Hat tip to Stormin Norm for sending this CBS video along – here is the printed version, which includes a bump in drama. In the video the homeowner says that his La Jolla home is worth $500,000 to $600,000 less, and in the printed version they call it “6 to $700,000 less”:
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Jim Klinge
Klinge Realty Group
Are you looking for an experienced agent to help you buy or sell a home?
Contact Jim the Realtor!
- 682 S. Coast Hwy 101, Suite #110
Encinitas, CA 92024 - (858) 997-3801 call or text
- klingerealty@gmail.com
CA DRE #01527365, CA DRE #00873197
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Trustindex verifies that the original source of the review is Google. We sold a home with Jim and Donna and from beginning to end they were consummate professionals. Their initial walk through the property resulted in a list of items to be repaired or updated. They supplied a list of vendors and job quotes to do the repairs and updates. We originally wanted to sell ‘as is’ and just get it over with. They gave us a selling price for ‘as is’ and options for doing a few updates/repairs to doing it all with the selling price for each option. We agreed to do all they suggested and we sold for the exact price they predicted. For every dollar spent we got back more than $2 back in the selling price. And they got that price in a rising interest rate environment! Donna and Jim are extremely detailed and guide you through ever aspect of the sale. There were no surprises thanks to their guidance. We couldn’t be more pleased with their representation. Thank you Donna and Jim, Jerry and MaryTrustindex verifies that the original source of the review is Google. We have known Jim & Donna Klinge for over a dozen years, having met them in Carlsbad where our children went to the same school. As long time North County residents, it was a no- brainer for us to have the Klinges be our eyes and ears for San Diego real estate in general and North County in particular. As my military career caused our family to move all over the country and overseas to Asia, Europe and the Pacific, we trusted Jim and Donna to help keep our house in Carlsbad rented with reliable and respectful tenants for over 10 years. Naturally, when the time came to sell our beloved Carlsbad home to pursue a rural lifestyle in retirement out of California, we could think of no better team to represent us than Jim and Donna. They immediately went to work to update our house built in 2004 to current-day standards and trends — in 2 short months they transformed it into a literal modern-day masterpiece. We trusted their judgement implicitly and followed 100% of their recommended changes. When our house finally came on the market, there was a blizzard of serious interest, we had multiple offers by the third day and it sold in just 5 days after a frenzied bidding war for 20% above our asking price! The investment we made in upgrades recommended by Jim and Donna yielded a 4-fold return, in the process setting a new high water mark for a house sold in our community. In our view, there are no better real estate professionals in all of San Diego than Jim and Donna Klinge. Buying or selling, you must run and beg Jim and Donna Klinge to represent you! Our family will never forget Jim, Donna, and their whole team at Compass — we are forever grateful to them.Trustindex verifies that the original source of the review is Google. WeI had the pleasure of working with Klinge Realty Group to sell our home in Carmel Valley, and I cannot recommend them highly enough! Jim and Donna demonstrated exceptional professionalism, offering expert guidance on market conditions and pricing strategy, which resulted in a quick and successful sale. Communication was prompt and we were well-informed throughout the entire process. For anyone looking for a dedicated and knowledgeable real estate team, look no further! ---Trustindex verifies that the original source of the review is Google. Donna and Jim Klinge of Klinge Realty Group have our highest possible recommendation. From Donna and Jim’s first visit to our house through closing their advice and counsel was candid and honest in all dealings. They kept us fully informed throughout the process. The house sold less than three days after listing with a two-week closing. My wife and I have sold several houses during our lives. This was by far the best experience. Klinge Reality is a premium service realtor. You can’t make a better choice for someone to sell your home fast and for top dollar.Trustindex verifies that the original source of the review is Google. Donna and Jim provided exceptional support and professionalism throughout the entire process. We couldn't have been happier with their efforts. They made our house shine, and thanks to their expertise, it sold above the listing price in the very first weekend! Truly a fantastic experience from start to finish.Trustindex verifies that the original source of the review is Google. This year has been difficult on our family, mainly due to having to sell our home. Thankfully we knew God had a plan for us and working with the Klinge team was a key part of it. It was an obvious decision to work with them again after such an amazing experience when purchasing the same home we needed to sell. The challenge was, how will we do this in so little time with so much going on? Jim and Donna held our hand every step of the way. Whenever an unexpected issue arose they found and provided a solution. Never once did we feel pressured to make a decision and the Klinges were always reassuring after providing the information that