Wednesday, February 11th, 2009 at 2:41 PM
Dueling REOs
The folks in Bressi Ranch experienced a quirky event yesterday – not one but two REOs, both the same 3,815sf model and across the street from each other, came on the market on the same day – for almost the identical price!
Here is the history of these two:
6344 Huntington: Sold for $958,500 - May 2005, resold for $1,300,000 June 2007
6363 Huntington: Sold for $1,099,500 – April 2005, refinanced $1,125,000 December 2006
The resale of 6344 Huntington enabled 6363 to get their refi done, and probably a few dozen more in the neigborhood. The fraud by what’s-her-name had a long reach, and there will be others caught in the cleansing over the rest of 2009, if not longer.
Posted on Wednesday, February 11th, 2009 at 2:41 PM in Foreclosures/REOs, Fraud | 23 Comments » | 
Print
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
$1.3M -> $805K?
A nice $500K loss for the bank. Cha-ching!!!!
greenlander | February 11th, 2009 at 2:50 pm2009 will be “moving year” (as in prices moving considerably lower).
Turnack | February 11th, 2009 at 3:10 pm“No bidding war for you!”
The fraud by what’s-her-name.”
ROTFL.
How many do you want? I got a dozen of these except we call ours Sterling Hills.
Que the mutant defective banjo music. [The woods scene comes soon.]
Rob Dawg | February 11th, 2009 at 3:19 pmJim, buddy, I smell a contest here…
OCVulture | February 11th, 2009 at 4:21 pmWow…
1.3k to 800k
“Lot’s of people thinking about hitting the panic button” is 100% right
shadash | February 11th, 2009 at 4:31 pmHere’s some background music
no bubble here | February 11th, 2009 at 5:49 pmhttp://www.youtube.com/watch?v=GG4pKmHQaRA
Fellows do not forget Feb. 17. FRONTLINE, INSIDE MELTDOWN. Mark it on your calendar.
wawawa | February 11th, 2009 at 6:11 pmIn the words of Kramer (not that I follow this monkey, but he’s right on this), “When your house drops 20% in value,… it’s better to walk away,… the economic decision now weighs on walking away from your home.”
Tyrone | February 11th, 2009 at 7:29 pmOCVulture is correct. A contest is in order for sure! Jim, can you get video inside these lovely homes so we appraise them?
HappyRenter | February 11th, 2009 at 7:48 pmWinner gets Padres tickets and the loser gets one of the REOs? [ducks]
Rob Dawg | February 11th, 2009 at 7:51 pmOK, I did two versions while I was there but the full tour was 5-6 minutes. I’ll upload to youtube but it might be tomorrow before it’s ready.
You’re probably dying to see what a $4,000 view looks like?
Jim the Realtor | February 11th, 2009 at 7:55 pmIf every original Bressi Ranch homeowner followed Kramer’s advice, there would be a lot of empty houses in Bressi Ranch.
GameAgent | February 11th, 2009 at 7:55 pmJim-
Timeye | February 11th, 2009 at 8:33 pmI met you about one year ago during an open house; I was new to North County and I asked you “what do think about Bressi?” and you said “I wouldn’t touch it with a ten foot poll!”
I though of this conversation today as I read an article about Bressi in N. County Times: “Residents argue Bressi Ranch project an inappropriate use of taxpayer money”- basically the tax payers funded a million dollar McMansion for a nonprofit organization group home. The city gave this organization 800k. Unbelievable waste of tax payer money from a broke city in a broke state in a broke country…..
Rob Dawg, I wouldn’t wish one of those homes on Alan Greenspan. You’re ruthless!
HappyRenter | February 11th, 2009 at 9:18 pmThe whole idea of writing checks PITI totaling ~$7000 every month while watching equity evaporate at twice that rate has got to have consequences. GameAgent has the pulse. A year of that and people are gonna wake up to do the math at $600/night and if prices stop here it will be decades of paying to break even. Not a stable situation.
Rob Dawg | February 11th, 2009 at 10:06 pmYeah home ownership is definitely a long-term proposition in normal non-bubble years. You add just over 1% principal a year, and everything else is up to inflation vs. appreciation. At -10% to -20% loss a year, years of principal gets wiped out by your losses.
BDiego | February 11th, 2009 at 10:12 pmHow could the resale of 6344 in June 2007 have influenced the refi of 6363 six months earlier?
The Good Life | February 11th, 2009 at 10:33 pmIt’s really ashame. My family has lived in C’bad a long time and I really loved the whole concept of Bressi Ranch:
-a neighborhood where you can walk or ride your bike
-lots of little parks for kids to play
-very nice community pool and center
-it’s own shopping center
-walk paths throughout
etc.
We have looked at several homes in there for more than two years now. The price deflation has been really shocking–more than most other C’bad neighborhoods (Thanks, J!).
I feel really badly for Bressi families who did not speculate here and just wanted a nice neighborhood. Hopefully many of them will be able to maintain their homes and neighborhood and in a few years it will return to being a desirable neighborhood again.
Like a good-but-seen-better-times house, I think it has “good bones” but the question is how well will it hold up after the tough times finally finish?
shoppingaround | February 12th, 2009 at 4:48 amoops! Should have been “its” own shopping center….
shoppingaround | February 12th, 2009 at 4:49 amRob,
You think it is only $7,000 PITI per month?
I personally highly doubt that. Most were 100% financed and would have carried a blended rate closer to 7.5% if using traditional financing; however most used pay option arms to shoehorn themselves into a lower monthly.
I would generally agree that it might at this moment be $7000/month, but once the loans recast (which is happening for many pay option firsts, I would bet it’s going to be closer to $12,000/month PITI. That’s a spicy meatball to be living in a house more than 20% underwater.
Each person’s mileage will vary. It depends on how many cash-out refis with Pay Options there were.
I think we’ll have Bressi Ranch REOs for years to come.
Chuck Ponzi
Chuck Ponzi | February 12th, 2009 at 10:37 amI’m afraid you’re right, Chuck P.
shoppingaround | February 13th, 2009 at 1:40 amChuck,
Rob Dawg | February 13th, 2009 at 6:06 amI was being conservative so as to illustrate that the entire development is in trouble not just the few who listened to jenae the piper. One thing I don’t think anyone is considering; two income families. They aren’t twice as stable financially but rather are twice as exposed to job loss.
Rob Dawg wrote:
One thing I don’t think anyone is considering; two income families. They aren’t twice as stable financially but rather are twice as exposed to job loss.
——————
You know your stuff, Rob! Strange how the vast majority of our population doesn’t understand this.
CA renter | February 13th, 2009 at 9:58 pm