Hey, look me over Tell me do u like what u see? Hey, I ain't got no money But honey I'm rich on personality Hey, check it all out Baby I know what it's all about Before the night is through U will see my point of view Even if I have 2 scream and shout
At the IHB Block Party we had on June 16, 2010, Pat Regnier from Money Magazine attended to do research for a story on Orange County real estate. That story is due to appear in the December issue. I may be quoted in the story.
On Friday afternoon, I received a call from a producer from CNN/Money asking me if I could arrange an IHB meeting for Wednesday evening. This producer talked to Pat Regnier, and she is planning to bring a camera man to do a story on our little gathering. I don't know if this story will appear on the web, or if it may make national TV (it probably depends on how it turns out).
I am trying to arrange an event for Wednesday, November 10, 2010. Our usual venue is not available on short notice, so I am looking into other locations. Any suggestions in the comments would be helpful. Dave and Busters at the Irvine Spectrum is a likely candidate, but the person I need to speak to will not be in until Monday. This is not an investor meeting; although, I should have time to discuss the fund with anyone looking to make a last-minute investment.
I will provide more details as they become available, but I will appreciate everyone who attends to show support for the IHB. It should be fun, and you might get on national TV.
It is a consistent pattern among HELOC abusers to refinance over and over and finally implode with an Option ARM. Contrary to the myth that Option ARMs were pushed on unsuspecting borrowers, many Ponzis chose Option ARMs because it allowed them to increase their cash-out activities while decreasing their payment. The terms didn't matter; borrowers were being offered free money and a lower payment. Few said no.
Today's featured property was purchased on 9/13/2002 for $278,000. The borrowers used a $269,500 first mortgage and a $8,500 down payment.
On 6/27/2003 they refinanced with a $273,000 first mortgage.
On 12/21/2004 they obtained a $50,000 HELOC. I bet that was a prosperous Christmas....
On 8/15/2005 they refinanced with a $384,000 Option ARM with a 1% teaser rate.
No NOD has been filed, but their option ARM is 5 years old now, and they are likely approaching their LTV limit when the loan recasts into a fully amortizing payment. Perhaps they make 30% more than they did in 2004 and they can afford the new mortgage. I doubt it.
Home Purchase Price … $277,273 Home Purchase Date .... 9/13/2002
Net Gain (Loss) .......... $3,787 Percent Change .......... 1.4% Annual Appreciation … 0.9%
Cost of Ownership ------------------------------------------------- $299,000 .......... Asking Price $10,465 .......... 3.5% Down FHA Financing 4.29% ............... Mortgage Interest Rate $288,535 .......... 30-Year Mortgage $57,005 .......... Income Requirement
$1,426 .......... Monthly Mortgage Payment
$259 .......... Property Tax $0 .......... Special Taxes and Levies (Mello Roos) $50 .......... Homeowners Insurance $335 .......... Homeowners Association Fees ============================================ $2,070 .......... Monthly Cash Outlays
-$129 .......... Tax Savings (% of Interest and Property Tax) -$395 .......... Equity Hidden in Payment $16 .......... Lost Income to Down Payment (net of taxes) $37 .......... Maintenance and Replacement Reserves ============================================ $1,600 .......... Monthly Cost of Ownership
Cash Acquisition Demands ------------------------------------------------------------------------------ $2,990 .......... Furnishing and Move In @1% $2,990 .......... Closing Costs @1% $2,885 ............ Interest Points @1% of Loan $10,465 .......... Down Payment ============================================ $19,330 .......... Total Cash Costs $24,500 ............ Emergency Cash Reserves ============================================ $43,830 .......... Total Savings Needed
Property Details for 105 FALLINGSTAR 59 Irvine, CA 92614 ------------------------------------------------------------------------------ Beds: 2 Baths: 2 baths Home size: 997 sq ft ($300 / sq ft) Lot Size: n/a Year Built: 1985 Days on Market: 79 Listing Updated: 40469 MLS Number: H10087361 Property Type: Condominium, Residential Community: Woodbridge Tract: Othr ------------------------------------------------------------------------------ According to the listing agent, this listing may be a pre-foreclosure or short sale.
Condominium in Good Condition, very nice area. One bedroom down and one bedroom upstairs. Laminated floors in first floor, carpet on second floor, laundry room right off the kitchen. Located by de pool with visitor parking just a few steps away. Short Sale.
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