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Irvine Housing Blog

Irvine Housing Blog

Link to Irvine Housing Blog

IHB News 5-26-2010

Posted: 29 May 2010 03:07 AM PDT

I hope you are all taking advantage of our perfect weather and enjoying your holiday weekend. 

 

Irvine Home Address ... 518 LUMINOUS Irvine, CA 92603
Resale Home Price ...... $1,599,000


Then as it was, then again it will be
An' though the course may change sometimes
Rivers always reach the sea
Flyin' skys of fortune, each have separate ways
On the wings of maybe, downy birds of prey
Kind of makes me feel sometimes, didn't have to go
But as the eagle leaves the nest, it's got so far to go

Led Zeppelin -- Ten Years Gone

Housing Bubble News from Patrick.net 

Fri May 28 2010
The Root of the Housing Bubble Remains Unchanged (Charles Hugh Smith)
The Hard Truth About Residential Real Estate (zerohedge.com)
Easy Money, Hard Truths (nytimes.com)
New $3bn Foreclosure Prevention Program Added to Wall Street Reform Bill (209.236.64.240)
How real estate became the new volunteer slavery (theroot.com)
California "Millionaires": Debtors Who Service Over $1,000,000 (irvinehousingblog.com)
Mortgage Rates Fall to 4.8%, House Buyers Still Scarce (blogs.wsj.com)
No Progress in Weekly Unemployment Claims for Five Months (Mish)
Questions To Ask Those Who Believe That Economic Recovery Is Real (theeconomiccollapseblog.com)
Economist says inflation coming due to gov't printing money -- gets cut off (dvorak.org)
The Cult of Subprime Central Bankers (huffingtonpost.com)
Bank fails and goes about its business (latimes.com)
Is Australian Housing Market Set to Topple? (moneymorning.com.au)
Sydney property market - a cold wind is blowing (curtisassociates.com.au)
San Francisco gets a taste of the commercial real estate bust (mybudget360.com)
Thousands more in S.F. seek property tax breaks (sfgate.com)
Oklahoma City Hailstorm Meets Poor Construction (stumbleupon.com)
Fun Stock Map Showing Market Values As Areas (finviz.com)
Perfect for the do-it-yourselfer (patrick.net)


Thu May 27 2010
San Francisco's Parkmerced in default (sfgate.com)
Lessons of hard times in Vallejo, CA (latimes.com)
Bank-owned properties alter character of SF East Bay neighborhoods (contracostatimes.com)
Seattle's backyard cottages make a dent in housing need (usatoday.com)
Is South Florida housing rebound a myth? (weblogs.sun-sentinel.com)
House prices overvalued by 14 per cent in Canada (yourhome.ca)
Bad at Math? You're More Likely to Default on Your Mortgage (money.blogs.time.com)
More "Buy Now" spin from the builders (patrick.net)
In a Word, the Problem is "Debt" (timiacono.com)
FHA loans pass Fannie Mae and Freddie Mac in Q1 (doctorhousingbubble.com)
Bill Gross, Robert Mundell say Sovereign Default Likely Inevitable (Mish)
Moodys Reiterates U.S. Spending Risks Credit Rating (bloomberg.com)
Mapping the Mortgage Interest Deduction (economix.blogs.nytimes.com)
Economics and the Nature of Political Crisis (theautomaticearth.blogspot.com)
The Financial Power Elite (monthlyreview.org)
Empty Desks Are Commercial Shadow Inventory (nytimes.com)
Projecting commercial mortgage delinquency trajectory (snl.com)
 


