This youtube video is a scouting tour of houses that have dates scheduled for their trustee sale. The loan-modification era is wrapping up, and either you got one by now, or your lender is going to be left with no other choice but to foreclose.
More and more homedebtors are going down with the ship – if you’d like to buy a house on the steps of the court house, contact me!
Here are a few examples of what coming in Carlsbad:
NEMO!!! Oops, wrong blog! 😉
Just caught this on YouTube.
Although the houses are nice, prices still seem to high — at least for those under 2000sf. That said, I can see someone going for it since they’ll be in “conforming” loan territory.
OTOH, that last house *is* something special. If I were looking to move to SD soon I’d seriously have to consider that one.
p.s.: Gotta tell us more about your new “Trustee Sale” financing you mentioned!
Your revolution is over, Mr. Lebowski. Condolences. The bums lost. My advice is to do what your parents did; get a job, sir. ..
A cup of coffee? Two year old coffee? Funny. Remember the other part of what I said oh so very long ago? I said that if you won I’d be paying $4 for that cup and if I won it would only cost you $3. At the time no one understood what I was saying. And what has Starbucks been forced to do? That’s right, lower pricing because people won’t pay $4 when their house is sinking.
I’ll never forget that riddle – still bugs me how simple and true. I don’t mind this deflation – I’m still trying to figure out what the downside is if everything ends up cheaper? Government collapse? Please.
Great Video.
What a novel idea kick out the dead beats and sell the property for whatever the market will bare. Can you elaborate on options for non all cash courthouse step buyers? How about one of these distressed property previews for 92024.
tj,
If you’re looking for a house in LA (Sherman Oaks), we toured one today that was one of the most beautiful houses I’ve ever seen (and I’ve seen A LOT of houses in my lifetime). If Jim will let me (it’s in LA County), I’ll post a link just in case you or someone else here might be interested. They would probably accept less (maybe quite a bit less) than list price. I have no affiliation with the sellers or any agents. Just wanted to share with fellow blog readers because it might be a nice deal, and it’s just **a bit** 😉 over our range.
The LA Times is talking about the Downtown San Diego condo market…
http://www.latimes.com/business/la-fi-condobust27-2009jul27,0,881890.story
Near the peak, in May 2004, median resale prices of downtown condos hit $647,500, a 56% increase in just three years, according to San Diego research firm MDA DataQuick.
One savvy flipper made a $91,000 profit in less than two months in 2005 by reselling a 560-square-foot studio for $340,000.
“There was a little bit of a mass hysteria mentality. . . . People thought they would be priced out of the market,” said Bradford Willis, 47, who signed a contract in 2004 to purchase a $341,000, one-bedroom condo in a planned luxury development. Willis said he bought on speculation because there was little existing inventory on the market at the time, much of it priced above $500,000.
Irrational exuberance has long since given way to buyer’s remorse. Median resale prices for downtown units stood at $370,000 in June. That pricey 560-square-foot studio? It was foreclosed and resold this year for $162,000, down more than half from its 2005 sale price.
****
Rather than dump units at fire-sale prices, some developers are converting their projects to rentals, at least until the market improves.
Among them is Pointe of View Developments. The Calgary, Canada, company in May began refunding deposits to about 300 buyers, including Willis, who had signed contracts to buy units in a downtown project known as Vantage Pointe. The leviathan 42-story complex, with 678 condominiums and ground-floor retail space, is slated to open this month as a rental building while the developer awaits state approval to divide the building into smaller phases.
jim, the “helping you out if you don’t have the cash” comment — is that because the trustee sale requires a lot of cash up front (more than 10-20% that is typical for a down payment — maybe even the full asking price)?
it’s an interesting idea that you would be able to buy these upfront and then do a more conventional loan for the buyer. how does it work — JtR is the buyer and lender?
