About a month ago (June 14th) we featured a video of REOs not on the open market yet:
http://www.youtube.com/watch?v=sEb3TtG7DDs
They had been foreclosed earlier in the year, and that tour revealed a few reasons why they had not hit the market yet – still occupied, work being done, etc.
A month later, only one of them has listed, the first RSF house pictured, for $1.32 million.
Here is the second installment in the series, a youtube video tour of bank-owned houses in the prime North San Diego County coastal region:
The banks aren’t sitting on a lot of McMansion-type REOs in the region, but it’ll probably just be a matter of time before these tours get longer (#3 is in the queue). Note how many of these are occupied – the occupants are slow to give up hope.
Jim, are you saying the exuberance was irrational?
You must be rubbing off. On that 3rd I was thinking $1.249m just before you said $1.29m.
It would be interesting to see some of the math of ownership for these. Paying $900k in 2001 and losing everything in 2009. 8 years of $11,000/yr taxes, $5000/mo payments, $1500/yr ins, $2000/yr misc. $600,000 expenses. $150,000 down payment. All told the experience cost $7,500/month.
Wish I had a white sportscar. Oh yeah, I’m careful and honest about my money.
Jim,
Please continue posting these type of videos and associated content. The “shadow inventory” needs to be exposed along with the free rent deadbeat fraudsters.
Hmm, interesting. You can see the foreclosure trail, starting a couple years ago with the really “subprime” houses, and then slowly making its way to the higher end of the market. Now we’re to overpriced-McMansion-tract-house-in-CV territory, and it probably still has a year or two before it really hits the prime coastal properties. Good video — thanks!
-Erica
“… All told the experience cost $7,500/month.”
*Chuckle* That gives me a headache just reading those figures, Rob Dawg. Thanks for putting it into perspective.
If the car goes on auction I might be interested in that…
Can’t wait until they move out of my house!
Funny how that third house had a 2010 Honda Insight in the driveway. They are not making their housing payment and buying a new eco car at the same time. Great model americans.
Well what else are they going to do with the money they saved by not paying the mortgage?
JTR,
Why is it that realtors are the only people who use their mugshot so prominately in their advertising (cards & signage)? Is there a rule regarding this or what? And how long can you use the same mugshot…because we have a lady (T.C.) in del mar that is definately not using a current photo! Just wondering and keep up the good work!
Nicely put, Rob Dawg. That post brings it all into perspective.
Thank you, Jim, for following up on these foreclosures and keeping us informed with your “on the ground” videos. It is greatly appreciated.
Jason:
Maybe the owners of that third house were house rich and car poor, they had been driving around in a clunker like the 66 Chevy and instead of buying a 350 they got $4500 towards the Insight. At least I hope that our government helped them pay for it…what a shame if they bought it only with money they saved from not paying the mortgage without additional grease from the Federales.
$300/sf still seems pricey for large tract homes.
I would be interested to know how many of these defaulted homes own a Cadillac Escalade. Two out of the three people I have seen foreclose in the last few months had one parked in their drive way as well.
I think we should replace the ice cream trucks of Oceanside with the Cadillac Escalades of Carmel Valley. The more Escalades…the more shadow inventory to come.
man! sure glad i rent! cost me 8700.00 for the year and that incls renters insurance. have two new (real vehicles called toyotas) in the garage, since i have room for them cuz the garage isnt piled with whim bought crap. at least the toyotas are the only things we have that are depreciating——DAILY. moved out of caleefonya in 1989-thank god.