San Diego Housing Bubble News and Analysis

As a comparison, look to 646 Edgewater Dr., San Marcos, 92078. Right up the street, same house, better landscaping, and sold in the low 600s!

One of Super Janae's Super Friends perhaps????

Why this matters: This is the 3rd house I have found in that small neighborhood of Silvercrest this year alone that has sold for approx 100k more than the final list price and/or what you'd expect it to sell for.

Here is my previous thread on this same neighborhood, different house:

http://piggington.com/san_marcos_sale_so...

Was never listed on MLS. Buyer obtained 100% financing.

I am curious to see the lenders behind these suspicious "Super Janae's" sales. My guess is some of the lenders who may know they are going out of business may cut some Super Sweetheart deals with their friends. What do they lose if they lend a friend a million on a property worth half (based on a "friendly" appraisal) and go out of business next week? This was very common with S&Ls towards the end. Millions were loaned out on entirely worthless assets knowing FSLIC/FDIC may come soon. Of course, a few of them went to jail.

And just think how worthless this makes reported sales data...

Some of those homes in Silvercrest are literally within 50 feet of the new Sprinter train tracks. Whoever bought there knowing that deserves to pay for answering the call of "all aboard!!"

Did ayone disclose this(sprinter tracks) to the original buyers?
Dr Horton and Richmond homes in San Elijio Hills are also keeping quiet about the new Sports complex (tennis,Baketball,and more) to be built at San Elijo Road and Questhaven. They are playing dumb.
So aren't they legally obligated to disclose this?
By the way how are the subdivisions doing in SEH and Carlsbad? Any firesales?

I have relatives living in that neighborhood. Fortunately for me, they didn't ask my opinion when they bought. Unfortunately for them, they should have.

Hey guys, something may not be right in La Costa Oaks (92009) as well. Here is a house that recently sold for $1.1M and nobody ever moved in and now back on the market for like $850K or lower.

The address is 3401 Corte Brezo Carlsbad, CA 92009

What king of squirrely stuff is going on with this place? This is just over the hill from San Elijo Hills towards Encinitas.

JES I recall your original post... weren't you juice back then? Anyways I recall looking into it then...

CarlsbadMtnBiker there seems to be merit in your post. I don't like how this looks. The home went on the market in December of 06 at 950k... then they brought the price down a little bit... then the price was boosted up to 1.05-1.075M...then the offer comes in at 1.1M...imagine that! The purchase was of course financed 100%, oh and the buyers agent got 4% cbb.

The listing agent also happened to represent the buyer as well! Ted Graham with Realty Specialists. I have never done any business with him... sdr have you worked with him before?

So here we are a few months later and the home is on the market for 890k and listed as a short sale.

As for how the home appraised at 1.1M back in December of 06... I will leave that to Bugs and SD Appraiser. It does look sketchy cbmtn. Good find.

SD Realtor

OC Renter had this house in La Costa Oaks on his blog " Super TED" a few days back.Check it out

http://bubbletracking.blogspot.com/2007/...

Really how can you trust these realtors! IS he the mortage broker or is asociated with the broker?

SD R,
I never heard of him. DOn't know if you picke dup on this tidbit but he's wasnt just a dual agent he was the seller also.

It was a lousy location with no upgrades and minimal landscaping. Whoever appraised that home should be locked up with the agents and the sellers.

"As a comparison, look to 646 Edgewater Dr., San Marcos, 92078. Right up the street, same house, better landscaping, and sold in the low 600s!"

JES,
646 Edgewater may have a better view but when it was sold it only had dirt in the front and back yards. There wasn't even a walkway to the front door. It needed a lot of work.
It sold for 630 at an internet auction that had a high transaction fee. I do agree that something ain't right about the extra $100,000 at 356 Flower Hill Way.

I looked at Corte Brezo. I've done some reviews in that neighborhood back when it was still under development so I know it reasonably well.

This property originally sold for the $818k in 07/2004, then it resold in 01/2007 for the $1,100,000. The first is $880k and the second is with the same lender at $220k. I haven't seen a lender walk away from a 20% second yet but you never know.

I know exactly how the house was appraised for $1,100,000. The appraiser has 3 higher priced neighborhoods from different builders within a 6-block radius. Hovnanian was the low priced leader in that area. The lender was too dumb to scrutinize the appraisal.

