Surprise...it is still going...

Not much needs to be said here...it is obvious.

Ione 3BD goes for $216K

Here's a place (a foreclosure) in Ione (as opposed to "I rent" - which I think that many will be doing going forward), that appears to have sold for about 31% less than it was bought for in '05. Picked up in the height of the frenzy in 2005 for $310k and recently purchased from SG Mortgage, that is quite a deal lower than when everyone was saying "you need to buy before it is too late".

It is still coming in at about $135/sqft, which seems excessive for prison town, but to each his own or "Ione" as the case may be.

Trulia's Sales History

Sales History
Historical home sale price (1):	$216,000
Prior sale date:	Jul 1, 2008
Change since this sale (1):	NA
Historical home sale price (2):	$198,750
Prior sale date:	Apr 17, 2008
Change since this sale (2):	+9%
Historical home sale price (3):	$310,000
Prior sale date:	Dec 20, 2005
Change since this sale (3):	-30%

1/3 Off the Top...

Amador.WhoBoughtWhat.com is reporting on a recent sale down in the lovely little town of Ione. The home at 3530 Lakeview Dr. just sold for the whopping price of $205k.

This home is a roomy 3 bedroom, 2 bath, with 1355 square feet on a 1/4 acre no less. And take a look at the size of that driveway! You can park several buses on that slab; and believe me Ione has a couple to spare.

At that price, it works about to be $151 per square foot. Man, that is almost affordable.

Traditional calculations still put this home in the hands of a household with a gross income of about $71k, which doesn't cover too many of the jobs in this area outside of working at the prison across the street. But, we're getting ever-so slowly closer to reality.

The previous owners didn't quite make it before the government started coming up with all this bail-out legislation and other programs. Just missed! It looks like Fannie Mae and Freddie Mac are going to be able to buy all of that cruddy and worthless MBS paper real soon though. Then the taxpayers will easily be able to afford picking up these losses; I say, share the wealth and spread the pain, eh? In fact, let's just add to what our grandchildren already owe on our reckless spending. No sense in someone hogging all that suffering to themselves (tongue is in cheek).

Anyway, the previous owners had picked up this gem for $309k back in April of '05 - back when gold was floating in the river apparently. I guess they hated to continue to pay for something that was getting cheaper every 24 hours, so....

1/3 off the top! Not bad. Still, I think that the new owners will discover in another year that the comps will be even less than what they paid. Maybe they can pawn it off to the OFHEO, Fannie Mae, Freddie Mac or the like in the very near future.

Again?

Shocking but true. The property at 17780 W Clinton Road in Jackson, CA is once again facing foreclosure. This place was highlighted in March of 2007 in the article "More Trustee Sales" as on the doomsday list and incredibly, here it is again.

NOTICE OF TRUSTEE'S SALE TS No. 06-28190
DEED OF TRUST, DATED 08/18/2005
Will sell on 04/08/2008 at 12:00PM
Notice of Sale is $452,952.05

Oddly enough, there is more owed now than back in March of '07 ($452k vs. $414k). Perhaps, this is one of those reverse mortgages. It seems a lot of people have those these days. :)>

Back in the day (Mar. of '07), it was being marketed at $619k. Today, there are 2 interesting offerings:

1. Barbi Boyle has it listed at $599k (it says "reduced", um...)
2. Village Real Estate has it at $395k - wow, that looks like $200k less than Barbi! Barbi, you need to dump Ken, sell the pink corvette, and get with the times. It does currently say "pending", but we'll see. It seems I have heard that story before. Can someone say "short sale"?
   

Well, good luck and stay renting.

Assessing Value...

Jim Rooney, Assessor

Mission: "Our mission is to create equitable, timely and accurate property tax assessments to fund public services. We will strive to be a source of accurate and timely property information for local government and the community."

Link to the Assessor's Website

Phone: (209) 223-6351
Assessor's Email

For those that have already felt the sting of depreciation, there may be some relief on the horizon. The Amador County Assessor's office is reporting that property taxes may be lowered because of property value declines.

The Amador Ledger Dispatch reports in Reassessing your property values:

With a decrease of property values over the past year or so, the Amador County Assessor's Office is in the process of reviewing and reducing some assessments throughout the county and we are also receiving numerous inquiries about the reduction of assessments.

The key word here is "some". It is not likely in the county's best interest to have mass reductions in assessments being that they receive a large portion of yearly revenue from property taxes.

However, we are obligated to reduce assessments when the assessed value of a property is greater than fair market value.

The issue then is to provide evidence that your property has in fact lost value since your purchase. My suggestion would be to do all that you can to assist in this process. Hire your own appraiser and push the Assessor's Office to examine the results.

