20 Centaurus

Is it codified somewhere that realtors must drive a Mercedes?  And does it not seem like the NAR should have some type of penalty, restriction, or at least classes for realtors whose home goes through foreclosure?  Realtors are supposed to be trusted for their expertise, or at least that is the idea the NAR is promoting, but how trusted can someone be for their expertise in finding a home appropriate for a client’s finances if they can not seem to manage their own real estate finances?  Is there not a serious credibility gap?

The last sale of 20 Centaurus Way was on October 17, 2005 for $1,260,000 at a time when one could hear so many realtors saying, “Southern California real estate never goes down” or “You had better buy now or be priced out forever.”  Actually, Jim Gillespie,  the CEO of Coldwell Banker Realty has not given up on that last gem.  Check it out:

And remember, Jim will be the first to tell you not to rush your decision, but if you wait, you will miss out on the only opportunity you will ever have to buy.  I wonder if the present owner of 20 Centaurus was listening to Jim Gillespie, CEO of Coldwell Banker Realty.

The interest rate on the first mortgage is low and does not reset until 2015, more than ten years from the date of sale, the down payment was 25%, and it does not appear that a HELOC was initiated for almost three years after the sale.  This would not appear to be a case of predatory lending.  It looks to me like another case of folks thinking Southern California real estate always appreciates, everybody is making money in real estate, income from real estate will continue to grow, and we can always refinance.

The auction for 20 Centaurus has been postponed till June 29th.  I am on vacation, but my buddy/fill in blogger will fill you in on the auction results at the end of this post.

18 Knotty Oak Circle

Is there really anything to say?  What do you think?  What do you want to say?

8 Ginger Lily Court

What is it worth to you?  Unless there is another postponment, which is very possible, 8 Ginger Lily Court will be up for auction at the courthouse steps on June 27th.  Bring a cashier’s check for the full amount.  According to Redfin, this home first listed on January 16, 2008 for $1,099,000, and the last sale was on February 10, 1999 for $483,500 with a down payment of $97,050 or 20%.

The serial refinancing begins:

08/04/2000        second ?                                                            $40,428  

07/30/2001        new first clearing second ?                        $500,000

08/22/2001        second                                                               $141,250

09/24/2002        new first clearing second ?                        $560,000

09/24/2002        new second                                                      $70,000

12/10/2002        newer second                                                  $140,000

06/29/2004       new first clearing second                            $697,000

07/19/2004       second ?                                                             $235,000

No wonder everybody is driving a new Hummer and has a 52″ plasma except for me.  The Notice of Default recorded on 2/27/09 for $20,558 and the Notice of Trustee Sale was recored on 5/29/09.  The auction was scheduled for 6/18/09, but was postponed til 6/27/09.  According to Redfin this property has been listed for 523 days.  Do you wonder if instead of originally asking $1,099,000, the real estate agent had given some sage advice on listing the property at a competitive asking price, maybe 8 Ginger Lily Court would have sold for a bit more than the amount owed, approximately $932,000, saving a bit of heartache and maybe even putting a couple bucks in the owner’s pockets?  Are not realtors suppose to be experts and have the knowledge to help their clients avoid these situations?  I am sure the NAR would tell you they are.

4 Douglass Drive

Where have you heard that before?

4 Douglass Drive is listed as a short sale at $850,000 and is scheduled for foreclosure auction on June 30, 2009, having been postponed once from May 26. The status is listed as “Backup Offers”, so it is unlikely 4 Douglass Drive will make it to the auction block.  The lenders in these cases seem to postpone the auction until such time they can make up their mind and get the process through escrow.

The last sale of 4 Douglass Drive was on November 20, 2002 for $796,000 and yet the total amount of loans showing is $1,425,000.  This sucker is in foreclosure and the owners still managed to skim $629,000 off a down payment of $80,050 through serial refinancing.  That is an income of over $72,000 per year for 8 years and 7 months with no tax liability incurred, and neither rent nor house payment has been paid for the last few months.  $629,000 is an ROI of 785% in less than nine years, or about 127% annualized. And some people think foreclosure has a stigma attached.  Yeah, a stigma of financial genius.  What investment can make you 127% per year compounded?  Foreclosure!  Some one  needs to package this deal and sell it as an infomercial.  “I kin show you-ou-ou how you kin make big dollars in the fo’clozure bidniz.” Is this a great country or what?

The opening bid amount is showing as $803,250.  If there is a bid being entertained as a short sale and an opening bid listed as $803,250, what does that say about the bid that has been offered and considered by the bank?  I dunno.  I really am asking.  Anybody care to speculate?

