This video shows six properties in Carmel Valley that have a trustee-sale date in the next 4-5 weeks – I blew the first one though, it just closed as a short sale for $875,000. There are more, but we’ll add the five to our Carlsbad Nine to use as our test group of fourteen. Do they get auctioned off at the court house steps, do they postpone forever – or do they finally get their loan mod?
What happens to the people who get denied for their loan modification? The free rent program must be addicting, are they saving their money and willing to go back to making their old payments? They may think so in the beginning, but after getting denied there would be a natural bitterness towards the lender after jumping through all of their hoops. We may see some defaulters get their trustee sale cancelled, only to reinstate later.
How many do you think eventually get foreclosed? If you see any you like to buy, let me know and we’ll pursue them – here’s the youtube video tour:
Care to share the whereabouts of the low 600s house built in 1990?
Wow. I wonder where the prices in Carmel Valley will be in 2014 when I actually buy?
I’m enjoying your tours. Ever come down to La Jolla? 2 points for your help in buying on the court house steps? Any professional courtesy for fellow realtors? Keep up the good work!
It looks like the 2nd house on the video, the one with the white Prius in front (I think you called it Winstanley street– couldn’t make the name out) has its electric meter removed. The meter portion is ‘silvery’.. not black.
The lady in red (4th home at 1900 sq ft) looks like its just north of the 56 near camino del mar park. Looks like a nice neighborhood.
I have no idea how many of these will go all the way to a Trustee Sale. This will be interesting.
Here is one that we bid on in CV recently–It sold at the trustee sale on 6/19/09 for $591,600–that is where we jumped-out. One of my partners had the listing on the house earlier this year on a short sale and had several offers all under $750K–Now they sell it for over $800K–Go Figure. Goes to show you that thee are some good deals at the sale if you are willing to step-up to bat.
http://tempo5.sandicor.com/Pub/EmailView.asp?r=1164041406&s=SND&t=SND
Now this is going to be a real interesting social experiment. There seems to be so much denial in the $700Ks-$900Ks range facing foreclosure. Is the process so slow that owner occupants can just homestead until their kids go off to college? I guess there’s no reason to upset a free high-end lifestyle.
Two-thirds of the 94,000 foreclosure sales in June involved properties previously financed by prime mortgages as the tide of subprime foreclosure sales has declined over the past four quarters, according to the Hope Now alliance.
Two-thirds, almost 63,000! So, subprime is not the sole culprit. Maybe job losses make up a big part of the difference; or have too many been using their home equity as an ATM to finance a high-end lifestyle?
or have too many been using their home equity as an ATM to finance a high-end lifestyle?
Calculated Risk posted about a report that claimed this was the case in San Diego. Not the high-end lifestyle bit, but that foreclosures are far more likely to happen to people who used the home ATM and not as much peak buyers.
CR Home ATM Article
Interesting article. It says: “Borrowers . . . took out around $2 billion in equity from their homes, or nearly eight times the $262 million that they put into their homes. Lenders lost around four times as much as borrowers, seeing $1 billion in losses.” Also, claims that foreclosures are cheaper than loan mods, so JtR’s social experiment should be quite intriguing.
Local Boy:
Your partner’s house is listed as short sale, hence the sub-750K price, but why would you jump out at $591K when you know the condition and title history ?
Even if you go to $620K, you still have a very good chance to see $750K (not as short sale)
This may have been answered before, so my apologies if this is a repeat question.
What are the long term consequences for each option a borrower has available to them to get rid of their home and their mortgage? Which is worse? Giving the keys to the bank? Waiting for the bank to foreclose and living rent free? Sell at a loss and declare bankruptcy if necessary? What are the individual effects on the borrower’s FICO score? Which option will allow them to rebuild their FICO score more quickly?
I hope you all understand if I don’t ask and don’t care about what happens to the lenders. 🙂
How does one go about purchasing one of your ‘price can’t fix’ shirts?
ec:
To Clarify the situation–It wasn’t my partner’s house, he just had the listing on it a few months prior, with offers up to $750K–We were planning to flip it, like the investors with the winning bid did. $590K was our max–Keep in mind that there was nearly $80K in tax leins (state and federal) that needed to be addressed–we understood that the Federal leins ($50k) were to stay on for six months after the Trustee Sale. We figured it would re-sale at no more than $750K–as I said–Go Figure!!!
You see that prius parked in the driveway? Remember the other house with the brand new honda insight? What’s up with the tree huggers not paying their mortgage? Holier than thou.