A family member of mine that lives down in the Stockton area has lost a bit of value in her home. She asked for the county to reduce the assessment based on the market conditions. Their response was that there were no reliable comps in the area to support her claim. She responded that there have been multiple foreclosures and that there are comps from FC purchases and bank buy-backs. Their reply was that foreclosures do not count toward comp values.

Amazing that FCs seem to affect everything else prompting so much government action to help and bail out the banks, but they don't affect your tax rate. Maybe if you worked for Citi Bank, MBIA, or AMBAC you could get a break.

Expect the Assessor's Office to drag their feet on this, but keep pushing.

Assessment review requests may be submitted to the assessor's office at any time. Requests for assessment review that are received between July 2 and Nov. 30 will be reviewed for the current tax year. Requests received between Nov. 30 and June 30 may be examined for the next tax year.

Like with most things in the government, these time frames make no common sense. Strange how there is a 5 month window in the middle of the year that is applicable to the current tax year, but there is a 7 month window (including the first 6 months) that is applicable to the next tax year. Does that make sense?

In any case, the best advice is to keep pushing and make a lot of noise. Be the squeaky wheel and demand that grease!

So, give Jim Rooney a call and let him know that you also support "equitable, timely and accurate property tax assessments".

A New Record...

Wow! A new record I believe. The Amador Ledger-Dispatch currently has 16 Trustee Sale Announcements.

Here they are:
Address, Notice of Sale, Date of Sale
1. 11656 New York Ranch Road Jackson CA $747,339.77 03/18/08
2. 14661 Shenandoah Road Plymouth CA 95669 $440,155.01 03/18/08
3. 18900 Jura Lane Fiddletown CA 95629 $80,629.16 03/18/08
4. 340 South Ave., Jackson, CA $203,802.98 3/27/08
5. 18892 Ellinwood Way , Jackson, CA $369,119.89 03/25/08
6. 3570 Lakeview Drive Ione, CA 95640 $261,779.30 03/27/08
7. 4235 LAKEVIEW DRIVE, Lone, CA 95640 $278,517.32 04/02/08
8. 829 PICCARDO LN , JACKSON, CA. 95642 $245,839.40 04/01/08
9. 10336 AMADOR ST. JACKSON, CA 95642 $217,290.80 04/02/08
10. 16437 Meadow Vista Dr. Pioneer, CA 95666 $363,819.04 3/18/2008
11. 5674 Red Oak Drive, Ione, CA, 95640 $94,196.75 03/18/2008
12. 445 Preston Ave. Ione, CA 95640 $300,288.64 3/25/2008
13. 263 Columbia Way, Sutter Creek, CA 95685 $319,995.78 03/13/2008
14. 1103 OAK VIEW DR IONE, CA 95640 $515,304.24 4/1/2008
15. 14661 Shenandoah Road Plymouth CA 95669 $440,155.01 03/18/08
16. 2727 Curran Road Ione, CA 95640 $300,749.23 3/24/2008

New Taxes on Gas...

One place you are not likely to hear any complaining regarding gas prices is the California legislature and the Governor's office. "Why", you may ask. Well, because with every increase of the per gallon price, there is a correlating increase in tax revenue.

In a recent conversation with the all knowing oracle of trivial information (an unnamed uncle of mine), he related how there is also a sales tax per dollar above and beyond the excise taxes which are on each gallon. This I did not know. In California, there is an 18 cent per gallon state excise tax, another 18.4 cent Federal excise tax, the sales tax, and some other 1 cent federal deal.

So, with an increase in gas prices, California actually adds to the coffers with the new jackpot of gasoline taxes with the typical 7.25% per dollar sales tax.

Now, Assembly Democrats are rushing to fill the endless abyss in its appetite for spending by creating a bill to increase taxes on the one thing that is a necessity for most - oil and gas. Yes, we are in a huge budget crisis in California, thousands losing their homes, prices for everything are going up, teachers are getting laid off...I know, we can solve the whole thing with...(triumphant horns blaring)...NEW OIL TAXES.

Yes, that is right boys and girls. You have not felt enough pain. Forget the gross mismanagement of funds and revenue - you are not paying enough. Is this one of those Bustamante "tough love" scenarios?

Unbelievable!

Capitol Weekly reports:

The bill would create a new 2 percent oil tax for any oil company that earns more than $10 million in net income. It would also impose a new 6 percent “oil severance tax” based on the gross value of each barrel of oil produced in the state.

DeVore said the proposal would "devastate oil production in California if it’s passed," and would lead to an increase in Calfornia's gas prices, despite language in the bill that specifically prohibits oil companies from passing the cost of the new tax on to consumers.

The bill language was introduced Monday, and is being fast-tracked by the Speaker’s office. It is scheduled to be heard in Assembly Revenue and Taxation Wednesday, and on the Assembly floor some time this week, right before the Legislature adjourns for spring break.