Wed May 26 2010
House prices drop 0.5 pct. from February to March (google.com)
House prices fall in March (latimes.com)
Southern California rents fall 7 straight months (lansner.freedomblogging.com)
Don't Rule Out a Double Dip Recession (online.wsj.com)
Anyone Still Bullish On Housing Clearly Isn't Paying Attention To Real Numbers (businessinsider.com)
New Jersey Assembly Approves Fresh Bait For Housing Trap (builderonline.com)
Why buying a house today makes little financial sense (mybudget360.com)
Crash is dead ahead. Sell. Get liquid. Now. (marketwatch.com)
Australian Housing Bubble: California Repeated? (scoop.co.nz)
Glut of bank-owned foreclosures means prolonged agony for California governments (contracostatimes.com)
Make the banks pay! Los Angeles Foreclosures Unmaintained (patrick.net)
CA seeks $4.9 billion in new taxes to pay for Prop 13 fiscal damage (sfgate.com)
New database shows $12.2 billion in SF Bay Area public employee salaries (contracostatimes.com)
Private pay shrinks to historic lows as gov't payouts rise (usatoday.com)
Cheap Mortgages: No Boost to Housing (online.barrons.com)
Hey, Mortgage Industry: Nobody Trusts You (blogs.wsj.com)
'Bailout psychology' destroying the economy (old but good - sfgate.com)
They got away with it: U.S. drops criminal probe of AIG executives (reuters.com)
Roubini: A Crash Course in the Future of Finance (c-spanvideo.org)
Customer stuck with counterfeit cash from post office (US stuck with counterfeits from Fed) (latimes.com)
 


Tue May 25 2010
Suppressing the Cognitive Dissonance of a Bogus Recovery (Charles Hugh Smith)
Existing House Sales Rise in April, but Inventory Soars (theatlantic.com)
Rising house sales likely to cool despite low rates (finance.yahoo.com)
Strategic Defaults Are Endangering Dead Real Estate Market (nuwireinvestor.com)
Utah's foreclosure crisis: Worst lurks ahead (sltrib.com)
FHA House-Financing Volume Sign of "Very Sick System" (businessweek.com)
Broke, USA: From Pawnshops to Poverty Inc. (businessweek.com)
Insanity Down Under: "Paying Principal on Mortgage Loans is Unnecessary" (Mish)
Can China avoid a real estate bubble burst? (csmonitor.com)
Federal government is trying to reinflate house prices (seekingalpha.com)
U.S. Federal Reserve Meeting Minutes for April 28 (bloomberg.com)
Defaults on Apartment-Building Loans Set Record for U.S. Banks (bloomberg.com)
Obama Versus the Corporations (nytimes.com)
New rule says banks must prove ownership before foreclosing (New rule?) (miamiherald.com)
US Leading Indicators drop in sign recovery to cool (smh.com.au)
 


Mon May 24 2010
Ignoring mortgage debt for fun and profit (articles.moneycentral.msn.com)
What kind of houseowners choose to default? (latimes.com)
Owner-investors ponder walking away (nctimes.com)
Mortgage Delinquency Rate vs. Unemployment Rate Graphed (calculatedriskblog.com)
Lenders expected to sue houseowners for repayment of mortgage debt (sun-sentinel.com)
East SF Bay town going after deadbeat banks to end foreclosure blight (contracostatimes.com)
Fewer would buy repo'd house vs. a year ago (mortgage.freedomblogging.com)
Principal-Protected Notes Aren't as Safe as They Sound (nytimes.com)
How Allen Stanford is worse than Madoff (money.cnn.com)
9 Southern California men charged with operating foreclosure-relief scam (latimes.com)
Foreclosure scam's mastermind gets 46 years in prison (signonsandiego.com)
The Challenge of Closing Tax Loopholes For Billionaires (robertreich.org)
Gates's Dad Says Rich Arent Paying Fair Share Taxes (bloomberg.com)
Fisher Island, haven of the rich, experiences dose of reality (miamiherald.com)
Slouching Towards Neofeudalism (huffingtonpost.com)
Padded Pensions Add to New York's Fiscal Woes (nytimes.com)
The Crippling Price of Public Employee Unions (usnews.com)
Economic Seer Says U.S. Not Addressing Real Cause of Crisis (time.com)

