This Old House Flip

REDC Breakdown

2008-03-31T19:46:00.000-07:00

Real Estate Disposition Corporation (REDC) sells real estate assets through the utilization of the auction marketing process. On April 12 in Del Mar over 200 properties (mostly foreclosures) will be auctioned off to the highest bidder.

You might be wondering if you can get in a home cheap? Let's take a closer look:

This property was sold new for $734,500 in Feb 2005. It is currently owned by Countrywide Bank and was sold at auction in Jan 2007 for $540,454.63 and was recently listed for on the MLS for $549,900 as of 1/30/2008.

With no buyer insight Countywide has turned to REDC to sell this property at auction.

How much is it worth?

There are currently 4 properties in near proximity that are currently being listed:

1090 MOUNT WHITNEY RD, 2950 sq ft, 5Br, 3Ba for $514,900

1069 MOUNT WHITNEY RD, 2860 sq ft, 5Br, 3Ba for $525,000

1074 MOUNT WHITNEY RD, 2860 sq ft, 5Br, 3Ba for $494,780

1445 AUTUMN HILLS DR, 2950 sq ft, 5Br, 3Ba for $450,000

So that about $170 /per sq ft on average or $457,000 for the house.

So just because the starting bid is $249,000 I would venture to say that Countrywide will not accept more than a 100K hit on this home. IMHO, I would venture that Countrywide will happily dump this money pit off their books for $450-475K.

New Website

2007-06-23T15:55:00.000-07:00

Please join me at my new website: sandiegohousingcrash.blogspot.com

Bob

Distrubing Data from CAR

2007-05-07T21:36:00.000-07:00

Remarks:

I am not a supporter of CAR, however even they can no longer deny the stench this market is emitting. Existing home sales are down more than 20% from last year even though interest rates are almost the same. This points to tightening lending standards and an increase in buyer IQs.

The median price is up (which I question), but this may be an indicator that sellers (want to go down with there ship) are stubborn in decreasing their asking price.

Nonetheless, we are heading for a train crash, both buyers and sellers are not moving from there positions, but I am betting that the greed of the sellers will get the best of them.

Stay tuned.......

2007-05-06T18:02:00.000-07:00

1515 LOKOYA DR, Chula Vista

List Price: $610,000 - $610,000

Remarks:

I don't think that this flipper thought his capital gains break (after 2 years) would be a huge capital loss of about a $140K. I'm sure you had someone telling you not to buy in '05, but you didn't listen, and thats why you are in my blog.

What, a $270K loss in Carmel Valley?....Are you sure?

2007-05-06T17:49:00.000-07:00

13506 MOONFLOWER MEADOWS TRL, SD - Carmel Valley

List Price: $620,000 - $670,000

Remarks:

Yes, the mighty have fallen! Even Carmel Valley is not immune to stupidity and hast. Do you think that this seller considered that hefty $10,600 tax burden associated with this house?

Live and learn my friend.........

727 Kirkwall Dr. San Marcos, List Price: $520,000

2007-05-06T17:31:00.000-07:00

Remarks:

Where do we start here? This seller is already taking over a $150K loss on this home (if he gets lucky), yet I have yet to see why this is a good deal.

At $520K the taxes and HOA add up to about $700 per month.

Put 20% down on this house and your mortgage payment is $2,500.

So thats $3,200 a month with no utility bills, no landscaping, no home insurance.........you get the point.

The lenders, the state, the flippers and the builders are all making money off stupid people who purchased homes in the last 5 -years.

Hold off your purchase another year or two and you will be rewarded!

Slippery Slope in SD County

2007-04-28T23:42:00.000-07:00

Latest DQNEWS.com data is definately pointing towards a downward trend in the county, however some areas have been hit harder than others. New SFR and condos prices in North County have dropped at least 25% from last year. This will spread all over the county and eventually to Orange, LA and Ventura Counties, just like the late 1980's and early 1990's.

$100K+ loss in Carlsbad

2007-04-28T23:24:00.000-07:00

3580 Gorge Pl
Carlsbad, CA 92010

Remarks:

Facing a potential $100K + loss in 20 months is only fair when you are foolish enough to buy at the top of the market but rest assured you will not be the only one.

A flippers worst nightmare.....$500K Loss

2007-04-28T21:07:00.000-07:00

3026 Don Rolando
Escondido, CA 92025

Remarks:

$500K hit in 14 months, enough said. Let this be a lesson to you greedy flippers still holding on for a miracle.

Point Loma Flipper Asking for the World

2007-04-08T21:48:00.000-07:00

2841 E Bainbridge Rd, Point Loma

Remark:

This flipper is looking for some sucker to take this townhouse-looking POS off his hands and make him a potential $500K profit in 3 years.

I would not pay anything over 650K for this house. This flipper is in for a long drop down. But thats OK I like watching fools get calibrated the hard way.

