CA's Housing...Least Affordable

I have one word about this headline, "DUH!!!!!!!!!!!!!"

Those that live here in the land of glittering dreams that make under $100k know that. To quote a famous gray and white beast of the order of Lagomorpha, "What a moroon!"

Here is the article (a little late, I know): California’s Housing Remains Nation’s Least Affordable

This one made me laugh; what a load of dung! This guy is towing the corporate line…"let's try not to cause panic by telling a complete falsehood and see if we can turn this thing around through marketing to sheep". Ridiculous!

He states, “…affordability has not increased despite a housing downturn that has lasted over a year is ample proof that prices aren’t likely to drop significantly…” Oh boy, where do I start? You can’t imply that because affordability has not increased that prices are not going to drop; all that it means is that the prices are still too high and the correction isn’t anywhere near finished. Hello! Don't be a simpleton.

While this guy is coolly finishing his imported scotch, he can sit back with his panicked investors and embattled financial advisor buddies and try to figure out a way to shoehorn the last person making $15 per hour into a $300k stucco enslavement camp. But guess what, the party is over and someone is going to have to pay the tab and I think he is a little too concerned with self-interest to be honest about the situation.

Again, the pain and the length of suffering will be dependent on allowing market forces to correct itself. The government should have nothing to do with this and will only extend the time that the bandages need to continue to be changed and who is infected with this plague.

Here is a chart of “affordability” in Sacramento County approaching and circling the runway now:
Notice the “affordability” getting oh so much closer each and every day. Sorry Robert, you may have to settle for domestic scotch next year if you are still employed. Even while the inventory is dropping, so is the price per square foot. Hmm...I guess supply and demand does work.

Desperation or Inspiration...

Often, there is such a fine line between desperation and inspiration. However, in this case the proverbial writing on the wall must be etched with blinking neon. The lenders and those that are still in the market (holding the bag) are beyond panic mode - it is downright terror.

This is especially true for those who are holding assets on their books that cannot ditch it by reducing the price and simply tick off their shareholders when they report the loss. Yes, I am talking about individual homeowners. Those that bought in the last few years and now need to unload their rising behemoth monthly payments.

For lenders it is a little easier to reduce and unload (sometimes) - take the Forrest Oak home for example. We have been watching this particular property for many moons and guess what...it ain't appreciating, unless you can say that it is negatively appreciating. I suppose that is like saying a home is positively depreciating. Boy, that is good one.

This place is down to $209,500. For Fannie Mae, who is currently sitting on this gem, there is a surface loss of about $69,500 if it is sold at the current price. I have my doubts about selling at that price, but we will see. But there is also the lost opportunity of investment that is not calculated.

In any case, since FM has had it for the last 7 months, they are averaging a loss of about $9900 per month. Here is some advice for FM - "You need to dump this dump."

Oh, and by the way, clean the carpets; it is doubtful, but it might help.

Those were the days...

Remember how important it was to hurry up and go out and blow your future possible earnings on a piece of dirt and some wood and nails called real estate? "You better hurry! If you don't buy now, you may never be able to afford a home!" Oh, how the sheep moaned.

At the time, I was amazed that so many people were making so much money and that they could afford these monstrosities. I kept thinking, "what am I doing wrong? I work hard and make decent dough - what's up with this?" It never crossed my mind that people would not only buy something that they couldn't afford, but that lenders would give them the cash to do it.

It almost hurts to post this stuff.

Well here is another one that will be heading to the auction block soon. If anybody shows up, bid low! Here is the description and the most recent price that they were looking to fetch:

10515 Ridgecrest Drive, Jackson, CA $629,000
One of the most desirable neighborhoods in Jackson - Perfect family home - Huge master suite on main level and 3 nice sized bedrooms downstairs - Great view of valley off covered porch and kitchen. Stainless steel appliances and cherry wood cabinets in kitchen. Nice home!

And here is the TS notice that goes with it. Notice the date of the "deed of trust". This means that this guy stopped making payments somewhere around January or February - just over 5 months after he bought it. Ouch!

PUBLIC NOTICE NOTICE OF TRUSTEE'S SALE TS No. 07-21584 Doc ID #000732569942005N Title Order No. 3340044 Investor/Insurer No. 1103611456 APN No. 044-440-006-000 YOU ARE IN DEFAULT UNDER A DEED OF TRUST, DATED 08/17/2006...will sell on 09/18/2007 at 12:00PM, At the main entrance to the Amador County Courthouse located at 500 Argonaut Lane, Jackson, California. The street address and other common designation, if any, of the real property described above is purported to be: 10515 RIDGECREST DRIVE, JACKSON, CA, 95642. The total amount of the unpaid balance with interest thereon of the obligation secured by the property to be sold plus reasonable estimated costs, expenses and advances at the time of the initial publication of the Notice of Sale is 484,287.25.

So, if this place goes for the $149 per sq. foot that the Charmstone Way house went for, I would imagine that someone could move into this pad for about $375k or so. Somehow, I am betting on a low ball bidder and a desperate lender that has one too many credit swaps and not enough cash to cover their soon to be screaming creditors.

Charming...

Thanks to amador.whoboughtwhat.com for the update on the Charmstone Way home that was FC'd back in April.

According to WBW, this place was picked "acquired" by US Bank for $368,100.00 in April. The big problem for the shareholders at US Bank is that they turned around and sold it 4 months later at a $69k loss for $299k. Ouch!

If this does not give you any indication on where this market headed, you must still driving around with a Kerry/Edwards bumper sticker on your car.

The description for this place is below:

3705 Charmstone Way, Ione, CA
Usable Acreage for Shop or Animals
New light & bright open plan 3 bedroom, 2 1/2 bath, approx 2000 sq. ft. w/high ceilings, French doors to front & rear yards, 2x6 walls, tile & laminate floors, gridded windows, pantry & island, ceiling fans & tile hearth plumbed for pellet stove. Double door entry to master w/walk-in closet, jetted tub, shower w/seats & double sinks. Oversized finished garage w/220 & 2 auto openers. Usable 1.6 acres w/mature oak & separate driveway for shop or barn in cul-de-sac.

Did you catch that? This place is 2000 sq. ft. and is on 1.6 acres! Disregarding the acreage, that works out to be around $149 per sq. ft. Hello!

The professionals at All Power Brokers were trying to hock this place prior to the repo for $415,000 - not a bad take by the new owner. The all knowing Zillow, put this place at $393,759 - makes me warm and cozy knowing that I can trust in their accurate estimate.

Still, something tells me though that we are not quite done with the overall downturn - what do you think?

