[Duck]

First off, I don’t know much about Santaluz other than driving by it on the way to soccer games, but there are some delusional sellers in there and many already in trouble. A quick search showed an active/pending ratio of 11 to 1 (76 actives) which is a huge discrepancy. 2 of the 7 pendings are bank owned. Only one pending sale is over $1,750,000 but about 30 active listings are over $1,750,000. I’m not sure how many homes are actually in the community, but if it’s less than 2,000 that’s a lot of homes for sale. Just about every listing is offering some incentive like paying Mello Roos and membership fees for 2 or 3 years. How about just dropping your price $100k or 200k? The one listing with a $10k Cartier shopping spree in Beverly Hills for the selling agent is very nice. I’m sure they’ll disclose that to the unsuspecting buyer if they ever find one.

It looks like there was a huge runup in 2003 and 2004 (like elsewhere), but some were just crazy. There was a small one story that was flipped for a $300k gain in about 6 months and the orignal purchase was in the 600’s.

I expect a lot more inventory in the Fall and Spring ’08 when the next tax bills come. Again, I don’t know anything about this community, but it seems due for a big hit. Supply and demand.

[Duck]

I do know their taxes, HOA, Mello Roos and then club membership is huge, but I think most of those buyers knew what they were gettting into. On a $1.5mm house I believe you were lookng at nearly $30,000 per year in all those extras if you wanted just a social membership at their clubhouse. I’ll check into some NOD’s and NOT’s in that area later this week and see if there’s much activity.

[Duck]

I do know their taxes, HOA, Mello Roos and then club membership is huge, but I think most of those buyers knew what they were gettting into. On a $1.5mm house I believe you were lookng at nearly $30,000 per year in all those extras if you wanted just a social membership at their clubhouse. I’ll check into some NOD’s and NOT’s in that area later this week and see if there’s much activity.

[Duck]

Looks like there is $1.7 MM in loans with a $1.5mm first and 200k second or HELOC. It doesn’t show up as being a NOD yet so maybe they have worked something with the lender.

[Duck]

Looks like there is $1.7 MM in loans with a $1.5mm first and 200k second or HELOC. It doesn’t show up as being a NOD yet so maybe they have worked something with the lender.

[Duck]

Oh, one other thing as someone mentioned how close people put their bigscreens. The recommended min. distance is 1.5 screen size for HDTV. So that’s 7.5 feet for a 60 incher. Again that’s for a 16:9 TV broadcasting in HD. I have to laugh at how many people buy these big TV’s and don’t bother getting HD boxes for them. Regular TV actually looks worse on them. I went to a Super Bowl party 2 years ago and didn’t have the heart to tell the guy his picture looked awful.

[Duck]

Oh, one other thing as someone mentioned how close people put their bigscreens. The recommended min. distance is 1.5 screen size for HDTV. So that’s 7.5 feet for a 60 incher. Again that’s for a 16:9 TV broadcasting in HD. I have to laugh at how many people buy these big TV’s and don’t bother getting HD boxes for them. Regular TV actually looks worse on them. I went to a Super Bowl party 2 years ago and didn’t have the heart to tell the guy his picture looked awful.

[Duck]

I prefer LCD myself because the Plasma’s seem to give off too much glare during the day. It’s hard to watch TV in regular defintion after watching HDTV. I prefer to think of it as an educational investment as I’ve watched specials on the Discovery Channel with my kids featuring penguins, bald eagles, glaciers, rain forests and tree frogs instead of whatever I used to watch. Don’t get me started on sports. Hockey is even watchable in High Def.

[Duck]

I prefer LCD myself because the Plasma’s seem to give off too much glare during the day. It’s hard to watch TV in regular defintion after watching HDTV. I prefer to think of it as an educational investment as I’ve watched specials on the Discovery Channel with my kids featuring penguins, bald eagles, glaciers, rain forests and tree frogs instead of whatever I used to watch. Don’t get me started on sports. Hockey is even watchable in High Def.

[Duck]

I have two relatives that apparently had been following this kook’s advice for several years and not paying taxes. They are now both in a world of hurt since the IRS has finally caught up to them.

[Duck]

I have two relatives that apparently had been following this kook’s advice for several years and not paying taxes. They are now both in a world of hurt since the IRS has finally caught up to them.

[Duck]

So about 80% of these resets are subprime? Looks like the lower end will continue to get hammered. Of course the reset schedule doesn’t really tell you too much. Were these mostly for new purchases or were these re-fi’s on a home someone owned for 20 years in Detroit where they needed to take the equity out of their house to pay off some bills after getting laid off?

Personally I put very little faith in the accuracy of any charts from lending institutions. I sold a home I had an ARM on nearly a year ago and I still get mailers from lenders asking me to re-fi it even though it had been paid off and the reconveyance recorded. The loan was never close to resetting, but I kept getting these “notices” about how my payment was going to skyrocket. I finally called one lender and asked him where he was getting his info. from because it was wrong. He had no answer and said he was just a telemarketer doing his job. That’s the current state of mortgage brokering. Pay some kid $8/hour to try to hook some fish.

[Duck]

So about 80% of these resets are subprime? Looks like the lower end will continue to get hammered. Of course the reset schedule doesn’t really tell you too much. Were these mostly for new purchases or were these re-fi’s on a home someone owned for 20 years in Detroit where they needed to take the equity out of their house to pay off some bills after getting laid off?

Personally I put very little faith in the accuracy of any charts from lending institutions. I sold a home I had an ARM on nearly a year ago and I still get mailers from lenders asking me to re-fi it even though it had been paid off and the reconveyance recorded. The loan was never close to resetting, but I kept getting these “notices” about how my payment was going to skyrocket. I finally called one lender and asked him where he was getting his info. from because it was wrong. He had no answer and said he was just a telemarketer doing his job. That’s the current state of mortgage brokering. Pay some kid $8/hour to try to hook some fish.

[Duck]

I think it’s curious that one post against the norm on this site gets the #1 spot in terms of responses with 98% being against the original poster. Reminds me of a certain mania 3 years ago.

Hmmmmm.

[Duck]

I think it’s curious that one post against the norm on this site gets the #1 spot in terms of responses with 98% being against the original poster. Reminds me of a certain mania 3 years ago.

Hmmmmm.

[Author]

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