Mello-Roos Bonds: Poway School District.

[oxfordrick]

OK the last big fire was kinda close.

I expect that the funded public improvements will be insured, to the extent that they require it, streets and curbs not gonna suffer much.

As for the houses, you’ve still got to pay your property taxes and Mello Roos taxes as I understand it, so maybe a major fire could be tough on everyone.
But burnt areas like Scripps Ranch and Del Sur are always rebuilt fairly quickly.

My area of greatest concern is that the deeloped parcels may not be built out timely. In this instance it seems to me as though either Black Mountain Ranch llc must pony up or the remaining homeowners must pay for the shortfall, which doesn’t seem fair.

Anyone know how fast the southern end of Del Sur is building up?

[Anonymous]

I have also been thinking about buying these bonds. Given changes in RE market, I’d guess that Del Sur is pretty unlikely to be built out in 2009.

If I’m reading the Bondholders Risks section of the 2006 offering document for these bonds which is available at http://emma.msrb.org, foreclosures primarily result in delays in receipt of taxes BUT taxes due while payer is actually in bankruptcy can be lost and new buyer/owner is only liable for a)taxes owed by seller prior to sellers bankruptcy, and b)taxes starting with date of new buyers ownership. It also appears that another foreclosure worry is if bank/lender takes over property and then lender is later taken over by FDIC, FDIC’s stated policy is that they will not pay MR taxes under FDIC’s federal immunity.

My biggest worry is that developer or one or more of the involved builders Standard Pacific, Shea, Laing, Lyon, etc. may get into enough trouble that they stop paying MR taxes on lots they own, or will go bankrupt before they can finish building out their portions of the development. Do we really know that Black Mountain LLC is in good shape financially?

[Anonymous]

I have also been thinking about buying these bonds. Given changes in RE market, I’d guess that Del Sur is pretty unlikely to be built out in 2009.

If I’m reading the Bondholders Risks section of the 2006 offering document for these bonds which is available at http://emma.msrb.org, foreclosures primarily result in delays in receipt of taxes BUT taxes due while payer is actually in bankruptcy can be lost and new buyer/owner is only liable for a)taxes owed by seller prior to sellers bankruptcy, and b)taxes starting with date of new buyers ownership. It also appears that another foreclosure worry is if bank/lender takes over property and then lender is later taken over by FDIC, FDIC’s stated policy is that they will not pay MR taxes under FDIC’s federal immunity.

My biggest worry is that developer or one or more of the involved builders Standard Pacific, Shea, Laing, Lyon, etc. may get into enough trouble that they stop paying MR taxes on lots they own, or will go bankrupt before they can finish building out their portions of the development. Do we really know that Black Mountain LLC is in good shape financially?

[Anonymous]

I have also been thinking about buying these bonds. Given changes in RE market, I’d guess that Del Sur is pretty unlikely to be built out in 2009.

If I’m reading the Bondholders Risks section of the 2006 offering document for these bonds which is available at http://emma.msrb.org, foreclosures primarily result in delays in receipt of taxes BUT taxes due while payer is actually in bankruptcy can be lost and new buyer/owner is only liable for a)taxes owed by seller prior to sellers bankruptcy, and b)taxes starting with date of new buyers ownership. It also appears that another foreclosure worry is if bank/lender takes over property and then lender is later taken over by FDIC, FDIC’s stated policy is that they will not pay MR taxes under FDIC’s federal immunity.

My biggest worry is that developer or one or more of the involved builders Standard Pacific, Shea, Laing, Lyon, etc. may get into enough trouble that they stop paying MR taxes on lots they own, or will go bankrupt before they can finish building out their portions of the development. Do we really know that Black Mountain LLC is in good shape financially?

[Anonymous]

I have also been thinking about buying these bonds. Given changes in RE market, I’d guess that Del Sur is pretty unlikely to be built out in 2009.

If I’m reading the Bondholders Risks section of the 2006 offering document for these bonds which is available at http://emma.msrb.org, foreclosures primarily result in delays in receipt of taxes BUT taxes due while payer is actually in bankruptcy can be lost and new buyer/owner is only liable for a)taxes owed by seller prior to sellers bankruptcy, and b)taxes starting with date of new buyers ownership. It also appears that another foreclosure worry is if bank/lender takes over property and then lender is later taken over by FDIC, FDIC’s stated policy is that they will not pay MR taxes under FDIC’s federal immunity.

My biggest worry is that developer or one or more of the involved builders Standard Pacific, Shea, Laing, Lyon, etc. may get into enough trouble that they stop paying MR taxes on lots they own, or will go bankrupt before they can finish building out their portions of the development. Do we really know that Black Mountain LLC is in good shape financially?

