The first two properties featured are already bank-owned, and the third has their trustee-sale date bearing down on them – and we’re not fooling around with subprime crackerboxes anymore:
Most of the defaulters I have spoken with claim that they are just doing a loan modification, and that everything will be OK. But what happens when their loan mod gets denied, or the bank’s terms aren’t that favorable – and the debtor has been used to not paying the mortgage at all, and enjoying the free rent program? Hard to believe that many of them will jump back on the old-payment train.
It’s probably why we are hearing more about the foreclosure tsunami – the banks have decided to play hardball, and they know that it’ll mean most loan-mod candidates will bail.
Was that 5750 El Camino Del Norte ? It sure looks like it from the front gate, but I can’t believe that there would be a busy street like that within the Covenant.
Chatter being heard in the legislature about upping the NOD to Trustee sale time span…this is from a very accurate source…
Add that to the already lenient and extended 4-6-18 month span from first payment missed to trustee sale and the slog is just getting going…
Bingo! Exactly what I was referring to in a previous post. How accurate is your source? If what you are saying is true, it wouldn’t surprise me one bit. El Camino Del Norte does get pretty busy – I know because I ride my bike through the Covenant all the time.
Did I read that correctly? The time frame from first missed payment to trustee sale is as long as eighteen months? And there are plans of possibly EXTENDING it?
Where’s my million dollar free rent home baby? 🙂
Jim
Do you have any information on this house. You can go to the cnnfn.com link for more.——-
But for San Diego-based broker Tricia O’Brien, the recovery has been uneven at best. Her mid-size, mid-priced homes are selling at close to their listing price within a week — but larger, luxury homes aren’t moving at all.
One five-bedroom bungalow by the beach has been hanging over her, at $1.2 million, since January. The owners, who bought the house as a second home, aren’t willing to lower the price, but they need to sell it to pay off debt borrowed against it during the boom. In the meantime, they’re renting the place out to their own children.
“Chatter being heard in the legislature about upping the NOD to Trustee sale time span…this is from a very accurate source…”
If this is true it would be a stupid move. Someone has to pay for all the gov programs. If they’re devising laws to allow those not paying taxes to continue not paying taxes for longer periods of time the numbers just won’t add up.
I think we finally found my price to ruin my credit: 5 million. Buy a 1.8 house, borrow 7, pocket 5. Next house can be a quaint 1 million – in cash. What a great deal.
Makes those of us who buy reasonable homes with 20%+ down and 30 year fixed mortgages seem like suckers.
For all of you who lost money in GM stock they are going to issue new shares in 2010.Are you willing to go another round?
Is the recession really over?Why are people still out of work and commercial real estate vacancies are growing by the minute.How many walmarts can we have?
Fracois,
That’s nothing. A close friend of mine tried to get his lenders to foreclose on him or go short sale for 26 months after making the last payment. They would do neither… it was a confluence of factors, the most important of which was 3 note holders, the others always assuming the others would foreclose. His house was a huge ocean-view mansion in Laguna Niguel.
Most lenders do not want to foreclose on a very pricey very-underwater and very-illiquid house. No matter what their reps say to the contrary that they do not get treated differently, but they do.
Sad commentary.
Chuck Ponzi
If they’re devising laws to allow those not paying taxes to continue not paying taxes for longer periods of time the numbers just won’t add up.
The numbers rarely add up which is why most should hold their money and live frugally.
Jim, follow up on the “firehouse home REO on Del Mar Mesa:” It sold for $3mil 2 years ago, and just sold for $1.85…. ocean view and 5K+ SF.
Former RB Resident,
I strongly suspect that the folks with the $7 million debt purchased land or a lot with a smaller/older house and then built the ten thousand square foot house. If that assumption is correct most of the rest of the money probably went for construction, not into the owner’s pocket.
I don’t think four acre lots with ten thousand square foot homes have been available at $1.8 million in RSF in years. My best guess is that there was a tear down house on the lot. Those orange trees look like they’ve been there for a long time.