the decision was ours to make. Despite the curve balls, they never panicked and exemplified the “can do” attitude, making us feel optimistic and taken care of. Their expertise and professionalism was superb. But of all the reasons to work with the Klinges, the most impactful and valuable is their compassion and genuine care for their clients. We pray that we can one day purchase our forever home and you better believe that Jim and Donna will be representing us - as long as they will have us of course. Thank you again Klinge team! Your execution, experience, and care are unmatched.Trustindex verifies that the original source of the review is Google. Jim and Donna were fantastic! Jim understanding my needs, recommending potential places, pointing out the pros and cons of each property was invaluable. Then when the offer was accepted Donna’s organized guidance through the inspections, paperwork etc made the whole process seem effortless. So grateful that I had them on my side!Trustindex verifies that the original source of the review is Google. We first found Jim through his blog at bubbleinfo.com, which really showcased his knowledge of SoCal real estate. Since then we've done three transactions with Jim and Donna, and they are an incredible full service agency, with Jim's deep market insight and Donna's deft contract and project management. We trust them implicitly in their analysis and strategy, which is based on years of experience. They're always available and on top of things, and we strongly recommend them to anyone.Trustindex verifies that the original source of the review is Google. The Good The Klinge Realty Group operates like a finely tuned machine, with a very personal touch. We contacted them on a Sunday and they were talking to us about our family and our needs on our living room couch the following day. They carefully listened to us and worked with us to identify the best and quickest path to listing within 2 weeks to take advantage of the low inventory conditions in our South Carlsbad neighborhood. They knew our tract specifically and had many previous sales there over the years - they came prepared with a thorough analysis of comparative sales and recommended a pricing strategy that they felt confident would yield offers the first weekend on the market. The Great Over the next two weeks Donna coordinated a range of vendors who she knew from experience could get the preparation to list work we needed done on time and with high quality. Our light tune-up involved excellent experiences with their stagers, landscapers, contractors, electricians, and plumbers. Throughout this period Donna's daily communication was clear, concise, and responsive. Any time we had questions Donna picked up the phone or texted immediately - but almost always, she answered our questions before we even knew we had them. The Outstanding We had a tricky situation with a shared fence that could have delayed our escrow. Donna used superb mediation skills to negotiate the terms of replacement and was personally on site with the fence contractor to make sure everything went smoothly. The fence looks great and escrow closed on time. The Truly Exceptional Our house came on the market on a Wednesday and between then and Monday morning Jim was personally at all three open houses. He was in constant communication explaining potential buyer reaction and strength. As he predicted offers began to come in on Saturday and each one was incrementally higher than the last. At the end we had 5 offers, 4 of which were over list, and the final accepted offer was $100,000 over list. In addition to being over list it included rent back terms that met our needs. The Recommendation For all of these reasons we would strongly recommend The Klinge Team to anyone wanting to sell in North County Coastal San Diego. I had been reading Jim's bubbleinfo.com blog for 15 years and knew when the time came to sell that he would be our first call. Jim Klinge is not your standard realtor. He is keenly aware of market conditions and sales strategies. And, works his tail off - though not as hard as Donna . At this point he's gone from realtor to friend and I plan to have him over to grill and chill at our new place to talk real estate, but also just about life and raising kids in San Diego. He's more interested in relationships than his sales numbers - and that's why his sales numbers are so high. We have already recommended the Klinge's to some close friends and another successful sale is on deck right around the corner...Trustindex verifies that the original source of the review is Google. We recently had the pleasure of working with Jim and Donna from Klinge Realty Group to sell our house, and we couldn't be more satisfied with the experience. From the initial meeting, they listened attentively to our needs and provided invaluable guidance on specific improvements to get our home market ready. Their responsiveness throughout the entire process was truly impressive. Anytime we had questions or concerns, they were quick to address them, ensuring we felt comfortable and informed every step of the way. What stood out the most was their team and extensive network of tradespeople, which made addressing any necessary repairs or updates seamless and stress-free. Thanks to their expertise and dedication, our house sold quickly and at a great price. We highly recommend Jim and Donna to anyone looking to buy or sell a home. They are a fantastic team who truly care about their clients and deliver exceptional results.Load more
I’d have more respect for the guy if he weren’t continuing to live rent free in his ocean view manse.
