short sale in encinitas ranch – good value?

[SD Realtor]

esmith –

I don’t think what you said is true at all. I do not believe that an average joe blow can afford to buy the home in Encinitas. I also believe that if you took the median income for homeowners in this particular subdivision you will find it is much higher then the median in the country, in the state, and even in the county.

I never said Brae Mar was a playground for the super rich. Yet how many homeowners there in that subdivision that have a salary of 65k a year? My SPECULATIVE statement would be none. In fact, if you went and took a look at the 5 offers that the agent currently has on it, I would speculate none of those offers are from Joe Blows who earn what you are supposing they earn.

Brae Mar is no farther away from Sorrento Valley then 4S Ranch is. It is not as far away as La Costa Valley either.

Hey if you want, go ahead and presuppose that Brae Mar is going to fall to 440 or 500k. You think it is, I do not. I am not stopping you or calling names or anything like that.

So far there are 5 other offers on it and there is no speculation in that statement esmith. So yeah perhaps you are right. Go ahead and pull up a loan program in todays environment that will enable a median income wage earner to make the purchase like you said in todays world.

Personally I don’t see alot of that happening anymore.

I am not trying to say we are at a bottom now or anything like that. Please don’t confuse my posts to be cheerleading for the industry. I am just trying to point out what are facts in the here and now as well as my speculative opinion in the longer run. Perhaps I am way off. I guess we will see.

SD Realtor

[SD Realtor]

esmith –

I don’t think what you said is true at all. I do not believe that an average joe blow can afford to buy the home in Encinitas. I also believe that if you took the median income for homeowners in this particular subdivision you will find it is much higher then the median in the country, in the state, and even in the county.

I never said Brae Mar was a playground for the super rich. Yet how many homeowners there in that subdivision that have a salary of 65k a year? My SPECULATIVE statement would be none. In fact, if you went and took a look at the 5 offers that the agent currently has on it, I would speculate none of those offers are from Joe Blows who earn what you are supposing they earn.

Brae Mar is no farther away from Sorrento Valley then 4S Ranch is. It is not as far away as La Costa Valley either.

Hey if you want, go ahead and presuppose that Brae Mar is going to fall to 440 or 500k. You think it is, I do not. I am not stopping you or calling names or anything like that.

So far there are 5 other offers on it and there is no speculation in that statement esmith. So yeah perhaps you are right. Go ahead and pull up a loan program in todays environment that will enable a median income wage earner to make the purchase like you said in todays world.

Personally I don’t see alot of that happening anymore.

I am not trying to say we are at a bottom now or anything like that. Please don’t confuse my posts to be cheerleading for the industry. I am just trying to point out what are facts in the here and now as well as my speculative opinion in the longer run. Perhaps I am way off. I guess we will see.

SD Realtor

[SD Realtor]

esmith –

I don’t think what you said is true at all. I do not believe that an average joe blow can afford to buy the home in Encinitas. I also believe that if you took the median income for homeowners in this particular subdivision you will find it is much higher then the median in the country, in the state, and even in the county.

I never said Brae Mar was a playground for the super rich. Yet how many homeowners there in that subdivision that have a salary of 65k a year? My SPECULATIVE statement would be none. In fact, if you went and took a look at the 5 offers that the agent currently has on it, I would speculate none of those offers are from Joe Blows who earn what you are supposing they earn.

Brae Mar is no farther away from Sorrento Valley then 4S Ranch is. It is not as far away as La Costa Valley either.

Hey if you want, go ahead and presuppose that Brae Mar is going to fall to 440 or 500k. You think it is, I do not. I am not stopping you or calling names or anything like that.

So far there are 5 other offers on it and there is no speculation in that statement esmith. So yeah perhaps you are right. Go ahead and pull up a loan program in todays environment that will enable a median income wage earner to make the purchase like you said in todays world.

Personally I don’t see alot of that happening anymore.

I am not trying to say we are at a bottom now or anything like that. Please don’t confuse my posts to be cheerleading for the industry. I am just trying to point out what are facts in the here and now as well as my speculative opinion in the longer run. Perhaps I am way off. I guess we will see.