It looks like a nice home from the photos although I have never been inside.  3,824 square feet at $222 per, … not bad.  This is what the folks who want to sell their homes have to compete against, and the foreclosures are not going away anytime soon.  The numbers of foreclosures will increase and foreclosure will become more prevalent to the higher end market.

4 Skylark

A few years ago, buying a house was like trying to buy a Beanie Baby during the Beanie Baby craze.  Nowadays, buying a house is more like the swap meet where there are many vendors with the same product vying for your sale.  Do the owners of 4 Skylark get it?  The owners have priced 4 Skylark lower than any other homes for sale in Tiara, (7 Skylark, 2 Skylark, 6 Quail), and lower per square foot than any other homes in Tiara, but it is a short sale.  Not only do they get it, but they get that they have to get the bank to take a loss and the bank has to understand that the longer the bank takes to approve a short sale, the greater the loss will be to the bank.  The real estate market is not going to recover soon.  It is not going to recover this year or next year.  Or even the year after that.  if a seller wants to sell a home, they will have to meet the trend in the market, not wait for the market to trend back to their wishes.

Edit:  The status of 4 Skylark has changed to “Backup Offers”

Your blogger, cdcrez will be out of town from June 26th through July 2nd.  A few posts have been prepared and scheduled for posting, but a guest blogger/poster will be throwing snark your way.  His blog handle is Graphrix.

Graphrix’s claim to fame, ?, is an incredible knowledge of mortgage financing and the mortgage industry.  Take his posts on mortgage financing as gospel.  If he posts about anything else, well … , (smiley face).

See ya in a week or so.

cdcrez

13 Seacliff

13 Seacliff went back to the bank on May 14, 2009 for $712,500, $77,500 less than its October of 2003 selling price.  At 3,568 square feet, 13 Seacliff sold to the bank for just under $200 per square foot, and my guess is that when the bank sells it, it will go for less than $712,500.  15 Seacliff, next door is a short sale, with no toilets or appliances or cabinets, asking $650,000 and 7 Seacliff is in default and has an auction date set for July 10, 2009.  Gosh, the neighbors must be pissed.

I keep hearing realtors say, “If you try to time the market and buy at the bottom, you will lose out on your chance to buy your dream home.”  My mom taught me to always be polite so my only response thus far is, “Thank you for the keen advice.”  There are so many other replies which I hold back.

Not paying mortgage, yet stuck with keys

Backlog of seriously delinquent mortgages imperils recovery

updated 9:17 p.m. PT, Tues., June 23, 2009

A growing number of American homeowners are falling into financial limbo: They’re badly behind on payments, but their banks have not yet foreclosed.

The backlog of seriously delinquent mortgages, which so far affects about 1 million borrowers, is a shadow over hopes for a rebound in the nation’s housing markets. It masks the full extent of the foreclosure crisis and threatens to depress prices even further just as some parts of the country are hinting at recovery. For lenders, it could portend even more financial losses tied to the mortgage meltdown.

“It just means foreclosure rates are going to keep rising,” said Patrick Newport, an economist for IHS Global Insight.

Click on the blue for The rest of the story:

The housing market will not recover until the foreclosures, (uncollectable debt), work their way through the market.  Any attempt by the government to slow down or preempt foreclosures will just drag out the pain and intensify it.

23626 Via Ortega

In Novemeber of 2005, 23626 Via Ortega sold as a brand new home for $1,650,000.  In June of 2009, 23626 Via Ortega is listed as a short sale for $899,000, which is a decrease in price of 45%.  Do you remember when realtors were saying, “The subprime problem and the market elsewhere won’t affect the market in Coto de Caza”?  Those are the same folks who are now saying, “But, that is a short sale”, or “The listed prices on short sales are not realistic, and the bank may not accept the offer.”  Yes, it is a short sale, and the distressed market is the market.  The bank owned properties are the properties that are selling.  The bank may not accept a short sale offer and in the same vein, the bank may not get any offers at the asking price and the bank will then start lowering the price; quickly.

No serial refinancing here.  The down payment was 20%.  Just one HELOC and some bad timing.

8 Weber Lane

It has been awhile, but it only seems appropriate to update an old post with the latest disposition.  8 Weber Lane is showing as a closed short sale on June 13 with the last listing price being $1,000,000.  The auction date scheduled was June 22, so the bank approved the sale nine days before the bank would become the owners of another home.  It will be awhile before I can see the real selling price.