Some of them deserved what they got

8895 Gentile Wind is one of the KB homes in The Retreat in South Corona. This home is a recent REO (like every other house in The Retreat). It sold new from the builder in 2005 for $743k. The buyers put in a little landscaping (and I do mean "a little", a 6' patio slab and a brick planter looks to be about it). The they manage to off load this thing in Nov 07 for 1.3 million??? WTF, that is months after the market imploded. In Late 07 there were already enough foreclosures in this tract to fill a cruise ship. In late 07 there were already homes on this same street listed under $700k yet this home sells for $1.3M. That sale is obviously fraudulent. It has a big red rotating sign on it that says "I screwed the lender". Gawd I wish they would hunt these people down and make them listed to Hanna Montana records nonstop for a few years. Oh wait, that might be cruel and unusual punishment. Eh, who cares.

Obviously the bank got screwed and this house is now listed for $430k. That makes this the cheapest house in The Retreat currently. Not my much mind you, there are several in the mid $400s. This house has fallen 43% from what it sold for new in 2005. Or if you want to go for the shocking (but obviously fraudulent) number, it has fallen 67% from the previous sale for a loss of $870K.

At the current price this house seems like a good deal. But once you factor in the HOA and the taxes this place becomes quite a bit more expensive. Still at this price, I think this will go pretty quick. Assuming there are any buyers left after this week.

$100 s/f in So Corona

25073 Pacific Crest St in South Corona is the first legit $100 s/f listing I've seen in So. Corona. There have been a few short sales listed for $100 s/f but this is the first REO listing at this price I've run across.

The house is 3200 s/f and it is a 3 bedroom, 2.5 bath home. It's sitting on a smallish lot of just under 5700 s/f. It looks like the home was purchased new in March 2006 for $605k. It's listed as and REO property for $320k. That's a loss of $285k or 47% in 2 years (less fees).

Most people look at the price and home and are less concerned about price per sq/ft. Us blogheads use the number because it's another way to gauge the decline other than the overused median price. Because most people/buyers are less concerned about the $ s/f they may not think this home is such a good deal. There are currently 14 homes priced under $350k in that tract so this home actually does have competition in it's price range.



Ok, now for some comic relief! Just up the road from the $100 s/f house there is a MOBILE HOME for sale (well technically it's a manufactured home...same thing). 10304 Dusty Lane is a 1440 s/ft 3 bedroom 20 year old "trailer". Yours for $285k! Yup only $35K less than a 2 year old 3200 s/f house. That's a seller with a sense of humor! Actually there are a few of them in that trailer park.

A few do make sense

There are a few homes starting to appear that could actually be good buys versus renting. So far these are in the outer areas of the IE, but even so they would still probably be cheaper (or close to it) to buy that to rent an equivalent house.

I found 4 (all bank owned) in the tract that sits below the dam holding back Lake Perris. The last time I drove through this tract it looked quite nice. It's all fairly new with a fancy entrance gate, nice parks and landscaping. It's in a handy location right off the Ramona Expressway with easy access to the 215 fwy. Probably not a bad place to live for a young family. Of course this assumes you don't mind living below a dam holding back a huge lake. A dam, that by the way they are worried about failing if there is ever a 7.5 earthquake. Since there is a major fault line running through the badlands just a few miles east of the lake, I'd say a big earthquake is a distinct possibility. Because of this flaw in the dam they reduced the level of the lake last year. And they are STILL building homes right below that sucker! But the biggest problem is that this area is foreclosure central.

Anyway back to the houses. To rent a decent 3 bedroom home in that area is about $1500/mo. These 4 homes are all listed under $225k. That would give a payment of roughly 1150/mo assuming 210k financed at 5.5%. Add in some property tax ($200/mo), insurance ($150/mo) and you end up at roughly $1500/mo. Now being a homeowner you get to write off that interest which would net you some tax savings. That would reduce the net cost by about $225/mo. That savings would cover maintenance and the $80/mo HOA fee. So these properties are very close to being a wash versus renting. The big "IF" is that IF the property values continue to decline then you would be losing money. I doubt you could buy these and make any money renting them unless you put a fair amount down but someone could buy these and live in them for about the same cost as renting. You gotta ask yourself, do you feel lucky. Well, do ya punk? Feel like betting those prices won't drop anymore?