Credit-card defaults on rise in US

Subprime Mortgage Woes Spreading

Forrest Oak...

Maybe it is the spelling...the double "r" in "Forrest" can throw people off when they are searching on the street name. I have a feeling though, it is because this place is a dump. As I have said before, "You can't polish a turd."

Back in February we profiled this unseemly abode (link).

The owner was trying to get $305k in December; by February the new owners (Fannie Mae) tried to extricate themselves of this box for $279k. I laughed at the time - in fact, I am laughing right now.

I believe I made the comment, "Good luck with that."

I know, I know, it is all Bernanke's fault...or was that Greenspan. If Bernanke had bailed out the investment bankers yesterday by cutting the rates, we would all be sitting pretty. (Sarcasm)

Well anyway...as predicted...it remains in the hands of the last sucker to hold the devalued note.

Currently being offered at Fannie Mae for $235k - ouch.

Let the Feeding Frenzy Begin...

Don't worry nothing to see here...everything is alright...nothing to see...

Gee, all we need now is for the government to get involved and to try and "fix" the issue.

Let the blood-bath begin...

Bear Stearns Halts Redemptions on Third Hedge Fund
July 31 (Bloomberg) -- Bear Stearns Cos., manager of two hedge funds that collapsed last month, halted redemptions from a third fund after a slump in credit markets prompted investors to demand their money back.

This is a Great Read...

It says it like it is. Enjoy...

Trouble in Hedgistan

We are in a Race Now

The foreclosures certainly aren't letting up; nor do I expect them to anytime soon. It is as if the plug has been pulled on some giant tub - you don't recognize at first that the water is actually being let out. But, underneath the calm and placid surface the under current is pulling first at the loose silt that is at the bottom. Boy, is that corny.

Well anyway here is another NOD that just made its first appearance in the Ledger Dispatch.

This one was purchased way back in 05/2005. This is beginning to sound like a broken record. Seems as if the bulk of these places were purchased around 2 years ago. Now let me see (scratch head), I wonder why that could be. Hmm....

Oh, I know! Could it be that it was the time that sheeple were running to and fro seeking real estate and a ridiculous mortgage that they could devour? Remember when your friends said "You better buy now, or you'll be priced out of the market forever"? Seems kind of funny now. I hope you didn't listen.

Anyway, this place was picked up for about $257/sq foot. I am sure it seemed like a bargain back then, but wait a few more months and check again.

Here is the history:

2680 Quiver Drive
Property Features
Interior Area: 1280 ft2
Year Built: 1987
Sales History
Sold: 5/20/2005
Price: $329,000

Currently, Zestimate puts them in at $344,567. Somehow, I don't think that is near accurate, though, I have never known them to be wrong.

PUBLIC NOTICE NOTICE OF TRUSTEE'S SALE T.S. No. FD-105031-C Loan No. 0324325646 YOU ARE IN DEFAULT UNDER A DEED OF TRUST DATED 5/11/2005...Recorded 5/20/2005 as Instrument No. 2005-0006017-00 in Book , page of Official Records in the office of the Recorder of Amador County, California, Date of Sale:8/8/2007 at 12:00 PM Place of Sale: AT THE MAIN ENTRANCE TO THE AMADOR COUNTY COURTHOUSE LOCATED AT 500 ARGONAUT LANE, JACKSON, CALIFORNIA Property Address is purported to be: 2680 QUIVER DRIONE, CA 95640 APN #: 003-752-002-000 The total amount secured by said instrument as of the time of initial publication of this notice is $274,269.68

Wining About Real Estate...

Apparently the Notice of Default craze has hit more than residential McMansions and subprime borrowers. We are now raising our glass to a new and less palatable real estate market that is a delicate balance between non full-bodied financial ingenuity and meager qualified pickings, that in the end produce no fruit and even less flavor in the already frothy market. Cheers and get ready to be crushed!

I am sure that the holder of this note is drunk with excitement (from The Ledger Dispatch):

PUBLIC NOTICE Trustee Sale No. FC15905-11 Loan No. 00000390916815 Title Order No. F700376 APN 007-130-007-000 TRA No. NOTICE OF TRUSTEE'S SALE YOU ARE IN DEFAULT UNDER A DEED OF TRUST DATED 7/26/2000. UNLESS YOU TAKE ACTION TO PROTECT YOUR PROPERTY, IT MAY BE SOLD AT A PUBLIC SALE. IF YOU NEED AN EXPLANATION OF THE NATURE OF THE PROCEEDINGS AGAINST YOU, YOU SHOULD CONTACT A LAWYER. On 7/31/2007...The street address and other common designation, if any, of the real property described above is purported to be: 21339 Dickson Way, Plymouth, CA 95669...Said sale will be made, but without covenant or warranty, expressed or implied, regarding title, possession, or encumbrances, to pay the remaining principal sum of the note(s) secured by said Deed of Trust, with interest thereon, as provided in said note(s), advances, if any, under the terms of the Deed of Trust, estimated fees, charges and expenses of the Trustee and of the trusts created by said Deed of Trust, to wit: $506,100.41

Serenidad (Spanish for "Serenity") is a boutique family winery specializing in estate-grown Zinfandels, Sauvingnon Blanc and Cabernet Sauvignon. Nestled atop a hill of rolling vineyards, blessed by the richness of it's mineral, sandy-loam, rocky soil, Serenidad vines labor yearly to produce fine vintages above the steep slopes of the Indian Creek Gorge. We welcome your visit to our tasting room at the end of Dickson Road. Bring a picnic, savor our wines and enjoy the stunning views!

21339 Dickson Way Plymouth, CA 95669

Hey, what is $1/2 a million, when you are currently selling for: $5.3 M (Here is the link)

Property Description
French Chateau Family Estate
6,200 Square Feet (8200 gross space area)
1400 Square Feet of detached buildings
6 Acres

It Speaks For Itself...

Sadly, this story speaks for itself.

PUBLIC NOTICE NOTICE OF TRUSTEE'S SALE TS No. 07-11121 Doc ID #0001328322422005N Title Order No. 3274724

Date of sale: 07/17/2007

272 AMAPOLA DRIVE, SUTTER CREEK, CA, 95685

The total amount of the unpaid balance with interest thereon of the obligation secured by the property to be sold plus reasonable estimated costs, expenses and advances at the time of the initial publication of the Notice of Sale is $485,091.99.

Currently offered at $539,000 - somehow, I think there may be a little wiggle room here.

