it certainly plays a role, but astronomical delinquency rates was predicted by everyone who saw the housing bubble for what it was. People took on debt they could not afford, and with or without unemployment, delinquency rates were going to be very high.
Lenders have been playing games with foreclosure filings since 2008 when the subprime foreclosures wiped out the housing markets wherever these loans were concentrated. Once the rate of delinquency began to exceed the rate of foreclosure, we began creating shadow inventory. At first many pundits thought we could amend our way out of the problem. As I pointed out, this is merely a game of Bailouts and False Hopes. The dismal failure of the various loan modification programs surprised no one who understood the housing bubble.
The growth of shadow inventory has been steady and consistent since 2008. The current foreclosure inventory is huge, but shadow inventory is at least four-times larger. There are 3,600+ Distressed Properties in Irvine, and There are 36,000+ Distressed Properties in Orange County. As lenders shift their focus from foreclosure to short sale, shadow inventory will continue to grow unless they can pick up the pace of sales though the short-sale process.
The HAFA program pays the second mortgage holder $1,500 to go away. Most aren't taking it. Since many Orange County borrowers have assets, these second mortgage holders are demanding the sellers liquidate and pay them off before they approve the sale. In typical OC fashion, most of these sellers are unwilling to pay up. Perhaps at the lower rungs of the housing market where the borrowers have no assets, more short sales will go through, but in more affluent areas, the HAFA program is doing nothing to facilitate short sales.
Lenders and services will try to force more short sales, but their efforts will ultimately fail in the more affluent areas. Then they will need to go back to the foreclosure process to clean up this mess once and for all.
Foreclosure filings dropped 5% over the first half of 2010 as lenders continue to delay proceedings to focus on short sale and loan modification efforts, according to RealtyTrac, an online foreclosure marketplace.
More than 1.6m homes received at least one filing, including default notices, auction sale notices and bank repossessions over the last six months, according to the report. That translates to one in 78 homes. Foreclosure filings remain 8% above the amount issued in the first half of last year.
James Saccacio, CEO of RealtyTrac, said at the current pace, more than 3m properties will receive a foreclosure filing by the end of the year, and lenders will repossess more than 1m of them. According to a report from the Toronto-based Capital Economics, the weight of the shadow inventory may contribute to a double dip in the housing market. The report found that for every home currently on the market, two homes are waiting to be sold.
The math is inescapable. Prime loan delinquencies have increased for 37th straight months. If foreclosures and foreclosures filings have actually decreased, that means lenders are falling farther and farther behind. That is shadow inventory: houses where the owners are delinquent but no filings have been made.
“The roller coaster pattern of foreclosure activity over the past 12 months demonstrates that while the foreclosure problem is being managed on the surface, a massive number of distressed properties and underwater loans continues to sit just below the surface, threatening the fragile stability of the housing market,” Saccacio said.
Foreclosure filings decreased 3% in June after another 3% drop in April. It’s the third straight month of declines. Foreclosure filings were down 7% from June 2009. Despite the recent downward swing, June marked the 16th straight month of more than 300,000 filings.
For the second quarter of 2010, foreclosures dropped 4% from Q110 and remained 1% above Q209. As default and auction notices fell, REOs increased 5% from the last quarter and 38% from Q209. It’s the most REOs measured in a quarter since RealtyTrac began publishing the reports in January 2005.
“The second quarter was a tale of two trends,” Saccacio said. “The pace of properties entering foreclosure slowed as lenders pre-empted or delayed foreclosure proceedings on delinquent properties with more aggressive short sale and loan modification initiatives. Meanwhile the pace of properties completing the foreclosure process through bank repossession quickened as lenders cleared out a backlog of distressed inventory delayed by foreclosure prevention efforts in 2009.”
Nevada continued to hold the highest foreclosure rate in the country. Nearly 6% of all Nevada properties, which equals one in 17 homes, received at least one filing in the first half of 2010.
Arizona holds the second highest. There, 3.36% of its units received a filing, equaling one in 30 homes. Florida was third with 3.15%.
More than 340,000 properties in California received a filing in the first half of 2010, the state holds the highest foreclosure volume. Florida was second with more than 277,000 properties.
