While this is supposed to be a tour of mid-market REOs, there is a 4,745sf bomber slipped in that will help demonstrate the substitution effect.
Last year there was a $1.895 million cash sale on Amber Lane, and two others are for sale now for $2 million. But now that you can buy a similar-sized house on the Encinitas Ranch golf course around $1.2 million, are people going to spend that much or more to be in La Costa Greens and the San Marcos School District? We’ll see!
Amber for anywhere 2M isn’t going to happen. There are dozens of houses at 1.5M sitting on the market that are far better houses sitting in top school districts. These cash deals (the one on Amber and the one recently on Lynwood) would never IMHO have appraised if there was a loan involved.
Here are just two that come to mind that blow LCG out of the water:
http://www.sdlookup.com/MLS-090042014-1612_Aryana_Dr_Encinitas_CA_92024
http://www.sdlookup.com/MLS-090032209-7097_Aviara_Dr_Carlsbad_CA_92011
Jim, with that first guy (who was the owner and not the listing agent), why is he suing? Curious for more details on the whole story there.
And the guy who did ten (10) refi’s! *Chuckle* Wholly Guacamole! And just wondering, is that underwriter for City Bank who approved all of those ten refinances, is he STILL employed?
Great video, Jtr, enjoyed every second. Keep ’em coming!
It’s a ’69 Grand Prix. The ’70 has vertical hash marks behind the front wheels, the ’69 doesn’t as the one in the video shows.
Pay the army of lawyers, not a penny to the banks. Most thieves hang their head in shame when caught, but the housing bubble is “different”.
I was close – LC, did you have to look it up, or did you know?
More here on Pontiac’s Grand Prix – quite a lineup, scroll down to bottom:
http://www.madle.org/epontiac.htm
Another person who doesn’t understand the meaning of “collateral”
http://www.cnn.com/2009/US/09/08/leibovitz.debt/index.html
Bet she enjoyed that $24 mil though!
Susie,
He said he’s suing GMAC and Wells Fargo, which must be the lender that foreclosed on him. He owed them about $571,000.
Could he have been trying a loan-mod, and maybe had an agreement in place, and the over-zealous foreclosure department foreclosed anyway?
I’ve seen it happen just like that three different times at Countrywide.
Speaking of the CW, he didn’t mention the Countrywide second mortgage of $184,000.
Mahalo, Jim! Yep, your site is always at least a daily stop for me. Why? #1 reason is you tell the truth about RE. I respect that. Sure there’s the videos which makes me think and/or chuckle, but it’s much more than that. There’s also an incredible wealth of information available on bubbleinfo from you or others’ comments.
And you bring up CW and the second mortgage amount of $184K. What happens to that? Since it’s the second, does it just disappear w/ the REO? Maybe a silly question, but you’re the RE professional w/ 25 years experience. Me? I’ve always done 30-year fixed w/ 20% DP. I’ve heard about 2nd mortgages (80/20) but I really don’t know much about them because they were never a part of our mortgages.
Call me silly, but I love to sleep at night–soundly! I love to know my mortgage payment won’t change. Always a 20% DP too. I, for one, think it’s important to fork over those funds so I DO take it seriously. It’s only the most important financial decision of my life.
I was clueless back in 1988 when we built our first home over in Hawaii. We had a construction/perm 30-year fixed at 10 1/2%. Ouch! At closing, I never questioned the fees, read only parts of the contract and gleefully signed on the dotted line. That statement embarrasses me now.
Anyway, I’m grateful for you, bubbleinfo, and your professionalism in how you approach real estate. And oh yeah,*Chuckle* What do you want for Christmas? *Wink* please don’t say a solar house…
As I mentioned on an older blog post when it sold, the $1.895 Amber sale was truly an outlier–we looked at that home. Had a drop dead gorgeous backyard pool set-up and to die for views. (We spent an hour drooling over the yard) There was also an almost-finished gingerbread playhouse that could have stolen any parent (of a small toddler girl)’s heart.
House itself was average at best. I might have gone $1.5 back then (not now) if I had liked the house. Our realtor followed up on it and was told it was sold to an out-of-town buyer.
Surprise, surprise.