Foreclosed 3 times in 5 years!

Stay the hell away from this house! Seriously, someone put the whammy on this thing. It's triple jinxed. 27684 Fairmont in MoVal has gone through 3 foreclosures in 5 years. If that's not a record it has to at least be tied.

Purchased new

Dec 15, 2004

Sold (Public Records)

$380,000

Foreclosed
Jan 18, 2006 Sold (Public Records) $351,000

Sold at the peak as REO

May 22, 2006

Sold (Public Records)

$430,000

Foreclosed two years later
Apr 15, 2008 Sold (Public Records) $198,817

Sold again as REO

Aug 29, 2008

Sold (Public Records)

$260,000

Foreclosed AGAIN
Aug 12, 2010 Sold (Public Records) $211,806

And now it's listed for $240k. That's seems about $40k too high to me and Zillow actually agrees with me. But I wouldn't buy this thing, it's freeking hexed!

And this is why you better be buying for the long term

This is a pretty good read about a guy that bought and a couple of years later wants to sell. Big losses!

Losing BIG

Let me preface this by saying that I never wanted to buy a home. I knew the financial risks, the fact that in most cases you have to stay in a home a long time to even have a chance of making it a profitable investment, and that a home can take a lot of effort and money to maintain. My wife, on the other hand, just couldn't fathom the idea of not purchasing a house once our son was born even though we had lived together happily in various apartments for almost 10 years. While I tried in vein to explain the many downsides to home ownership, I just couldn't break through to her, and therefore gave in as any good husband should. Big mistake!

Three years after purchasing our home in the spring of 2008, my wife now sees the light and finds the idea of home ownership as repugnant as I always have. Due to a multitude of reasons and factors, we decided to put our home on the market. It's now been over a year and we've yet to sell, but when we do, we stand to lose a boatload of money. As hard as it is to believe at times, and while the two often correlate, sometimes happiness really is more important than money.....

Skip ahead again to the present. With continued real estate market issues, we now have our home listed at $249,000, a full $45,000 under our purchase price. Now you might be asking yourself why we don't just take it off the market and wait out this rough patch. It's a good question, one that I have asked myself a multitude of times, and one that's hard to answer without a person being in our situation. Let's just say that being closer to my ailing mother in Washington, our happiness, and the opportunity to be out from under what to us is a heavy burden, is worth the loss, be it a big one. So get ready for the numbers.

Even if we sell our home for the full asking price, which I don't count on happening in this market, it will be well under the price we paid three years ago.

- Loss of $45,000 on price of home
- 5% Realtor's commission on $249,000 is $12,450
- 3% closing costs on $249,000 is $7,470
- Total losses on the sale of the home at its current price would be just under $65,000.

This doesn't even factor in the increased costs of owning a home as compared with the apartment we were renting for $780 a month with free heat, water and trash. Things like annual property taxes, homeowner's insurance, increased utilities, repairs and maintenance, interest on our mortgage, and similar costs add additional tens of thousands of dollars to our losses, unless you want to consider them costs of the opportunity to live in a house.

I'll take it!

Another notch down or teaser short sale listings? I have to wonder with some of the listings popping up. Up in Norco Hills (Bretton Gate) there are 2 new short sale listings under $400k. One of them is decked out with a pool, putting green and stables. 1457 Foxtrotter is the house I speak of. This 3900 s/f 5 bedroom house is pretty darn nice and I cannot see any lender letting this go for the $400k that it's listed for. Based on recent comps this thing should easily fetch $550k or more. Then there is 230 Haflinger listed at $350k. Again based on comps it's probably worth $450k. These two should get a lot of attention and probably a lot of offers too. It will be interesting to see if they actually sell for anything close to listing price. If they do, they instantly put all the recent buyers a good $100k underwater!

Feb's numbers from DQ

The DQ report for Feb is out. The sale numbers are terrible however the median in the IE managed to inch up slightly over January (that's fairly normal). YoY median is down slightly though. It's fairly obvious that a very high percentage of the market is investors. 32% of sales were cash! And I would bet it's a higher percentage in the IE..........................

Southern California’s housing market remained sluggish in February despite relatively strong demand from investors and others paying cash for homes. Prices appeared fairly flat as many potential home buyers stayed on the sidelines and waited – whether for a sign values have bottomed, job security has improved or credit has loosened, a real estate information service reported.

Last month 14,369 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was down 0.6 percent from 14,458 in January, and down 6.4 percent from 15,359 in February 2010, according to DataQuick Information Systems of San Diego.