I recently spoke with a VP at a major title company who told me that the FDIC is pressuring servicers to shift from foreclosure to short sales. Those servicers who want to dispose of FDIC properties need to have a ratio of foreclosures to short sales that strongly favors short sales. Since a short sale requires a cooperative owner, loan servicers are working on their outreach programs to get more owners vested in the process. The properties that are abandoned for various reasons will end up as foreclosures, but lenders and servicers are now doing all they can to increase the number of short sales.
The argument in favor of short sales is simple: the asset recovery is better. If a property goes to auction, it needs to be discounted by 20% to attract all-cash buyers. If the property can be sold at short sale, this 20% is recovered by the bank — at least in theory. In reality, if the loan sits on the lender's books for another six months of missed payments while the parties bicker and the borrower hides assets, the amount recovered isn't any larger than if foreclosure had occurred in a timely fashion. However, since the FDIC is not accounting for the lost payments, and since they don't want to expedite the liquidation and lower home prices, opting for the longer short-sale process makes perfect sense — to them.
A crushing lender loss
Today's featured property was purchased by the original owner on 2/23/2006 for 623,000. The owner used a $497,600 first mortgage, a $62,200 second mortgage, and a $63,200 down payment. My data service does not have the information on when this owner when delinquent. The property was purchased at auction on 6/17/2010 for $321,000. The opening bid was only $225,500, but the property was bid up from there. The auction price is nearly 50% off the original purchase price. The second mortgage holder was wiped out along with the owner's down payment.
The flipper will make a substantial profit if he can get asking price. It isn't likely much was spent on renovation as these are new stacked-flats in a large condo building. A nearly 20% profit turned over in less than 60 days makes for a great annualized return.
If you would like to learn how you can get involved with trustee sales, please contact me at sales@idealhomebrokers.com.
A gorgeous top floor (4th) unit in the exclusive Avenue One Community !!! 2 bedrooms, 2 baths with a loft Open to Living Area Below. High Ceiling in the living room. No one above. Open and functional floorplan. Grourment Kitchen with granite countertops stainless steel appliances. Elegant Clubhouse and superb onsite amenities including a comfortable lounge w/plasma TV , fitness center, pool tables, indoor basketball court, pool and Jacuzzi. Located at the heart of commerce and entertainment in Irvine. Close to shopping, museums, theaters. Easy access to 405. A truly exclusive home!
Grourment?
I hope you have enjoyed this week, and thank you for reading the Irvine Housing Blog: astutely observing the Irvine home market and combating California Kool-Aid since 2006.
The big mortgage write down party has just begun. Banks have barely scratched the surface on the total dollar value of loans they will need to write off.
The housing bubble was really a credit bubble. Lenders extended far too much credit to people who had no ability to repay it. When the housing market crashed, lenders were in no rush to write their loans down to market value. The result is a huge remaining bubble in home mortgages.
Many lenders honestly believe house prices will rise back to levels that will eliminate the negative equity problem. This is wishful thinking on a grand scale. In reality, the overhang of distressed properties will keep price appreciation in check for quite some time. The mortgage bubble will be deflated by a combination of short sales and foreclosures — many facilitated by accelerated default — causing lenders to write down the mortgage debt to reach market values.
You may not realize it, but there's another major financial bubble ready to burst. Few are talking about it, but Michael David White, a mortgage and real estate professional has graphed the mortgage bubble due to burst.
When the housing bubble burst, it left many with underwater mortgages. Yet nothing was done to deal with the debt levels on these homes. The mortgage values shown on the banks' books are still elevated beyond their true worth.
Right now we're seeing more and more people walk away from this debt. While property values fell from $20 trillion to $13 trillion when the housing bubble burst. Mortgages fell from $11.95 trillion to $11.68 trillion.
John Lounsbury, a financial and investment adviser, says home equity is now over 90 percent mortgaged. Historically our mortgage levels were 50 to 60 percent. He agrees with White that we're in a mortgage bubble that is ready to burst. In order to get back to the normal historic relationship, Lounsbury says "outstanding mortgage values would need to be about $7 trillion, which is $5 trillion below the latest level."
He says, "Banks are looking to resolve this bubble by waiting for mortgage repayment and for house prices to rise." He calls this the "extend and pretend" mode. The big question is: Will people continue to pay these mortgages as they wait for homes to rise enough in price to get back above water. In some of the hardest-hit areas that could take 10 to 20 years or longer.
There is no way borrowers are going to wait that long. Most can't. Do you think people will remain immobilized through 2025 for a decision they made in 2005? No way. When it becomes apparent house prices are not coming back, people will give up hope and walk away. Look for the double dip to crush the feeble hopes of those who haven't accelerated their inevitable defaults.