I am going to stay out of it, and be JtR only (not JtL). There are blog readers who I’ve known for quite a while who are willing to assist in two ways:
1. If you have most of the all-cash required, they can float you the difference for a few months, while you refinance.
2. If you prefer a regular transaction/financing, a different person will buy the property, and re-sell it to you.
Both are costly. If you’d like to pursue it contact me directly and we can cover more details.
You’d better hurry because that 800K deal will be worth another hundy gee next year big labowski…
http://lansner.freedomblogging.com/2009/07/27/california-hot-housing/30729/
LOL!
Why do you say that the era of loan mods is winding down? Do you have evidence of this?
Jim, where do we find info on trustee sales prior to the day of auction?
BTW, thanks for running the contest. Should I email you directly for collecting the tickets?
I’ll never forget that riddle – still bugs me how simple and true. I don’t mind this deflation – I’m still trying to figure out what the downside is if everything ends up cheaper? Government collapse? Please.
The downside of deflation is that any debt is now greater because the ‘value’ of the debt, when compared against tangible assets, is now greater. An example would be a mortgage on a house which was originally the whole value of the house, after deflation, it would be the value of two houses. The person who took out the mortgage before deflation would be paying for two houses but only have one after deflation…
And to close, what ‘entity’ is the largest debtor of all??
— hope that helps explain the ‘downside’.. since gov debt is a debt that all taxpayers have to cover…
Inflation helps those with debt and hurts those with savings (depending on the asset savings is in. I’m assuming cash)
Deflation hurts those with debt and helps those with savings (depending on the asset savings is in. I’m assuming cash)
Who does inflation help? Gov, Banks, Speculators
Who does deflation help? Savers
The only problem with trying to determine what these houses are “worth” is that those who “know” houses and realestate are in a disadvantage as to what price reality will put on these places.
The sad fact is that there was on overbuild on these types of houses based upon a false supply of capable buyers.
When inventory is aligned with buyer capacity, then you have a different story.
Imagine a car lot in central wyoming, in a town with a population of 1500. If you had a car lot full of Aston Martin convertables listed at $150,000 each. How many would sell? What if you had 1000 cars you HAD to sell? Frankly, any Aston Martin enthusiast will tell you that if you could get one for $75,000 grand, then jump on it!!! However, what price would it take to actually SELL all the inventory?
If the buyers don’t have the desire or the capacity, then what something is worth and what it price will clear the inventory are two different things.
Drive around Nothern San Diego, down the 54 and you’ll see you have WAY more houses than there are people who can afford them.
Just saying, Buy the Aston Martin for $75,000 because you want it but don’t be surprised if you could have 3 cars for that price down the road.
Buyers lose in deflation.
Oh, I love that last home! Anyone know the address?
Call or email me for addresses – (760) 434-5000 or jim@jimklinge.com
Deflation is simply bringing prices back to normal. This is more evident in the price of gas and houses. I still roll my eyes every time someone says “Houses dropped 40%, that makes them cheap!” For comparison, this is exactly how high maintenance women reason about thousand dollar bags.
“I’m still trying to figure out what the downside is if everything ends up cheaper?”
The problem isn’t that things end up cheaper, but the transition period.
Deflation leads to people hoarding money instead of doing buisiness. In the face of deflation non-dollar-denominated returns are less attractive.
For example, people are going to be less inclined to borrow in order to buy houses when prices are dropping. That means that real estate agents make less money, and hire fewer people.
With the aide of technology, manufacturers of consumer goods are able to control their supply chains very effectively. They don’t have enormous stockpiles of inventory sitting in warehouses that they have to discount to clear out. So, we’re not seeing much deflation in consumer goods. Things like houses and cars, which take longer to manufacture and are largely dependent upon financing are a different story.
I’ve been doing some shopping on Amazon recently, and almost every item I look at says there’s only 1 or 2 in stock or that it’s out of stock and more will be in soon. This seems to have an impact on manufacturers, and I think we’ll see more consolidation, which will not be very good for competition driving prices down.