By the way, here is the history:

272 Amapola Drive
Property Features

Interior Area: 3237 ft

Bedrooms: 3

Year Built: 1999
Sales HistorySold: 4/6/2006

Price: $565,000

Seller: Barbara Wagoner

Buyer: Richard Raso

Looks like we are taking a loss on this one. Ouch.

Thanks to the crew at whoboughtwhat.com

Pine Grove Pick of the Week....

This one has potential. Currently, this home is being hocked at $290k - but if you can "afford" to wait just a few weeks, you may be able to pick it up much cheaper.

As the housing industry of cards begins to buckle, you will see more and more of this.

PUBLIC NOTICE Trustee Sale No.: 20070073401410 Title Order No.: N700036 FHA/VA/PMI No.: 0024853489 NOTICE OF TRUSTEE'S SALE YOU ARE IN DEFAULT UNDER A DEED OF TRUST, DATED 11/25/2003......Date of Sale: 7/17/2007 .....

22135 Meadowbrook Drive , Pine Grove, CA 95665

The total amount of the unpaid balance of the obligation secured by the property to be sold and reasonable estimated costs, expenses and advances at the time of the initial publication of the Notice of Sale is $187,059.37.

Update on Williams Repo...

Well, who would've thunk it?

Here is a little update on that Williams Road pea-green, gem.

As predicted in the More Repos on the Way article, this darling of a shack was repo'ed and apparently no offers were fielded at the auction.

For all of those that want to know - yes, the inside looks as bad as the outside. What were you expecting, a marble tub with brass soap dispensers?

Anyway, for the last of the real estate lemmings that still think this is a deal and the market is about to change, you can now pick it up for less than the previous owner owed: $184,900. Which, if you do the math, is about $56k less than what they were begging for in April.

Otherwise, hang on…I’m betting on the very low $100s…perhaps the mid $90s.

Foreclosures are Country-Wide for Countrywide

It's been a few weeks; sorry for the delay.

A quick update on 10520 Highway 26 in Mokelumne Hill. We first highlighted this in the leviathan article back in early March.

As predicted the prices just keep dropping and this place is no exception.

Here is the history:

Sold 01/20/2006: $425,000
Foreclosed and marketed at 03/05/2007: $348,900 (REO by Countrywide)
3/22/07 Reduced because the reality check bounced: $343,900
4/23/07 Reduced: $338,900
5/12/07 Reduced again: $314,900 (that appears to be over $30k loss back to the lender)

Well, this stuff is not rocket science. A "normal" mortgage of $300k is about $2200 per month of PITI. Those are not "normal" Moke Hill expenses; that $30k loss was probably someone's yearly amador county salary waving bye-bye. It is time to wake up and smell the over-indebted coffee.

BTW, the all knowing Zillow still has this place valued at $434,611. I think they better tell the lender so that they don't get cheated.

Arroyo Place...

There must be gold in them there hills.

According to whoboughtwhat.com, this place was purchased 2/7/2005 for $402k. Built in 2003, this 1600 sq ft house went for about $250 psf. Not bad...or was it?

Previously sold on 6/2003 for much less...$320k. Why do I get the feeling that it may get down to that price again? Maybe it's just me.

Anyway, if you feel like you want to spend more than $320k, the auction will be on 5/1 at the court house.

PUBLIC NOTICE TSG No.: 3200123 TS No.: 20079070800113 FHA/VA/PMI No.: Notice Of Trustee's Sale YOU ARE IN DEFAULT UNDER A DEED OF TRUST, DATED 7/28/2005 UNLESS YOU TAKE ACTION TO PROTECT YOUR PROPERTY, IT MAY BE SOLD AT A PUBLIC SALE. IF YOU NEED AN EXPLANATION OF THE NATURE OF THE PROCEEDING AGAINST YOU, YOU SHOULD CONTACT A LAWYER. On 5/1/2007 at 12:00 PM First American Loanstar Trustee Services, as duly appointed Trustee under and pursuant to Deed of Trust recorded 08/09/2005, as Instrument No. 2005-0010415-00, in book , page , of Official Records in the office of the County Recorder of Amador County, State of California.

The street address and other common designation, if any, of the real property described above is purported to be: 175 Arroyo Place , Jackson, CA 95642

The total amount of the unpaid balance of the obligation secured by the property to be sold and reasonable estimated costs, expenses and advances at the time of the initial publication of the Notice of Sale is $370,321.16.

No Peace in the Valley...

If you feel sheltered living way up here in the foothills, here is some news on what is happening to our friends down in the valley.

...........................
California Foreclosure Notices at 10-Year High

On primary mortgages, homeowners were a median five months behind on their payments when the lender started the default process. The borrowers owed a median $10,784 on a median $331,200 mortgage.

On lines of credit, homeowners were a median six months behind on their payments. Borrowers owed a median $3,580 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.

The default numbers reflect wide regional differences. The first-quarter numbers were a record in San Diego, Sacramento and Contra Costa counties. In Los Angeles County it was almost 60 percent below the first-quarter 1996 peak, reflecting the depth of the recession in the mid-1990s as well as relative strength in today's market.

So, I am sure all of you out there trying to sell your home are comforted by the "relative strength" of the today's market.

On a loan-by-loan basis, mortgages were least likely to go into default in Marin, San Francisco and San Mateo counties. The likelihood was highest in Sacramento, Riverside and San Joaquin counties.
...........................
Sacramento Near Top in National Foreclosure Activity

Some 3,400 Sacramento County property owners faced foreclosure in the first quarter of 2007, up nearly 200 percent from the same period last year.

In sheer volume of defaults, Sacramento County is in the top ten nationwide. Hey, nationwide status - we're not just a cow-town anymore!
...........................
FOR ILLEGAL IMMIGRANTS, HOUSING SLUMP TAKES TOLL

The housing boom has ended. The slump is clearly evident in the multitude of For Sale signs on lawns around the nation. Illegal immigrants used to work in the construction field but now are finding jobs harder to find.

"From Fresno to Sacramento, big tangles of wire and PVC pipes clutter vacant lots in silent subdivisions, waiting for houses to be built — some day. Dozens of “For Sale” signs already dot the lawns across new residential communities. And right next to the ubiquitous billboards from builders are fresh signs offering homeowners help to avoid foreclosure."

Amazing, the mortgage industry profits going up and down the real estate boom from the same sheeple. Can someone say, "Baaaah"?
...........................
Foreclosures still rising

Mortgages were most likely to go into default in Sacramento, Riverside or San Joaquin counties. The likelihood was lowest in Marin, San Francisco and San Mateo counties.

Most homeowners don't lose their home, but about 40 percent of homeowners who found themselves in default last year lost their homes in the first quarter, up a year ago from 9 percent, DataQuick reported.