Today's featured debtor 

  • Today's featured property was purchased for $1,830,000 on 12/1/2005. The owner used a $1,464,940 Option ARM with a 2.4% teaser rate, a $183,117 HELOC and a $181,943 down payment.
  • On 4/4/2006, Wells Fargo refinanced them with a $1,600,000 first mortgage and a $60,000 HELOC.
  • On 8/22/2006 Washington Mutual gave them a $229,790 HELOC. I suspect this foreclosure will go through because Wells will not mind blowing WAMU's second out.
  • Total property debt is $1,829,790. Basically, the buy withdrew his down payment with refinances. 
  • He quit paying lat last year or perhaps in January of this year.

Foreclosure Record
Recording Date: 04/02/2010
Document Type: Notice of Default

 

Irvine Home Address ... 518 LUMINOUS Irvine, CA 92603

Resale Home Price ... $1,599,000

Home Purchase Price … $1,830,000
Home Purchase Date .... 12/1/2005

Net Gain (Loss) .......... $(326,940)
Percent Change .......... -12.6%
Annual Appreciation … -3.0%

Cost of Ownership
-------------------------------------------------
$1,599,000 .......... Asking Price
$319,800 .......... 20% Down Conventional
4.94% ............... Mortgage Interest Rate
$1,279,200 .......... 30-Year Mortgage
$328,831 .......... Income Requirement

$6,820 .......... Monthly Mortgage Payment

$1386 .......... Property Tax
$417 .......... Special Taxes and Levies (Mello Roos)
$133 .......... Homeowners Insurance
$252 .......... Homeowners Association Fees
============================================
$9,008 .......... Monthly Cash Outlays

-$1541 .......... Tax Savings (% of Interest and Property Tax)
-$1554 .......... Equity Hidden in Payment
$611 .......... Lost Income to Down Payment (net of taxes)
$200 .......... Maintenance and Replacement Reserves
============================================
$6,724 .......... Monthly Cost of Ownership

Cash Acquisition Demands
------------------------------------------------------------------------------
$15,990 .......... Furnishing and Move In @1%
$15,990 .......... Closing Costs @1%
$12,792 ............ Interest Points @1% of Loan
$319,800 .......... Down Payment
============================================
$364,572 .......... Total Cash Costs
$103,000 ............ Emergency Cash Reserves
============================================
$467,572 .......... Total Savings Needed

Property Details for 518 LUMINOUS Irvine, CA 92603
------------------------------------------------------------------------------
Beds: 5
Baths: 0005
Home size: 3792
($422 / sq ft)
Lot Size: 5535
Year Built: 2005
Days on Market: 14
Listing Updated: 40315
MLS Number: S616510
Property Type: Single Family, Residential
Community: Quail Hill
------------------------------------------------------------------------------


Customized Tuscan estate w/ almost 4000 s. f. w/ 5BRs, 4.5BAs(including a separate casita) on the top street single-loaded street w/ drop-dead panoramic mountain, hills, valley, city lights & sunset views w/ distinctive builder and seller upgrades. 3-car att. gar. w/ epoxy flooring & custom cabinetry. Formal living & dining; Great rm w/ custom fireplace w/ pre-cast mantle, hearth & media niche; French doors open out to private loggia; gourmet kitchen w/ center island, GE Monogram Professional Series stainless steel appliances inc. gas cook-top, double ovens, microwave & built-in refrigerator ~ granite countertops with full backsplash; Opulent master bedroom with 10 ceiling plus retreat ~ French doors out to huge deck w/ phenomenal views; luxurious MBA replete w/ large soaking tub, separate shower, dual vanities & dual walk-in wardrobes; Professionally landscaped and hardscaped front, rear & side yards w/ blt-in BBQ & fountain; award-winning Alderwood Basics+ elem. & University HS; resort-style amenities


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