Honestly, this is what comes of thinking of homes as an “investment” unless you are an actual experienced investor who knows what she/he is doing.
Deadbeat…no, stupid Deadbeat. Why would anyone in his position agree to be interviewed?
No mention anywhere that he bought in Seahaus, the lawsuit-plagued condo built by bankrupt Barratt American, and how that contributed to the decline in value – and his decision to default:
http://www.voiceofsandiego.org/housing/article_8a26ee30-7da9-11df-9cd4-001cc4c03286.html
Mainstream media loves to omit other contributing factors to make every story sound sexier.
MB Mike, I’d bet he thinks he is a superior businessman and a hero for “sticking it the banks.” That seems to be a common theme in every one of the these stories. Either the owner in question is a victim (and most of them aren’t when the story details unfold) or a hero for sticking it to the bank.
Right on Art. Jim pretty much pegged it. He WAY overpaid in the first place. Made a bad decision and then has the cajones to be interviewed about it. What a dope.
Can someone explain to me why “Strategic Default” is not fraud?
Because the banks do it too, so it’s allowed.
I believe it is not fraud because the contract terms are being obeyed. Either the borrower pays or the asset goes back to the lender. The lender taking two plus years to take back their asset is their own damn fault. I’m guessing the banks have run the numbers and found that the loss of a couple of years payments and a large percentage of the original value of the house is LESS than the scenario where values in the surrounding million dollar area fall even more. The more those prices fall at that level, the more strategic defaulters will make a business decision.
Limited market for expensive homes? High maintenance costs?? NOTHING PRICE WON’T FIX!
Kick’em out and price it to sell.
Hey Darren: I bought in 2006 in Carlsbad, paid over a million, and I’m down $200,000+ in value. But you know, I indeed view my debt as “an obligation that must be paid.” WE each promised to pay our lenders back everything WE borrowed, plus interest, on terms WE agreed to. For some sick reason, you now simply view your residence as a bad investment, to help ease your conscience as you intentionally stick it to the institution that worked with you on your good word. When in your twisted mind did it become the bank’s fault (or any lender) because the value of a residence drops? If you can’t make the payment, man up and say it, but don’t punish the bank for your bad faith and complete lack of character. And move out, moron.
The lender knows they’re giving out no-recourse loans, so I think it’s fair for the borrower to walk away. Those are essentially the terms everyone agreed to up front. Of course, refinances aren’t no-recourse, so that’s a different matter.
I like the freudian slip he had at the end with “Bad money after good” … mr savvy businessman’s money is probably just as dirty as the banks.
Not foreclosing because high maintenance costs BS !! Banks would have to recognize major losses when title transfers and they would much rather keep those high end REOs in the “off balance sheet” ledger. Losses like that would keep Mr. Bankster from collecting those year end bonuses….
Happy Birthday Jim!
I wonder how long it will take the processor to take the condo now that the occupant went public. That being said it is not too different of an experience (two years free rent) than someone I knew in a much cheaper in the college area condo.
The more interesting point is the higher DQ rate on $1MM plus mortgages. How much of the stability in La Jolla, Carmel Valley, etc is an illusion waiting to get pierced?
I suppose he has not paid property taxes and HOA dues… Probably a 100% financed purchase back then. My hat goes off for another smart businessman and real estate investor.
And it may be many more years his great and free life style will endure.
It was 90% financed.
The lesson? Don’t buy a condo – the rest of the community helped to tank his value.
Happy Birthday Jim!