Trustee's Deeds recorded, or the actual loss of a home to foreclosure, totaled 11,033 during the first quarter, up 802 percent from 1,223 in the first quarter of 2006.

Oh, well, that's good...only 11,033. That can't affect much. So, if the median price of the homeowner that is in trouble is $331k, well that is only about $3,651,923,000. Don't worry, nothing to see here...remain calm, all is well.

If that trend continues for the next year, that is only 14.6 billion back to the lender. 14.6 Billion...hah! We scoff at you Mr. Billion with your capital B. No worries.

$2 Billion Per Month, and Rising...

Well, here comes the flood. I hate to say "I told you so". So, I won't. Man that is so smug!

Anyway, from the Central Valley Business Times: California foreclosure sales near $2 Billion in March

FCs in CA reach $2 Billion, with a "B", in a single month.

There are a few keys to this article that I would like to point out. I know you were waiting for that - my articulate and in-depth analysis.

Key #1

Of the $2 billion worth of properties sold in March, 4,796 went back to the
lender after receiving no bids, representing $1.82 billion...

Did you catch that? 91% of all of the homes that were foreclosed on were not sold at auction time on the courthouse steps. Casey Serin knows all about that.

What that means is that the lender took the assets back as REOs and now not only needs to service its pool of existing paying "customers" (which in the industry, we call “performing”), but now they also need to manage and market its ever-growing list of unsold and stagnant properties. Time is money - and someone is going to pay for that. Likely by foregoing coming into their brick-and-mortar office space and sacrificing themselves on the altar of unemployment.

Key #2

Four of the state’s top five counties for foreclosure sales last month, on a per
capita basis, are in the Valley.

As in, “the valley” that we in Amador look down on from our lush, green, lofty heights. That should really prop up values in the high-country with dropping appreciation (some call depreciation) just a few miles down the hill.

Key #3

Foreclosures sold at auction now account for 15 percent of all home sales in
California and continue to rise...

This is the kicker! Do the numbers - you don't have to be a NASA engineer to figure this one out. If the 8% of FCs that actually sold at auction represent 15% of all of the sales in CA for the month, then you can see that it only takes a few months to reveal that there is a bulging glut of unsold properties out there.

Somehow, I don't imagine that it will be the buyer that gives in first. Tick-tock, tick-tock - so goes the clock. Who will cave from the pressure of time?

Amador Average Prices...

I will have to give kudos to John Lockwood for putting this together at El Dorado and Amador County Real Estate

Average Sold Price



Average Sold Price Per Square Foot

More Repos on the Way...

14385 Williams Road Pioneer, CA 95666MLS ID#: 105458
$240,0002 Bed, 1 Bath748 Sq. Ft.0.51 Acres

Wow! There are some dream homes out there...er...uh...and a few very desperate sellers.

Here is an example; you decide dream home or desparate seller.

This home in the lovely Pioneer area is a very classic sun-bleached forest green tone and maintains both over half-an-acre of useable property and the tools to create your own garden. (See image lower right)

At the low asking price of $240k, who could pass up this treasure? And considering that the price per square foot in the Amador County area has dropped to just about $200 psf at $320 psf, who could complain?

But wait, there's more...you better hurry, because apparently the lender wants their property back and soon. This gem is set for auction on 4/18/07 - 12:00 PM sharp!

See below:

PUBLIC NOTICE NOTICE OF TRUSTEE'S SALE TS No. 06-30052 Doc ID #000715156772005N Title Order No. 3184810 Investor/Insurer No. 1000228175 APN No. 031-120-023 YOU ARE IN DEFAULT UNDER A DEED OF TRUST, DATED 02/14/2005. UNLESS YOU TAKE ACTION TO PROTECT YOUR PROPERTY, IT MAY BE SOLD AT A PUBLIC SALE. IF YOU NEED AN EXPLANATION OF THE NATURE OF THE PROCEEDING AGAINST YOU, YOU SHOULD CONTACT A LAWYER." ...will sell on 04/18/2007 at 12:00PM, At the main entrance to the County Courthouse, 108 Court Street, Jackson, CA at public auction, to the highest bidder for cash or check as described below, payable in full at time of sale, all right, title, and interest conveyed to and now held by it under said Deed of Trust, in the property situated in said County and State and as more fully described in the above referenced Deed of Trust. The street address and other common designation, if any, of the real property described above is purported to be: 14385 WILLIAMS ROAD, PIONEER, CA, 95666. The undersigned Trustee disclaims any liability for any incorrectness of the street address and other common designation, if any, shown herein. The total amount of the unpaid balance with interest thereon of the obligation secured by the property to be sold plus reasonable estimated costs, expenses and advances at the time of the initial publication of the Notice of Sale is $203,627.87. It is possible that at the time of sale the opening bid may be less than the total indebtedness due. In addition to cash, the Trustee will accept cashier's checks drawn on a state or national bank, a check drawn by a state or federal credit union, or a check drawn by a state or federal savings and loan association, savings association, or savings bank specified in Section 5102 of the Financial Code and authorized to do business in this state. Said sale will be made, in an ''AS IS'' condition, but without covenant or warranty, express or implied, regarding title, possession or encumbrances, to satisfy the indebtedness secured by said Deed of Trust, advances thereunder, with interest as provided, and the unpaid principal of the Note secured by said Deed of Trust with interest thereon as provided in said Note, plus fees, charges and expenses of the Trustee and of the trusts created by said Deed of Trust.

HEINEMANN Part III...

Ah yes, our and faithful friend that we have dubbed "The Roof". Surprisingly, even with the tremendous explosion in resell homes that is being currently reported, buyers have overlooked this gem. Here is the original article.

History:

Date unknown: Purchased or refied for over $300k
4/18/2006: Asking $500k
2/9/2007: Being offered as REO for $238k
3/1/2007: Reduced price (REO) for $234k
3/23/2007: Reduced price (REO) for $230k

The lender has taken quite a hit on this property so far. There was a lender "take back", shown as the "recently sold price" for $321,233. So, if the lender sells for $230k, the lender loses approximately $91,233. Ouch! Someone did not do their due diligence here.

And of course the always germane and relevant Zillow puts the Zestimate price for this lovely estate at $482,139. Obviously, someone can get a steal if you hurry.

Prices Going as Predicted...

Here is an update on 10520 Highway 26, which we highlighted in the Leviathan article and stated that "I shall prognosticate that we can get this cheaper." Well the magic crystal says, "Cheaper Still".

