[bearishgurl]

[quote=ocrenter]4S and SEH is perfect for middle class families that put good schools on top of their list. $400-$600K range is what 4S/SEH homes should be at. Essentially, we are looking at folks that make around combined $125k range.

If you are in brackets over that, it isn’t your cup of tea.

The problem of course is the bubble pushed the prices beyond the $600k barrier even though the houses remained in that $400-$600k quality. Especially the north side where the houses are even more tightly packed in as the builders hurried to jam in homes as the bubble was ready to pop.[/quote]

ocrenter, is $400-$600K currently what the average listing price range is in 4S and SEH? And if a typical lot in this price range is only, say, 3800 sf, what size is the house, can a mid-size car fit in the driveway w/o hanging over the sidewalk and what would be its typical list price of today?

[bearishgurl]

[quote=CA renter]Sure hope you’re right, BG. Unfortunately, from some of the stories I’ve heard, treehugger might be right, too.

Sorry you have to hear stories like that, treehugger, but am glad to hear that you were able to get your already-affordable payments reduced further![/quote]

CAR, if you’re referring to principal reduction or cramdown, I haven’t yet heard of any underwater homeowners being successful with that, outside of “loan forgiveness” thru short-selling and taking the hit to their credit or a jr lienholder being wiped out in a non-judicial foreclosure.

[bearishgurl]

Chula Vista has a population of 273K in 5 zip codes. I’m not sure where you’re referring to here.

I can’t give you any background until I have more specifics, Josh. And if you are buying “investment property” why is your main concern “demographics, schools and crime rate?” ALL of the city is safe in these respects and all of the schools are good and some are excellent. About half the tenants in Chula Vista don’t have any kids or their kids are adults. All the tenants I know in Chula Vista grew up within 5 miles of where they are currently renting.

If I was looking at investment property, I would be focused on the amount of rent it would fetch and what it would take in rehab/repair costs to fetch a particular amount of rent on a consistent basis and what my target tenant audience would be for that property. “Demographics, schools and crime rate” would not be my primary concern. Those things are the concern of the prospective tenant, IF they wish to concern themselves with them.

I don’t know if you have ever been a landlord, Josh, but you can’t legally choose a tenant based solely upon their demographic or family makeup. Rental investments are businesses.

[bearishgurl]

[quote=Clifford] . . . – Bel Etage vs. Ivy Gate

I first view homes in Bel Etage in 2006 & I liked them a lot. But the new developments that were built in that areas since 2006 concern me. Del Norte HS, Del Sur, new shoppping center … will increase the traffic & noise level. Bel Etage used to be a peaceful gated community. I doubt that I will stay that way for long.

When I viewed Ivy Gate in 2006, it was full of buyers who bought at the peak. Many of the owners were realtors whose incomes plummeted along with the real estate market. Some of the houses lack landscaping b/c the owners stretched to buy. Some other languished on the markets for a long time. Some were listed as rentals b/c the owners couldn’t sell them….

In the long term, the “financially shaky owners” in Ivy Gate will make way for other owners who buy at lower prices through foreclosures/short sales. ….[/quote]

I rest my case….

Eve, if you don’t like what’s on offer here, you can always encourage your spouse to start interviewing for jobs in TX! The ENTIRE STATE is full of properties just like what you are seeking …. at 1/3 to 1/4 of the price!!

G’nite y’all ….

[bearishgurl]

[quote=kcal09]I suspect that these central locations are: 1) not the most popular locations for families, 2) many of the homes were bought as “investment properties” with little or no money down.
Look at coastal properties where the values have dropped much less.[/quote]

I suspect that the values in the areas that are the subject of the OP here have been hit VERY hard of late since the vast majority of them were and are:

-purchased during slightly before and during the height of the “millenium boom”

-over-encumbered with up to 40 years of exorbitant MR

-encumbered by HOAs with often pricey dues

-bought with little or no money down

-bought with subprime and I/O mortgages

-popular with “families?” Why exactly??

