There's a lady who's sure all that glitters is gold And she's buying a stairway to heaven When she gets there she knows, if the stores are all closed With a word she can get what she came for Ooh, ooh, and she's buying a stairway to heaven
I have profiled this property before, and the HELOC abuse is extraordinary. I wonder if the owners were buying their own stairway to heaven.
Bought at the bottom, abused HELOCs, gamed the system, and squatted for 18 months
The owners of today's featured property are representative of all that is wrong with home owners in Irvine. They did everything wrong, and they are being strongly rewarded for their bad behavior.
The property was purchased on 8/20/1997 for $349,000. The owners used a $279,100 first mortgage and a $69,900 down payment.
On 1/3/2000, the owners celebrated the millennium by opening a $150,000 HELOC.
On 4/28/2003 they opened a $200,000 HELOC.
On 1/5/2004 they obtained a $353,500 HELOC.
On 4/22/2004 they got another $145,000 HELOC.
On 2/25/2005 they refinanced with a $661,000 first mortgage.
On 2/23/2006 they obtained a $344,000 HELOC.
On 9/18/2006 they obtained a stand-alone second for $390,000.
Total property debt is $1,051,000
Total mortgage equity withdrawal is $771,900.
Total squatting time is at least 18 months.
Foreclosure Record Recording Date: 06/03/2010 Document Type: Notice of Default
Foreclosure Record Recording Date: 03/26/2010 Document Type: Notice of Sale
Foreclosure Record Recording Date: 12/21/2009 Document Type: Notice of Default
Foreclosure Record Recording Date: 06/25/2009 Document Type: Notice of Rescission
Foreclosure Record Recording Date: 04/20/2009 Document Type: Notice of Default
These owners extracted about $100,000 per year for the 7 years they were stripping the property. When the ATM machine was finally turned off, they managed to game the system for 18 months... so far. Since they are still back at the NOD stage, they will be in the property until at least October, and since this one is in jumbo loan territory, they will likely be allowed to squat for much longer.
What would you do with $771,900?
What would you do with two years or more without a housing payment?
Home Purchase Price … $349,000 Home Purchase Date .... 8/20/1997
Net Gain (Loss) .......... $511,100 Percent Change .......... 146.4% Annual Appreciation … 7.7%
Cost of Ownership ------------------------------------------------- $915,000 .......... Asking Price $183,000 .......... 20% Down Conventional 4.80% ............... Mortgage Interest Rate $732,000 .......... 30-Year Mortgage $185,169 .......... Income Requirement
$3,841 .......... Monthly Mortgage Payment
$793 .......... Property Tax $175 .......... Special Taxes and Levies (Mello Roos) $76 .......... Homeowners Insurance $170 .......... Homeowners Association Fees ============================================ $5,055 .......... Monthly Cash Outlays
-$930 .......... Tax Savings (% of Interest and Property Tax) -$913 .......... Equity Hidden in Payment $336 .......... Lost Income to Down Payment (net of taxes) $114 .......... Maintenance and Replacement Reserves ============================================ $3,662 .......... Monthly Cost of Ownership
Cash Acquisition Demands ------------------------------------------------------------------------------ $9,150 .......... Furnishing and Move In @1% $9,150 .......... Closing Costs @1% $7,320 ............ Interest Points @1% of Loan $183,000 .......... Down Payment ============================================ $208,620 .......... Total Cash Costs $56,100 ............ Emergency Cash Reserves ============================================ $264,720 .......... Total Savings Needed
Property Details for 36 PARKCREST Irvine, CA 92620 ------------------------------------------------------------------------------ Beds: 4 Baths: 2 full 1 part baths Home size: 3,000 sq ft ($305 / sq ft) Lot Size: 4,927 sq ft Year Built: 1997 Days on Market: 111 Listing Updated: 40248 MLS Number: S607304 Property Type: Single Family, Residential Community: Northwood Tract: Bain ------------------------------------------------------------------------------ According to the listing agent, this listing may be a pre-foreclosure or short sale.
This property is in backup or contingent offer status.
Fabulous opportunity in the guard gated community of Northwood Pointe. 4 spacious bedrooms plus extra large bonus room/office. Formal living room and dining room. Kitchen with double oven, cooking island and breakfast nook. Super sized family room with fireplace and built in entertainment center. Corner lot with great curb appeal. A short walk to award winning Canyonview Elementary and Northwood High. Enjoy community pool, parks and trails. Close to shopping, dining, entertainment, 5 fwy and toll roads.
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