The history stacks up like this:

1. Sold 01/20/2006: $425,000


2. Foreclosed and marketed at 03/05/2007: $348,900


3. 3/22/07 Reduced because the reality check bounced: $343,900

Let's see how low it goes. So far, the crystal is right on track. Can't be any worse than listening to the NAR and their predictions. Go magic crystal, go!

No Holiday at the Holiday Inn...

Looks like there ain't no vacation going on at the Holiday Inn Express in Jackson. Now is the time to get some cheap rooms.

Currently listed in the Ledger-Dispatch with a Trustee Sale Notice.

PUBLIC NOTICE BRS/TS# 303252 TSG# 90-5944 Notice of Trustee's Sale YOU ARE IN DEFAULT UNDER A DEED OF TRUST DATED 10/31/2003.

Current unpaid principal: $1,258,615.85

The auction at the court house is scheduled for 4/2/2007 at 12:00 PM.

More Trustee Sales...

The Ledger-Dispatch has had a steady trickle of Trustee Sale Notices lately. Here are some examples.

************************************************************
PUBLIC NOTICE NOTICE OF TRUSTEE'S SALE TS No. 06-28190
17780 W CLINTON RD, JACKSON, CA will sell on 03/30/2007 at 12:00PM, At the main entrance to the County Courthouse, 108 Court Street, Jackson, CA at public auction, to the highest bidder for cash or check. The initial publication of the Notice of Sale is $414,816.98.

Currently being marketed as:

$619,000 Single Family 3 Bed / 2 Full Bath / MLS#104927



************************************************************
PUBLIC NOTICE NOTICE OF TRUSTEE'S SALE T.S. No. FD-97734-C
322 BROADWAY JACKSON, CA Date of Sale: 4/4/2007 at 12:00 PM Place of Sale: AT THE MAIN ENTRANCE TO THE COUNTY COURTHOUSE, 108 COURT STREET. The total amount secured by said instrument as of the time of initial publication of this notice is $221,975.23.

************************************************************

Future Not Looking Bright...

CEOs are getting a little rash with their expletives these days. This is hilarious! Nice choice of words.

From Bloomberg

D.R. Horton erased its gain to end 1 cent lower at $24.55. Tomnitz said closings will likely drop below last year's 53,000. Closings are the final sale of a home. ``I don't want to be too sophisticated here, but 2007 is going to suck, all 12 months of the calendar year,'' D.R. Horton Chief Executive Officer Donald Tomnitz said at a Citigroup Inc. conference in New York. ``Our future is not as bright as what we would like it to be.''

``It was very odd that a CEO would use a term like that,'' said Joseph Saluzzi, co-founder of Themis Trading LLC in Chatham, New Jersey. ``Maybe they've got some issues over there.''

Take It Higher...

Well, here is a bit of news that should not take anybody by surprise. All that building and prosperity has a price.

The Calaveras Enterprise is reporting that CCWD mulls higher water, sewer rates.

When the county "mulls" over raising prices for water and sewer, they are not just musing and noodling around with the idea; they are beginning the PR campaign to allow the constituents plenty of time accept reality before it is initiated. In other words, they are going to raise prices.

They are "debating" the plan that "would raise base water rates from the current $22 a month" to "$39.50 per month" "at the end of five years". Wow! If you calculate that over 12 months, then you are going from $264 per year to $474.

Sewer charges will also be raised from the current $45 per month to $67.50 over the same 5 year period. That is going from $540 per year to $810 per year.

For water that is about a 79% increase and for sewer it is a 50% increase. Wouldn't it be nice if they could just keep up with the rate of inflation instead of going through these kinds of spikes?

Ah, what's a couple hundred extra dollars in today's get rich in real estate market? Ask any realtor and they will tell you it is a seller's market and always a good time to buy. Hurry, there are few properties at this price...and other clichés...ad nauseam.

Well, I think there is a key toward the bottom of the article:

Like all other special districts, CCWD receives a portion of property tax revenue from all county land owners, even if they are not district customers.

That property tax revenue is used to offset operations - costs that otherwise would be covered by monthly rates.

As explained at Thursday’s meeting, the reliance on property taxes will be decreased by 5 percent each year over the next five years.

The revenue would go into a fund that could be used for major projects that have more of a countywide impact, such as protecting water rights.

Is this an indicator that the county understands that property values are decreasing and future development won't bring in the tax dollars that they had once projected? Hmmm...I wonder.

Return to Lender...

This would be a great parody song with a quality Elvis impersonator:

Return to lender
Address well known
No offers at auction
Auctioneer alone

We were having a party
Giving cash in stacks
To unqualified loan apps
Now the house is coming back

Thank you...thank you very much

Well, anyway, iTulip.com has a great a great article on the ever-increasing number of properties going back to the lender at auction time - post foreclosure. This means that the lender either got no bids or the bid was so low that they did not accept it.

The interesting thing here is that the chart shows monthly data, not a cumulative number. Here is the link to the chart. You can see that in Sep-06, the lenders in CA were took back 1160 homes and there has been a perpetual climb to Feb-07 showing a lender take-back of 3695. For the month of Feb. that is about 131 homes per day. That does not even include the total number of foreclosures (those that actually sold at auction).

There's a whole lot of auctions going on. Ouch!

Leviathan Spotted in Calaveras...

Here is a quick profile on a Calaveras casualty of the foreclosure leviathan that is being unleashed from his pit of debt-driven darkness. Sorry, that is a little dramatic - I will keep it brief and pithy.

This 3 by 2-er sold in January of 2006 for $425k; it is 1216 sq. feet. That is $350 per sq. foot. Yes, it sits on 6.8 acres, but my goodness, that's a plenty heap-a-cash to live out in Moke-Hill. Sorry, no image on this one.

10520 Highway 26 Sold 01/20/2006: $425,000

I shall prognosticate that we can get this cheaper. Let me rub the magic crystal and presto...ooh, much cheaper!

Currently on the market (FC) for $348,900. But, something tells me it may go for less.

Mortgage Employees Feel it First...

What cliche can you say that has not already been said? For years, I have been screaming that this would be the result of this contrived and manufactured housing boom. I am no doom-and-gloomer, but you don't have to be the head of Berkshire Hathaway to have seen this coming.

I can't add more than what the Sacramento Land(ing) is reporting. Here is the Link.

Here is the video from News 10. News 10 Video

Update on HEINEMANN...

As first reported back in February in my article Going Down in the Valley, there was a profiled foreclosure property in Valley Springs in which the lender was going to lose approximately $83,233.00 if sold at their current asking price.

As predicted, the asking price was still a bit too high and apparently the lender agrees with me.

