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August 13, 2007 at 11:25 AM #9838August 13, 2007 at 1:11 PM #74485
Ex-SD
ParticipantA former Orange County Doctor posted this on a blog related to this story:
3 years ago I saw my medical assistant buying a $550,000 house in Anaheim, and I saw multiple patients in various blue collar jobs buying over $500,000 homes in Santa Ana.
yet when I kept doing the math over and over again, it would have been a stretch for me to afford one of these $600,000 homes on my $150,000/year salary.
I knew then everyone in OC were in over their heads and it was time to get out of there.
I know I’m not the only one that saw this coming. a lot of industry insiders knew this was going to happen. they are all just pretending to be surprised by all of this right now.
Posted by: former oc doc | August 13, 2007 at 12:49 PM
August 13, 2007 at 1:11 PM #74608ParticipantA former Orange County Doctor posted this on a blog related to this story:
3 years ago I saw my medical assistant buying a $550,000 house in Anaheim, and I saw multiple patients in various blue collar jobs buying over $500,000 homes in Santa Ana.
yet when I kept doing the math over and over again, it would have been a stretch for me to afford one of these $600,000 homes on my $150,000/year salary.
I knew then everyone in OC were in over their heads and it was time to get out of there.
I know I’m not the only one that saw this coming. a lot of industry insiders knew this was going to happen. they are all just pretending to be surprised by all of this right now.
Posted by: former oc doc | August 13, 2007 at 12:49 PM
August 13, 2007 at 1:11 PM #74601ParticipantA former Orange County Doctor posted this on a blog related to this story:
3 years ago I saw my medical assistant buying a $550,000 house in Anaheim, and I saw multiple patients in various blue collar jobs buying over $500,000 homes in Santa Ana.
yet when I kept doing the math over and over again, it would have been a stretch for me to afford one of these $600,000 homes on my $150,000/year salary.
I knew then everyone in OC were in over their heads and it was time to get out of there.
I know I’m not the only one that saw this coming. a lot of industry insiders knew this was going to happen. they are all just pretending to be surprised by all of this right now.
Posted by: former oc doc | August 13, 2007 at 12:49 PM
August 13, 2007 at 1:45 PM #74631bsrsharma
Participantmedical assistant buying a $550,000 house
Well, if it was a zero down, 2% teaser for a couple of years and the foreclosure process takes an year to sort out (during which he may stop sending mortgage) and finally some Gorilla in Paris or Frankfurt ends up losing his shirt, what has the medical assistant lost by living in a mansion for 3 years? Looking back, he made a good economic decision considering risk & reward. Here we are researching how to get an extra 1% on our savings account and that guy got a free castle to live in. Some times I feel he may be the smarter guy.
And as a bonus, he made housing a lot cheaper for the rest of us in future!
August 13, 2007 at 1:45 PM #74626Participantmedical assistant buying a $550,000 house
Well, if it was a zero down, 2% teaser for a couple of years and the foreclosure process takes an year to sort out (during which he may stop sending mortgage) and finally some Gorilla in Paris or Frankfurt ends up losing his shirt, what has the medical assistant lost by living in a mansion for 3 years? Looking back, he made a good economic decision considering risk & reward. Here we are researching how to get an extra 1% on our savings account and that guy got a free castle to live in. Some times I feel he may be the smarter guy.
And as a bonus, he made housing a lot cheaper for the rest of us in future!
August 13, 2007 at 1:45 PM #74507Participantmedical assistant buying a $550,000 house
Well, if it was a zero down, 2% teaser for a couple of years and the foreclosure process takes an year to sort out (during which he may stop sending mortgage) and finally some Gorilla in Paris or Frankfurt ends up losing his shirt, what has the medical assistant lost by living in a mansion for 3 years? Looking back, he made a good economic decision considering risk & reward. Here we are researching how to get an extra 1% on our savings account and that guy got a free castle to live in. Some times I feel he may be the smarter guy.
And as a bonus, he made housing a lot cheaper for the rest of us in future!
August 13, 2007 at 2:41 PM #74550fromnj
ParticipantSo, is this figure right?
For San diego, about 20% of mortgages are so called subprime under this table.
http://www.ocregister.com/money/san-subprime-santa-1681806-table-tbody
Sunday, May 6, 2007
Subprime lending by countySubprime lending is dramatically more important in rural or fast-growing counties than it is along California’s coast. Subprime lenders captured 40 percent of the home purchase market in San Bernardino County – twice their statewide share. They also did unusually well in the San Joaquin Valley. Here is the loan volume, in billions of dollars, for all 58 California counties.
Sort this table by clicking on the labels at the top of each column.
County Prime Subprime Total Percent subprime
…
Orange $20.92 $5.54 $26.47 20.9%
Placer $3.62 $0.72 $4.34 16.5%
Plumas $0.12 $0.01 $0.13 9.2%
Riverside $16.94 $8.49 $25.43 33.4%
Sacramento $8.59 $3.92 $12.50 31.3%
San Benito $0.35 $0.20 $0.55 36.2%
San Bernardino $9.00 $6.08 $15.07 40.3%
San Diego $22.33 $5.67 $28.00 20.2%August 13, 2007 at 2:41 PM #74667ParticipantSo, is this figure right?
