Comments on: Look at the Undergarments http://www.bubbleinfo.com/2009/01/14/look-at-the-undergarments/ An insider's guide to North San Diego County Real Estate Wed, 08 Sep 2010 13:24:42 +0000 hourly 1 By: LV Renter http://www.bubbleinfo.com/2009/01/14/look-at-the-undergarments/comment-page-1/#comment-9371 LV Renter Thu, 15 Jan 2009 18:35:09 +0000 http://www.bubbleinfo.com/?p=2097#comment-9371 SDNerd The issue was never the variable rate resetting. The issue the the Neg am mortgage recasting. The rate can fall and still yield a mortgage payment double or more than what the person is currently paying. Jim can you spend some time examining Karvolls comments on the SD market not being in market distress. I believe he says b/c ARM rates are below fixed rates and people use fixed that is a good sign? Why? SDNerd

The issue was never the variable rate resetting. The issue the the Neg am mortgage recasting. The rate can fall and still yield a mortgage payment double or more than what the person is currently paying.

Jim can you spend some time examining Karvolls comments on the SD market not being in market distress. I believe he says b/c ARM rates are below fixed rates and people use fixed that is a good sign? Why?

]]> By: Former RB Resident http://www.bubbleinfo.com/2009/01/14/look-at-the-undergarments/comment-page-1/#comment-9368 Former RB Resident Thu, 15 Jan 2009 15:36:38 +0000 http://www.bubbleinfo.com/?p=2097#comment-9368 Fair points Jim and Puzzled. If indeed the "Santa note" house really was a jingle mail, then shame on her. Its one thing if you hit financial distress (lost job, etc.) and can't pay, but walking away is a pretty crappy thing to do to your neighbors. I think Puzzled is right: people who buy in newer neighborhoods seem more likely to act this way. I can't quantify that, but I get that sense as well. Fair points Jim and Puzzled. If indeed the “Santa note” house really was a jingle mail, then shame on her. Its one thing if you hit financial distress (lost job, etc.) and can’t pay, but walking away is a pretty crappy thing to do to your neighbors. I think Puzzled is right: people who buy in newer neighborhoods seem more likely to act this way. I can’t quantify that, but I get that sense as well.

]]> By: CA renter http://www.bubbleinfo.com/2009/01/14/look-at-the-undergarments/comment-page-1/#comment-9367 CA renter Thu, 15 Jan 2009 06:56:26 +0000 http://www.bubbleinfo.com/?p=2097#comment-9367 Exactly, GeneK! The sooner we transfer these homes from weak hands to the strong, the sooner we get out of this mess. BTW, getting out of this mess does NOT mean prices will begin shooting up. It just means that we can have fewer foreclosures and more stable neighborhoods where **residents** live (not flippers and assorted specuvestors). It would be nice to get back to normal, but the PTB seem dead-set against it. They're just forcing us into a depression with all the delaying tactics, IMHO. Exactly, GeneK!

The sooner we transfer these homes from weak hands to the strong, the sooner we get out of this mess. BTW, getting out of this mess does NOT mean prices will begin shooting up. It just means that we can have fewer foreclosures and more stable neighborhoods where **residents** live (not flippers and assorted specuvestors). It would be nice to get back to normal, but the PTB seem dead-set against it. They’re just forcing us into a depression with all the delaying tactics, IMHO.

]]> By: GeneK http://www.bubbleinfo.com/2009/01/14/look-at-the-undergarments/comment-page-1/#comment-9365 GeneK Thu, 15 Jan 2009 01:03:09 +0000 http://www.bubbleinfo.com/?p=2097#comment-9365 This is why defaulted houses need to be foreclosed on as quickly as possible and resold to people who can afford them and want to buy them as homes and not investments. If my $700k home has become a $500k home, I want a new homeowner next door to me who is thrilled to be moving into a $500k home, not a vacant, unmaintained house belonging to a bank with a $600k-$700k value range "for sale, bank owned" sign on it, and certainly not a house occupied by a nonpaying, nonmaintaining deadbeat. It's too late to "save" the subprime investor homeowners; the priority needs to be to preserve neighborhoods as places people will still want to live, whatever the current price falls to. This is why defaulted houses need to be foreclosed on as quickly as possible and resold to people who can afford them and want to buy them as homes and not investments. If my $700k home has become a $500k home, I want a new homeowner next door to me who is thrilled to be moving into a $500k home, not a vacant, unmaintained house belonging to a bank with a $600k-$700k value range “for sale, bank owned” sign on it, and certainly not a house occupied by a nonpaying, nonmaintaining deadbeat. It’s too late to “save” the subprime investor homeowners; the priority needs to be to preserve neighborhoods as places people will still want to live, whatever the current price falls to.