-Bob

Mira Mesa Flipper Facing $110K Loss

2007-04-08T21:17:00.000-07:00

Remarks:

This beauty was purchased in 2005 for $560K, it is currently listed for $489K and has been listed for 96 days. At, 1855 sq ft it is listed for $264 per sq ft. IMHO a $180-200 per sq ft is more than fair. That would put this home at $334K to $371K.

Purchased in 1989 for $165K at 3% inflation through 2007 would price this home at $281K. Facing a potential $110K loss this flipper is looking at bigger losses down the road if he holds on to yesterday.

-Bob

Is $579K in Penasquitos a good deal?

2007-04-01T21:04:00.000-07:00

Remarks:

With an asking price of $579K this may be tempting in todays market, but when you disect the numbers and plot the history of this home, you quickly find out the next buyer (even at $579K) will be in for a rude surprise.

From 1988 to 1997 the rate of appreciation was about 3% per year, which is on pace with inflation. From 1997 to 2007 the rate of appreciation was about 18% per year. Not only is it unjustified it quite criminal.

That $175K home in 1988 with 3% inflation per year should be worth about $310K today, which looking at the house is quite reasonable.

Your Thoughts?

"Save Me" -- Chula Vista flipper

2007-03-26T23:07:00.000-07:00

Remarks:

This flipper is looking at over a $180K loss in less that 19 months. Do I have any volunteers to take this POS off his hands. .....I thought not so we'll have to wait until it hits $500K.

I still don't understand how anyone can buy any house in Chalupa Vista for $900K????

Clarsbad flipper running out of time

2007-03-25T20:57:00.000-07:00

Remarks:

Yet another flipper looking at a $150K loss in 19 months. Stupid is as stupid does!

Prediction:

Will get some looks at $600-639K

Rancho Bernardo flipper not amused

2007-03-25T20:22:00.000-07:00

Remark:

9 months ago this flipper thought he could squeeze another drop of profit from this house. Unfortunately he is looking at a $150K loss in 9 months.

This may be harsh but this is the only way we can get rid of these vermon-like flippers that inflict their greed upon hard working Americans.

Prediction:

Will get some looks under $700K

Forclosures Surge

2007-03-18T20:55:00.000-07:00

dqnews.com

Remark:

I don't think our friend from Rancho Bernado is paying attention......

Myopia inflicts Rancho Bernado Flipper

2007-03-18T20:42:00.000-07:00

Remarks:

I think this flipper is suffering from myopia (Lack of discernment or long-range perspective in thinking or planning). He acutally believes that his home appreciated from $1,092,595 in 12/2005 to $1, 649,000 15 months later.

First, you waaaaaaaaay overpaid for your house! We should get on you knees and start to pray that some sucker will give you what you paid for it. Next, the listing price is a insult to the buying public, you should be ashamed of yourself!

Potential $200K loss for downtown condo flipper

2007-02-26T19:45:00.000-08:00

Remarks:

Ouch!

San Diego company revises its formula

2007-02-24T14:25:00.000-08:00

By Roger Showley
UNION-TRIBUNE STAFF WRITER

February 15, 2007

DataQuick Information Systems, the San Diego company that collects information on home sales in nearly all markets across the country, has adjusted the way it computes its widely watched reports on median home prices.

The result will be revised calculations for housing prices and sales volume in all markets surveyed by DataQuick – including San Diego – going back to 1988, said DataQuick analyst John Karevoll.

Karevoll said the revisions should not greatly change previously reported price figures, which are closely followed by the real estate industry, as well as by homeowners, and are published in many newspapers. The changes will be less noticeable for prices that have been reported for individual ZIP codes.

Starting with January's DataQuick reports – released yesterday for Southern California – the new methodology will capture about 10 percent more transactions than previously reported.
The firm previously computed median prices for states, regions and counties based on a weighted average of medians first calculated for each ZIP code within the category.
Under the new system, the overall median for each geographic area will be calculated from all transactions within each group and not derived from a median price established for each ZIP code.

“For commercial uses we've been doing this methodology for three or four years,” Karevoll said. “What we'd like to do is get numbers put out in the public domain that are in sync with what we sell to banks.”

Going back to 1988, the change is relatively slight, with some areas a little higher than previously reported and others a little lower. Individual ZIP code prices remain unchanged unless additional transactions with known prices have been added since the initial reports.
In San Diego County, last year's overall median originally was reported at $490,000, down from $494,000 in 2005. The new calculations placed both figures at $500,000, meaning there was no change between the two years.

With the new methodology, last year still marked the first time since 1995 that there was not been a year-over-year increase in prices locally.

For single-family resale houses, which make up about half of all transactions, the original median reported $549,000 for 2005 and $554,000 for 2006. The revised numbers are $555,000 for both years.

