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.

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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



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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.

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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.