]]> By: Jim the Realtor http://www.bubbleinfo.com/2009/01/14/look-at-the-undergarments/comment-page-1/#comment-9364 Jim the Realtor Thu, 15 Jan 2009 00:55:58 +0000 http://www.bubbleinfo.com/?p=2097#comment-9364 Puzzled, I'm puzzled too, because I saw it vacant about six months ago when the REO next door was an active listing. Maybe the other foreclosures didn't have an impact on her decision, but if not, it means she just up and walked from the house and her $125,000 investment. Wouldn't you at least throw it on the open market to see if you recoup something? She didn't get the full free-rent benefit either. Puzzled, I’m puzzled too, because I saw it vacant about six months ago when the REO next door was an active listing. Maybe the other foreclosures didn’t have an impact on her decision, but if not, it means she just up and walked from the house and her $125,000 investment.

Wouldn’t you at least throw it on the open market to see if you recoup something? She didn’t get the full free-rent benefit either.

]]> By: puzzled http://www.bubbleinfo.com/2009/01/14/look-at-the-undergarments/comment-page-1/#comment-9363 puzzled Thu, 15 Jan 2009 00:32:41 +0000 http://www.bubbleinfo.com/?p=2097#comment-9363 RB, Nice commentary and is probably the sentiment of folks that live in the newer neighborhoods. Jim, The house you mention has actually been empty for a long time and the owner was one of the first ones to leave. She fired her gardener many months ago..... Puzzled RB,

Nice commentary and is probably the sentiment of folks that live in the newer neighborhoods.

Jim,

The house you mention has actually been empty for a long time and the owner was one of the first ones to leave. She fired her gardener many months ago…..

Puzzled

]]> By: Jim the Realtor http://www.bubbleinfo.com/2009/01/14/look-at-the-undergarments/comment-page-1/#comment-9362 Jim the Realtor Wed, 14 Jan 2009 23:13:07 +0000 http://www.bubbleinfo.com/?p=2097#comment-9362 Former RB, The house with Santa's note on it is an interesting test case of your commentary. She paid $835,000 (the cheapest sales price on the street) and put down 15%, or $125,000! She saw the two houses next to her get foreclosed, and with the last one closing at $695,000 she probably came to the conclusion that her equity was gone completely, or at least gone for a long time. The payments on $700,000+ probably got old too, but for whatever reason she bailed out. I agree with you, the sight of others getting foreclosed probably had plenty to do with her decision to walk from her $125,000 investment. Former RB,

The house with Santa’s note on it is an interesting test case of your commentary.

She paid $835,000 (the cheapest sales price on the street) and put down 15%, or $125,000! She saw the two houses next to her get foreclosed, and with the last one closing at $695,000 she probably came to the conclusion that her equity was gone completely, or at least gone for a long time.

The payments on $700,000+ probably got old too, but for whatever reason she bailed out. I agree with you, the sight of others getting foreclosed probably had plenty to do with her decision to walk from her $125,000 investment.

]]> By: GameAgent http://www.bubbleinfo.com/2009/01/14/look-at-the-undergarments/comment-page-1/#comment-9360 GameAgent Wed, 14 Jan 2009 21:42:50 +0000 http://www.bubbleinfo.com/?p=2097#comment-9360 Re: Going Mexican I think he made it up. Here's the street definition: http://www.urbandictionary.com/define.php?term=going+mexican Re: Going Mexican

I think he made it up. Here’s the street definition: http://www.urbandictionary.com/define.php?term=going+mexican

]]> By: Former RB Resident http://www.bubbleinfo.com/2009/01/14/look-at-the-undergarments/comment-page-1/#comment-9359 Former RB Resident Wed, 14 Jan 2009 20:52:56 +0000 http://www.bubbleinfo.com/?p=2097#comment-9359 Jim, Nice work. I still feel somewhat sorry for the LaCosta folks. If you look at a house as 1) a place to live and 2) an asset that can eventually be sold, the fact that its worth less (#2), doesn't really distinguish it from any of the other assets. Everything is down. Its the #1 part. Let's say someone buys that spiffy $900K new house and puts down 200K ish (20%). Ok, so now the house is nearly or is underwater. That happens. But, the fact that 1-4 of the hosues is vacant or in foreclosure or very distressed harms the neighborhood as a whole. That goes to point 1. If I lived here, I could tolerate the asset loss, but not the destruction of the neighborhood itself. Jim,

Nice work. I still feel somewhat sorry for the LaCosta folks. If you look at a house as 1) a place to live and 2) an asset that can eventually be sold, the fact that its worth less (#2), doesn’t really distinguish it from any of the other assets. Everything is down. Its the #1 part. Let’s say someone buys that spiffy $900K new house and puts down 200K ish (20%). Ok, so now the house is nearly or is underwater. That happens. But, the fact that 1-4 of the hosues is vacant or in foreclosure or very distressed harms the neighborhood as a whole. That goes to point 1. If I lived here, I could tolerate the asset loss, but not the destruction of the neighborhood itself.

]]> By: puzzled http://www.bubbleinfo.com/2009/01/14/look-at-the-undergarments/comment-page-1/#comment-9358 puzzled Wed, 14 Jan 2009 20:50:46 +0000 http://www.bubbleinfo.com/?p=2097#comment-9358 "....“Going Mexican” means wearing no underwear at all" did you just make this up? i'v never heard of such nonsense! puzzled “….“Going Mexican” means wearing no underwear at all”

did you just make this up? i’v never heard of such nonsense!

puzzled

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