Currently, the HEINEMANN property, which I have officially dubbed "The Roof", has been discounted another $4,000.00 - down to $234,000. Which of course means that the lender can add $4k to its burden of bad debt - the equivalent of one employee's salary for the month. Ouch!

Yeah, that unparalleled housing boom and unprecedented growth in non-doc lending practices was great for everybody.

The Streams are Blocked...

Ya'll are just not paying enough in fees and taxes on those fully financed homes. Time to ante up people - pony up that cash, the streams aren't running.

As reported at the Calveras Enterprise, the County's housing revenues hit slump.

A total of $2.2 million from fees was projected during final budget hearings last September.
“Fees collected may be impacted by the current moratorium on new developments,” the report said.

“This could continue to impact this revenue stream through the end of the year.”
**************************
Taxes collected from property sales in Calaveras were at 37 percent, or $316,766, but should ideally be at 50 percent for the mid-year point.

This is a dramatic change from last year, when the county saw a 30 percent jump in home sales above what was anticipated.
**************************
Employee wages and benefits, which take up a large chunk of the budget, will be negotiated for the Calaveras County Sheriff’s Department and non-safety employees in the coming months.
In August 2006, county workers got a one-time 3.5 percent and additional 4 percent pay increase for the year, as well as health benefit increases.

This, along with department staff changes, totaled to more than $1.7 million of the general fund.

With an unstable housing economy, county supervisors will have to wait and see how next year’s finances will turn out.

“Do I think the revenue (from home sales) will be what they were? No,” Callaway said. “That’s why the budget is one of the more critical things the Board of Supervisors does in any county.”

In regards to the Building Department, she said, “If fees are low in relation to what it costs to manage the department, the county is going to have to bite the bullet and raise fees.”

Update on Surrey Junction in Pine Grove...

In a previous post, we put together a profile of this home (link here).

As a recap, this house has been on the market over 17 months with apparently little success. When I first noticed it, the owners were asking $895k - not a small fee by most standards. No doubt, this is a nice pad, but I wonder if perhaps they are truly motivated to sell.

Not much to say on this. So far, they have dropped the price a whole $45k - now down to $850k. That is around 5% decrease in asking price, which I am sure creates standing room only at the sales office, but it appears with 517+ days on the sales floor that they can likely afford to wait for someone to hit the lottery. Or, maybe someone can use their tax return for the down payment.

I hope they realize what they are doing to the home sales statistics.

Here is the new link.

What $305k doesn't get you in Pioneer...

Here is someone's dream home - but apparently not their dream price. This home was listed 12/06 for $305k. Let's take a look at what you get.

OK, well...let's read the description. There has to be more to it than this with an $1800/month P&I payment + taxes + insurance (roughly $2300/month).

The description says: "Needs new septic & roof, to be done at COE. Many recent upgrades to this comfortable 3&2 incl. new paint,carpet, kitchen counters, vinyl, & slate hearth. Office/hobby has DSL & multi phone lines. Oversized garage has lots of storage, and RV storage next to it."

Oh...DSL...OK, that might make sense. Hmm...

Well, I have seen worse. Let's go inside - you can't always judge a book by its cover.

Or, maybe you can. Holy cow! Is that the new Rose-Dalmatian carpet I've been hearing about? Look at those spots! Is that the carpet upgrade they mentioned above? I'd hate to see what it looked like before. Was it just a cement slab? Well, let's continue on.

By this time, I am sold! What else is needed to start your own home-office? Perhaps we might even consider a home-based realty business.

Well, the tour is over even for the previous note holder - now a foreclosure. It does not appear that anyone scooped up this gem for the aforementioned asking price. The lender is now asking a slightly reduced $279k. Good luck with that.

27226 FORREST OAK RD PIONEER, CA 95666 $273,000

Subprime Stats...

Here are some stats from the Wall Street Journal as posted by Towel Talk on the subprime market that are fairly interesting.

• Subprime loans have grown to 12.75% of the $10.2 trillion mortgage market in 2006, up from 8.5% in 2001 (Wow! That is 1.3 trillion just for '06)
• 47% of subprime loans are "creative" -- up from 2% in 2000 -- featuring "piggyback" loans which require no down payment and "no-doc" loans that let borrowers state their incomes without supporting documentation. While this creativity works fine when housing prices rise -- if a borrower defaults, the lender can profit by selling the property -- it does not work when housing prices are going down. (Hello! That is $611 billion in creative financing. At an average price of $235k - that is 2,600,000 homes.)
• 80% of subprime mortgages are exploding ARMs (adjustable-rate mortgages) with low fixed-interest payments in their first few years which later adjust to higher interest payments. When the ARM adjusts upward, some borrowers can't afford to pay. The resulting foreclosures lead the mortgage company to sell the house to get back some of the loan principal. The sudden increase in the supply of houses on the market puts further downward pressure on prices. (Math, people...do the math. That's $1,040,000,000 in exploding ARMS! That is a lot of zeros.)
• Nearly 1.2 million foreclosure filings were reported in 2006, up 42% from 2005, representing one in 92 U.S. households. This trend will worsen if interest rates rise.
  Borrowers have never been more leveraged. Loan-to-value ratios, the loan amount expressed as a percent of the property value, have grown to 86.5% last year from 78% in 2000. With all the new supply on the market, these loan-to-value ratios are likely to rise as the values decline. This will mean steeper loan writeoffs for mortgage lenders which will deplete their capital. (No comment necessary.)
• At least 20 subprime lenders have filed for bankruptcy or have been sold. As mortgage-backed securities buyers exercise their rights to force mortgage originators to buy back the bad loans, the loan originators will likely be unable to come up with the buyback cash -- leading more of them to file for bankruptcy.

Quite a Discount....

I know, I know, you may be tired of dreadful housing news. Hey, this will cheer you up! David Lereah says that now is a good time to buy; so get in line lemmings.

If you are looking for a deal, look no farther than this for a $621k discount!

This one is just around the corner and of course is "close to everything".

All the way from Pioneer, California, I present to you the foreclosure of the week...drum roll please...26871 WOODLAND. (White noise, applause, and aggravated screaming of the Discount of the Month recipient.)

In December of 2006 (suddenly, a long time ago in real estate), this listing was up for grabs for $1.2M. That's right folks - $1,200,000! I know, you are saying to yourself "that is a steal". Hey, a bargain hunter's dream. But wait, there's more. Tell them what they have won Johnny!

Well, according to the omniscient and heavily cognitive Zillow, this mountain retreat should be demanding no less than $925k. Perhaps the previous owner had a case of "irrational exuberance". But, what is this? Last sold on 11/06 for $739,267? Looks like an FC.