The total number of homes sold last month was the lowest for a February since 2008, when 10,777 sold, and the second-lowest since 1995, when 12,459 sold. Last month’s sales fell 19.5 percent short of the Southland’s average February sales tally – 17,848 – since 1988.

Last month’s distressed sales – the combination of sales of foreclosed homes and “short sales” – accounted for well over half of the resale market.

Foreclosure resales – properties foreclosed on in the prior 12 months – made up 37.1 percent of resales last month, up from 36.8 percent in January but down from 42.4 percent a year ago. Over the past year foreclosure resales hit a low of 32.8 percent last June but since then they’ve trended higher. Foreclosure resales peaked at 56.7 percent in February 2009.

Short sales – transactions where the sale price fell short of what was owed on the property – made up an estimated 19.8 percent of Southland resales last month. That was up from an estimated 19.7 percent in January, 18.4 percent a year earlier, and 12.0 percent two years ago.

The abundance of distressed homes for sale continues to attract unusually high levels of investor and cash-only buyers. Buyers who paid cash accounted for a record 31.7 percent of February home sales, paying a median $200,000. That was up from 30.4 in January and 30.1 percent a year earlier. The February cash level was the highest for any month in DataQuick’s statistics back to 1988. The 10-year monthly average for the percentage of Southland homes purchased with cash is 13.1 percent. Cash purchases are where there was no indication in the public record that a corresponding purchase loan was recorded.

At the county level last month, the overall median sale price fell on a year-over-year basis in four counties and was unchanged in two. Declines from a year ago were logged in Orange (-1.7 percent), Riverside (-1.0 percent), San Diego (-4.3 percent), and Ventura (-1.4 percent) counties, while the median was the same as a year ago in Los Angeles and San Bernardino counties.

The median paid for the largest home-type category – resale single-family detached houses – fell year-over-year last month in Orange (-3.1 percent), San Diego (-3.1 percent) and Ventura (-9.6 percent) counties. The other three counties recorded annual gains ranging from 2.6 percent in Los Angeles and Riverside counties to 3.6 percent in San Bernardino County.

The typical monthly mortgage payment that Southland buyers committed themselves to paying was $1,174 last month, up from $1,128 in January and down from $1,180 in February 2010. Adjusted for inflation, current payments are 48.1 percent below typical payments in the spring of 1989, the peak of the prior real estate cycle. They are 57.4 percent below the current cycle’s peak in July 2007.

	Sales Volume			Median Price
All homes	Feb-10	Feb-11	%Chng	Feb-10	Feb-11	%Chng
Los Angeles	5,034	4,736	-5.90%	$315,000	$315,000	0.00%
Orange	1,986	1,903	-4.20%	$417,000	$410,000	-1.70%
Riverside	3,199	2,842	-11.20%	$197,000	$195,000	-1.00%
San Bernardino	2,095	1,974	-5.80%	$150,000	$150,000	0.00%
San Diego	2,465	2,330	-5.50%	$322,000	$308,000	-4.30%
Ventura	580	584	0.70%	$350,000	$345,000	-1.40%
SoCal	15,359	14,369	-6.40%	$275,000	$275,000	0.00%

More Mortgage Mod news

State attorneys general have presented the nation’s five biggest banks with a list of demands that could drastically alter the foreclosure process and give the government sweeping authority over how mortgage servicers deal with millions of Americans in danger of losing their homes.

Under the blueprint, banks would be prohibited from starting foreclosure proceedings while a borrower was actively trying to lower the interest rate or ease other terms of the home loan, a process known as a mortgage modification.

Any borrower who successfully made three payments in a trial modification would be given a permanent modification. When a modification was denied, it would be automatically reviewed by an ombudsman or independent review panel.

The proposed changes, which will be discussed by the attorneys general when they meet in Washington early next week, would compel the banks to treat each borrower in default individually.

.................

I don't see how they can force the lenders to do this but who knows anymore. It will certainly get a lot of borrowers excited about the prospect of finally getting a loan mod.

Are prices really falling?

The median prices for January are out and all over California the median is falling. But are prices in the IE falling? If they are it's certainly not in the areas I track. Prices are pretty much the same as they've been for a couple of years now. I see a few homes sell for less than I thought and then a few sell for more but overall the average has been remarkably stable for quite a long time. The reported median price is, and has always been a poor indicator of actual prices. In 2007 when the market was falling apart at the seams the median was climbing to record highs. But that was because all the low end sales went away, not because values were going up. I think we are seeing a similar thing right now. With the end of the tax credits and tight financing the high end is getting pummeled while the low end is still busy with investors and first time buyers. The mix is moving towards the low end.