The Business Insider focused on the 15 hardest hit areas, with Nevada leading the pack. In Nevada, 69.9 percent of mortgages are underwater. Arizona comes in second with 51.3 percent of mortgages underwater, and Florida is third with 47.8 percent.
Based on mortgage debt, we're becoming a country of haves and have-nots. Those stuck in homes underwater cannot move to find work in another location, even if there's no work where their home is located. Without jobs, they may have no choice but to walk away or work with their bank for a deed-in-lieu of foreclosure. In many cases, these homes are so far underwater that banks won't agree to short sales.
As more and more people realize that they have no choice but to give up their homes, the mortgage bubble will deflate. The only question left is whether the bubble will burst rapidly or continue to deflate slowly as foreclosures are resolved.
I do think the mortgage bubble will deflate slowly. Lenders are being allowed to use mark-to-fantasy accounting, so there is no regulator pressure to write down the loan balances. Also, denial is a basic human reaction to catastrophe, and borrowers will surrender and capitulate at different rates. The brief bear rally we just witnessed will give false hope to many who will hang on for a few more payments.
But Lounsbury thinks that some areas of the country that have not yet been hard hit by the housing meltdown are ripe for problems. For example, he thinks the New York area is a bubble waiting to happen. In fact, Keith Jurow of the Real Estate Channel thinks a housing collapse in Queens is almost certain.
IMO, you can add coastal California to that list. I still believe the high end is going to be wiped out. There are no government supports for the jumbo loan market, and very few people can afford the large number of homes priced in that range.
As the housing bubble continues to deflate in areas that right now are not among the hardest hit, will that finally cause the mortgage bubble to burst? Will the banks be able to withstand these shocks or are we looking at another bank bailout?
Based on some reports, the banks may have pushed the worst of these mortgages onto Fannie Mae and Freddie Mac, leaving the taxpayers holding the bag for this next bubble burst. So the big question is not whether there's a mortgage bubble, but who will be left holding the bag when it bursts.
There is no question that we will engineer another bailout for the banks if the mortgage bubble deflates too quickly. Whatever losses cannot be pushed off to the taxpayer through the GSEs will become part of another massive bailout. Either that, or we will print money until the problem goes away.
Perhaps homeowners suffering negative equity are patiently expecting house prices to rise again. But they may be in for a long wait. Prices are likely to be weighed down by a massive oversupply of homes relative to underlying demographic demand.
Between 2002 and 2006, US homebuilders went on a construction binge, building 12 million new homes while the number of households went up by just 7 million. The painful legacy is a massive oversupply of houses relative to the number of households.
The oversupply will take years to clear
With household formation running at just 0.9 million while the US is still building 0.6 million new homes annually, only 0.3 million of the oversupply will be absorbed per year. As there are currently 4 million too many homes, it may take years to mop up the huge oversupply of houses.
The negative equity problem and excess inventory will put pressure on the government to continue to subsidize mortgage interest rates. If interest rates rise and prices resume their downward slide, more people will opt for accelerated default causing the mortgage bubble to finally deflate.
Like foolish buyers during the housing bubble, banks really have no plan B. They are in amend-extend-pretend mode for the long haul. They can't afford to lose $4,000,000,000,000, yet that is what they must do. Perhaps they can extend it long enough to only lose $2,000,000,000,000? The banks have much pain ahead.
Peak buyer walks away
This property was purchased on 10/4/2006 for $1,150,000 the owner used a $805,000 first mortgage, a $115,000 stand-alone second, and a $230,000 down payment which was lost at auction. This property was pushed through the foreclosure process in about a year, so this owner did not get as much squatting time as others.
Foreclosure Record
Recording Date: 11/12/2009
Document Type: Notice of Sale
Foreclosure Record
Recording Date: 07/22/2009
Document Type: Notice of Default
In a last minute attempt to record an interest in the property, there was a loan for $10,500 recorded three days before the trustee sale. I don't know what they were hoping to accomplish as the first lien holder blew them out at trustee sale. This property, like many other trustee sale flips I profile, was purchased by Palladio Properties LLC, a fund very active in the Irvine market.
The property was auctioned on 4/5/2010 for $814,000. The opening bid was $751,500. After sales commissions and preparation for sale, Palladio Properties LLC will probably make about a 12% profit on this deal.