SD Realtor

[SD Realtor]

esmith –

I don’t think what you said is true at all. I do not believe that an average joe blow can afford to buy the home in Encinitas. I also believe that if you took the median income for homeowners in this particular subdivision you will find it is much higher then the median in the country, in the state, and even in the county.

I never said Brae Mar was a playground for the super rich. Yet how many homeowners there in that subdivision that have a salary of 65k a year? My SPECULATIVE statement would be none. In fact, if you went and took a look at the 5 offers that the agent currently has on it, I would speculate none of those offers are from Joe Blows who earn what you are supposing they earn.

Brae Mar is no farther away from Sorrento Valley then 4S Ranch is. It is not as far away as La Costa Valley either.

Hey if you want, go ahead and presuppose that Brae Mar is going to fall to 440 or 500k. You think it is, I do not. I am not stopping you or calling names or anything like that.

So far there are 5 other offers on it and there is no speculation in that statement esmith. So yeah perhaps you are right. Go ahead and pull up a loan program in todays environment that will enable a median income wage earner to make the purchase like you said in todays world.

Personally I don’t see alot of that happening anymore.

I am not trying to say we are at a bottom now or anything like that. Please don’t confuse my posts to be cheerleading for the industry. I am just trying to point out what are facts in the here and now as well as my speculative opinion in the longer run. Perhaps I am way off. I guess we will see.

SD Realtor

[Eugene]

Encinitas has above average incomes in this county. No argument about it. It’s just not so wealthy as to support seven-figure valuations east of 5 without exotic financing.

This particular street was built and sold off in 2003 at a median price of $682,000. You didn’t have to be a lawyer or a surgeon to “afford” that. Monthly payment on an interest-only mortgage of $682,000 is less than 3K/month.

You are a realtor, I believe you have the capability to look up existing mortgages on homes. Could you please check these houses.

621 Brae Mar Ct (sold in 2003 for 681k)
642 Brae Mar Ct (sold in 2003 for 682k)
655 Brae Mar Ct (sold in 2003 for 687k)
622 Brae Mar Ct (sold in 2005 for 840k)
610 Brae Mar Ct (sold in 2007 for 1050k)

I’ll venture a guess. All five were financed using interest-only mortgages. Furthermore, the latter two are negative amortization loans.

[Eugene]

Encinitas has above average incomes in this county. No argument about it. It’s just not so wealthy as to support seven-figure valuations east of 5 without exotic financing.

This particular street was built and sold off in 2003 at a median price of $682,000. You didn’t have to be a lawyer or a surgeon to “afford” that. Monthly payment on an interest-only mortgage of $682,000 is less than 3K/month.

You are a realtor, I believe you have the capability to look up existing mortgages on homes. Could you please check these houses.

621 Brae Mar Ct (sold in 2003 for 681k)
642 Brae Mar Ct (sold in 2003 for 682k)
655 Brae Mar Ct (sold in 2003 for 687k)
622 Brae Mar Ct (sold in 2005 for 840k)
610 Brae Mar Ct (sold in 2007 for 1050k)

I’ll venture a guess. All five were financed using interest-only mortgages. Furthermore, the latter two are negative amortization loans.

[Eugene]

Encinitas has above average incomes in this county. No argument about it. It’s just not so wealthy as to support seven-figure valuations east of 5 without exotic financing.

This particular street was built and sold off in 2003 at a median price of $682,000. You didn’t have to be a lawyer or a surgeon to “afford” that. Monthly payment on an interest-only mortgage of $682,000 is less than 3K/month.

You are a realtor, I believe you have the capability to look up existing mortgages on homes. Could you please check these houses.

621 Brae Mar Ct (sold in 2003 for 681k)
642 Brae Mar Ct (sold in 2003 for 682k)
655 Brae Mar Ct (sold in 2003 for 687k)
622 Brae Mar Ct (sold in 2005 for 840k)
610 Brae Mar Ct (sold in 2007 for 1050k)

I’ll venture a guess. All five were financed using interest-only mortgages. Furthermore, the latter two are negative amortization loans.

[Eugene]

Encinitas has above average incomes in this county. No argument about it. It’s just not so wealthy as to support seven-figure valuations east of 5 without exotic financing.