Now, according to the "Zestimate TM", the new "owners" should be asking for almost a $million. But, something must be wrong back at headquarters. Currently on the foreclosure list, this has been recently reduced to $579k.

26871 WOODLAND RD
PIONEER, CA 95666
$579,900
Agent: Sharon Rintala
(209) 295-3800

Going Down in the Valley

Here is yet another example of home prices that reflect the true image of value in the market. Wow, that is fairly poetic.

Anyway, here is the listing for this 3x2'er in beautiful Valley Springs back in April of 2006:



If you squint, you can see that they were asking $500k - half of a million dollars! When you actually say "half-a-mil", it sounds like a lot more than $500k. Maybe the cost is wrapped up in the roof repair - that's a lot of roof.

Zillow/Yahoo, which is always reliable on pricing estimates (insert laughter here), puts this piece of property at $500,347.00. Seemingly, the listing price is right on, but the recently "sold" price of $321,233 looks suspicious. Can someone say foreclosure?

Well, low and behold, even the lender doesn't think it is worth that extraordinary amount of greenbacks. They are currently asking $238k! That is a drop in recommended Zillow asking price of less than half! And it looks like the bank is going to write-off that extra $83k. Ouch!

Somehow, I still think it is a bit lofty.

Here is the info if you are interested and the map link:

2376 HEINEMANN DR
VALLEY SPRINGS, CA 95252
$238,000
Agent: Vicci Fikes
Century 21
(209) 920-1520
Listing last updated: 02/08/2007 19:05:12

"Choked In The Sea" - Unexpectedly

Sorry to report this, but it was inevitable.

HSBC, New Century warn of US subprime lending woes

NEW YORK, Feb 7 (Reuters) - Two of the biggest lenders to Americans with poor credit histories said on Wednesday rising subprime mortgage defaults will weigh unexpectedly on results.

HSBC Holdings Plc, Europe's biggest bank, said it plans to set aside $10.6 billion companywide for bad debts, 20 percent more than the $8.8 billion it said analysts expected on average, because of struggles in its HSBC Finance Corp. lending business.

Chief Executive Michael Geoghegan is directly involved in trying to fix the problems, it said.

Meanwhile, New Century Financial Corp. projected a fourth-quarter loss, and said it expects to restate each of the previous three quarters' earnings lower because it did not set aside enough money to buy back subprime loans that went bad. Analysts polled by Reuters Estimates had on average forecast a fourth-quarter profit of $1.06 per share.

Calaveras Codes

Man, when things get tight, bring on the fight. The Stockton Record, is reporting that suddenly someone wants to enforce the California Uniform Building Code. I wonder how many things were overlooked over the last few years in order to facilitate the "boom".

Living up to the Calaveras codes

The slowdown in home sales couldn't come at a worse time for builders and contractors in Calaveras County.

It roughly coincided with the arrival of Stephanie Moreno as community development director. She took over May 15 and has been enforcing the California Uniform Building Code.

In December, she ordered an outside audit.

It revealed "that minimum fire- and life-safety requirements had been overruled or waived" for some approved plans.

The appropriate enforcement of regulations has compounded the difficulty for those in the building trades.

Plan checks take longer and require a higher threshold for approval. Combined with a stagnant housing market, it's no wonder building contractors showed up to protest the stricter rules at last Tuesday's Calaveras County Board of Supervisors meeting.

Still, the minimum standards - set for good reasons - are the law.

You Are on the Default Train in Grizzly Flats

All aboard - you're on the Default Train! Hang on, it may be a rough ride!

I know, you may be saying to yourself, "Where in the heck is Grizzly Flats?" Here is a map in case you feel the need to tell somebody, "Yes, I really was there, honest."

Well, apparently the lender knows exactly where it is even if nobody else does - and they want their money.

From the Mountain Democrat (Public Notices Section), here is the official Trustee Sale number and notice for the following gem in the rough:

NOTICE OF TRUSTEE'S SALE T.S. No. 5386Loan No. 08-702182-00 YOU ARE IN DEFAULT UNDER A DEED OF TRUST DATED 4/17/2006.

(Notice the Deed of Trust Date - hmmm.)

So, the story goes that waaaay back in October of 2006 (do you remember back that far?) the asking price was $365k as seen here:

4xxx Creekside Dr, Grizzly Flats, CA 95636MLS ID: 40170088
$365,000.004 beds, 2 baths, 2224 sq. ft., 1 acres

Well, in chapter 2 of this epic novel, one thing led to another...a payment was missed...a vacation purchased...and they decide to sell in this "hot" market to get out of their dilemma.

Uh oh, it turns out that living way out in the sticks is not as popular as one may have formerly believed and gee, it may have been asking a bit much for someone to fork out over $2k per month to live in that metropolis.

It is now down to $270k and look at all you get - think of about that...since October, that is about $23k savings per month. I wonder what the price will be next month.

February 7, 2007
Price $270,000
Type 1 House on Lot
4xxx Creekside Dr
City Grizzly Flats, 95636
Subdiv Grizzly Park
Stories 1 Story
Sq Ft 2224
Cost / Sq Ft $121
Faces Northeast
Year 2006
Lot Size - Acres 1.130
Bed 4
Full Baths 2
Half Baths 0
Fireplace(s) Family Room,Gas Burning Log
Heat Central,Natural Gas
Garage No Garage,Other
Laundry 220 Volt Hook-Up,Gas Hook-Up,Inside Laundry Room
Landscape Low Maintenance
Remarks Wow Best Value. Brand New way under market value. Secluded in a gorgeous area of Grizzly Flat with great views. Open/Spacious floor plan with custom details. 25 minutes from Placerville, 45 mins from Folsom, 59 miles from Kirkwood Ski Resort. Manufactored home on a permanent foundation. Won't last, bring all offers!

But you better hurry, because the auction date for this "manufactored" home has been set for 2/21/2007 at 10:00 AM.

Place of Sale: At the main entrance of the County Courthouse - 495 Main Street Placerville, CA.

All aboard!

Sutter Creek Living just got a whole lot cheaper

Here is another great listing I found. Back in September of 2005, this home was on the market for $520k. They have since become a little more cognizant of the market or perhaps a little more desperate to sell - you can't but help notice that the house is discernibly empty. Hmmm...

It is now down to $475k.

Anyway, the write-up on this home says that it has "all city amenities". What is that supposed to mean? Does it have running water and an indoor lavatory? I guess that is for all of you out-of-town bluebloods and retiring metropolitan nobility that could not consider living more than 5 miles from a Starbucks. Oooh, how aristocratic...