If you would like to learn how you can get involved with trustee sales, please contact me at sales@idealhomebrokers.com.
We all watched the housing market go over the edge in late 2007 when rising inventory was greeted with a tremendous credit crunch. For the next 18 months, we watched prices fall until lenders reduced the supply on the market to match the weakened recessionary demand. The banking cartel's unwritten policy of restricting supply in combination with a plethora of government props has stabilized home prices temporarily; however, with the ongoing failure of loan modifications, the distressed properties must be sold, and the burgeoning inventory threatens to undermine market stability.
In a sign that the housing market has taken another turn for the worse, a new report shows almost a quarter of all home listings in the U.S. had at least one price reduction in June.
The price cutting is widespread too. The report, released Wednesday by residential real estate tracking firm Trulia, shows 21 of the country's 50 largest markets cut prices on at least 30% of their listings, up from 10 markets in May. (See pictures of Americans in their homes.)
Minneapolis led the way, with 40% of its listings registering at least one price reduction. This was followed by Milwaukee, Dallas, Boston, Baltimore, Phoenix and Memphis, which all slashed prices on more than 32% of their listings.
"Sellers are feeling the heat this summer as the economic recovery simmers down and home inventory levels climb," said Pete Flint, co-founder and chief executive of Trulia, in a statement. "We're seeing more sellers reduce their home listing prices to attract potential buyers." Housing inventory rose 5% between April and July.
Moreover, waning consumer confidence, continued high unemployment, fears about a double-dip recession and a volatile stock market are all shaking buyer confidence in a possible housing-market recovery. "It's the perfect storm for creating less demand," says Ken Shuman, a spokesman for Trulia. "People are nervous." Recent housing data, including sharp drops in pending home sales, housing starts and mortgage applications for new home purchases, have all served to fan those fears. (See a PDF of housing price reductions.)
Probably the biggest factor influencing sales recently has been the federal homebuyer tax credit. The credit was particularly effective in bringing first-time homebuyers into the market. But now that it's over, move-up buyers are having a tougher time selling their existing homes, since the entry-level buyers have all but disappeared, says Alex Barron, founder and senior research analyst at Housing Research Center LLC. Under the federal tax-credit program, a home had to be purchased by April 30 in order to close by the June 30 deadline. "The whole market has slowed down anywhere from 30% to 40% across the country," says Barron. "When supply exceeds demand, you have to lower the prices."
Although the average price cut, according to the Trulia report, was 10%, some markets saw significantly bigger reductions: Detroit slashed prices by 26% on average, Las Vegas dropped prices by 15%, and both Miami and Phoenix saw average cuts of 13%. The total dollar amount slashed from home prices in June was $27.3 billion, the report said. (See high-end homes that won't sell.) …
I got this email recently from a reader describing their experience buying a home in LA:
We've spent the last months helping my son buy a house in LA, focusing on specific micro-neighborhoods ….
We paid cash…. The details of what we bought aren't important, but what surprised me was how broken the entire market is.
Very large quantity of houses at some stage of foreclosure not proceeding to any resolution.
Very few listings are real listings anywhere close to market prices. Short sales at prices that are absurdly low (trying to solicit bids) or too high ( lender-approved but above market ).
The relatively small number of properties priced at market in the under 400K price range sell very, very quickly if they don't have real issues like foundation, drainage, substandard unpermitted construction.
Lenders are horribly inept at disposing of properties and the agents they hire do a crappy job. We saw a couple of houses where the stuff they had done to fix the house had substantially reduced the value ( covering up wood floors with crappy carpet or pergo, installing crappy appliances, painting over beautiful wood. )
Most agents are floundering badly and are clueless about what's going on.
… Buying with cash allowed us to close on a property about 10% under market when we found an anxious seller.
It's my gut feeling that everything above the entry level market ( under 450K) is due for another step down. Imbalance between supply and demand.
Commentary: The economic recovery is just an illusion
July 20, 2010 — Robert P. Murphy
NASHVILLE, Tenn. (MarketWatch) — Economists and financial analysts are currently arguing whether the economy will experience a "double dip," a recession followed by a short recovery, followed by another recession.
Some think the worst is behind us, and that output and employment will slowly but steadily increase during the next few years. Others believe we are headed for another crash. The lessons from the last business cycle favor the case for pessimism.
