San Diego Housing Bubble News and Analysis

What is the problem? Looks like some one is robbing mortgage lenders in broad daylight. If there is someone stupid enough to advance these Jumbo loans, I say go ahead and enjoy. Make hay while the sun shines! It is going to get very dark very soon for a long time. Seems like a perfectly legal transfer of wealth between consenting adults!

It disgusts me. Thats pretty much all I have to say.

farbet -

If I was rated on my peers performance in the industry I would have a failing grade. Fortunately I am rated on my performance, not theirs.

To me there are two types to watch out for, the really dumb agent, (which there are alot of) and the agent who really does not care about the clients and will do ANYTHING for the sale, AND who is very crafty.

SD Realtor

ps - it disgusts me as well... very well put sdr.

Maybe it's just me, but I'm not seeing the misconduct that's being alleged here. The original sale prices in 2000, 2001 or 2004 are irrelevant to anything. The amount of cash these sellers are pocketing is also irrelevant. Regardless of what we think the prices SHOULD be, the homes are worth in 2007 what they're worth in 2007.

I'd have to take a look around to see if the sale prices are reasonable with respect to the local comps so I make no assumptions about that one way or the other. But even if there are problems with comps, that's not the agents' problem but rather a problem with the appraiser and the lender who isn't bothering to watch the appraiser.

Now if we're alleging mortgage fraud (which I guess is where the blog is going) then I guess there is that - but that occurs with the loan originator and the borrower, not (usually) with the realty agents.

Believe me, there's nobody on this planet who's faster to criticize misbehaving "professionals", but I'd have to see some indication of misconduct before I start casting stones. At most, clearing a profit is no more than an indirect indicator. Even if these agents have a reputation for doing funky things in the past that's no guarantee that this is funky too.

NO, it isn't OKay Bsharma. That is why the dollar is at an all time low right now. Super Janae is an example of where the value our US Dollar has gone in the past several years. Into her MBZs and Beemers and whatever other crap she bought with those ill-gotten gains.

I will say it yet again so everyone understands this:

For the past several years M3 growth has flooded the marketplace with liquidity and that is why we have a housing bubble. The REIC has been grifting off that credit expansion. We are heading into deflation which historically results from a credit bubble.

Bugs,
Someone has to be the ringleader!
sdr

That's true. Maybe Super Jannae really is the lynchpin in some market manipulation in those neighborhoods, too.

There's just not enough information on those blog entries for me to make the assumption one way or the other about these sales. I think the buyers are being dumb from a financial perspective, but that doesn't make these crooked deals. I guess if I looked around I could have an opinion but as of right now the use of 2001 sale prices as an indication that these are far overpriced in 2007 just doesn't do it for me.

There are enough real problems out there to go chasing inconclusive scenarios.

Bugs,
I know that market fairly well and those sales seem to be about $200,000 above the current market. Perhaps Ozzie will weigh in on his hood?
sdr

"dollar is at an all time low right now. Super Janae is an example of where the value our US Dollar has gone in the past several years."

I haven't read econ text books in a while, but I am fairly certain this is NOT a cause of $ decline. What Super Janae has done is (probably fraudulently) transferred wealth from an "investor" to herself. That doesn't cause devaluation anymore than a pickpocket robbing you. What it will definitely do is discouraget any more "investors" from loaning out money, and that will raise mortgage rate skyhigh. That of course is going to kill RE market, making houses cheaper but without qualified buyers. BTW, many of these "investors" are overseas, and that may indirectly cause $ to drop as they liquidate $ holdings out of fear (as seems to be happening in Europe now).

I didn't say Super Janae was the cause. She is a symptom of an overheated credit bubble.

Let me ask you this. If the credit bubble didn't exist, then would Super Janae have been able to pull off this transaction????

"If the credit bubble didn't exist"

Probably not. Essentially, what Super Janae is doing is cheating. That requires a greedy, uninformed victim. Though it is likely there would be fewer of them in a less frothy market, white collar criminals (or pink here?) will always have some opportunity in a universe of suckers and losers. How else can you describe the people who signed on the exploding ARM papers and the "investors" who bought them for the promised "High Yield". Neither of them deserves sympathy. We should just let economic Darwinism play out its full natural vigor.

bugs, point well taken. the latest post in the series delt with Air-Monica's turn to the Dark Forces. It doesn't talk about why these transactions are suspicious in nature. I just put up a new post with all of the links on Super-Jenae and friends from when we first caught wind of her antics in April, some of them show comparables with much lower prices yet no sale.

OC Renter's blog has an update.I just can't believe that there are people who believe it's normal.How many years will you wait to see the comps drop?
Fake appraisals your cup of tea?

http://bubbletracking.blogspot.com/