-buyers soon realized after moving in that they were actually living in a “fishbowl” and their daily commute was much longer than they imagined it would be.

The OP here asked for suggestions. She(?) apparently didn’t understand why she wasn’t finding 3000+ sf single-story homes situated on ample lots in the places she was looking in. The answer is very simple. She is looking in the wrong areas for them :=]

And btw, ALL of those areas I mentioned which are ALL more “conveniently located” than the “new-construction” areas mentioned in the OP are full of “families,” lol…

[bearishgurl]

$610K would now be a “jumbo” loan. How can you now get a $610K conventional loan at 4.85%? If you can, why refinance at all and pay closing costs?

Your interest rate is not that bad, considering the size of your mtg, IMO.

I would think the closing costs would be too high on an FHA refinance. Are you SURE your property will appraise for $850K (just under 72% LTV)? The FHA program now charges exorbitant up front and monthly MIP for mtgs where the LTV is higher than 78%.

If the FHA ceiling DOES get raised again, I guess you could have an FHA appraisal done and find out for sure for a few hundred.

As of last week, the current FHA 30-yr rate was just over 4%

All HELOCs have adjustable rates, mostly tied to the prime rate. You will be at that lender’s mercy if rates skyrocket. Not sure if annual caps are built into them but I don’t think so.

If I were in your shoes, I would leave well-enough alone (at least for the time being) but that’s just me.

[bearishgurl]

[quote=Eve]…I have a feeling anything coastal would be way too expensive for a one leveler of 3500+ sq feet.[/quote]

Eve, off the top of my head, I can think of two conveniently-located tracts with exactly the types of one-story houses you are looking for on 1/3 to 2/3 AC lots. They are both located in South County, however. Both are about 20 years old and in each tract, the one story model you are referring to here rarely comes on the market. Neither are as expensive than the price range you are discussing in your OP. The distances to downtown SD are 14 and 17 miles. The northernmost tract (3 mi east of the bay) has no MR and the southernmost tract (5 mi east of the bay) has about 10 years of MR bonds left to pay.

There are also many 3000+ one-story sf “customs” or gut/remodel ranch houses located in the City of SD and also East County and a few in Chula Vista (on 8000 sf to 1 AC lots). However, they are older construction with no MR. Less than 10% (City of SD) are encumbered by HOA’s. Many of these properties have been completely gutted and remodeled over the years, the vast majority with architectural supervision. A handful have “vintage” amenities such as central vac, brass intercom, built in breadbox and spice grinder and pizza/bread oven built into the back of the FP (of the mid-century era).

Only ONE tract I can think of (referred to above) is “gated” (City of SD).

If you are only looking in newer tracts in “new-construction exurbia,” that’s why you’re not finding convenient locations, IMHO. There are several ways to get to Poway fast. Have you considered San Diego Country Estates in Ramona? Those (terraced) streets have the one-story square footage you are looking for and all have generous lots. This development is 1-3 miles from all amenities and most of it is approximately 10-20 years old.

As to Poway, I have a friend who used to own in “Palisades,” a tract of one-story-only homes. She had purchased a 3000+ sf property on about 1/3 (flat) AC (not as large of lot as the 1 AC lot shown in this video I found when I just now googled “Palisades Poway”).

http://www.youtube.com/watch?v=6OZUKZ8ocHQ

Here’s another model, which had the same view out the back as my friend’s house:

http://www.youtube.com/watch?NR=1&v=eqUzO5HTsqU

I went to party of at least 60 people there once and it was a VERY comfortable gathering as the homes are oriented towards the rear with multiple sliding doors facing the patio. My friend purchased it new for $280-$285K about 20 years ago, IIRC and installed a beautiful large mahogany built-in library in the family room. Have you considered this smallish tract, Eve? I’m not certain, but I don’t think it had MR (if it did, it might be pd off by now).