The condominium resale medians in 2005 and 2006 originally were set at $392,000 and $390,000, respectively. In the new calculation only the 2005 figure changed, to $395,000.
The median for new homes – houses, condos and condo conversions – originally was set at $476,000 in 2005 and $444,000 in 2006. The revised figures were adjusted down to $473,5000 and $439,500, respectively.

Karevoll said there continues to be a gap in information reported at the ZIP code level.
Now the number of sales reported by the firm reflects all transactions, whether the price is known or not. The median price is necessarily based only on the properties for which there is a known price. The median is the midway point among all sales, with half above and half below that level. In a few cases, the location of the home also is not known by DataQuick, so the ZIP code of the mailing address for the property tax bill is assumed to be the site of the home.
If a transaction involves more than one home, Karevoll said each home will be counted separately. Transfers of homes in intrafamily transactions and apartment sales will continue to be excluded.

To illustrate one effect of the revision, the company had reported under the old system that housing sales in 2006 for San Diego County amounted to 42,122. Using the new method, the figure was revised to 44,580.

DataQuick says its sales information represents about 90 percent of the dollar volume of all real estate activity nationally and 95 percent of all activity in metropolitan areas like San Diego.

Remarks:

Desperate times call for desperate measures. Looks like they may buy themselves a few more months before the year-over-year go negative. What a scam...................

Carlsbad owners feeling the heat

2007-02-24T14:10:00.000-08:00

Remarks:

I think its time to buy right? Wrong! With tighter lending standards California homeprices will come down in 2007 by at least 20%.

Rancho Bernardo homeowners on the ropes

2007-02-17T09:46:00.000-08:00

(Click to enlarge)

Remarks:

A few examples of Rancho Bernardo home owners who are below the curve on timing the real estate market (some as much as $230K). Some homes are actually listing under 2004 prices. I am sure these set of owners will not be the last to be on this prestigious list.

Carlsbad Foreclosure faces $120K+ loss

2007-02-12T19:08:00.000-08:00

Listing Info:

Previous Sales Info:

Remarks:

Purchased in 2005, this owner's ARM exploded out of control, and the bank is left to clean up the mess.

The owner is partly to blame, but the lender should be audited by the government for extending bad loans to unqualified buyers, gov't should revoke its license. That is the only way these lenders will get a conscience.

San Marcos market deteriorating

2007-02-10T13:40:00.000-08:00

I pick out a few examples reflecting how weak the San Marcos market has become. This is why I would not touch this market.

I remember homes in this area would not last a week on the marker, oh how times have changed. Areas that reeped the benefits of the housing boom like San Marcos, Chula Vista, Carlsbad etc will be the front runners in foreclosures, short sales etc.

Housing slump here to stay

2007-02-07T22:39:00.000-08:00

By Lauren Baier Kim, Wall Street Journal

New data released by the Census Bureau shows that the vacancy rate of homes for sale, at 2.7%, or 2.1 million vacant homes, is at its highest level since the bureau began tracking it 40 years ago, according to a Wall Street Journal Online article. These properties, many of which are likely held by investors, could bring housing values down further as prices are slashed to attract buyers, WSJ Online says. Meanwhile, CNNMoney.com reports that figures released by Case Shiller Weiss indicate that nearly every major housing market in the U.S. has seen price declines in November. Showing the largest year-over-year price declines that month were Boston, with a 5% dip, and Detroit, with a 4.5% drop, CNNMoney says. The biggest year-over-year price increases were in Seattle (13%), Portland (11.6%) and Miami (7.4%), according to the article, which includes a chart summarizing market trends for 20 U.S. cities.

Carlsbad owner out at least $130K

2007-02-07T22:22:00.000-08:00

Listing Information:

Previous Sale Information:

Remarks:

Six-figure loses are becoming a norm in prestigous Carlsbad. This owner purchased a falling knife and unfortunately the pit is bottomless. In my opinion this home will be $550K by years end.

California flipping sees a slight downturn

2007-02-01T20:24:00.000-08:00

The New York Times
House flipping in California last year declined to its lowest level since 2003 as speculators retreated from a market in which sales plunged and prices flattened, a market tracker said recently.

Properties owned for six months or less accounted for just 3.2 percent of resales last year, down from 4.2 percent in 2005 and 3.6 percent in 2004, according to the San Juan Capistrano-based HomeSmartReports.com.

Overall, flippers sold the properties for a median $45,000 more than they paid, somewhat lower than $52,000 in 2005. If there were improvement costs, profit would be correspondingly lower.
In 2003, when HomeSmart-Reports.com began tracking flipping, the practice of buying and then quickly selling a property, it accounted for 2.4 percent of resales.

The company tracked public records and considered a property flipped if it was owned for six months or less.

In Los Angeles County, flipping accounted for 3.6 percent of sales last year, versus 4.4 percent in 2005.

This level of activity is not surprising because sales last year were well under the 2005 level. Prices, though, have not plunged because the economy is still growing, albeit at a modest pace.
“What’s happened now is the flipping activity is just reflective of today’s real estate climate,” said Steve Morgan, the company’s senior vice president.