It has been said that if one laid all the world's economists end to end, they wouldn't reach a conclusion. Even so, a surprisingly large number of economists now agree that then-Federal Reserve Chairman Alan Greenspan made a tragic mistake. After the dot-com bubble burst in 2000, Greenspan opened the monetary floodgates.
Specifically, Greenspan allowed the "monetary base" to increase 22% from June 2000 through June 2003. The monetary base, also called "high-powered money," is the base upon which bank loans are pyramided, expanding the total amount of money held by the public.
During the same three-year period, Greenspan cut the federal funds rate — the interest rate commercial banks charge each other for overnight loans — from 6.5% down to 1%, the lowest federal funds rate in more than 40 years.
The rationale for Greenspan's easy-credit policy was to provide a "soft landing" for the economy in the wake of the dot-com crash and Sept. 11 attacks. And for a while, it seemed he had succeeded. People marveled that housing prices continued to rise, even amidst the recession of 2001. Indeed, people referred to Greenspan as "the Maestro."
In retrospect, economists across the political spectrum recognize the role Greenspan's Fed played in fueling the housing bubble. The more cynical analysts argue that Greenspan's policies weren't "easy" at all and merely postponed the inevitable day of reckoning for the economy. Rather than gritting its teeth and suffering through the necessary adjustments in the early 2000s, the nation got an injection of artificial credit that masked the underlying problems with a euphoric boom.
The housing market eventually collapsed, as all bubbles do. At this point, Ben Bernanke was at the helm of the Fed. Unfortunately, he got his policies out of Greenspan's playbook, except Bernanke doubled down.
Rather than pushing short-term interest rates down to 1% as Greenspan did, Bernanke has pushed them down to almost zero percent. And in contrast to Greenspan's 22% increase in the monetary base during a three-year period, Bernanke increased it by 94% in one year.
The unprecedented monetary stimulus from the Fed, in conjunction with the massive deficits of the federal government, did succeed in partially re-flating the stock market and stabilizing home prices. Time magazine named Bernanke its 2009 Person of the Year, and Obama administration officials are taking credit for nipping the Great Recession in the bud. Yet the parallels with the Greenspan episode are clear.
It makes no sense to "rescue" the economy by having politicians borrow and spend trillions of dollars. It also makes no sense to fix the horrible mistakes of the housing-bubble years by having the Fed create electronic money out of thin air to buy "toxic assets" from investment banks that would otherwise be insolvent.
The alleged economic recovery is unfortunately just as illusory as the prosperity of the housing-bubble years. It is disturbing to consider that if this is the calm before the storm, then the pending crash will be painful indeed. In the current debate on the direction of the economy, those predicting a "double dip" have the stronger — if more depressing — case.
Robert P. Murphy is a senior fellow in Business and Economic Studies at the California-based Pacific Research Institute.
I don't have much to add to that brilliant synopsis.
When you add it all up, it certainly looks as if the housing market is in for a rocky fall and winter. But Irvine is different, right?
Another peak buyer and another Palladio Properties LLC flip
This property was purchased on 8/22/2005 for $740,000. The owner used a $592,088 first mortgage and a $147,912 down payment. He obtained a $100,000 HELOC on 7/11/2006, but it isn't clear if the owner ever used that money. He stopped paying last spring, and after about 12 months, the foreclosure went forward.
Foreclosure Record
Recording Date: 11/17/2009
Document Type: Notice of Sale (aka Notice of Trustee's Sale)
Click here to get Foreclosure Report.
Foreclosure Record
Recording Date: 08/14/2009
Document Type: Notice of Default
The operators of the Palladio Properties LLC investment fund appear to know what they are doing. They have been consistently been targeting 10% to 15% profit margins depending on renovation expenses, and their resale pricing is within market comps. Their property turnover is probably good. I have seen many of their flips recently.
If you would like to learn how you can get involved with trustee sales, please contact me at sales@idealhomebrokers.com.
Gorgeous Detached Home in Woodbury. Main floor Bedroom & Bath. Mater Bedroom with Retreat area & Balcony. Recessed lighting & pre-wired Surrounding Sound Speakers in Living room. Planation Window Shutters. Move-in ready.
It is rare to find a great deal of consistency in financial data. There are always statistical blips where some indicator moves against the prevailing trend, and reporters are keen to report on any insignificant change as if it is a new trend. For the last 3 years, the news on mortgage delinquencies has been very consistent — consistently bad. This is one indicator that hasn't yet provided the slightest glimmer of hope to those waiting for the housing rebound.
