Both myself (broker) and my husband (broker) have watched this play out in our neighborhood. The ubiquitous “Everyman” became a realtor/investor in the last few years, speculated on property here in Temecula, got caught in the flip cycle, and just walked away and let the property go. Your posting is timely because just a few days ago we were counting the brown lawns here and commenting on how many were realtor owned (if you can call 100% financed flips owned!). We have watched two realtors on our street lose houses that they lived in. First we saw the NOD’s, then the leased luxury cars disappeared, then the gardeners ceased gardening, then the NOT’s, and in one case, unwillingness to vacate led to bargaining and $$$ in exchange for possession.
We are now watching the realtor across the street trying to hold up the comps. “I’m not going to give my house away” is his line. He can’t accept the downturn, even though his house has been for sale about 15 months and even though as he chased the market down he Heloc’d twice and is now mortgaged about 30% over the market value of his house.
And next door to us the “realtor/investor” finally got a renter in the place…but…the FY 2006-2007 property taxes have not been paid.
It seems like a lot of the recent licensees out here were operating as “neighborhood specialists” and at the same time, flipping property at not exactly arms’ length transactions within their investment groups.
We don’t understand why the DRE lacks funding and manpower to shut down the obvious scam agents. Our 2 reports of extreme wrongdoing were ignored by the DRE.
Too bad the ethical, conservative, competent agents and brokers are automatically tossed in the same pot with the rest.