This particular street was built and sold off in 2003 at a median price of $682,000. You didn’t have to be a lawyer or a surgeon to “afford” that. Monthly payment on an interest-only mortgage of $682,000 is less than 3K/month.

You are a realtor, I believe you have the capability to look up existing mortgages on homes. Could you please check these houses.

621 Brae Mar Ct (sold in 2003 for 681k)
642 Brae Mar Ct (sold in 2003 for 682k)
655 Brae Mar Ct (sold in 2003 for 687k)
622 Brae Mar Ct (sold in 2005 for 840k)
610 Brae Mar Ct (sold in 2007 for 1050k)

I’ll venture a guess. All five were financed using interest-only mortgages. Furthermore, the latter two are negative amortization loans.

[Eugene]

Encinitas has above average incomes in this county. No argument about it. It’s just not so wealthy as to support seven-figure valuations east of 5 without exotic financing.

This particular street was built and sold off in 2003 at a median price of $682,000. You didn’t have to be a lawyer or a surgeon to “afford” that. Monthly payment on an interest-only mortgage of $682,000 is less than 3K/month.

You are a realtor, I believe you have the capability to look up existing mortgages on homes. Could you please check these houses.

621 Brae Mar Ct (sold in 2003 for 681k)
642 Brae Mar Ct (sold in 2003 for 682k)
655 Brae Mar Ct (sold in 2003 for 687k)
622 Brae Mar Ct (sold in 2005 for 840k)
610 Brae Mar Ct (sold in 2007 for 1050k)

I’ll venture a guess. All five were financed using interest-only mortgages. Furthermore, the latter two are negative amortization loans.

[SD Realtor]

Actually in order to find the terms of the loans I would need to look at the notes which, while they are recorded documents, are not available for me on Realist. County recorder has them so I have no inclination to dig them up, you can if you like.

Also I know of many people who are very well off who USE I/O loans because they make a better return then the note. So why wouldn’t they do that? No they are not negaming but we have had very lengthy discourse about earning a better return then a mortgage so why tie up funds.

Also you are talking to someone who is way conservative and always errs on the side of a standard fully amortized fixed rate loan. However that is my taste.

610 has a single mortgage for 840k.
622 has one for 749k.
655 has one for 477k.
622 has an original for 551k and two others for a total of 400 since the original.
621 has one for 555.

Also most all interest only loans are a 30 yr amortized loan with a 10 yr I/O period. At 6% this payment is 3410 not 3000. Second this would be a jumbo loan so that 6% rate would not happen, it would be more along the lines of 6.5% so now we are at 3694. Adding on another 600 a month for property tax and now we are at 4294 for simply Interest and taxes.

Not so sure how livable this is for Joe Blow as we have not even purchased his homeowners insurance yet. By the way, the Mello Roos here is 3105 a year and another 119 a month for HOA. So now where you quoted 3k a month my figures are more along the lines of about 4700 a month.

So hmmm… we seem to have a discrepancy there.

*****************

Again, you can speculate all you want about how these people have financed the homes and whether they are Joe Blow median income types or not. Or whether this neighborhood is populated by those types. Personally I would envision this neighborhood to profile alot like some of the similarly priced neighborhoods in CV or 4S. Lots of engineers, or similarly salaried professionals, perhaps even a few dual income types, pulling in a minimum of 100k per household. That is just a guess.

My argument is not that it is not going to go down to 2003 levels esmith. It should… but will there be alot of opportunities and will it go well below the 03 levels? mmmmm… there will be some… I just am not as optimistic as some bears that there will be lots and lots of them. I think they will be scooped up by people who are not as stringent in thier criteria to buy. I am not saying those people are correct in buying… just that they are out there.

SD Realtor

[SD Realtor]

Actually in order to find the terms of the loans I would need to look at the notes which, while they are recorded documents, are not available for me on Realist. County recorder has them so I have no inclination to dig them up, you can if you like.

Also I know of many people who are very well off who USE I/O loans because they make a better return then the note. So why wouldn’t they do that? No they are not negaming but we have had very lengthy discourse about earning a better return then a mortgage so why tie up funds.

Also you are talking to someone who is way conservative and always errs on the side of a standard fully amortized fixed rate loan. However that is my taste.