“Investors, if they can, have adopted a buy-and-hold strategy until prices come back up.”
And if prices don’t start rising some owners will be forced to sell and cut their losses, he said.
Flipping was highest in Kern (4.7 percent) and Riverside (4.3 percent) counties last year, and lowest in Napa County (1.9 percent) and in rural Sierra foothill counties (2 percent).

Chula Vista owner facing over $130K loss

2007-02-01T19:57:00.000-08:00

Listing Information (click to enlarge):

Previous Sale Info:

Comments:

I don't understand how a person purchasing a home in 1) August 2005 2) in Chula Vista 3) for $900K and 4) ~$350 per month in fees, thought a profit could be made.

Thats not exactly a recipe that calls out to me. I don't even think he would have made a profit if the home was in La Jolla.

The builders were making a killing, I remember a house like this in 2000 would cost about $300K. Amazing.........

Rancho Bernardo home under 2005 price

2007-01-30T21:25:00.000-08:00

Listing Details: (click to enlarge)

Previous Sale Details:

Comments:

Owner is looking at a minimum $90K loss here. Purchased almost 2 years ago for $589K this home has depreciated at least 10% in 2 years and in my opinion still has a way to go. The current assessments and mello-roos totals $330 a month. If purchased at $539K with 20% down and a 30 year conventional loan (@6%) the monthly mortgage comes out to about $2,600. If you add property taxes @ 1.1% thats another $500 per month.

The bottomline is that you will purchase a 1600 sq ft home in congested Rancho Bernardo for a monthly payment of about $3,500 a month. If you add utilities, insurance and other expenses you are looking at $4,000 a month.

I'm sure people are waiting in line for this opportunity.

Don't forget to feed the kids.....

Scripps Ranch home under 2005 price

2007-01-29T21:25:00.000-08:00

Listing Details (click to enlarge):

Previous Sale:

Comments:

Originally listed for $751K this owner, like other owners now-a-days, has come to reality that his home is not worth what he paid for it, thus the new listing price. On the market now for a 113 days, and with a flood of new listings after the holidays, his situation is grim. Already looking at a $80K loss, he needs to cut the price at least another $50-100K or in a blink of an eye the $80K loss can potentially be over $200K.

With todays market, I personally would have a very difficult time offering more than $500K. But that is only my opinion, what do I know anyway.

California Foreclosure Activity Jumps Again

2007-01-29T19:27:00.000-08:00

Click on link above or on picture to enlarge

Comments:

We are looking a triple-digit increases in almost every county in California. This is going to be a very ugly ride down this slope, I am buying canned food and water already!

Carlsbad Owner suffers $120K loss from 2005 purchase

2007-01-29T19:15:00.000-08:00

Listing Information (click to enlarge):

Sales History:

Comments:

Carlsbad home was purchased in feb 2005, at the current listing price it represents a 11% decline. 2004 and 2005 purchasers will suffer the most in this market.

Adjustable rates climbing...death to corrupt lenders

2007-01-28T10:02:00.000-08:00

Source: www.mortgage-x.com

Reprinted with permission

Comments:

As Adjustable Rates keep moving up, the window for sleezy lenders to loan absurd loans to unquailfied individuals will close rendering the colapse of the San Diego real estate market. Currently the popular ARMs range from 4.5% to 5.4%, once we reach 6.5-7.5% we will see a saturated market, no quailfied buyers and desperate sellers. Hold on folks this should be quite a ride.

$150K loss in months for Spring Valley flipper

2007-01-28T09:43:00.000-08:00

Listing Information: (click to enlarge)

Sales Infromation: (click to enlarge)

Comments:

Purchased for about $800K in 5/2006 this flipper faces a minimum of a $150K loss. We warned you not to buy, and you did not listen.

Fixer Upper in Point Loma

2007-01-27T17:22:00.000-08:00

Comments: Only $650K and is subject to short sale. Someone is up the creek on this one.

Over $210K Loss for Lender in Oceanside!!!

2007-01-27T14:57:00.000-08:00

Listing Details:

(click to enlarge)

Previous Sale Details:

Comments

Lender took a huge hit here. Over $210K loss in 18 months is well deserved for lending money to fools who can't afford $800K home in the first place.

Minimum $165K loss for San Marcos Flipper

2007-01-27T14:47:00.000-08:00

Listing Details:

Previous Sale Details:

Comments:

Flipper original asking price was $860K and now is $675K. $165K (if he gets a full offer) loss in 20 months shows how stagnant the San Diego Real Estate market has become. I forecast a 20% decline by the end of the year.

More Foreclosures in San Marcos - Over $190K Loss

2007-01-02T10:51:00.000-08:00

Listing Details: (click on image to zoom)

Sales Details:

Summary:

Just got back from San Diego over the Holidays and one thing is for sure, people are in a panic mode. The foreclosure rate has more than tripled from last year and there are no signs of the pace slowing. This home has never been lived in yet the owner clearly purchased it with flipping on his mind. This will not work anymore so he is poised to take a -$190K hair cut!