[Anonymous]

I have also been thinking about buying these bonds. Given changes in RE market, I’d guess that Del Sur is pretty unlikely to be built out in 2009.

If I’m reading the Bondholders Risks section of the 2006 offering document for these bonds which is available at http://emma.msrb.org, foreclosures primarily result in delays in receipt of taxes BUT taxes due while payer is actually in bankruptcy can be lost and new buyer/owner is only liable for a)taxes owed by seller prior to sellers bankruptcy, and b)taxes starting with date of new buyers ownership. It also appears that another foreclosure worry is if bank/lender takes over property and then lender is later taken over by FDIC, FDIC’s stated policy is that they will not pay MR taxes under FDIC’s federal immunity.

My biggest worry is that developer or one or more of the involved builders Standard Pacific, Shea, Laing, Lyon, etc. may get into enough trouble that they stop paying MR taxes on lots they own, or will go bankrupt before they can finish building out their portions of the development. Do we really know that Black Mountain LLC is in good shape financially?

[oxfordrick]

thanks Doc these are all excellent points.

Yes the FDIC/bankruptcy issues may result in the loss of a few years’ assessments for a few parcels but at the end of the day it’s really a matter of whether unimproved parcels are worth more than the lien amounts that they may end up being burdened by.

It’s nice real estate, five years unpaid Mello Roos burdens a parcel with maybe 15K, somebody’s gonna build something soon, or Black Mountain can land bank if they wish. I like ht edeal.

Good luck!

[oxfordrick]

thanks Doc these are all excellent points.

Yes the FDIC/bankruptcy issues may result in the loss of a few years’ assessments for a few parcels but at the end of the day it’s really a matter of whether unimproved parcels are worth more than the lien amounts that they may end up being burdened by.

It’s nice real estate, five years unpaid Mello Roos burdens a parcel with maybe 15K, somebody’s gonna build something soon, or Black Mountain can land bank if they wish. I like ht edeal.

Good luck!

[oxfordrick]

thanks Doc these are all excellent points.

Yes the FDIC/bankruptcy issues may result in the loss of a few years’ assessments for a few parcels but at the end of the day it’s really a matter of whether unimproved parcels are worth more than the lien amounts that they may end up being burdened by.

It’s nice real estate, five years unpaid Mello Roos burdens a parcel with maybe 15K, somebody’s gonna build something soon, or Black Mountain can land bank if they wish. I like ht edeal.

Good luck!

[oxfordrick]

thanks Doc these are all excellent points.

Yes the FDIC/bankruptcy issues may result in the loss of a few years’ assessments for a few parcels but at the end of the day it’s really a matter of whether unimproved parcels are worth more than the lien amounts that they may end up being burdened by.

It’s nice real estate, five years unpaid Mello Roos burdens a parcel with maybe 15K, somebody’s gonna build something soon, or Black Mountain can land bank if they wish. I like ht edeal.

Good luck!

[oxfordrick]

thanks Doc these are all excellent points.

Yes the FDIC/bankruptcy issues may result in the loss of a few years’ assessments for a few parcels but at the end of the day it’s really a matter of whether unimproved parcels are worth more than the lien amounts that they may end up being burdened by.

It’s nice real estate, five years unpaid Mello Roos burdens a parcel with maybe 15K, somebody’s gonna build something soon, or Black Mountain can land bank if they wish. I like ht edeal.

Good luck!

[Nor-LA-SD-guy]

Interesting, how does one get info on purchasing these bonds ???

If it were not that you can almost go into the Temecula escrow office’s to close, and they will ask will that be cash , Master card or American express ?? for Temecula properties right now I would be even more interested.

That last part was a bit of sarcasm.

[Nor-LA-SD-guy]

Interesting, how does one get info on purchasing these bonds ???

If it were not that you can almost go into the Temecula escrow office’s to close, and they will ask will that be cash , Master card or American express ?? for Temecula properties right now I would be even more interested.

That last part was a bit of sarcasm.

[Nor-LA-SD-guy]

Interesting, how does one get info on purchasing these bonds ???

If it were not that you can almost go into the Temecula escrow office’s to close, and they will ask will that be cash , Master card or American express ?? for Temecula properties right now I would be even more interested.

That last part was a bit of sarcasm.

[Nor-LA-SD-guy]

Interesting, how does one get info on purchasing these bonds ???

If it were not that you can almost go into the Temecula escrow office’s to close, and they will ask will that be cash , Master card or American express ?? for Temecula properties right now I would be even more interested.

That last part was a bit of sarcasm.

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