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Irvine Housing Blog

Irvine Housing Blog

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IHB News 7-17-2010

Posted: 17 Jul 2010 03:30 AM PDT

For our weekend open thread, I have another Northwood II property passing through the foreclosure meat grinder. 


Irvine Home Address ... 65 BAMBOO Irvine, CA 92620
Resale Home Price ...... $850,000

I see trees of green, red roses too
I see them bloom, for me and you
And I think to myself, what a wonderful world

I see skies of blue, and clouds of white
The bright blessed day, the dark sacred night
And I think to myself, what a wonderful world

Louis Armstrong -- What a Wonderful World

IHB News

In Friday's comments, I was challenged by a reader who feels that I have lost my objectivity because we now sell real estate. Another reader seconded that concern so I want to address it directly in this space.

I think prices are too high. I also think prices will soften, particularly this fall and winter as the inventory continues to mount and buyer demand wanes. I don’t think buyers should purchase at prices above rental parity which most properties in Irvine still trade at.

Shevy is out working with buyers every day. Both he and I tell them they should not buy a property today unless they are prepared for continued weakness in pricing and they are in for the long haul. There are many properties that are trading for less than rental parity (mostly outside of Irvine), and for some buyers who plan to live there for a long time, they can save money versus renting if they buy today. If they need to sell in three years, they will have problems, and unlike many realtors working Orange County, we are telling clients this truth. There is no real urgency to buy property right now. Prices will likely go down and affordability will likely improve. That is the message we tell buyers because that is what we believe is true. If anyone reading this has heard anything else from me or Shevy, please post it here or email me.

If I am selling anything, it is the truth about profits to be made in the trustee sale market. I will continue to bring this fact to readers attention as I am trying to generate interest for that part of our business because I believe in the opportunity. I am not exaggerating or relaying anything other than factual observations. People who are active in the trustee sale market are making money, and anyone who wants to participate in this market can do so with our assistance.

Some of you may not believe this, but it is possible to be both an objective blogger and a salesman. If the sales opportunity is real and backed by observation of verifiable facts, I can objectively report on it. Sales doesn’t have to be sleazy manipulation and lies. Sales can be exposing a truth and detailing exactly how people can take advantage of it. I feel very comfortable with what I am doing.

Expect to see more trustee sale flips as property profiles in the coming weeks. 

Writer's Corner

I have enjoyed a wonderful emotional state and clear frame of mind since coming back from my vacation. When I went, I spent the first few days alone walking in the woods and doing those things that calm and ground me, but that isn't what really cleared my mind. Playing golf did that.

I played several rounds of golf on my trip, and given how little I had played leading up to the trip, I expected very little from my performance. Once I got there and teed off on the course where I learned the game, many of the old thoughts and habits began to return. I shot 78 on my first 18 holes, and I was pleasantly surprised with how well I struck the ball. But more important than that, I was keenly aware of how my own self-confidence had a direct bearing on the level of my performance. The link between golf and life was direct.

As I pondered the link between confidence in my golf game, my performance on the course, and the rest of my life, the purpose of my trip became clear: the spiritual center I was looking for was not going to be found in the woods or climbing the mound, it was going to emerge on the golf course through confident play and solid performance.

On my second round, I accomplished something I have been frustrated with for 25 years: I broke par on my home course. The nine-hole course I grew up playing in Wisconsin is not particularly challenging, and shooting par or better there is within reach of any single-digit handicap player. However, I had not managed to do it since I first began playing there at age 9. I knew the course was in my head when I was 18 years old. In one round I was 1 under par after 8 holes and managed to double bogey the ninth to shoot a 1 over par 37. I have tried off and on for the last 25 years to get past this psychological barrier to no avail.

During that second round, I holed my wedge approach shot on the par 4 third hole for an eagle, and I birdied the par 5 fifth hole to put myself in a solid position. When I holed out my putt on the ninth hole, I had gone around in 35 strokes and bettered par by a shot. In my own mind, I had accomplished far more than that; I had broken through a mental barrier I had for many years. And in doing so, I rediscovered a fundamental truth about confidence in myself and the direct link to my own performance.