Bank gets handed over $140K hit

2006-12-08T20:29:00.000-08:00

Listing Details:

Last Sale Details:

Only the begining of the mud slide to come!

Deal of the Year--Short Sale

2006-12-01T20:31:00.000-08:00

Realtor stated that owners owe $520K to bank and have recieved a notice of default. The price looks great, but may be a relators scam to loor potential buyers.

Memo to flippers: Its not 2004!

2006-11-27T21:06:00.000-08:00

LISTING DETAILS:

SALE DETAILS:

ANALYSIS: Why do flippers think they can still make a profit? Don't these people have friends, coworkers or even family members reminding them of their stupidity? I'll offer $400K even.

Are you the next idiot to by this home?

2006-11-27T20:43:00.000-08:00

LISTING DETAILS:

SALE DETAILS:

POTENTIAL PROFIT: Over $100K

ANALYSIS: This greedy flipper is not going down without a fight. Bottomline is no one is going to pay a million dollars for this ordinary house. It is acutualy worth more like $450-$550K.

Flippers struggle in Chula Vista

2006-11-20T17:46:00.000-08:00

Listing Detail:

Sale Detail:

Potentional Loss: -$75,500 to $57,500

Analysis:

What the heck were you doing paying $600K for a 1700 sq ft home in Chula Vista. You get what you deserve flipper!

Myopic sellers abound!

2006-11-20T16:45:00.000-08:00

Relator: "Seller will entertain offers between $925k-$975k. Great Lot in a Great Spot. The huge 12, 500 sq. ft. lot includes a 3 bedroom 1-bath home that you will probably tear down, but could fix-up. This one could be something special...A huge home or four condos for investors."

This seller think he could get a million dollars for some land in a questionable area of San Diego. Good luck finding a sucker. I believe I would pay in the neighboorhood of $175K.

Best Deals in San Diego County

2006-11-16T21:28:00.000-08:00

More trouble in paradise

2006-11-16T21:02:00.000-08:00

Southland home sales slow to ten-year low

2006-11-15T22:11:00.000-08:00

November 14, 2006

La Jolla,CA----Last month was the slowest October for Southern California home sales in a decade. Prices continued to level off, a real estate information service reported.

A total of 22,117 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 2.4 percent from 22,654 in September, and down 22.4 percent from 28,489 for October a year ago, according to DataQuick Information Systems.

Last month's sales count was the lowest for any October since 1996 when 18,505 homes were sold. October sales have ranged from 14,608 in 1991 to 32,522 in 2003. The October average is 23,077, slightly above last month's sales. DataQuick's sales statistics go back to 1988.

"It's harder to buy a home if you think it might go down in value than it is if you're convinced it's going up. Buyers are taking their time, trying to wait out the uncertainty in a market that is rebalancing itself. Additionally, many potential buyers are in the move-up category, and they have their own home they need to sell," said Marshall Prentice, DataQuick president.

The median price paid for a Southland home was $484,000 last month, the same as in September. The median was up 2.3 percent from $473,000 for October a year ago. Year-over-year increases have been in the single digits for seven months and are expected to be slightly negative by the end of the year or early next year.

DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

The typical monthly mortgage payment that Southland buyers committed themselves to paying was $2,287 last month, down from $2,309 the previous month and up from $2,169 a year ago. Adjusted for inflation, current payments are 1.7 percent above typical payments in the spring of 1989, the peak of the prior real estate cycle. They are 6.4 percent below the current cycle's June peak.

Indicators of market distress are still at a moderate level. Financing with adjustable-rate mortgages is flat. Foreclosure activity is rising but is still below average. Down payment sizes are stable, as are flipping rates and non-owner occupied buying activity, DataQuick reported.

Source: DQNews.com

More fun for flippers in San Marcos

2006-11-15T22:03:00.000-08:00

When are the people in San Marcos ever going to learn that unless your home is on a 5 acre parcel with a swimming pool and a tennis court it is not worth more than $400-500K. Wake up and smell the coffee people are waiting for bargins and I assure you even with a 12% hit this is no bargin, try $450K.

Over 20% loss in 16 months in San Marcos

2006-11-15T21:45:00.000-08:00

Steep Increase in California Foreclosure Activity

2006-11-13T21:30:00.000-08:00

La Jolla, CA.——Residential foreclosure activity in California surged to its highest level in more than four years last quarter, the result of slower home sales and flattening prices, a real estate information service reported.

Lending institutions sent 26,705 default notices to homeowners in the state during the three-month period ending in September. That was up 28.3 percent from 20,812 for the prior quarter, and up 111.8 percent from 12,606 for 2005's third quarter, according to DataQuick Information Systems.