Yeah, no doubt it is being "fast-tracked". Get it in under the radar as fast as possible. Have these people been hanging out on New York Ranch Road?

It is like I always say, "Anybody that thinks that corporations pay taxes is a moron." And I say that without reservation.

Corporations do not pay taxes - people pay taxes. I know it is a new paradigm, but try to align your brain cells for a minute. If a tax is levied on a company or an industry and it is in that company's best interest to make a profit instead of going under and filing for bankruptcy, the company reprices their product to reflect the cost of doing business. It is that simple.

If a company does not make profit, then a company dies. Nobody, except the Federal government, would be willing to invest in a company that cannot make a profit. There is no incentive and no reason.

So, if the law states that the company cannot pass on the new taxes, what do you think will happen to that new company? Hmmmm....I know. Perhaps, they will substantially reduce their production to meet profit goals, or...they will leave the state.

Some may shout "Good! We don't want those slimy oil companies here anyway." Well, you are a moron or you have a political agenda that is far left of the ACLU. If you think the cost of goods is high now, wait until oil production and all by-products (gasoline, HELLO!) have to be shipped here rather than produced here. Won't that be a dream come true.

All comments will be read with an open mind...of course.

Busted, Again...

As a follow up to the article, What the Hey?, ratlab has sent an interesting piece by the Amador Ledger Dispatch - Another pot bust. It appears that the property at 11656 New York Ranch Road in Jackson may be the same one highlighted in a rather large and industrious Cannabis agricultural project. I am sure it was strictly medicinal.

Well, I guess they went from one bust to another. I'm not sure what they were smoking at the time of the purchase or at the time of the first bust, but they may want to engage in their business product line to ease the pain on this second bust. Perhaps they thought the appreciation on their home would continue to get higher. Hey, I got a million of 'em...really, I'll be here all week...no, seriously.

If anyone has any additional information on this, please let us know.

What the Hey?

Another amazing colossal failure of a real estate purchase.

I continually shake my head in disgust and absolute amazement at what is being revealed by all of this - greed, greed, greed...ignorance...I don't know. I guess I'm just a bitter renter (with no debt - ha!)

Another T.S. notice filed on 02/27/08 in the Amador Ledger-Dispatch.

• NOTICE OF TRUSTEE'S SALE T.S No. 1120311-04
• 11656 New York Ranch Road Jackson CA 95642
• Deed of Trust recorded May 25, 2007
• Notice of Sale is: $747,339.77

What in the world? 9 months and it is now being scheduled for auction?!!! Truly incredible. Is that a record?

WhoBoughtWhat has the last sale recorded as $940k. Apparently, the only ones that profited on this were the sellers and the real estate agents. That is a heck of a commission - at 6% that is just about $56k. Wow! Good work if you can get it.

But, wouldn't you know it, NexTag has the value currently at $893k, which, as they say is -$47k "appreciation". I'm sorry, wouldn't that be depreciation? Whatever. Of course, that was as of 12/23/07, so it might have changed a bit since then. Uh...lower, I believe.

Now, check this out. Currently, it appears that the home is for sale (imagine that) for $899k through Sondra Ammons.

However, according to this link, Sondra already sold this once before: Sold for $940k. Will she double dip? Like I said, great work if you can get it.

But, I am not sure if this is an old link or what. It could be...and we don't want to cast any disparaging judgments toward somebody if we don't have all of the facts. So, for now, I will say that this is probably an old link.

Regardless, if you want the real deal (right) you need to get a hold of Thomas Blackman. He's got it listed at $799k.

Will the real steal/deal place stand up?

Drowning in Plymouth...

Here is an interesting home currently on the market. The Amador Ledger-Dispatch has a Notice of Default filed on 2/27 with the following information:

• NOTICE OF TRUSTEE'S SALE T.S No. 1119221-04
• Date of Sale: 03/18/2008
• 14661 Shenandoah Road Plymouth CA 95669
• Notice of Sale is: $440,155.01

Interestingly, the now much-relied-upon Amador.WhoBoughtWhat .Com (thanks guys) shows this property last sold on 3/11/2005 to James & Deborah Ferguson for $310,500. This was confirmed by NexTag as well.

Currently, NexTag has the estimated value for this home at $355k.

Notice the difference between what is listed as the "Notice of Sale", which is approximately what is owed on the property (the UPB - unpaid principal balance) plus some estimated fees, and what the Fergusons actually paid for the home.

$355k vs. $440k - hello! Can someone say "refi with cash back"? How about the word "underwater"?

Laughably, the home is currently for sale at $489k through Kappel and Kappel. Good luck with that.
14661 SHENANDOAH Rd
Plymouth, CA, 95669 County: Amador
Bd: 3 Ba: 1 1314 sqft.
MLS#: 60119124 Status: W
Price: $489,000

There does seem to be some discrepancy on the number of bedrooms. Kappel and Kappel have it recorded as a 3/1, while NexTag and WhoBoughtWhat have it down as a 2/1.