That’s true, it was a remodel.
The original house was 3,900sf built in 1968, and it looks like the new house might have been built on spec. They had it listed for $11,900,000 in 2008, and in the photos it looked vacant.
Ah, well, I feel better then. I’ve long said you have to separate the people who took out equity lines/2nds to build or add to the house from those who used them to finance a lifesyle above their means.
Exactly, there’s a big difference between a bad move and a dishonest one.
Redfin shows a sale back in April of April 07 for $4M. http://www.redfin.com/CA/Rancho-Santa-Fe/El-Camino-Del-N-92091/home/4178863
It is definately a rebuild. See the old place on aerial view from Microsoft Bing. http://www.bing.com/maps/?v=2&where1=5750%20El%20Camino%20del%20Norte%2C%20Rancho%20Santa%20Fe%2C%20CA%2092067&encType=1
And the new place on Google maps. http://maps.google.com/maps?f=q&source=s_q&hl=en&geocode=&q=5750+El+Camino+Del+Norte,+Rancho+Santa+Fe,+CA+92067&sll=37.0625,-95.677068&sspn=47.704107,77.958984&ie=UTF8&ll=33.045292,-117.209449&spn=0.003103,0.006802&t=h&z=18&iwloc=A
Chuck, sad indeed. But what can you do? Your friend is simply manipulating the financial system to his advantage. If all the legal procedures are being followed to the letter, the no crime is being committed. Until the bank does decide to foreclose on the property, your friend can keep living there rent free until the day he can no longer legally do so, which can be many years from now.
I have to check out how all this foreclosure stuff works in Canada. I believe the delay between defaulting and foreclosure can be as short as three months, which means very little opportunity for free rent living.
Yes, the Canadian system may appear a bit extreme, but at least none of our banks have collapsed from this mess, or even came close to needing a government bail-out.
The $4 million sale was a transfer into the LLC the same day that Temecula Valley Bank funded the $7 million.
One five-bedroom bungalow by the beach has been hanging over her, at $1.2 million, since January.
So, sales are off the hook at CV for <$900K but beach places sit at $1.2K. What’s wrong with this picture?
Well, that’s not exactly a “beach place”. It’s in Senterra, where the has only been one sale this year, and currently 11 are for sale. Hers is the best-priced too!
Speaking of beach places…
I was in PB/Mission Beach this weekend. One of the real estate gigs on the water had a billboard on the sidewalk that read:
“Number of Mission Beach Properties Currently in Foreclosure: 21”
A lot of places right on the water for sale and they don’t appear to be moving.
I guess the price isn’t right yet.
What is Senterra? From the description I was thinking SEH.
Senterra is Baja Fairbanks, and in 92130 (in between Fairbanks Ranch and CV).
Jim,
According to that Senterra is part of (or at least adjoining) CV. Again, makes you wonder about the dividing line on prices. Is it because even at $900K that super-conforming loans are still within reach (provided a 20% DP)?
Senterra is CV-like only because of the zip code. You have to drive all the way around through Fairbanks Ranch to get there.
But I agree, the $697,500 loan limit has to be driving the market. The folks paying in the $800,000s for those Carmel Valley 2,700sf houses all year probably had that in mind. I’ll see how many financed under $697,500, my guess is all.
If the PTB wanted to help higher-end areas, they should raise the loan limit, or eliminate it.
I was wrong, one buyer of eight financed $722,000, but the other seven were under the FHA/conventional loan limits.
All eight had six-figure down payments.
Thanks for the info, Jim. Definitely looks like the limits are a factor.
FTR I’d rather see the conforming limit calculated per the original formula (which would put it back under $400K these days). Yeah, the upper end would take a hit, but the higher limits are just putting the already bankrupt mortgage giants (and thus the taxpayer) at even greater risk.
p.s.: Yeah, I know FHA isn’t technically broke yet.
20% down payment should be the norm for the majority of buyers. So 20% DP on a 900K should be doable and if one can’t come with 15% – 20% then they should look at homes more in their price range.