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The foreclosure tours are winding down – I’m glad I didn’t get a bus!

More from the downtown Encinitas area, and Pacific Station:

Developed by Cardiff-based John DeWald & Associates, in conjunction with Phase 3 Properties, Inc. and Fidelity Investments, Pacific Station is a mixed-use, transit-oriented, redevelopment project being constructed on a 1.4-acre site at 687 South Coast Highway 101, near the transit station and City Hall, in the heart of the downtown Encinitas.

Conceived as a “green” development featuring many innovative, environmentally responsible design features, Pacific Station will offer approximately 40,000 square feet of prime retail space, including the Whole Foods Market as anchor tenant, a restaurant, small shops, some 9,000 square feet of professional office space, and 47 upscale residential lofts, town home condominiums, and flats — all constructed over two floors of underground parking to accommodate 249 vehicles. Site grading and utility work has commenced, with completion of the project scheduled for late 2009/early 2010.

http://www.pacificstation.net/

A few on the foreclosure list in 92008, all are around Tamarack, just east of the I-5 freeway:

Here’s a youtube tour of a few more Encinitas houses on the foreclosure rolls.

The first clip looks like it was an A.I.T.D., an all-inclusive trust deed – also known as a wrap-around mortgage.  It was advertised on the MLS as a no money down deal, where the seller’s mortgage stays in place, but not assumed.  The seller collects payments higher than what he owes, skimming a little interest for the remaining $400,000 extra owed on top of the loan balance, in this case.

But when the buyer quits making payments, he still has possession and occupancy, but the seller is responsible for the loan.  These are a glorified lease-option, with more burden on the sellers.  Here is an example of the math: Example of a Wrap

More from the foreclosure tour – see youtube tour below. 

It is harder to find the smoking deals when looking mid-range, and investor action has been heavy. 

In the last 30 days there have been 28 successful trustee sales of SFRs in Carlsbad and Encinitas, with 14 going back-to-bene, and 14 being purchased by third-parties.  There were also 39 cancellations.

The last clip on this tour of recent foreclosure contestants shows the biggest giveaway we’ve seen – to set the opening bid WaMu cut $1.4 million off the amount owed, and it still went back to bene!

Mozart reminded us yesterday of his upbeat outlook dating back to last May, and a search of the records found this quote, from May 19, 2009:

“Like it or not, things are getting better. Home prices and incomes are balanced. Things are still tough but stability is great news. Extremely well qualified buyers are now the norm. We’ll piddle along for the rest of the year. Substantial price gains are a ways out but this grind along the bottom is over.” Mozart.

The foreclosure list seems a bit stagnant though, and the only properties getting foreclosed are those that the ‘owners’ really don’t want, mostly due to underwater-ness:

The list keeps growing, but not over-flowing. The worst of it for buyers are the distressed houses that do make it to market tend to be those in bad condition, funky floor plans, or inferior locations – and about half of today’s list are condos. But if the number on the list stays moderated, and the loan mods stick, we’ll be piddlin’ for a while longer. Here’s an example:

These have an auction date scheduled over the next few weeks – demonstrating what you can expect from the foreclosure list.

At the end of the video there’s a mention of stats for the Carmel Valley to Carlsbad regional market. During the first four months of 2010, there were 631 detached-home closings, and 113, or 18%, were marked as REO or short-sale listings.

It only takes one!

You’ve seen every house on the market, you think the new listings are pathetic, and you keep wondering about those bank deals on the court house steps.

Eventually JtR’s going to have some video showing that it can be done.

If I’m willing to risk it, what will roughly $700,000 get me?