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patb.
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February 27, 2013 at 8:37 AM #760189February 27, 2013 at 8:38 AM #760190
spdrun
ParticipantDid you check various REO (not trustee/sheriff) auction sites for upcoming foreclosure auctions? This is how it seems to be done these days.
February 27, 2013 at 9:35 AM #760191bearishgurl
Participant[quote=craptcha]You replied to NSR. I am not looking to buy a SFR at the moment, I added to the existing house instead.
I doubt there are many pending foreclosures in 4S at the moment and there are exactly 0 non-contingent SFR’s with the asking price of $800K or less.[/quote]
I see that now, craptcha. My bad. But my post still stands for any Pigg who is lining up at the trough with their peers to upbid listings in highly encumbered newer tracts within a school district (PUSD) that could easily go bankrupt on your watch.
There would have been and should have been more traditional listings in Foreclosure Ranch by now if not for all the latent squatters who are still looking for a bailout and their lazy lenders who are presumably “running the show.”
You were probably better off adding the space you need instead of looking for something bigger in this environment, craptcha. And hopefully, you will be able to recover the total cost of your remodel upon sale, whenever that happens.
February 27, 2013 at 1:54 PM #760195CDMA ENG
Participant[quote=Rich Toscano]BTW, a sneak preview of the valuations… as of last month, price to income and price to rent ratios were both within 2% of their historical median values.[/quote]
Very interesting. I am shocked about rent ratios because, being a renter, it feels like I am paying inflated prices and I am begining to rationalize a home purchase.
Well that and because the wife needs a nest… :p
Can’t wait for the new data Rich. As always, thank you.
CE
February 27, 2013 at 2:22 PM #760194Participant[quote=SD Realtor]So funny…
Here is what I wrote
Conditions are not favorable throughout the county compared to the past few years. Not for investment grade, not for owner occupancy grade. . . .
Here is what was commented on.
I disagree that the long-term owner occupier buyer can’t find a decent house
****
I think it is awesome to make up things to disagree with. Kind of like playing chess against yourself![/quote]
Bobby Fischer used to do that! Ultimately he died crazy and alone.
CE
February 27, 2013 at 10:59 PM #760199CA renter
Participant[quote=CDMA ENG][quote=Rich Toscano]BTW, a sneak preview of the valuations… as of last month, price to income and price to rent ratios were both within 2% of their historical median values.[/quote]
Very interesting. I am shocked about rent ratios because, being a renter, it feels like I am paying inflated prices and I am begining to rationalize a home purchase.
Well that and because the wife needs a nest… :p
Can’t wait for the new data Rich. As always, thank you.
CE[/quote]
Precisely why so many of us bubble-sitters have bought the past few years. It’s not that we feel it’s the bottom of the market, but since they can make this game go on for longer than any of us can stand, we begin to rationalize a purchase because PITI/rent parity is pretty close with these ridiculous interest rates, and cash is earning next to nothing. All the while, you have to pay rent for years as they continue to manipulate the housing and credit markets and kick the can down the road.
Best of luck in your house search, CE. I really feel for anyone who is trying to buy an owner-occupied house these days. 🙁
February 27, 2013 at 11:23 PM #760201earlyretirement
ParticipantDid anyone else in 92127 get an unsolicited letter from L.Tran asking if they are interested in selling their home? I was just curious.
February 28, 2013 at 12:12 AM #760204Essbee
ParticipantI didn’t see it, not yet at least. Was it sent by US mail or dropped at the door?
February 28, 2013 at 12:17 AM #760205Participant[quote=Essbee]I didn’t see it, not yet at least. Was it sent by US mail or dropped at the door?[/quote]
It was sent via US mail. I live in a gated community so people can’t drop stuff off in front of our doors. But I have gotten 2 letters in the mail in the past week asking if I’m interested in selling. One was sent to my office address registered for my LLC that bought the house. And the other letter was sent directly to my address.
Here is the letter below. My office scanned the letter and emailed it to me. I’m copying and pasting it below but I left off his email and personal phone number for his privacy. (Also, he included a photo of him and his wife).