For San diego, about 20% of mortgages are so called subprime under this table.
http://www.ocregister.com/money/san-subprime-santa-1681806-table-tbody
Sunday, May 6, 2007
Subprime lending by countySubprime lending is dramatically more important in rural or fast-growing counties than it is along California’s coast. Subprime lenders captured 40 percent of the home purchase market in San Bernardino County – twice their statewide share. They also did unusually well in the San Joaquin Valley. Here is the loan volume, in billions of dollars, for all 58 California counties.
Sort this table by clicking on the labels at the top of each column.
County Prime Subprime Total Percent subprime
…
Orange $20.92 $5.54 $26.47 20.9%
Placer $3.62 $0.72 $4.34 16.5%
Plumas $0.12 $0.01 $0.13 9.2%
Riverside $16.94 $8.49 $25.43 33.4%
Sacramento $8.59 $3.92 $12.50 31.3%
San Benito $0.35 $0.20 $0.55 36.2%
San Bernardino $9.00 $6.08 $15.07 40.3%
San Diego $22.33 $5.67 $28.00 20.2%August 13, 2007 at 2:41 PM #74672ParticipantSo, is this figure right?
For San diego, about 20% of mortgages are so called subprime under this table.
http://www.ocregister.com/money/san-subprime-santa-1681806-table-tbody
Sunday, May 6, 2007
Subprime lending by countySubprime lending is dramatically more important in rural or fast-growing counties than it is along California’s coast. Subprime lenders captured 40 percent of the home purchase market in San Bernardino County – twice their statewide share. They also did unusually well in the San Joaquin Valley. Here is the loan volume, in billions of dollars, for all 58 California counties.
Sort this table by clicking on the labels at the top of each column.
County Prime Subprime Total Percent subprime
…
Orange $20.92 $5.54 $26.47 20.9%
Placer $3.62 $0.72 $4.34 16.5%
Plumas $0.12 $0.01 $0.13 9.2%
Riverside $16.94 $8.49 $25.43 33.4%
Sacramento $8.59 $3.92 $12.50 31.3%
San Benito $0.35 $0.20 $0.55 36.2%
San Bernardino $9.00 $6.08 $15.07 40.3%
San Diego $22.33 $5.67 $28.00 20.2%August 13, 2007 at 3:01 PM #74570ParticipantThat is why Jim Cramer in his acid performance suggested the inland empire needs to be plowed over. With 40% homes foreclosed, the cities will start resembling martian landscape. Just imagine miles and miles of homes standing with no life form in sight. Many predicted apocalypse would come on Y2K. Now they seem to have been off by a few years.
August 13, 2007 at 3:01 PM #74689ParticipantThat is why Jim Cramer in his acid performance suggested the inland empire needs to be plowed over. With 40% homes foreclosed, the cities will start resembling martian landscape. Just imagine miles and miles of homes standing with no life form in sight. Many predicted apocalypse would come on Y2K. Now they seem to have been off by a few years.
August 13, 2007 at 3:01 PM #74693ParticipantThat is why Jim Cramer in his acid performance suggested the inland empire needs to be plowed over. With 40% homes foreclosed, the cities will start resembling martian landscape. Just imagine miles and miles of homes standing with no life form in sight. Many predicted apocalypse would come on Y2K. Now they seem to have been off by a few years.
August 13, 2007 at 3:48 PM #74600ParticipantThe table is a good indicator of one reason why this became such a large problem. San Diego didn’t have as many sub-primes but…..(1) 20% is not a small number (2) The developers way overbuilt the condo market in SD and priced the housing developments at absurd prices. The end result is that there is a huge glut of condos that are sitting empty and a bunch more that speculators bought with the idea of making a ton of money for simply owning them for a couple of years. SFR’s are no better off because many people bought or re-fied with a 2/28 or other horse crap mortgage (sub-prime or not) and there are a ton of them that are just starting to come due. Now they’re caught in real estate hell and many will just hand the property back to the lender, further exacerbating the problem for those who have been paying their mortgage because now, they’re going to have less paper equity in their homes……….a whole lot less.
August 13, 2007 at 3:48 PM #74717ParticipantThe table is a good indicator of one reason why this became such a large problem. San Diego didn’t have as many sub-primes but…..(1) 20% is not a small number (2) The developers way overbuilt the condo market in SD and priced the housing developments at absurd prices. The end result is that there is a huge glut of condos that are sitting empty and a bunch more that speculators bought with the idea of making a ton of money for simply owning them for a couple of years. SFR’s are no better off because many people bought or re-fied with a 2/28 or other horse crap mortgage (sub-prime or not) and there are a ton of them that are just starting to come due. Now they’re caught in real estate hell and many will just hand the property back to the lender, further exacerbating the problem for those who have been paying their mortgage because now, they’re going to have less paper equity in their homes……….a whole lot less.
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