610 has a single mortgage for 840k.
622 has one for 749k.
655 has one for 477k.
622 has an original for 551k and two others for a total of 400 since the original.
621 has one for 555.

Also most all interest only loans are a 30 yr amortized loan with a 10 yr I/O period. At 6% this payment is 3410 not 3000. Second this would be a jumbo loan so that 6% rate would not happen, it would be more along the lines of 6.5% so now we are at 3694. Adding on another 600 a month for property tax and now we are at 4294 for simply Interest and taxes.

Not so sure how livable this is for Joe Blow as we have not even purchased his homeowners insurance yet. By the way, the Mello Roos here is 3105 a year and another 119 a month for HOA. So now where you quoted 3k a month my figures are more along the lines of about 4700 a month.

So hmmm… we seem to have a discrepancy there.

*****************

Again, you can speculate all you want about how these people have financed the homes and whether they are Joe Blow median income types or not. Or whether this neighborhood is populated by those types. Personally I would envision this neighborhood to profile alot like some of the similarly priced neighborhoods in CV or 4S. Lots of engineers, or similarly salaried professionals, perhaps even a few dual income types, pulling in a minimum of 100k per household. That is just a guess.

My argument is not that it is not going to go down to 2003 levels esmith. It should… but will there be alot of opportunities and will it go well below the 03 levels? mmmmm… there will be some… I just am not as optimistic as some bears that there will be lots and lots of them. I think they will be scooped up by people who are not as stringent in thier criteria to buy. I am not saying those people are correct in buying… just that they are out there.

SD Realtor

[SD Realtor]

Actually in order to find the terms of the loans I would need to look at the notes which, while they are recorded documents, are not available for me on Realist. County recorder has them so I have no inclination to dig them up, you can if you like.

Also I know of many people who are very well off who USE I/O loans because they make a better return then the note. So why wouldn’t they do that? No they are not negaming but we have had very lengthy discourse about earning a better return then a mortgage so why tie up funds.

Also you are talking to someone who is way conservative and always errs on the side of a standard fully amortized fixed rate loan. However that is my taste.

610 has a single mortgage for 840k.
622 has one for 749k.
655 has one for 477k.
622 has an original for 551k and two others for a total of 400 since the original.
621 has one for 555.

Also most all interest only loans are a 30 yr amortized loan with a 10 yr I/O period. At 6% this payment is 3410 not 3000. Second this would be a jumbo loan so that 6% rate would not happen, it would be more along the lines of 6.5% so now we are at 3694. Adding on another 600 a month for property tax and now we are at 4294 for simply Interest and taxes.

Not so sure how livable this is for Joe Blow as we have not even purchased his homeowners insurance yet. By the way, the Mello Roos here is 3105 a year and another 119 a month for HOA. So now where you quoted 3k a month my figures are more along the lines of about 4700 a month.

So hmmm… we seem to have a discrepancy there.

*****************

Again, you can speculate all you want about how these people have financed the homes and whether they are Joe Blow median income types or not. Or whether this neighborhood is populated by those types. Personally I would envision this neighborhood to profile alot like some of the similarly priced neighborhoods in CV or 4S. Lots of engineers, or similarly salaried professionals, perhaps even a few dual income types, pulling in a minimum of 100k per household. That is just a guess.

My argument is not that it is not going to go down to 2003 levels esmith. It should… but will there be alot of opportunities and will it go well below the 03 levels? mmmmm… there will be some… I just am not as optimistic as some bears that there will be lots and lots of them. I think they will be scooped up by people who are not as stringent in thier criteria to buy. I am not saying those people are correct in buying… just that they are out there.

SD Realtor

[SD Realtor]

Actually in order to find the terms of the loans I would need to look at the notes which, while they are recorded documents, are not available for me on Realist. County recorder has them so I have no inclination to dig them up, you can if you like.

Also I know of many people who are very well off who USE I/O loans because they make a better return then the note. So why wouldn’t they do that? No they are not negaming but we have had very lengthy discourse about earning a better return then a mortgage so why tie up funds.

Also you are talking to someone who is way conservative and always errs on the side of a standard fully amortized fixed rate loan. However that is my taste.

610 has a single mortgage for 840k.
622 has one for 749k.
655 has one for 477k.
622 has an original for 551k and two others for a total of 400 since the original.
621 has one for 555.