“My name is L. Tran. I am NOT a real estate agent or an investor. I am just an average family man looking to buy a home in this community. I was married in May 2012 and have done a lot of research about the community. I hope to buy a home in the 92127 area, where my children can go to the best school district, Poway Unified School District.
Did you know that the average listing fee to sell your home with a real estate agent in San Diego is 6% of the value of your home? This equates to $35,000-$50,000 in savings if you sold your home directly to me.
If you go through the traditional route of selling your home with a real estate agent, you would have the hassle of preparing your home for Open Houses, where strangers and your neighbors are walking through your home. If you are in foreclosure, who wants your neighbors knowing your financial situation? Who wants to go through that?
If you are in foreclosure or have negative equity (upside down in your mortgage) that doesn’t mean that you can’t sell your home. I can still purchase your home.
I am willing to buy your home in its current condition, as is. I am willing to overlook any damages or repair that need to be done.
If you are thinking about selling your home or have a neighbor that is, PLEASE contact me.”February 28, 2013 at 12:26 AM #760206ParticipantRead the article and notice the trend now.
http://online.wsj.com/article/SB10001424127887324338604578327982067761860.html
People that declared bankruptcy as late as 2008 and that were planning to buy a townhome for $200,000 to $250,000 which was their budget. What did they end up buying? A new home for $426,000… “far more than their budget”.
Or the other lady that paid 10% more than her budget.
“It’s much easier to buy a new home than an old one,” said Ms. Riley, a 41-year-old mother of two who works as a case manager for children with developmental disabilities in Alexandria, Va. “The builder’s whole attitude was, ‘No worries.’ They help you and they trust you. They really, really want you to get approved.”
My favorite part! “No worries!” “they help you and they trust you” “they really really want you to get approved”.
Gee, where did we see see this before??? LOL.
February 28, 2013 at 9:27 AM #760213Participant[quote=earlyretirement]Read the article and notice the trend now.
http://online.wsj.com/article/SB10001424127887324338604578327982067761860.html
People that declared bankruptcy as late as 2008 and that were planning to buy a townhome for $200,000 to $250,000 which was their budget. What did they end up buying? A new home for $426,000… “far more than their budget”.
Or the other lady that paid 10% more than her budget.
“It’s much easier to buy a new home than an old one,” said Ms. Riley, a 41-year-old mother of two who works as a case manager for children with developmental disabilities in Alexandria, Va. “The builder’s whole attitude was, ‘No worries.’ They help you and they trust you. They really, really want you to get approved.”
My favorite part! “No worries!” “they help you and they trust you” “they really really want you to get approved”.
Gee, where did we see see this before??? LOL.[/quote]
ER, these shenanigans have been going on in builder’s offices since the dawn of time ;=)
Builder’s “in-house lenders” had a plethora of exotic ARMs and I/O products up their sleeves, lol, and liberally applied “builder participation” in the form of taking out second and even third TD’s so Joe Q Working-Class Buyer and his family are able to pay way too much for their cheap, substandard sh!t on substandard lots in CA’s Lizardland and former farmland. That’s how the masses of unqualified buyers got “approved” to buy a new-construction home during the millenium boom and even decades earlier than that.
Nothing has changed because our PTB like it the way it is. A few of our lofty “elected officials” even had season tix for professional football/baseball for YEARS in the skybox for them and their families to enjoy, courtesy of Big Development!
Virtually NONE of these buyers could qualify to buy a “mainstream” 3/2/2 property on a 6-7K lot under traditional qualification guidelines (80/20 conv) from a bona-fide individual seller with equity . . . no, not even in their hometown of Compton! Hence, all the billboards put up in their home turf luring these unsuspecting “hopeful” renters out to the IE to tour “model homes.”
Why did builders pander to the working poor? Because no buyer with a decent downpayment and FICO score would buy that sh!t and certainly not move from a superior location to a vastly inferior one. IOW, the “creampuff” buyers had “choices” in life.
This is just one example of what happened all over the state in the last decade.