Since I have returned from my trip, I have found my heart has been more peaceful, my mind has been clearer, my stress level has been lower, and I have been happier. I am excited about the future, and I am feeling as confident in my own abilities as I ever have. And I am looking forward to my next round of golf, and I am looking forward to the next challenges in my life.

Housing Bubble News from

Fri Jul 16 2010
The $4 Trillion Dollar Question (
Corruption in US: Campaign contributions from mortgage industry shaped government policies (
Housing Basics: Massive Supply, Faltering Demand (Charles Hugh Smith)
SF Bay Area's Contra Costa prices still heading south (
Rate fears, mortgage rules take bite out of Canadian property sales (
China Has Been Covertly Funding A Housing Bubble 5 Times Larger Than US's (
Foreclosures hit record: U.S. foreclosures jump in second quarter to record high (
Houses lost to foreclosure on track for 1M in 2010 (
Foreclosures could hit 1 million (
U.S. House Seizures Rise 38% to Record as Banks Process Backlog (
Growth Slowing, Deflation Is Emerging Risk (
Fed Leaders Show Division Over Deflation (
Treasury Bull Market Still Alive (Mish)
Jitters have investment fund for U Texas buying gold (
Montana Man Forgets to Sign Documents Before Stealing Bank-Owned Property (

Free Trial of the Landlord's Property Finder

Thu Jul 15 2010
House Sellers Slashing Prices, While Banks Mow the Lawn (
U.S. Housing Market Sees Price Cuts, Rising Inventory (
In South Florida, pace of repossession jumps 83 percent (
N. Carolina foreclosure rate has nearly doubled in past year (
Foreclosure crisis phase 2: the negative equity dilemma (
Over-Leveraged Pretenders Quit Paying; Lenders Allow Them to Squat (
Housebuyers Need Patience, Patience, Patience (
House Buying Applications Sink to 13 Year Low (
House Ownership To Drastically Decrease In America (
Has Mortgage Electronic Registration System (MERS) Ripped You Off? (
CA court says MERS cannot transfer note for lack of ownership (
FICO Credit Scores Collapse - 25% of Americans Sink Below 600 (Mish)
Is it time to storm the Bastille again? (
Bank Tax, We Hardly Knew Ye (
Secret gold swap has spooked the market (
Federal Budget Simulator - Play along! (
Life in corporate America - Smile or Die (
Jury convicts man who says 'Yahweh' sold him foreclosed house (
Make money while destroying the economy (

Free Trial of the Landlord's Property Finder

Wed Jul 14 2010
Foreclosed houses providing big price breaks in Wisconsin (
Mortgage aid calls crash Michigan system; 17,000 to qualify (
California foreclosure filings increase (
History Says Foreclosure Numbers Will Remain Elevated (
House sales for 1/4 of zestimate on zillow? (
Miami's Downtown Comes Alive as Condos Fill With Young Renters (
Florida property insurance rate hikes coming (
Are we "Trending Towards Deflation" or in It? (Mish)
The Rising Probability of Deflation (
Is the U.S. Following in Japan's Deflationary Footsteps? (
Shorting Gold (
FDIC sues former executives at IndyMac's housebuilding loan division (
HUD May Deny More Filed FHA Claims (
Troubled Relationships: House-Loan Buyers and Houseowners (
Housing Gets Sick on Keynesian Roller Coaster (

Free Trial of the Landlord's Property Finder

Tue Jul 13 2010
Property values continue to fall across Contra Costa County (
How to Lose $1,100,000 in Irvine Real Estate (
Beverly Hills down 31% from year ago (
Politicians became addicted to real estate market (
House Sale Boost Fizzled Out in June (
Distributions of prices and rents (
My short sale success story (
The Role of Appraisal Inflation in Loan Securitization (
China Land Prices Drop 9% (
Chinese Government Expects Price Correction In Real Estate Market (
America Builds an Aristocracy (
Investment Fund Suing Banks Over Subprime Losses (
The Real Black Helicopter Gang: The IMF Coming for Your Social Security (
Learn to love our massive deficit (
Inside the Dire Financial State of the States (
National Assn of Realtors Corrupts Our Laws With Lobbyists (
Why the coasts are blue (