Last quarter's number was the highest since first-quarter 2002 when 30,225 default notices were sent out. Foreclosure activity hit a low during the third quarter of 2004 when 12,145 default notices were recorded. Defaults peaked in first quarter 1996 at 59,897. DataQuick's default statistics go back to 1992. The quarterly average is 32,653.

"Foreclosures happen when people owe more on their property that the property is worth. When prices are going up fast, as they were last year and the year before, the number of homeowners in that situation steadily declines. When prices are flat, or going down, fewer homeowners in financial distress are able to use their homes to bail themselves out of trouble," said Marshall Prentice, DataQuick's president.

Statewide, the annual rate of home price increases hit a high of 22.8 percent during the second quarter of 2004. Since then, price appreciation has cooled, to 3.7 percent last quarter.
DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

Notices of Default are recorded at county recorders offices and mark the first step of the formal foreclosure process.

The median age of the home loans that went into default last quarter was 14 months, and more than half were originated in 2005.

On primary mortgages, homeowners were a median of five months behind on their payments when the lender started the default process. The borrowers owed a median $9,829 on a median $306,000 mortgage.

On lines of credit, homeowners were a median six months behind on their payments. Borrowers owed a median $3,200 on a median $60,000 credit line. However the amount of the credit line that was actually in use cannot be determined from public records.

On a loan-by-loan basis, mortgages were least likely to go into default in Marin, Napa and San Francisco counties. The likelihood was highest in Fresno, Merced and Riverside counties. Historically, the percentage of mortgages in default has been higher in lower-cost inland markets, DataQuick reported.

Most homeowners emerge from the foreclosure process by bringing their payments current, refinancing, or selling the home and paying off what they owe. Still, about 19 percent of homeowners who found themselves in default earlier in the year actually lost their homes to foreclosure in the third quarter. A year ago it was six percent.

Trustees deeds recorded on homes totaled 3,424 during the third quarter, up 76.9 percent from 1,936 for the previous quarter, and up 362.1 percent from 741 for last year's third quarter. Trustees deeds, or actual foreclosure sales, peaked at 14,896 in second-quarter 1997, and hit a low of 636 in the second quarter of last year.

There are 7.81 million houses and condos in the state.

While foreclosure properties tugged property values down by almost 10 percent in some areas nine years ago, the effect on today's market is negligible, DataQuick reported.

More money to burn in Chula Vista

2006-11-13T21:11:00.000-08:00

San Marcos flippers fleeing

2006-11-13T19:51:00.000-08:00

San Diego foreclosures up nearly 7% in one month

2006-11-12T17:28:00.000-08:00

Flippers be careful of lead paint and zoning issues

2006-11-12T16:21:00.000-08:00

Folks it is important that when you are flipping a home, that you make sure it is compliant with building regulations. There are some simple things you can do to ensure that the new home you purchased meets the new specs.

1. Ensure that all zoning is up to date with the city

2. Ensure home-additions are permitted

3. Ensure that homes built prior to the 1980s do not contain lead paint. Purchase of home lead testing kit to be used on house paint and house hold objects. However, the testing kit can underestimate the amount of lead present. So you may want to hire a professional.

4. Make sure you research the home to ensure there are no liens (IRS, mechanics, property tax)

If you pay attention to the above your flip might be alot easier.

-Bob

Mission Valley flipper looking for answers

2006-11-12T09:33:00.000-08:00

-$10K per month hit for Carmel Valley flipper

2006-11-12T09:31:00.000-08:00

Encinitas feeling the blues

2006-11-10T20:07:00.000-08:00

New home for this dog?

2006-11-10T19:52:00.000-08:00

-$110,000 anniversary gift for flipper in Rancho Bernardo

2006-11-10T13:19:00.000-08:00

San Marcos market continues downward slope

2006-11-10T10:32:00.000-08:00

Get out while you can in Chula Vista

2006-11-10T10:08:00.000-08:00

More misery in Oceanside

2006-11-10T10:06:00.000-08:00

San Marcos flippers need lessons in flipping!

2006-11-05T21:45:00.000-08:00

This home has been on the market 3 times since 2005. It was sold new on 3/30/2005 for $498,724. This flipper quickly sold it for $480,000 on 4/17/2006, taking a $48,000 hit in the process. Now this flipper is grasping reality as he is going to get an even bigger shaft.

The purpose of flipping is to make money, otherwise stay at home and watch Dancing with the Stars or something. This is a tough lesson to learn.

San Marcos flipper looking for answers

2006-11-05T21:43:00.000-08:00

Lender owned home in Oceanside reduced 20%

2006-11-05T21:27:00.001-08:00

Lender owned home in Oceanside reduced 20%

2006-11-05T21:27:00.000-08:00

Sewers are flooded; flippers are retreating

2006-11-05T21:16:00.000-08:00

Happy Anniversary -- over $100K loss

2006-11-04T23:14:00.000-08:00

Flipper in Oceanside looking to pay off student loans

2006-10-31T21:50:00.000-08:00

Mother of all failed flips! -$330K in 10 months!