Here are the homes,

1739 Benedetto, 4 bedroom, 2.75 bath, 2252 sqft. Purchased for $305k in June 2004. Now listed for $209k ($93 sq/ft) (Being a 4 bedroom this house might rent for more that $1500)



1449 Avila Dr, 3 bedroom, 2.5 bath, 2677 sqft. Purchased for $385k June 2006. Now listed for $215K ($80 sq/ft)



3275 El Nido pl, 3 bed, 2.5 bath, 2296 sq/ft. Purchased for $396 in Nov 2006. Now listed for $207k (90 sq/ft). A 48% loss in 16 months



2054 Mount Verdugo, 4 bed, 3 bath, 2731 sq/ft, Purchased for $435k in June 2006. Now listed for $221k ($81 sq/ft). That is a 49% drop in 18 months! This is a nice looking house, too bad it's in Perris. Again I doubt you could rent this home for $1500. It's 4 bedrooms and fairly large. This one would probably rent for closer to $2k, making buying it far cheaper than renting it. From the pics the house looks nice but the last owners did take the stove and dishwasher with them. The rest of the house looks good in the pics.

This weeks delusional seller(s) award

This one even took me by surprise. It takes a lot of stupid pills to do what this guy just did.

8772 Gentle Wind, Corona, CA 92883. This is another home in the Retreat in South Corona. Built in 2005 it was purchased new for $725k. It's a big home, 3386 sq/ft, 5 bed/3 bath. From the pics it does not look like there was much, if any upgrades to the home and there has been little work done other than pouring a patio slab and plonking a hot tub on it. Our crack smoking home owner has listed this home for.............ONE MILLION DOLLARS.

Why not just list it for a quadrillion dollars. There's just as good a chance of getting that.


I know, there are a lot of overpriced homes. Why is this guy so deserved of the award? Well.....lemme tell ya.


You see exactly two houses away (one house between them) sits 8748 Gentle Wind DR, It's the exact same model as the crackheads above. However there is a whopping $410,100 difference in the price of the two homes. That's right it's only 59% of the price of 8772. You may think it's a fluke but no, there are two other homes nearby of similar size listed in the mid 600's.

Now to be fair there is another crackhead on this street (well several actually) that must share the award. Across the street and a few houses down is 8835 Gentle Wind. This home is slightly larger but only 4 bedrooms. It says its professionally landscaped but so far no pics. It also just listed today but for an amazing 1.1 Million.

So why does he have to share the award. Well, just like the first baffoon, the home two doors down ( 8859 GENTLE WIND DR) which as been for sale for 229 days is listed for $665k. that's only 60% of the price of 8835. That's $435k less. You can buy a lot of landscaping for $435k! (and it does need some).



I think we should call the Hazmat Squad. There is obviously a carbon monoxide leak somewhere on this street. Maybe one of the other houses is being used to cook meth or grow weed and the vapors are affecting the neighbors. What ever the reason I just cannot understand how you can list a home for those prices when you have the lower priced homes basically next door.

This award is for the homeowners and their agents. They deserve it!

Mortgage Kaboom

Here are the yearly totals from Foreclosure.com for Pre Forclosures and REO's. You can see a trend of more and more Pre-Forclosures turning into REO's (especially in Riverside). I fully expect this trend to continue as more and more people find it impossible to sell, refinance or come up with the money to make their loans current.



The amazing thing about this chart is if you look at how many REO's there are each month and compare that to the monthly sales you can see that they are getting closer. Soon banks will be taking more homes back per month than there are sales.

Retarted bank of the week

It was looking like the banks were getting the hang of this REO problem. But then today I ran across this listing.

17864 Glen Hollow WAY, Riverside, CA 92504, this is the smallest home in the Bridle Creek development up in the Woodcrest area of Riverside. This home is a 3 bedroom, bath home, it's 2898 sq/ft and sits on an acre lot. The home looks alright but the lot is still basically dirt. This home sold new in 2005 for $699k. The bank got it back and they listed it yesterday for $614k.