To show exactly how stupid the lender on this sale was, there is a slightly larger model home located DIRECTLY ACROSS THE STREET that originally sold in 09/2004 for $861,000 (higher than the subject's $818k), resold in 09/2006 for $965,000 because it had some site improvements, and resold AGAIN in 01/2007 (same time as the subject's 01/2007 sale) for $920,000. This property DOESN'T back to RSF Rd, is a slightly larger model and it has better landscaping.

The better location (less traffic noise) and larger size of this other property is demonstrated by the higher original sale price in 2004, and in fact is typical for that neighborhood from what I've seen.

An appraiser who's researching the prior sales history of our property couldn't fail to to come across this other then-pending sale across the street. There was probably a sign in front when they went to look at the house they were appraising. There was another Hovnanian sale on Sitio Lirio in 10/2006 that also amply demonstrates this property would have been a push at $900k in 01/2007. Straight up, a$1,100,000 appraisal on this property would have obviously been a crooked appraisal, which is something I don't often opine from afar.

Wow !! that is unbelievable .. the agent is the owner of the property, represented the buyer,.. never even tried to rent it out or live there and now is in a short sale. huh?

Thx. for the info SD R, farbet & sdr --

There has to be some type of legal or license type consequences for this type of fraud, I would think.

Interesting Bugs .. Thx.

I found the buyer of the Corte Brezo unit on DRE's website. Unique name, if it's the same person she is a licensed agent with no employing broker and a couple disiplenary actions listed.

12/02/03 - H-30527 LA
08/19/04 - RES DENIED-RIGHT TO RESTRICTED LICENSE

Any agents out there know what these are? She also owns a condo in Oceanside that is NOD.

SDappraiser,
Thats amazing! So the buyer was licensed also and likely knew what she was doing. BTW, the seller/agent is also a loan broker. Looks like most of that mess could be cleaned up by locking up two people.

sdr

Hey guys,

Is there any links to 3413 Corte Brezo (3 doors down)... I seems like I remember the same agent trying to sell this place too not to long ago.

SD Realtor. I wanted to email you a question regarding this TEd guy (personal dealings). Could I have your address.

Slick Ted is buyer.seller agent realtor- can put on his mortage broker hat and fund you.
I guess those days are over or is it? Can they still do this in today's mkt?

most of that mess could be cleaned up by locking up two people.

SDR,

I just couldn't grasp what these folks might be doing. Could it be just mortgage fraud on the lender (pocketing kick back from seller to buyer) or is there a possibility of lender connivance too?

Once upon a time in LA LA land,when mortage money flowed like a well of honey,some slick folks put their mouths to the spigot and like pigs drinked and drinked...they sure had a good thing going for a while.
What bothers me is the lack of outrage by the Realtors standing by and doing nothing.nada,zilch.
There are still greater fools out there.

Hi Sakina

My email is adam [at] 1800grrealty [dot] com.

SD Realtor

bsr - I am not sure what these guys are doing either. It sure does look like some sort of fraud to me. I do not think the lender is in on this. The broker? yes. The lender no I doubt it.

SD Realtor

op, yeah, this looks like a cash back scenario. They are basically finding the highest appraisal possible, paying the owner off and keeping the rest as cash. Then never make a payment. These loans are the dead last of them. You would have to be in closing in the last few weeks to get one of these today. As of two weeks ago, no more zero down.

PadreBrian, Are you saying with 100% confidence that in 2 weeks nobody will ever be able to get a 100% financed home? Are you in the lending industry or this just an opinion? You did see I closed a sale a few days ago in Mira Mesa where the buyer financed with 100% financing. I did not represent the buyer, nor do I ever do loans. I just like try to state when I make speculative statements verses hard facts.

SD Realtor

100% financing will never disappear.. it will just be MUCH harder to obtain and rates (risk premiums) will increase. There will ALWAYS be someone out there willing to take the risk, and there will ALWAYS be someone out there willing to pay for it.

What you probably won't see is a huge secondary market for these things. More likely private lenders who keep the portfolio and service the loans themselves. It's very lucrative.

Good times or bad times, people always need money.

100% financing will never disappear

There will always be Las Vegas!