CA Renter,
Post the link over at exurbannation.blogspot.com — you know, Rob’s place.
Post it here too, we’ll all take a look.
I’ll never forget that riddle – still bugs me how simple and true. I don’t mind this deflation – I’m still trying to figure out what the downside is if everything ends up cheaper? Government collapse? Please.
The downside is a deflationary spiral. There are no mechanisms in place to deal with inflation. Those of us who save are supposedly benefiting but at best it is a wash. Wake me up when the SocSec COLA adjustment is negative and I’ll change that conclusion.
Minor correction. There are no mechanisms in place to deal with deflation, only inflation. [Weird posting excision.]
You mean government mechanisms right? I was planning for this all along and hoarded cash, CDs, and lately bonds. Zero debt, and I get 2 months rent in dividend earnings every year and growing. All thanks to not buying a house all these years.
Jim,
I have been reading your journal for a few months now. Thanks for your hard work and insightful postings. I had a couple of questions regarding trustee sales if you have the time to respond. A friend of mine who used to buy trust deeds for his business of renovating and selling houses for a profit (flipping) told me to stay away from trustee sales unless you have the expertise to review public records to identify potential liens or are committed enough to bidding on a property to spend $600 to $800 to get a report from a title company. What are your thoughts on the process. Any input would be much appreciated.
It will be interesting to see the opening bids on the two houses in the Colinas de Oro neighborhood on Calle Posada. Right now, there’s two other sellers in the MLS on that same street asking in the high $600s. What are they thinking?
obie619,
I should review my offer of service:
1. Assurance verbally that title is clear, or what liens might ride with the property and be your responsiblity (usually none, but need to verify).
2. The occupancy determination, and negotiation with anyone living there, and hopefully an interior inspection.
3. Clarity on taking possession.
4. Repair quotes and coordination.
5. Recording of trustee’s deed.
2% commission paid by buyer.
Thanks, Jim!
Pictures really don’t do it justice, as they can’t really capture the quality and sounds of the property — very well-done water features in both the front and back yards. The landscaping is amazing, and the decor was top-notch. It’s understated, compared to the obnoxious McMansions we’ve been assaulted with in recent years, but we prefer this style, personally.
I don’t know for sure, but would bet these people are creative types in the entertainment industry. Unlike the flipper junk, everything about this house was top-quality, inside and out.
Just in case anyone is looking for something nice in LA, and it sounds like the price might be quite negotiable.
Here’s a link to a virtual tour:
http://www.engelmultimedia.com/valleyvista/mls
The listing:
http://www.searchshermanoaksrealestate.com/1368384_42780-14275-Valley-Vista-Blvd-Sherman-Oaks-CA-RES_Detail.aspx
Sold for $1,950,000 in January 2006.
Listed for $2,395,000 in April 2009.
Reduced to $2,250,000 in May 2009.
CA renter,
Very nice indeed, but *just* out of our range too. 🙂
Thanks for the show, though!!!
I second the queery into loan mods winding down. I heard a bunch of big shots in res finance are meeting with US treasury folks this week to talk about why “making homes affordable” (or the other Obama program I can’t recall name right now..)has lead to a few tens of thousands of homes getting modified rather than a couple hundred thousand…
Ronald,
It’s my understanding that the current sellers have put **many** hundreds of thousands of dollars into it, and I totally believe it. Also, if it **were** in my price range, I’d still offer less than what they paid for it. You never know what might happen! 🙂
Jim,
I guess I caught you on a bad day to have had my earlier post removed by you or I do not comprehend the do’s and don’t for posting. What part of my macroeconomic commentary was unacceptable/false? I thought you supported open dialogue (non-sugar coated commentary) in the topics that affect us all.
Readers are tired of the negative general carpet-bombing heard a million times before, and/or the guarantees made with the intent to insult people’s intelligence.
That means that real estate agents make less money, and hire fewer people.
Oh yeah, we should base our economy on a frenzy of activity revolving around non-performing assets.