The birthday hit a bad patch today. I went out to drive the ’66 and the battery was dead.
The bank agreed to enter in a contract. They knew what they were doing and they knew their obligations if he didn’t make his payments.
Sure, what he did is bad. But you said it yourself Jim, in the video of Del Mar Mesa/Space Station owned by the Cardiologist. “I’s sure it’s just smart. Just business, that $4,000,000 loan has to be hurting.”
I find it interesting that mortages and current values remain totally out of sync ready to plunge to the down side. The upside was too high in ’06, and the downside will be too low when we look back and chart it. So we all need to learn how to catch the falling knife even when its at terminal velocity! I am just another idiot making a guess in this market, but I am buying hard assets, including houses, before the US dollar is at 1 to 1 parity with the Mexican peso.
Inflation will help those with homes just like it did in the 70s. Problem is that interest rates will go up just as fast…
It’s amazing to me that people trying to survive can be criticized when the wisest business decision tells them to go for the strategic default. I was talking to a bunch of Mortgage Bankers one day who were telling me how wrong it was for homeowners to even consider walking away. Then I reminded them that their own association, the MBAA did the same thing, they walked away from their overvalued headquarters building in DC. They all gave me a funny look – hypocrites! Now here is the story told in by funny video, worth watching at: http://www.thedailyshow.com/watch/thu-october-7-2010/mortgage-bankers-association-strategic-default
I liked the last comment, where the CBS reporter suggests that rich homeowners can afford to be as ruthless as the banks. The strategic default game is being played at all income levels. For every one of these guys, there are many more poor people doing the same thing. It doesn’t take money to play this game with the banks. They are actually doing the bank a favor tax-wise, so long as the Fed keeps pumping them full of money. And sharing the strategic default statistic with the $1M breakpoint was especially clever: it lumps wealthy, $417k-$1M low-foreclosure-rate jumbo loan recipients with a whole raft of low-income loan recipients. Therefore I call shenanigans on this whole story.
“Can someone explain to me why “Strategic Default” is not fraud?”
_________________
It’s not fraud because the guy isn’t lying or make misrepresentations about anything. He just stopped paying his mortgage. Nothing fraudulent or illegal about that at all.
I was reading the comments and I have to say most of you are absolutely stupid… instead of attacking the rich you should learn from them. This guy made a mistake in buying an overpriced house, but he is right in not allowing the mistake to perpetuate and sink him.
Some of you are actually defending the banks and have no idea of the reality.
1) most banks sold your mortgages to other investors
2) as such they do not hold the note, the only service it
3) the banks have insurance on your mortgages, even if you do not pay they still walk away unscathed
4) because of #3 they made bad loans because they knew they would be bailed out regardless
5) the banks are now double-dipping because of the insurance they have on the notes AND the additional funds given through government bail-outs (this is why they are recording record profits)
6) when some banks collapsed and the government forced the takeovers banks such BofA got Countrywide’s assets for often less than 10% of the value!
7) our government did not offer the people, those enslaved by debt the same options. Is that fair?
8) why not? because they need to keep everyone enslaved by debt so people go to work and are productive to support the non-working rich that suck money from your labor
9) Don’t believe me… if everyone were wealthy who would be left to do the real work?
This rich guy undertands all of this and refuses to be a sucker like the average joes making ignorant comments on this board. He’ll stay rich and most of you will reamin enslaved like sheep.
Welcome newcomer, grab and drink and stay a while. And tip the waitresses!
I totally agree with ST. The banks are and were protected. The consumer is not. The toxic loans from 5 and 6 years ago are now coming to roost. I can not afford to spend my retirement on a home that will not get right side up and gain equity for at least 15 years. You dummies are talking morals while paying for the purposeful and deliberate actions of bankers that should be in jail. Instead they are bailed out, making more money than ever and thinking about what to do with their next bonus. Wake up America!!! We are being fleeced. The government wants us to stay afraid enough to be good little consumer/ producers so that big money. An continue to financially rape and pillage the middle class. We need to rise up and wise up. I am amazed at the posts in this page. We are all left holding the bag due to the immorality of others.