Now the reason I'm a little confused by this listing is that there is another REO of the same model in this tract. That home, 17008 Birch Hill RD has been for sale since July. It started out at $699 if I remember right and they've been lowering it ever since. It's down to $529k after sitting at $545k for over a month. This home has some landscaping done, including a patio slab and BBQ. It also sits on a larger lot at 1.21 acres. So if they cannot sell this home at $529k how did the other bank figure they had a chance at $85k more.

A couple of months ago in this tract there was only one home under $700k. That home was our REO here on Birch Hill Rd. Today there are 12 homes under $700k, and of those 9 are under $650 with our REO as the prices leader at $529k. I betting on these hitting $400k in a year or two. So far these price leaders are only down about 20% to 30% below the price paid from the builder.

49% OFF in MoVal

15635 Turnberry ST Moreno Valley, CA 92555 is a 2819 sq/ft 3 bedroom/3 bath home that sits on the 6th hole of the Lake 9 at Moreno Valley Ranch. I looked at these homes back in the mid 90's and nearly bought one in this tract. These were very nice homes with good floor plans. This home was sold last in November 2006 for $540K. Today it's offered by the bank for $276k. That is soooo close to 50% off I can taste it. Technically it's 48.9999999 % off the last sale price on 13 short months ago. This home should sell, at that price you should be able to rent that home and make a few dollars. It would not surprise me to see this get a few offers.

46% off and counting in Canyon Crest

6060 SPEYSIDE, Riverside, CA 92507 is a REO in the Canyon Crest area of Riverside. Actually, I'm not 100% sure this still qualifies as Canyon Crest. It's in the homes behind Raceway Ford up near the 215/60 junction (up near MoVal).

This 2962 s/f, 4 bedroom/3 bath home was built in 2001 and sold for $277,500. 5 years later it sells again for the unbelievable price of 1.1 million! I find myself shocked and amazed at that selling price. Yes, this house is on a large lot and it probably has a nice view but 1.1 milllion dollars for an average sized tract house in Canyon Crest. Of course the outcome of this transaction is all too obvious.... the bank took it back in October. They have it listed for $599,000. That's a whopping 1/2-million dollar loss in a year (or a 46% loss).

I can't believe this is not another case of mortgage fraud. Zilow has most of the homes on this street estimated at between 500K and 600K and we all know how accurate Zillows estimates are. Even at $600k this home is seriously overpriced. At $100 s/ft this home would be under $300k, I'll give him another $100k for the big lot ( 3/4 acre) and that is still under $400k which is what I think this home is going to end up being worth in a year or two.

Lender owned.....for a year, and counting

I've often heard "banks aren't in the business of of owning homes". Hmm, if that were true you'd think they would have sold this off in less that a year.




11234 Evergreen LOOP, Corona, CA 92883, This 3 bed, 3 bath home of 2899/sf was taken back by the bank last year (2006). It was listed on 12/20/2006 for $589k. Check out this classic case of chasing the market down. Keep in mind that until the spring of 2007 homes were actually still selling fairly well in the IE. Had they priced this a little stronger in the spring they could have probably sold it as similar home were still selling as late as August in the mid 500s. It looks as though they have realized that they missed the boat. The last price cut brings this home into a price range where I think it will have a good chance if selling.

Price Reduced: 01/19/07 -- $586,900 to $560,000
Price Reduced: 02/17/07 -- $560,000 to $549,900
Price Reduced: 04/03/07 -- $549,900 to $535,900
Price Reduced: 05/04/07 -- $535,900 to $522,900
Price Reduced: 06/09/07 -- $522,900 to $506,900
Price Reduced: 07/04/07 -- $506,900 to $500,000
Price Reduced: 08/14/07 -- $500,000 to $490,000
Price Reduced: 12/18/07 -- $476,000 to $450,000
Price Reduced: 12/26/07 -- $450,000 to $370,000

Personally, I think this home is worth $300k tops and that's if the back yard was nice (which this ones is not). The area is just a little too far down the 15fwy to be practical. There are no stores, gas stations or anything else close to there. The tract is also getting pummeled by foreclosures and it has a high tax rate. It's certainly not on my list of places I would buy a home.