Eve, if you can get “new construction” out of your mind and consider older areas, you will open up a world of suitable possibilities for yourself, IMO. Who CARES if some of these older properties are a bit more expensive if you will be saving yourself driving time, landscaping and window covering costs and 40 years of MR? In SD County, location is the primary driver of prices and you pay for exactly what (and WHERE) you get (and can easily get duped into paying too much for an inferior location), ESPECIALLY when purchasing new construction.

Why is this?? All the best and most convenient locations were built on many years ago :=]

[bearishgurl]

[quote=treehugger]…I told him there were programs that might be able to help. He ended up qualifying. His monthly payment has been reduced from close to $5000 down to $2100. I have just refinanced for the 2nd time . . . If I talk about how excited I am about lowering my monthly payment he chimes in with “oh I just lowered my monthly payment too, my 2nd just got reduced”. . .[/quote]

treehugger, even though your co-worker claims to have gotten his “2nd” reduced, what he very likely means is that he got his payments reduced on his “2nd.” A mod is only a change in terms of his loan. He very likely could now have a 40 year mtg on his 1st TD and got the interest rate only lowered on his “2nd.” If you are able to engage him in conversation to delve further into the matter, you will likely find out he is still very much underwater and will only be making a minuscule dent on his principal in both mtgs.

It is also possible that both his mods are I/O only for a period of time, thus he wouldn’t currently be paying down their principals at all.

So what if he “gets” to live in a LC condo for around $2100 mo. This likely does not include taxes and HOA dues and his taxes likely have some MR in them, as well. With a 40 yr mtg, he will not be able to build equity fast enough so cannot sell for a good many years (and possibly never) without his lender selling VERY short and his credit taking a BIG HIT!

How is your co-worker “making out” better than you? IMHO, it seems like he is nothing but a lifelong tenant who can’t even move without finding a reliable tenant OR letting his credit go to sh!t! And it is VERY possible that the terms of his mods prevent him from turning the unit into a rental.

And even if RE prices skyrocket in the next ten years, he may also have quite a bit of “deferred interest” built up on his lender’s books by the time of sale (due to the mod), which will undoubtedly be called in on their demand in escrow :=0

More often than not, all is not as rosy at it appears on the surface.

If you are still working together in 2-3 years, talk to him again then and see if he is still “bragging” about his “loan mod,” lol . . .

[bearishgurl]

[quote=svelte]…
So which is it? Should we know about his sex life or not? Cain apparently wants us to know.

It is clear to me that he did do some slap and tickle with her, but I think there is nothing wrong with that as long as his wife is okay with it happening. I’ll be very interested in her reaction once this affair is proven – and I do think it will be proven.[/quote]

I saw this yesterday as well. I feel that it is entirely possible that Cain’s spouse was “okay” with the “Ginger” affair . . . at the time it was presumably taking place.

Stranger things have happened…

[bearishgurl]

[quote=sdrealtor]tugg
Dont worry about back RE taxes. They are a lien against the property and escrow/title wont let it close unless they are paid up to the close of escrow date on a pro rata basis[/quote]

Understand this but wonder if tugg will be asked to raid his “tip jar” again before COE in order to assist with this endeavor :=0

[bearishgurl]

I understand now, tugg. A VA deal makes sense in Salinas, as does a 10 yo 3000+ sf SFR on a large lot situated within an HOA … for ANY price.

I’m sure you’re aware that in Monterey proper the land there is far more valuable than Salinas … and the housing stock there is older than possibly 90% of Salinas’ housing stock and thus not encumbered by MR and there are very few (if any) SFR HOAs there. Thus, the differences you mentioned (which will always be so). One city is coastal and the other is not.

When you mentioned you were purchasing in “Monterey” in your http://piggington.com/375_no_points thread, I wondered how you found a “seller” to accept a zero-down VA offer (esp approved by a lender selling short) in Monterey.