This is gonna be an interesting year. The government seems to have had enough and seems to be losing interest in saving the underwater homeowners. They seem to want out of the mortgage business based on their latest reports on fannie and freddy. Who know what the banks will do next. Will they fire up the foreclosure engine, or continue to let people live rent free for years on end. Will inflation take off? What are interest rates gonna do? Either way I think the IE is pretty well scraping the bottom. We are back to rental equilibrium, and nearly back to income equilibrium. So by most tradition measures home prices are back to where they should be in the IE. If the employment numbers ever get back to a reasonable level we might come out of this mess sooner than most areas.

January sales report

The January dataquick report is out. Sale numbers fell off a cliff, that's fairly normal though this time of year. Median price fell nearly everywhere. The IE was only down a small amount since we are much closer to the bottom than the OC or LA. I suspect that the OC and LA will start to see some large declines now. This mirrors the pattern of the early 90's where the IE fell hard and fast while the coastal areas thought they were "immune" because everyone wanted to live there. Not so much as it turned out. They fell just as far as the IE, it just took them a couple of extra years.
.....................

Southland homes sold at the slowest pace for a January in three years – and the second-slowest in 15 – amid record-low new-home sales, tight credit, and a persistent reluctance among would-be buyers. The median sale price dipped slightly from a year ago but fell more than usual from December as investors and others targeting lower-cost properties accounted for a larger share of sales, a real estate information service reported.

The total number of homes sold last month was the lowest for a January since 2008, when 9,983 sold, and the second-lowest since 1996. Last month’s sales fell 18.8 percent below the average January sales tally of 17,802.

January new-home sales were the lowest for any month in DataQuick’s records back to 1988. Builders have struggled to compete with prices on resale homes, especially distressed properties.

But what’s proven the bane of the building industry has fueled a boom among investors, who appeared to be as active as ever last month.

Absentee buyers – mostly investors and some second-home purchasers – bought a record 24.8 percent of the homes sold in January, paying a median $198,500. Over the last decade, absentee buyers purchased a monthly average of about 16 percent of all Southland homes.

Buyers who appeared to have paid all cash – meaning there was no indication that a corresponding purchase loan was recorded – accounted for a near-record 29.5 percent of January sales, paying a median $190,000. So far, the peak for cash sales was 30.1 percent last February. The 10-year monthly average for Southland homes purchased with cash is about 13 percent.

“Last month was sort of a flashback to January last year: Sales were lousy, but many investors and others looking for bargains stayed active. They kept working the distress-heavy, lower-cost markets through the holidays, which translated into a relatively high level of investor and cash deals closing last month. It helps explain the larger-than-usual, month-to-month dip in the median sale price,” said John Walsh, DataQuick president.

Last month 14,458 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was down 26.0 percent from 19,528 in December, and down 5.9 percent from 15,361 in January 2010, according to DataQuick Information Systems of San Diego.

The median price paid for a Southland home last month was $270,000, down 6.9 percent from $290,000 in December, and down 0.6 percent from $271,500 in January 2010. It was the median’s lowest level since it was $268,000 in July 2009. Last month’s year-over-year decline in the median was the first since October 2009, when the median fell 6.7 percent, to $280,000.

The median’s low point for the current real estate cycle was $247,000 in April 2009, while the high point was $505,000 in mid 2007. The peak-to-trough drop was due to a decline in home values as well as a shift in sales toward low-cost homes, especially inland foreclosures.

The typical monthly mortgage payment that Southland buyers committed themselves to paying was $1,128 last month, down from $1,205 in December and down from $1,170 in January 2010. Adjusted for inflation, current payments are 49.8 percent below typical payments in the spring of 1989, the peak of the prior real estate cycle. They are 58.9 percent below the current cycle’s peak in July 2007.

All homes	Jan-10	Jan-11	%Chng	Jan-10	Jan-11	%Chng
L A	5,228	4,908	-6.10%	$325,000	$300,000	-7.70%
Orange	1,867	1,929	3.30%	$425,000	$415,000	-2.40%
Riverside	3,162	2,738	-13.40%	$195,000	$190,000	-2.60%
San Berdu	2,252	2,085	-7.40%	$150,000	$151,500	1.00%
San Diego	2,322	2,248	-3.20%	$305,000	$304,000	-0.30%
Ventura	530	550	3.80%	$360,000	$350,000	-2.80%
SoCal	15,361	14,458	-5.90%	$271,500	$270,000	-0.60%

Another Ass Clown award

Seriously, I thought I was done with the ass-clown award. But there are STILL people who think homes are going up $200k a year. I give you 350 Oldenburg in Corona. This place was foreclose on and picked up by the current owner for $435k in April 2009. Now 2 years later they somehow figure it has gone up in value nearly $300k! They just listed it for $725k. No pics yet but it doesn't matter, the toilets could be plated in gold leaf and it's still not gonna fetch $725k.

