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no_such_reality
ParticipantIt is my Guess! I think may be she borrowed $89k in 2000. 9 months ago, she refinanced with higher loan or got the equity loan. But the reporter did not mentioned it and “How Much Money did she Cash Out?”.
That’s because it’s called an equity strip. It is a well know scam by people promising credit or foreclosure help.
The key is ” And her name is no longer on the title. ”
Someone else took the money out and left her with the bill.
March 27, 2007 at 10:25 PM in reply to: millionaires moving in keeping prices flat in high-end markets? #48598ParticipantCan I climb on a momentary soapbox.
Millionaires aren’t what they used to be. People think of millionaire and they envision Paris Hilton’s lifestyle, or maybe Donald Trump. Possibly Oprah or some Hollywood Megastar. In essence, these are the right model, no different than the millionaire status from the gilded era at the turn of the century.
Sadly, that really requires $25-$100 million or more to really obtain.
What’s the cold reality? Unless you want a pretty good chance of being broke in the next twenty years or so, you can’t count on your million to give you more than $50,000 a year adjusting for inflation. If you’re younger and want to live 30 or more years, that ability to withdraw is even lower, $40K or less.
Of course, $40,000 is just about what a mortgage, HOA and taxes will run you on a median SD condo with pristine credit and minimum down.
Woohoo! Let’s hear it for the millionaires. Someone let the UTC condo conversion people know they’ve got a new target market. Ah, financially independent living at it’s finest.
ParticipantHappy Renter,
Agree there’s lots of negative news. I agree the local SoCal RE market is going to take a dump. That news though, is already factored in on stocks like LEN and KBH. You see that in the 50% decline from high in mid 2005 on KBH. On LEN it’s 35%.
Half of the short interest covered last month. What they know is those stocks have been beaten down already. Slow growth, negative news is priced in. Short of imploding unexpectedly like New Century, their downside is more moderate. Since the like of the CEO of D. R. Horton have already proclaim 2007 is going to suck, anything short of total suckage is actually good news.
I personally wouldn’t be comfortable with a short where anything short of total suckage is a positive earnings surprise.
ParticipantNice pair of statements from RealtyTrac…
Most homeowners who enter the foreclosure process do not lose their homes, said Rick Sharga, vice president for marketing at RealtyTrac.“Of the properties that enter our database as initial notice of default, only 40 percent of them actually go to the auction,” Sharga said in an interview
That puts some perspective on just how motivated the sellers with NODs need to be. Given recent numbers, we already at looking at 15% or more of the monthhly sales being foreclosures.
ParticipantIf most investers sell short to one stock, what happen to that stock? It will go down.
Actually no. In the absence of serious negative news, short sellers, even massive ones, merely depress the upward motion. Unless the stock is fundamentally weak and produces disappointments with earnings, the short sellers by over selling set themselves up for a massive squeeze and explosive upside volatility.
Think 2003/2004 housing prices. When the shorts need to stop shorting, there’s inadequate volume to meet the demand in the market place.
ParticipantI agree, $200K won’t hold out there for non-prime properties or any property requiring work.
ParticipantJust in Toledo’s San Lucas county, there were 6000 sales last year, 7000 in 2005. Toledo Home Sales
Ohio is running at a 3.38% foreclosure rate, tops in the country.
I suspect that will continue to climb.
So funding 1000 homes isn’t a spit in the bucket, it’s larger, but not gravy blanket. In the end, the result will be same, but I think they are helping to make the prices stickier on the way down.
It’ll be interesting to see if the bonds have buyers. They’re muni’s, but if the economy worsens in auto-land, the state will be hard hit.
In Ohio, 6.75% may carry the day, homes at $200K are still affordable at the rate. That rate, wouldn’t save SoCal, it would still leave payments of $3500 or more for most buyers.
Hmm, a little closer look and maybe it is a spit in the bucket, 6.75% and a max 125% of median income…
In Columbus, the largest city, median household income was $48,475 in 2005. 125% of that is $60,500. Median family income in ohio is $60,800. I suspect many families aren’t going to make the cut.
ParticipantWow, LA/OC/SD lost over a quarter million domestic population.
Looks like a lot may have gone to the inland empire, but still, that’s a lot of people to lose in a year. In fact, roughly a 100,000 housing units worth of leaving. Roughly equal to the area home sales volume.
March 22, 2007 at 8:39 AM in reply to: Homeowners, Lenders Skirt Default, May Curb U.S. Housing Slump #48246ParticipantI say BS on the Article.
I’ve been watching ‘short sale’ claims for months. Guess what, the banks aren’t approving anything that basically doesn’t cover their loan.
What the banks are doing is delaying acknowledgement that the foreclosure wave is going to be big, and isn’t going to be just “sub-prime”. They’re jockeying for another quarter or two, maybe three of good stock prices before their book value and reserve gets crushed by having a load of REOs.
Right now, the media is blathering about sub-prime. Joe Sixpack is sitting at home thinking that isn’t him. When the foreclosures start roiling through all the neighborhoods, everybody will wake up and smell the coffee that sub-prime in reality is nextdoor, not just the ex-Ghetto.
ParticipantThe Resale are properties listed with an agent and thus on the MLS
What is their relationship to the foreclosure information though? That’s the part I don’t understand. OC inventory is way higher than 1828 listings.
ParticipantMore importantly, comparing Bloomfield Hills to les desirable areas is lax.
Bloomfield is Rancho Santa Fe.
ParticipantWhy not post an ad for rental wanted?
Set your target price at $1100 or $1000, proclaim 3 plus years current residency in unit and on time payments with no extraneous maintenance and see what private owners bite?
ParticipantThanks for the data Daisy, I’m interested in the OC/LA ones.
One quick question, what is the resale (w/agent) column? Is that from MLS, bank REO for sale via agent, or something else?
ParticipantTalk to a lawyer specializing in tenant law.
Depending on the terms of your lease, you may have some luck based on the refi’s occurring after your lease.
If you have no lease, stop paying future rent, find a new place and leave after May.
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