In any case, whatever “magic” you or your agent pulled out of a hat to get your “seller” out of there can be resurrected now to get her to MOVE her stuff out promptly, as well ;=)

Congrats again on your purchase, tugg and I sincerely hope you are not left holding the bag on any back taxes and/or HOA dues and that you will be able to close by the holidays!

[bearishgurl]

[quote=flu][quote=outtamojo]Just curious but are all those nurses…Filipino?
Btw, I hail from North Salinas, planning to do the opposite of what you are doing.[/quote]

WTF? We’re talking Monterey here….Not Monterey Park….[/quote]

tugg49 wasn’t too specific . . . we might be talking about Salinas and surrounds . . . which has mushroomed from a sleepy agricultural town 10-12 years ago (with mainly lettuce processing and packing for its chief industry) to exurbia extraordinaire replete with factory outlets and (HOA/MR – encumbered) flat tract after flat tract as far as the eye can see . . .

One can only imagine the RE distress in the Salinas area now, since the vast bulk of its properties were originally purchased new during the “millenium boom” and there is NOT a very diversified job base around there.

Salinas and Monterey are night and day. They may be located within the same county but comparing these two small cities would akin to comparing LJ or LaPlaya (PL) to Campo :=D

And neither could be compared to Monterey Park, lol…

[bearishgurl]

[quote=tugg49]I’ve offered to buy her furniture as the story in case flags are raised…[/quote]

tugg, if you offered to “buy her furniture” (give her a check outside of escrow??), then why hasn’t she filled out any rental applications so she can vacate? Do you have a “side written agreement” to pay her this $$ upon COE? Is she afraid you won’t pay her for the furniture?

And since your seller is employed in a “professional” position, why is it that she “can’t afford to move?” This is a HUGE RED FLAG, IMHO. She must have creditors hounding her that you don’t know about and may even be considering filing for BK, if she hasn’t already SINCE you received your preliminary title report…

[quote=tugg49]…Realtor (buyer/seller agent) wants to negotiate a deal. (He’s taking a beating with a 3% commission for this 8 month saga)…[/quote]

LOL, how many MONTHS AGO did you approve the PTR in this transaction??

edit: having a “Dual Agent” is part of the problem here, IMO…

[bearishgurl]

[quote=bearishgurl]. . . Even though on an “expedited UD calendar,” it IS expensive to evict, and tugg may very well have to begin paying mtg payments while she is forcibly evicted and her stuff is properly stored by law, waiting for her to claim it.[/quote]

The above italicized portion only applies to tenancy. tugg would have to have a written agreement to allow the seller to rent back after escrow in order for the “storage clause” to be invoked.

If she was forcibly evicted after escrow closes, I have no doubt tugg would have to make a few trips to the dump with her stuff, etc. After all, it’s a “large” house…

[bearishgurl]

[quote=flu][quote=SD Realtor]If you really love the place then why not simply close escrow and then evict the seller. The eviction process is not a walk in the park but this person may take your blood money and still not move out.
[/quote]

Wouldn’t there possibly be an issue if she trashes the place while waiting…Even if you drag her stupid ass to court, she wouldn’t have money to pay…[/quote]

I continue to maintain that tugg is entitled to a final walk-thru of the property within 48 hours of closing. If the seller accepted his offer with the express condition that the property be delivered to him vacant, then it better damn well be vacant and in the same condition as it was when he wrote the offer (with no appurtenant fixtures stolen or destroyed) at the time of his walk-thru. Anything else is a seller-breach and tugg doesn’t have to close. He could later try to sue her in small claims for his escrow losses on this breach. She IS employed and so if he gets his ($3K or so) judgment against her, he can have her employer served in attempt to assign her wages. Given the small size of that community, it won’t be difficult to find out where she works.

He needs to go on the walk-thru with at least one witness (preferably his agent) and a date/time stamped camera.

Even though on an “expedited UD calendar,” it IS expensive to evict, and tugg may very well have to begin paying mtg payments while she is forcibly evicted and her stuff is properly stored by law, waiting for her to claim it.

[Author]

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