Let the bidding begin: Sutter Creek Living

Amador in the top 10

Here is some good news for all those that believe that Amador is overpriced, becoming too congested, and maintaining stagnant wages - Amador County rated in the 10 "Best Places to Live in Rural America".

Perhaps the author is unaware of the push to "de-ruralize" this rustic and provincial county and bring it in line with the living equality of Sacramento. Can’t wait for the tagging to begin…

But for now, we are honored with the thought and gesture of including us in their best of the best list.

From the Stocton Record:
Magazine hails living in Amador

From PR Newswire:

Annual 'Best Places to Live in Rural America' Rankings Released

Like We Didn't Know

Finally, the press is catching up with the reality of realty. This is from the Wall Street Journal and I guess if they print it, it must be true. Welcome to the awakening.

From the Wall Street Journal (my comments in blue ital):

New home sales tumble in '06

New home sales plunged 17.3 percent in 2006, the biggest drop in 16 years, although warm weather in the Northeast gave a better than expected lift to December sales. In other words, the sales would have been even worse if it wasn't for global warming - I hope the RE industry is happy with our burning of fossil fuels.

The full-year median price of $245,300 was up 1.8 percent from the full-year 2005 average, but that price does not reflect the various sales incentives such as extra features or closing costs that the majority of builders are reported offering to support weak sales. The median price is actually lower, but the industry won't allow for the true numbers to come out or they may face mass hysteria from the over spent public.

John Tomlinson, an analyst with Majestic Research who follows the stocks of major
home builders, says the weather-impacted December readings are not enough to say that the new home market has found a bottom.

"This is such a seasonally slow time of the year, I think we'll have to see how sales pickup in the March or April," said Tomlinson. "They still have to clear the high level of inventories before they'll rebound." That may be tough with the number of foreclosures hitting the market - California is adding 300 REOs per day.

Major homebuilders such as Lennar, Pulte Home, KB Home, Centex, D.R. Horton and Toll Brothers all saw sharp declines in earnings in 2006 with the slump in home building and new home prices.

Alan Gayle, senior investment strategist, Trusco Capital Management, the asset management arm of SunTrust Banks, also agrees it may be a year or two before the home building and new home sales market show some significant strength.

"We think the market is trying to find a bottom, but what we're seeing is still some very significant discounting going on," said Gayle. "I think we're going to see some
further softness in the first half of the year. By the second half we will have gone through the worst of this slowdown. But a resumption of trend growth in housing could be another year or two off."

But David Seiders, the chief economist for the National Association of Home Builders, said the demand for new homes is showing relatively decent strength, falling only to near 2003 levels, which was a record at that time. Well, let's see...it had dropped to 2005 levels and then 2004 levels and now...2003 levels...uh, why won't it drop further?

"We knew all along that 2004 and 2005 were unsustainable binges," he said. "If we can move ahead from the average we saw in '06, we'll be happy as clams." It may be better to be oysters rather than clams, but I doubt there are any pearls in the year ahead.

But he said if new home prices are going to show strength again, builders will need to keep housing starts and construction slow a while longer to burn off the inventory left over from the building boom.

"The builders do need to move that off and they know it," he said about the supply of completed homes available for sale on the market. You know what that means...more discounts, incentives and decreases in the median sales prices. Hoorah!

I Surrender

From the Sacramento Bee:

"Hundreds of Sacramento-area homeowners who missed their first mortgage payments early last year fueled the region's most dramatic rise in home foreclosures
since the 1990s during the fourth quarter of 2006, a property research firm said Wednesday.

La Jolla-based DataQuick Information Systems said 865 capital-area homeowners surrendered their houses to the bank in October, November and December -- nearly double the region's 450 third-quarter foreclosures."

By my count that is about 10% of all the homes currently listed on MLS for Sacramento. This is just a little troubling.

"While foreclosure activity climbed sharply, statistics also showed the rate of growth in notices of default -- the first sign that homeowners are having trouble making their mortgage payments -- has slowed.

The region's 16 percent jump in default notices in the fourth quarter compared to a 25 percent jump the previous quarter -- and a 37 percent rise statewide."

This is interesting that because the 4th quarter “jump” in default notices is only 16% versus 25% in the 3rd quarter that the rate of growth “has slowed”. I don’t believe anybody talked about a “slowing” housing market when there was a 16% to a 12% appreciation. In fact, if I remember correctly all of the RE breed were shouting that there is nothing to indicate that this will ever stop and that you better sell your soul if you want a place to call your own.

"But trouble at home is still clearly on the rise. The 865 fourth-quarter foreclosures compare to 63 the same time last year in Amador, El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo and Yuba counties. Analysts said Wednesday the sharp rise reflects both last year's historic lows and the sheer number of owners who overextended themselves to buy houses during the recent housing boom."

Again, I am no Greenspan...but, that looks like...carry the 2...that is over 1200%! Uh...no reason to panic or become alarmed. Stay calm all is well. This is just a blip in the vast market that we call real estate.

We shall see. Stay tuned and we will continue to watch the carnage that is to come.

Perfect for Entertaining

I first noticed this house, which is “perfect for entertaining”, in September of 2005. Apparently they have not “entertained” too many offers at the price that they are proposing. In 09/05, which is almost a year and a half ago, they were asking $895k. It looks like they have done some thinking over the last 16 months and somehow came to the conclusion that the price must be a little excessive.

So, now it is way down to $875k. That should surely bring in those that were right on the edge and just could not bring themselves to spend that extra $20k. Good luck with sorting out all of the bids and enjoy the party.

Here is the link to get in line: Perfect For Entertaining

New Years Resolution - Pay Your Mortgage

With all of this “bubbly” talk about real estate, it appears that Amador County has also been feeling its share of the transition from the out of your mind price increases and "irrational exuberance" party to the "I should have sold sooner" regrets.

The denial of the inevitable hard landing in real estate prices and over-appreciation makes the entire ordeal a little more painful and drag on with every seller kicking and screaming along the way. There were those that cashed in early and got that last burst of sales from the few suckers left that were willing to part with their non-earned money and overly stretched credit. But I digress…

We will kick this thing off with a note about “Notice of Trustee's Sales” that seem to be shamelessly exposing themselves in some of the local newspapers. I will investigate further and provide some links and additional information regarding this when it is well researched.

From the future leading office of many home sales, let’s see what is shaking up on the steps of the Amador county Courthouse, 108 Court St. Jackson, CA.

The auction is beginning soon: Legal Notices Filed for Notice of Trustee's Sales