More Eastvale Madness....

Madness, madness, they call it madness....

5642 ANNANDALE PL, Corona, CA 92880, This is 5 bedroom, 4 bath, 3452 sq/ft home. Near as I can tell these were built in 2001 and sold for around $280K. This home appears to be a rather basic model. I can't see any real upgrades from the pics. We have your basic white tile counters, cultured marble vanities etc. He has painted a few rooms and the landscaping is very nice but over all this home is nothing special. But listen to what the realtard has to say "No Expense Was Spared On This Lavishly Decorated Home!" well if "no expense" is a gallon of paint, I agree, otherwise shut the hell up, how is a white tile counter expensive. If your looking for a 5 year old builder basic home for $709k, look no farther, Mr Dreambig has the place for you.

However, if you would like a few upgrades then you may want to look just down the street at

5712 ANNANDALE PL. This home is the same model but this one looks to have a few upgrades. The counters look like Corian and it has fancy tile backsplashes, new carpet and new paint. This home however, is owned by Mr. Bank and he's willing to deal. Mr. Bank gave a loan to Mr Houseflopper for his $605k purchase in Jan of 05. How ever Mr. Houseflopper was unable to pay Mr. Bank and he took the house back in August of 2006 for the balance of $530K. Mr. bank has been trying to unload this "load" ever since. Mr. bank has finally started reducing the price and currently he is asking $479K. So Mr. Bank's is priced $230k less than Mr. Dreambigs place. I wonder which will sell first. Actually I wonder it any of them will sell.....

Another bank takes it in the ***

Moving North we check in with Mira Loma.

6251 Ruby Crest WAY, Mira Loma, CA 91752, Here we have your typical McMansion. This is a 4 bed 2.5 bath home and it is 4693 sq/ft (with only 4 beds and 2.5 baths where the hell did the other 2000 sq ft go?) This home is Fwy close, in fact you probably have a nice view of it from the Master bedroom. Don't worry you get used to the noise....so I'm told. I will admit that those hardwood floors are beautiful! But they sure as hell don't match the kitchen cabinets and that granite looks like puke. Our home-loser bought this castle in July of 06 for a whopping $770k. (WHO the hell would ever pay $770k for anything in Mira Loma. So anyway, they can't even manage to keep this thing for a year. I'm guessing they never made a payment and it took the bank that long to get them out. The bank finally gets this landmine back it June of this year. The have had it on the market ever since. Currently it sits with and asking price of $589k, $123 a sq/ft. Think any one will bite?

So this home has lost $191k in a year and it's final total loss is anyones guess. It's in a terrible area (unless you like the smell of cow you know what), traffic is horrendous and the freeway is right behind it. Yup this ones a winner.

Those damn REO's

It's gotta chap your ass when your trying to sell a house and some bank repo undercuts you by $185k. People better get used to it because it's happening every where I look. Here's a fine example in South Corona (Trilogy)

8609 CAMINO LIMON RD, Corona, CA 92883 Is a 5 bed 4 bath, 3629 sq/ft home. It was purchase in 2004 for $691k. Our desperate homeowners have it listed for $675K. Already looking at a $15k loss plus another $40k in fees. They just dropped the price $20K to try and motivate one of the 2 remaining buyers in the IE.

It's probably not going to have much effect though. You see, just around the corner only 6 houses away sits 8699 HUNT CANYON RD, the same 3629 sq/ft model only this one sits on a lot almost 1000 sq/ft bigger than home #1. This home was purchased in Oct 2005 for $730. Unfortunately our homedebtors were unable to hold on to it and the bank bought it back for $646k in August. The bank does not seem interested in trying to recoup their $646k investment (finally a smart bank!) and they have listed the home for $498k. That's a loss of 33% in two years or $232K.
I don't see much difference in these two homes. Both look nice inside and seem to have similar features. Besides the dead lawn on the REO they look like they should sell for about the same amount.