Also most all interest only loans are a 30 yr amortized loan with a 10 yr I/O period. At 6% this payment is 3410 not 3000. Second this would be a jumbo loan so that 6% rate would not happen, it would be more along the lines of 6.5% so now we are at 3694. Adding on another 600 a month for property tax and now we are at 4294 for simply Interest and taxes.

Not so sure how livable this is for Joe Blow as we have not even purchased his homeowners insurance yet. By the way, the Mello Roos here is 3105 a year and another 119 a month for HOA. So now where you quoted 3k a month my figures are more along the lines of about 4700 a month.

So hmmm… we seem to have a discrepancy there.

*****************

Again, you can speculate all you want about how these people have financed the homes and whether they are Joe Blow median income types or not. Or whether this neighborhood is populated by those types. Personally I would envision this neighborhood to profile alot like some of the similarly priced neighborhoods in CV or 4S. Lots of engineers, or similarly salaried professionals, perhaps even a few dual income types, pulling in a minimum of 100k per household. That is just a guess.

My argument is not that it is not going to go down to 2003 levels esmith. It should… but will there be alot of opportunities and will it go well below the 03 levels? mmmmm… there will be some… I just am not as optimistic as some bears that there will be lots and lots of them. I think they will be scooped up by people who are not as stringent in thier criteria to buy. I am not saying those people are correct in buying… just that they are out there.

SD Realtor

[SD Realtor]

Actually in order to find the terms of the loans I would need to look at the notes which, while they are recorded documents, are not available for me on Realist. County recorder has them so I have no inclination to dig them up, you can if you like.

Also I know of many people who are very well off who USE I/O loans because they make a better return then the note. So why wouldn’t they do that? No they are not negaming but we have had very lengthy discourse about earning a better return then a mortgage so why tie up funds.

Also you are talking to someone who is way conservative and always errs on the side of a standard fully amortized fixed rate loan. However that is my taste.

610 has a single mortgage for 840k.
622 has one for 749k.
655 has one for 477k.
622 has an original for 551k and two others for a total of 400 since the original.
621 has one for 555.

Also most all interest only loans are a 30 yr amortized loan with a 10 yr I/O period. At 6% this payment is 3410 not 3000. Second this would be a jumbo loan so that 6% rate would not happen, it would be more along the lines of 6.5% so now we are at 3694. Adding on another 600 a month for property tax and now we are at 4294 for simply Interest and taxes.

Not so sure how livable this is for Joe Blow as we have not even purchased his homeowners insurance yet. By the way, the Mello Roos here is 3105 a year and another 119 a month for HOA. So now where you quoted 3k a month my figures are more along the lines of about 4700 a month.

So hmmm… we seem to have a discrepancy there.

*****************

Again, you can speculate all you want about how these people have financed the homes and whether they are Joe Blow median income types or not. Or whether this neighborhood is populated by those types. Personally I would envision this neighborhood to profile alot like some of the similarly priced neighborhoods in CV or 4S. Lots of engineers, or similarly salaried professionals, perhaps even a few dual income types, pulling in a minimum of 100k per household. That is just a guess.

My argument is not that it is not going to go down to 2003 levels esmith. It should… but will there be alot of opportunities and will it go well below the 03 levels? mmmmm… there will be some… I just am not as optimistic as some bears that there will be lots and lots of them. I think they will be scooped up by people who are not as stringent in thier criteria to buy. I am not saying those people are correct in buying… just that they are out there.

SD Realtor

[Eugene]

Also most all interest only loans are a 30 yr amortized loan with a 10 yr I/O period. At 6% this payment is 3410 not 3000. Second this would be a jumbo loan so that 6% rate would not happen, it would be more along the lines of 6.5% so now we are at 3694.

You’re using current rates, but 2003 was a bit different. National average rates for 5/1 IO ARMs were around 4.5%, jumbo or not. 682000 * 0.045 / 12 = $2557. Less if you have a down payment. Total housing payments (mortgage/insurance/etc.) on the order of $3600/month.

Lots of engineers, or similarly salaried professionals, perhaps even a few dual income types, pulling in a minimum of 100k per household.

In 2005, median household income of 92024 was around $77k.

[Author]

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