2006-10-31T21:32:00.000-08:00

Wanted: Jackass or similar to buy Chula Vista house

2006-10-30T21:56:00.000-08:00

$150K loss in 20 months for San Marcos flipper

2006-10-30T21:41:00.000-08:00

Almost feel sorry for the guy. One silver-lining is that you won't be the only one, not by a longshot.

One too many flips for this San Marcos flipper

2006-10-30T21:29:00.000-08:00

Sales History:

$472,613 on 06-15-2005

$575,000 on 10-06-2005

Same old story here, flipper on flipper crime

Sleepless in San Marcos

2006-10-30T21:20:00.000-08:00

SD County foreclosures up 4% in 2 weeks!

2006-10-29T21:51:00.000-08:00

Ouch! Flipper reeling after failed flip

2006-10-29T20:53:00.000-08:00

Seller entertaining offers between $680,000 - $1,048,888

2006-10-29T20:35:00.000-08:00

The realtor should have his license revoked for stupidity.

Oceanside flipper feeling heat this season

2006-10-29T20:26:00.000-08:00

Oceanside home below 2004 price!

2006-10-29T20:09:00.000-08:00

Big Trouble in Point Loma Revisited

2006-10-26T22:51:00.000-07:00

Last time we visited this flipper (This Old House Flip: Big Trouble in Point Loma)
his asking was $740K-$875K.

Looks like he took a class on expectation management.

New website launches to save fools from foreclosure

2006-10-25T22:55:00.000-07:00

Blaine, WA (PRWEB via PRWeb) SaveMeFromForeclosure.com, LLC re-launched its North American website, http://www.SaveMeFromForeclosure.com. The new and improved site better educates homeowners by outlining the numerous options available to them when faced with the unfortunate reality of a foreclosure.

Now homeowners facing foreclosure can quickly understand all of their options with a click of their mouse. The new site lays out homeowners' options into two main categories, Help Me Keep My Home or Help Me Sell My Home Fast. The new format provides homeowners easy to understand solutions to saving their home and their credit.

Additionally, homeowners can immediately contact their local representatives who can personally explain the pros and cons of each solution and help them determine their best course of action for stopping the foreclosure."Our new website will revolutionize the way homeowners prevent foreclosures on their homes," said Justin Lee, CEO, SaveMeFromForeclosure.com, LLC.

He continued, "No other company helping individuals facing foreclosure is providing all of these solutions at the click of a mouse. When individuals are facing foreclosure, time is not on their side. They need information quickly and assistance in making the right decision on what to do to halt a foreclosure. Understanding the positives and negatives of each potential solution is a key differentiator that SaveMeFromForeclosure.com provides its clients.

At SaveMeFromForeclosure.com, homeowners can understand all of their options and contact their local representatives instantly to get assistance in stopping their foreclosure."As foreclosures hit an all time high in the United States more help is needed for homeowners facing foreclosure. Websites like SaveMeFromForeclosure.com are leading the way in helping individuals facing foreclosure. Not only are they helping individuals stop a pending foreclosure but they are making sure the homeowner is making the right decision by arming him or her with all of their options.

Additionally, SaveMeFromForeclosure.com is now offering direct access via their new website to credit repair services and they launched a daily blog that offers homeowners valuable information on foreclosures, credit repair and what they can do to prevent a foreclosure. You can find the blog at http://savemefromforeclosure.blogspot.com/.

SaveMeFromForeclosure.com specializes in helping clients who have fallen behind on their mortgage payments or are facing foreclosure. The company has local representatives across North America who can offer comprehensive solutions to foreclosure problems.

SaveMeFromForeclosure.com was originally launched in 2004. As a family owned and operated company providing foreclosure prevention and consultation service, the company has grown into an international firm with local representatives throughout the United States and Canada.

"the company has grown into an international firm" -- There must be plenty of business out there. --Bob

Carlsbad flipper hasn't recieved the memo

2006-10-25T21:34:00.000-07:00

Why would anyone in their right mind buy this house, there is no upside, there is a reason it's been on the market for 110 days---no flipper will touch this thing.

More bad news for Carlsbad

2006-10-25T21:02:00.000-07:00

Carlsbad sinking slowly

2006-10-25T20:58:00.000-07:00

How about one more in Carmel Valley?

2006-10-23T22:36:00.000-07:00

Flipper isolated in Valley Center

2006-10-23T22:31:00.000-07:00

Another Rocky Road in Carlsbad

2006-10-23T22:03:00.000-07:00

Carlsbad feeling the heat!

2006-10-23T21:46:00.000-07:00

Quickly sinking by the Lakeside

2006-10-23T21:31:00.000-07:00

Mission Valley home below 2004 price

2006-10-23T21:09:00.000-07:00

Rancho Bernardo, come on down!

