[North County Jim]

In my view, Pardee has simply decided to reduce the prices of their homes by about $75K (in today’s dollars). They could have done it in many different ways: simply reducing the list prices by $75K, or offering incentives worth the same amount, or offering to pay for Mello-Roos taxes, etc. $75K is $75K any way I look at it.

Exactly Daniel. This is not that hard to figure out. Pardee needed to cut prices and decided paying the MR was the best way to do it.

On a certain level, Pardee did the earlier buyers a favor. With a straight price cut, these would become the new comps, undoubtedly putting some of Mr. Busch’s neighbors underwater. With the MR discount, it’s a lot less transparent to a prospective buyer.

[North County Jim]

I guess that is *my* problem.

I just love the *my* bit. Right out of the bratty schoolgirl handbook. Did you roll your eyes when you wrote that?

Let’s see. You’ve alienated sdr and jim the realtor among others. You drove off docteur and now you insult the host.

Maybe, just maybe, it might be *your* problem.

[North County Jim]

I remember that a while back, people were ganging-up on powayseller for saying that millions WILL loose [sic] their homes.

Uh, no. If I recall, people were ganging up on PS because she predicted MOST Option ARM borrowers would lose their homes. That’s quite a difference, no?

I’m too lazy to search for the thread(s) in question. If someone (PC and PS come to mind) would like to resurrect the appropriate thread(s) where people were ganging up on PS, there are probably a few of us who would be casually interested in PS’s previous prognostications.

If my memory is in error, I’ll even throw in a mea culpa.

[North County Jim]

646 Edgewater is in Silver Crest.

1516 Clifftop should be added to the REO list very soon.

[North County Jim]

Steve,

We haven’t seen the inside. How bad is it?

BTW, this is the second listing on this place as an REO. It was discussed here back in May.

[North County Jim]

There is one foreclosure on the market there, where the original purchase included a 100% loan, and the lender is going to lose $200,000+.

Beebo,

Is that the one on Tara Way?

[North County Jim]

I’m a little surprised powayseller didn’t jump on the fact that he’s not a recent buyer of his home. He should have a nice equity cushion but has hit the house ATM a little too hard.

How many others are there like this guy? We all know many no-money-down recent purchasers are in trouble and they’re somewhat quantifiable.

Are there any figures out there that provide insight into the number of non-recent homeowners who have pissed away their equity?

[North County Jim]

Their politicians and bankers are extremely educated and have long term vision, so I trust they will make the best decision for their country.

Yes, those extremely educated, visionary Chinese leaders. They’ll do the right thing.

[North County Jim]

I’d allow giving at church to specific charitable causes to still be counted, but not those that pay pastor’s salaries, building and maintainence [sic] costs, etc.

Have you seen the palaces that many charities and non-profits call home? Go check out the national HQ for United Way or any of the environmental groups.

Have you any idea what the people running these outfits pay themselves?

Should donations to these groups be tax-deductible?

[North County Jim]

Thanks very much sdr.

[North County Jim]

sdr,

Is is possible to break down the inventory reduction? I think it would be illuminating to see how much of the reduced inventory is pending as opposed to withdrawn, cancelled or expired.

[North County Jim]

It seems to me most are missing the point here. The point has nothing to do with hearsay or moral hazards.

The point is that there are bankers out there who see what’s coming and are thinking about ways to mitigate the damage.

I think it’s important to note that how the lenders decide to handle their delinquent accounts will affect the market.

[North County Jim]

Very interesting. If this strategy is followed by a significant share of lenders, this would strike at the heart of the extreme bearish case for housing.

It also illustrates why prognostication is so difficult.

Is there anyone out there who has been anticipating such a move?

[North County Jim]

The house closed two weeks ago for $915k. Included in that number is a $35k credit to the buyer for closing costs and “loan organization”. So the effective selling price was $880k.

With a purchase price of $932k and at least $75k into it (we viewed the home, the backyard had some serious work done), the loss on this place was at least $175k. At least in this case, the seller could absorb it.

As for the buyer, 29 years old with a first and a second TD and an annual tax liability of $15k. The insanity continues.

[North County Jim]

Dr. Roubini defended me today on his blog.

In his defense of you, did he cite your “strong and witty” writing style?

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