Somehow, these “crooked” builder’s offices just made it happen for everyone who walked in with an SSN/EIN (or a pending application for one, lol) and could fog a mirror and now we are living with the results of their debacle of this mass “social experiment” where square pegs (the poor or near poor) were “modified on paper” to fit in a round hole (homeownership).
All this accomplished was to cause most of these new “owners” to fall behind on their property taxes the 1st/2nd year of ownership, due to monthly HOA dues and/or high MR. Then, exploding interest-rate mortgages 3+ years after purchase caused them to fall behind on their mortgages and we all know the rest of this story.
By then, the builders had long ago picked up shop with their profits and split town :=0
The common builder practice of “qualifying the unqualified en masse” is really disgusting to me. The many-faceted damage they caused to the existing surrounding communities of their cheap crammed-together stucco boxes will last for decades.
I think it’s well past time for CA’s former tract-slum builders (the ones who are still solvent, that is) to head for the Big Sky where they can try their tactics out on Montana’s knarly, crusty PTB. I’d be interested to see how far they get with ’em up there :=]
February 28, 2013 at 6:39 PM #760235ParticipantBG.
Oh NO doubt these kinds of shenanigans have been going on a while. But at least during the depths of the Great Recession you didn’t see them so aggressive like now. And there was not really this sense of urgency by these people that not so long ago recently defaulted to buy a “new home”. And I guess since there is not much pre-existing inventory in many cities the new stuff is their only route to home ownership again.
And now the builders are eating their cake too. They’ve been able to strip out many of the upgrades and people are paying more than ever to get all these “upgrades” where during the bubble it seemed like they almost had to include many of them. They are charging them a fortune. I’m not sure if you saw that Wall Street Journal a few weeks ago about people spending hundreds of thousands of dollars in upgrades. I believe they used one couple in Irvine as an example.
The more things change the more they stay the same……
February 28, 2013 at 9:24 PM #760242Participant[quote=earlyretirement]BG.
Oh NO doubt these kinds of shenanigans have been going on a while. But at least during the depths of the Great Recession you didn’t see them so aggressive like now. And there was not really this sense of urgency by these people that not so long ago recently defaulted to buy a “new home”. And I guess since there is not much pre-existing inventory in many cities the new stuff is their only route to home ownership again.
And now the builders are eating their cake too. They’ve been able to strip out many of the upgrades and people are paying more than ever to get all these “upgrades” where during the bubble it seemed like they almost had to include many of them. They are charging them a fortune. I’m not sure if you saw that Wall Street Journal a few weeks ago about people spending hundreds of thousands of dollars in upgrades. I believe they used one couple in Irvine as an example.
The more things change the more they stay the same……[/quote]
Builders were ALWAYS aggressive in bending over backwards to qualify prospective buyers with their “in-house” lender. These same prospects would have no doubt been sent packing by a direct (conventional) lender or reputable mortgage banker.
I’m not so sure about the integrity of most mortgage brokers. They were a HUGE part of the problem in causing the “crash” of ’07/08 and beyond.
As for “upgrades” being included in new housing, if it is marginally qualified or unqualified buyers who are no longer able to get them … my take on that is “beggars can’t be choosers.” I don’t know the inventory levels of the resale market on the east coast (where the buyers in the WSJ article were) and I couldn’t read the rest of the article because I don’t have a subscription. HOWEVER, SD has PLENTY of inventory below $400K and THAT is the market where these newly-minted post-foreclosure/SS buyers should be shopping in . . . that is, IF their FICO score has recovered enough to obtain financing.
In CA, those “marginal” buyers have no business shopping in new home tracts with their attendant HOA dues and (now very high) MR, IMO. A combination of those monthly expenses plus PITI was likely what got them into the mess they just “semi-successfully” crawled out of.
Again, beggars can’t be choosers. These “buyer-hopefuls” need to lose their burning desire for the “luxury” neighborhood they couldn’t afford then and can’t afford now. It’s time to start over.
Spring Valley and Lemon Grove beckon :=]
March 3, 2013 at 7:36 PM #760271patb
Participantphoenix sucks the cimate change may make it unlivable
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