OMG they still don't get it!

The California association of realtards STILL thinks it's ok to buy a home that costs 6 time your annual income!

Historically low interest rates and a slight decline in home prices in the fourth quarter of 2010 meant that the percentage of first-time buyers who could afford to purchase an entry level home in California rose to 69 percent, up from 66 percent in the third quarter and 64 percent a year earlier.

The report from the California Association of Realtors showed that in the last three months of 2010, 82 percent of first time buyers in San Bernardino County were able to purchase an entry-level priced home of $138,050. They needed a minimum household income of $21,300 to qualify. (that's 6.5 times income)

In the fourth quarter in Riverside County 79 percent of first time buyers could afford a home. They needed a minimum income of $25,200 to buy an entry-level house of $163,010.(also 6.5 times income)

The most affordable region in the state was the High Desert, where 85 percent of first -time buyers could afford an entry level home of $106,320, for which they could qualify with an annual income of $16,500. (also 6.5 times income)

Seriously, the realtards are still trying to convince people to spend double the traditional levels on housing. How the hell is anyone making 25K a year gonna afford a $163k house? These people are bringing home about $1500/mo. Subtract utilities, food, transportation and what is left to pay a mortgage? I'd love to see just what they used to come up with these numbers.

Austin Powers or RuPaul?

OMG, this is the best listing I've seen in a long time. It's actually pending, but check out the pics of this place. I can't tell if this is the home of Austin Powers or some flaming drag queen.

The sex palace!

I just noticed the neon sign and have an pretty good idea it's drag queen and not Austin Powers. My wife looked at the pics and said "uber-gay".....

check the comps, PLEASE

With the large rush of homes hitting the market lately I'm seeing a lot of sellers smoking the dream pipe again. Here's one in Norco Hills. 209 Friesian is a big 5 bed/3.5 bath home overlooking the golf course. It's a funky flooorplan but I kinda like it and actually did put an offer in on a home like this in late 2009. The bad thing about this plan is the layout of the garages. They are on the side of the house and while it's nice that they are hidden from view it's VERY difficult to get cars in and out of them as you have to turn 90 degrees to get into the main garage. There are two other small single garages too. This fella bought this home early on in the crash. He jumped off the fence WAY too soon and paid $625k for this as an REO in Mid 08. He thought he was getting a deal. It originally sold for $1.2M in late 06, got foreclosed on in late 07 (buyer probably never made a payment). They listed in at $780k in late 07. So the buyer pays $625 and thinks he's getting a steal. Fast forward 2 years and these are selling from the mid $400s to the mid $500's. The one I offered on sold for $465k and it had a pretty nice pool.

This guys house sit's WAY up above the 17th fairway. I don't think you could consider it "on the course" There's at least 100 yards of scrub brush hillside between the house and the course. The landscaping looks ok but the freeking realtard only has 2 pis of the outside. The listing price is $699k! That's at least $150k more than this house has any hope of selling for. Personally I think it's at least $200k more than it will sell for. And I'm not basing this on my magic 8-ball. All the seller needs do is look at a recent comp. And it happens to be across the street and 4 houses up. 190 Friesian is the same floorplan but with a spectacular back yard and a horse corral. This home just closed for $525k! I'd take this home over Mr. Delusional's any day of the week.

The bubble must be back

The bubble days are back. This seller thinks so anyway. 8024 Sanctuary in the Retreat just listed for $748k. That's $223k more than the owner paid less than 2 years ago. Other than some landscaping and paint I don't see that he's done much to the house. I looked at this home in 2009 when it was for sale and although it was nice it was actually priced about $50k higher than some of the identical floorplan homes were selling for. This one does back up to the course but the yard is small and it's right next to the clubhouse. I'm not sure what makes a person think in this economy that they can get $223K profit on this house. The realtor should have smacked the seller for even suggesting such a price. On the plus side, the pictures are great. I'll give Tiffanie some brownie points for the listing. Well written and good pics, that's nice to see once in a while. But the price.......