Diana Golobay — Tuesday, July 13th, 2010, 11:22 am
The 60-plus-day delinquency rate for US prime residential mortgage-backed securities (RMBS) rose in the 37th consecutive month in June, according to Fitch Ratings.
The credit-rating agency noted the "seriously" delinquent rate — of 60 days or more — within prime jumbo RMBS rose to 10.4% in June, up from 10.3% in May and 6.4% at the same time last year.
Think about what we have going on. We have a very large number of borrowers who purchased at the peak and can't afford the home with conventional financing even at very low interest rates. People simply can't pay off a loan that is six-times their yearly income no matter how favorable the interest rate. Add to all these peak buyers the HELOC abusers and other peak refinancers, and you have a recipe for enormous debt that will never get repaid. Once these struggling loan owners stop paying, they enter the abyss never to return.
The five states with the highest volume of prime RMBS loans outstanding — California, New York, Florida, Virginia and New Jersey — represent a combined two-thirds of the estimated $354bn market, Fitch said. Prime jumbo RMBS delinquencies of 60 days or more rose in all but one of these top volume states:
The rate of loans rolling into later stages of delinquency within prime RMBS remained above 1% in June after a dip months earlier, but is still below the record high 1.4% recorded in March.
"The persistently high roll rates indicate that the delinquency declines are more a reflection of increased property liquidation and ongoing loan modification activity than of widespread improvement in mortgage payment performance," said Fitch managing director Vincent Barberio, in a statement, adding that "Prime RMBS has yet to show any signs of a favorable turnaround."
Almost nobody cures their debt by bringing payments current. This used to happen before the bubble, but with the huge debt loads, negative equity positions, and high unemployment, very few borrowers come up with the cash to cure their loans. The next best alternative is to get a loan modification and add the missed payments to the loan balance. Many in our government thought this solution might actually work. It won't because the debt load is far to large, and with negative equity, many borrowers don't see the point. This leaves liquidation through short sale or foreclosure as the ultimate solution. The loan is "cured" because it no longer exists.
Despite improvements in subprime and Alt-A RMBS delinquencies, roll rates remain elevated in those loan types, too.
Subprime RMBS delinquencies fell again in June to 43.7% from 44.8% in the previous month. The subprime RMBS roll rate fell slightly to 4.2% from 4.3% a month earlier.
Alt-A RMBS delinquencies slipped to 3.7% in June from 33.9% in May, marking the third monthly decline since April 2006. Roll rates rose to 3.4% in June from 3.1% in May.
Many of the loans in Irvine are packaged into prime residential mortgage-backed securities. We are not subprime dominated, so despite the high delinquency rates, lenders have not foreclosed on delinquent borrowers here. Orange County has high delinquency rates, and the steady increase in defaults on prime mortgages has not missed Irvine. Each day I profile a property that was likely a prime mortgage gone bad. With the sky-high prices we had here (and still have) the level of mortgage distress is high as well. Perhaps the lender's gambit of allowing borrowers to squat will succeed, and Irvine will not see further price declines. Anything is possible, but I rather doubt it.
Late buyer still milked the equity cash cow
Today's featured property was originally purchased on 6/10/2005 for $749,000. The owner, a married woman buying as her sole and separate property, used a $495,000 first mortgage and a $254,000 down payment.
On 11/10/2005, she refinanced with a $499,000 first mortgage.
On 1/27/2006 she obtained a $190,000 HELOC.
On 3/28/2007 she refinanced with a $688,000 first mortgage and she got a $86,000 HELOC.
Total property debt is $774,000
Total mortgage equity withdrawal is $279,000 including her substantial down payment.
Total squatting time was at least 22 months.
Foreclosure Record
Recording Date: 04/23/2009
Document Type: Notice of Sale
Foreclosure Record
Recording Date: 10/23/2008
Document Type: Notice of Default
Palladio Properties LLC also purchased this place at auction. They have been very busy in the foreclosure auction market.
If you would like to learn how you can get involved with trustee sales, please contact me at sales@idealhomebrokers.com.
College Park Remodeled Home. Wood flooring, Crown Moldings & Recessed lighting throughout. Granite Countertop. 3 Bedrooms plus spacious bonus room. Mater bedroom with Deck. New Air-conditioner & New Stainless Steel Appliances installed. New interior paint. New light fixtures.Walking distance to school & Association Pool.
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