2006-10-23T04:22:00.000-07:00

Yes, even in Carmel Valley there are losers

2006-10-22T22:28:00.000-07:00

No easy flip in Escondido

2006-10-22T15:34:00.000-07:00

Flipper scratching head in Scripps Ranch

2006-10-22T15:13:00.000-07:00

Quick flip gone bad in Spring Valley

2006-10-22T14:57:00.000-07:00

Oceanside flipper in deep trouble

2006-10-22T14:31:00.000-07:00

Well drying up for flipper in San Marcos

2006-10-22T14:01:00.000-07:00

House depreciation vs Bank appreciation

2006-10-21T09:41:00.000-07:00

Recently a friend a mine decided he wanted to sell his Moreno Valley home. He purchased his home for $90K in 1995 and listed for $399K in today's wild market.

His house has been on the market for more the 6 months and has been reduced to $369K. In light of his struggles to try to sell his home I told him that he can't be stubborn (I really meant greedy) in todays market place. It is flooded with homes and unless yours stands out you must make concessions.

I reminded him that his homes value is on the decline and that he had already maximized his return on investment. I also reminded him that national Banks currently have outstanding money market and CD yeilds that he can take advantage of (if he sells his home).

Lets disect his situation:

Option 1: Stay in the house

His house value will likely be on the decline and the market will continue to be saturated by homes. This is his worse option.

Option 2: Sell home for below market value

Lets say he sells it for 300K, that is still a handsome profit, plus CD rates are in the 6-6.25% range. He would be on pace to net about $220K from his home and collect about $1200 a month interest from his CD.

Home owners must realize that even though your home has tripled in value you are only "rich on paper" until you actually sell (good luck in todays market) and by making extraordinary concessions will place yourself in a good position with banking yields accelerating.

A bird in the hand is better than two in a bush.

What constitutes a flip?

2006-10-19T20:03:00.000-07:00

Many bloggers have emailed me arguing that a flip is constituted when you hold a house for less than a year. However, many flippers hold on to their house for 2 years to take advantage of the tax exemption period on potential gains.

Take for instance 3605 BONITA RANCH CT, BONITA. This is a good looking home that was initially purchased on 2/3/2004 for $679,000. This flipper held on this property for for 2 years and listed it on the market on 3/16/2006 for $1,150,000. 215 days later and the price has been reduced by a measly $50,000.

OK, you are asking yourself what make this house any different from any other 2-year flip. Well, a picture says a thousand words, just look at the 2-year old beautifully landscaped backyard. Yeah, there is no such thing as a 2-year flip.

2001 versus 2006: Tale of two buyers

2006-10-18T21:39:00.000-07:00

1536 BOXWOOD CT, SAN MARCOS

This home was first purchased in 2001 for $320K, and is currently listed on the market for $635,000-$665,000. Lets break down the buyer profiles in 2001 and 2006.

2001 Scenario:

Price:$320,000

Down payment (assume 20% to eliminate PMI): $64,000

Interest rate: 6.5%

Mortgage type: 30 year fixed

Monthly mortgage payment: $1620

Total loan payoff over 30 years is $580,000

2006 Scenario:

Price: $650,000

Down payment (assume 20% to eliminate PMI): $130,000
Interest rate: 6.5%
Mortgage type: 30 year fixed
Monthly mortgage payment: $3290

Total loan payoff over 30 years is $1,200,000

So what did we learn? If you financed your loan with a reputable bank they would have made sure your monthly payment did not exceed 35% of your monthly take home pay.

That would mean the 2001 buyer's yearly salary is about $58,000. The 2006 buyer's salary should be about $113,000.

This means your salary would have to double to afford the house in 2006, if you passed on this house in 2001.

Sure there are my exotic loans available today to make your monthly payment appear feasible however, over 30 years you're screwing yourself and your family's future.

My Flipping Investment

2006-10-17T22:49:00.000-07:00

3552 OTTAWA AVE, CLAIREMONT

This beautiful 3500 sq ft, 4 Br, 4 Ba home was built in July 2006. It has all the modern conveniences and entails a luxurious lifestyle.

This home was listed on the market on 9/19/2006 (27 days ago) for $1,150,000. Well you may think it may be a bit overpriced and darn it, you want to know why?

Lets go back to 2005 when this mighty home was a mere shadow of itself at 806 sq ft, 2Br and 1 Ba.

Yes, that's right the investor/flipper purchased the home in June 2005 for $475K and repackaged it into this mini-mansion in a year.

I am not a homebuilder, but many of my friends state that building a home generally costs between $150-$200 sq ft depending on the quality and workmanship. At 3500 sq ft you can assume that he may have spent anywhere from $525-700K to rebuild the home.

A purchase price of $475K plus the bulding costs ($525-700K) puts us at $1,000,000-1,175,000.

It looks as if this investor may have not thought this one through.

Am I off here? Any builders out there?