Cast in this unlikely role Ill-equipped to act With insufficient tact One must put up barriers To keep oneself intact.
Living in the limelight The universal dream For those who wish to seem. Those who wish to be Must put aside the alienation, Get on with the fascination, The real relation, The underlying theme.
I will be in Las Vegas all next week for a working vacation. I will have posts up every day, but my participation in the comments may be limited.
I'm sure many of you saw the news on Friday that my picture made an article in Money Magazine. Although I was not quoted much, I did provide significant help to the writer on completing the story, so including my picture was a thank you for my time and effort.
I've never sought fame - fortune perhaps, but not fame. It's been amusing to me to become well known for my views on the housing market. It's an interesting side effect of being analytical and opinionated. The IHB has been very good to me.
Banks spend a great deal of time and effort educating their customers on how to use financial products. Banks want customers who think borrowing money is sophisticated and wise. Banks will promote any habit that prompts borrowers to borrow more money and carry large balances.
The housing bubble must have felt like a panacea for lenders. Borrowers were taking on massive debt loads, interest income was flowing in, and the economy was prospering. Unfortunately, borrowing money to pay interest on borrowed money is a Ponzi scheme, and when creditors limit borrowers ability to Ponzi borrow, the entire systems falls apart.
The owners of today's featured property did everything banks want: They grew their debts exponentially, and as long as they could continue to borrow, they made their payments. Further, since this was a real estate loan, it was secured by property, so lenders thought they had no risk. If it weren't for the fact this is a Ponzi scheme, it would have been great.
This property was purchased as the last bubble was deflating on 1/23/1992. The the original mortgage data is not available, but based on later loans, it is likely this was a 20% down loan. The purchase price was $151,000. The first mortgage was likely $120,800 and the down payment was likely $30,200.
On 5/31/2000 (the date I was married), the owners refinanced with a $140,000 first mortgage.
On 6/6/2002 they refinanced with a $147,000 first mortgage.
On 12/4/2002 hey refinanced with a $185,250 first mortgage.
On 6/11/2004 they obtained a $125,000 HELOC.
On 4/12/2005 they refinanced the first mortgage with a $316,500 Option ARM.
After five years on the Option ARM, they likely hit their recast and couldn't afford the payments.
Foreclosure Record Recording Date: 07/22/2010 Document Type: Notice of Sale
Foreclosure Record Recording Date: 04/13/2010 Document Type: Notice of Default
Foreclosure Record Recording Date: 04/13/2010 Document Type: Notice of Rescission
Foreclosure Record Recording Date: 03/12/2010 Document Type: Notice of Default
Home Purchase Price … $151,000 Home Purchase Date .... 1/23/1992
Net Gain (Loss) .......... $121,600 Percent Change .......... 80.5% Annual Appreciation … 3.5%
Cost of Ownership ------------------------------------------------- $290,000 .......... Asking Price $10,150 .......... 3.5% Down FHA Financing 4.21% ............... Mortgage Interest Rate $279,850 .......... 30-Year Mortgage $54,765 .......... Income Requirement
$1,370 .......... Monthly Mortgage Payment
$251 .......... Property Tax $0 .......... Special Taxes and Levies (Mello Roos) $48 .......... Homeowners Insurance $250 .......... Homeowners Association Fees ============================================ $1,920 .......... Monthly Cash Outlays
-$123 .......... Tax Savings (% of Interest and Property Tax) -$388 .......... Equity Hidden in Payment $15 .......... Lost Income to Down Payment (net of taxes) $36 .......... Maintenance and Replacement Reserves ============================================ $1,460 .......... Monthly Cost of Ownership
Cash Acquisition Demands ------------------------------------------------------------------------------ $2,900 .......... Furnishing and Move In @1% $2,900 .......... Closing Costs @1% $2,799 ............ Interest Points @1% of Loan $10,150 .......... Down Payment ============================================ $18,749 .......... Total Cash Costs $22,300 ............ Emergency Cash Reserves ============================================ $41,049 .......... Total Savings Needed
Property Details for 38 REMINGTON Irvine, CA 92620 ------------------------------------------------------------------------------ Beds: 2 Baths: 2 baths Home size: 987 sq ft ($294 / sq ft) Lot Size: 1,024 sq ft Year Built: 1986 Days on Market: 95 Listing Updated: 40488 MLS Number: P747776 Property Type: Condominium, Residential Community: Northpark Tract: Othr ------------------------------------------------------------------------------ According to the listing agent, this listing may be a pre-foreclosure or short sale.
Well Kept 2 bedroom 2 full bath room condo, it is a bottom floor unit with a nice patio to relax on across from the pool and play area. The bathrooms have granit counter tops . Come see this wonderful home and make it yours.
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