Mon Jul 12 2010
Democracy dead, killed by corporate lobbyists (
Sacramento new-house sales post lowest quarter yet (
Seattle island mansion finally sells at $28 million markdown (
South Florida borrower delinquency still increasing (
Residential prices in NY area still CLOSER TO TOP than bottom (
Jobs better fix than gimmicks to prop up house prices above market values (
The U.S. Mall-Vacancy Nightmare (
Wells Fargo to Lay Off 3,800, End Non-Prime Lending (
Depressing Unemployment Numbers Forecast Long, Slow "Recovery" (
Foreclosure double standard: Why the rich get away with defaulting (
Defaulting and squatting benefits debtors (
Thinking About Accelerated Default? Average Squatting Time Up to 449 Days (
Credit card debt its worse than it looks (
Debt collectors sock it to consumers (
Crisis Awaits World's Banks as Trillions Come Due (
Trending Toward Deflation (
The Con of the Decade: Bailing out the rich with taxpayer money (Charles Hugh Smith)
CNBC Guest Asserts Gov't Stock Market Manipulation (
The Ecology of Foreclosures (
California Weeds - They are all over the place ( 

Another Northwood II bust

The Northwood II neighborhood was developed near the peak, and there have been a large number of distressed properties in this neighborhood. The previous owners paid $964,000 on 4/13/2005. They used a $770,950 first mortgage and a $193,050 down payment. They obtained a $250,000 HELOC on 8/8/2005, but there is no evidence that they withdrew their down payment with this HELOC. There are two other loans recorded later, but they appear to be in error. He did manage to squat for about 18 months.

Foreclosure Record
Recording Date: 09/10/2009
Document Type: Notice of Sale

Foreclosure Record
Recording Date: 08/21/2009
Document Type: Notice of Sale

Foreclosure Record
Recording Date: 04/27/2009
Document Type: Notice of Default

Foreclosure Record
Recording Date: 03/16/2009
Document Type: Notice of Default

When this property went to auction, the opening bid was $629,516, and the current owner-flipper paid $750,000. The profit margin does not look very enticing, and if they end up discounting this property to sell it, the flipper may not make any money at all. 


Irvine Home Address ... 65 BAMBOO Irvine, CA 92620

Resale Home Price ... $850,000

Home Purchase Price … $750,000
Home Purchase Date .... 5/24/2010

Net Gain (Loss) .......... $49,000
Percent Change .......... 6.5%
Annual Appreciation … 77.5%

Cost of Ownership
$850,000 .......... Asking Price
$170,000 .......... 20% Down Conventional
4.59% ............... Mortgage Interest Rate
$680,000 .......... 30-Year Mortgage
$167,878 .......... Income Requirement

$3,482 .......... Monthly Mortgage Payment

$737 .......... Property Tax
$250 .......... Special Taxes and Levies (Mello Roos)
$71 .......... Homeowners Insurance
$120 .......... Homeowners Association Fees
$4,659 .......... Monthly Cash Outlays

-$834 .......... Tax Savings (% of Interest and Property Tax)
-$881 .......... Equity Hidden in Payment
$292 .......... Lost Income to Down Payment (net of taxes)
$106 .......... Maintenance and Replacement Reserves
$3,342 .......... Monthly Cost of Ownership

Cash Acquisition Demands
$8,500 .......... Furnishing and Move In @1%
$8,500 .......... Closing Costs @1%
$6,800 ............ Interest Points @1% of Loan
$170,000 .......... Down Payment
$193,800 .......... Total Cash Costs
$51,200 ............ Emergency Cash Reserves
$245,000 .......... Total Savings Needed

Property Details for 65 BAMBOO Irvine, CA 92620
Beds: 3
Baths: 2 full 1 part baths
Home size: 2,460 sq ft
($346 / sq ft)
Lot Size: 3,932 sq ft
Year Built: 2005
Days on Market: 35
Listing Updated: 40347
MLS Number: S620792
Property Type: Single Family, Residential
Community: Northwood
Tract: Came
This property is in backup or contingent offer status.



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