So, would this person qualify for a Bernanke sponsored suggestion for the lender to reduce the principal amount to match what is fair market value? How and who would analyze each of the millions of these types of situations? If the lender didn't do the due diligence when they gave the loan to begin with, what makes you think that they will provide the due diligence to the FHA, Fannie Mae or Freddie Mac when they try and hock this loan?

Clearly, a person that took out equity from their homes when values were soaring and now find themselves upside down and underwater should not be propped up by any government sponsored legislation or strong "suggestions" to the Mortgage Banker's Association. The government needs to stay out of this! The lenders need to take their lumps, the borrowers need to feel the pain, and the market will absorb the downside appropriately.

Why we as a society want to sponsor and advocate reckless behavior at taxpayers expense is beyond me.

OTS' New Plan For Fraud...

Another “plan” to keep people in their homes, but one that will lead to tremendous losses and unaccounted fraud.

Check out CNN's article Mortgage crisis: Don't forgive debt, just postpone repayment

“Aren’t we trying to keep people in their homes? Isn’t that the best thing for the economy?” you may be asking. I think we need to get beyond what I have dubbed the Iraq Response for addressing issues and crises.

Regardless of how you feel about Iraq, there is an underlying argument that is used for proponents of staying until “the job is done”. I am not going to debate the war (please don’t e-mail about that) and there may on may not be some validity in that position of “well, we may have underestimated the outcome (etc.)…but, now that we are there, we need to finish the job.” Again, there may be some weight behind that thought, but likely from a moral point of view, not a logical one.

However, can we use that same logic for all of the decisions that we make as an individual, an organization, or a country? My initial response is “no way!”

It is absurd to think that the recommendation that would be given to any individual regarding a tremendous financial blunder is to continue in that direction. For example, if someone acquired an automobile that they could not afford and they were getting crushed with monthly payments, then the logical response would be to get out of that situation. Sell the car or if you cannot, then the company will repo it. The creditor has recourse that they can exercise which is “repossession”.

But, for a friend, would you tell them to continue to make the payments that have been reduced with a large lump sum waiting in the end, or extend their payments from 48 months to 96 months on a depreciating asset? No, that would not be a good plan.

This new plan to “postpone repayment” is continuing to feed the fraud frenzy mindset that is out in the market today and is completely short sited.

There are so many thoughts and questions on yet another attempt and bailing out homeowners that likely should not even own a home. That may be harsh, but what do you tell your friend with a wife and 2 kids that makes $40k a year and goes out and buys a Ferrari? Is this a good idea? Of course not.

This proposed plan by the OTS is once again short sited and is doomed for failure.

You don’t have to be a genius to figure out why this won’t work.

How about this as an example…

A homeowner is underwater $150k (Sacramento) and the lender decides to issue a neg-am certificate for the $150k. The homeowner does not object and they are now making payments that have been re-amortized for $300k – a significant reduction in payments.

The homeowner wants to stay in the house through retirement, but doesn’t feel good about that extra $150k that is looming. They go out and find Mr. Strawman and get him to buy the house for the current market price of $300k. He does.

This now wipes out the $150k that was looming against the future appreciation of the home. Mr. and Mrs. Homeowner go out and get a new loan for $300k and repurchase the home. Voila! They are now making payments at the current market rate (hopefully) and without the looming neg-am certificate.

The risk was transferred to the one that purchased that “certificate” (security) as an investment and hopefully the contract was written in such a way as to avoid all potential for litigation (not likely). Now, he is out his investment and Wall Street (brokerage houses, financial institutions, and pensions) will pick up the tab. Again!

Who in the world would consider buying a Neg-Am Certificate? Let’s hope that there is no new legislation being developed that will give Fannie Mae and Freddie Mac full discretion to pick these things up. They didn’t do due diligence on the Subprime junk that they bought – just ask Cuomo in New York.

The Sub-Title Says it All...

Number of homes lost to lenders almost equals the total sold in January...

From the Sacramento Bee:

January saw nearly as many people lose their homes as buy them.

....................

January saw 1,815 closed escrows in Amador, El Dorado, Nevada, Placer, Sacramento, Yolo and Yuba counties, DataQuick Information Systems of La Jolla reported Thursday.

But in a financial phenomenon that most analysts believe is unprecedented, 1,782 households in the same counties lost their homes to lenders. Figures for Sutter County were not available.

....................

Wow! That is quite a ratio of sold homes to foreclosures. But, I am sure we have hit the bottom...any second now...come on, where is that bottom?

The dive in prices is stressful for people who have to sell their homes, but it's a growing advantage for people who until now have been shut out of buying.

Casandra Leon was one of the fortunate ones.

Leon, 26, a Sacramento County public employee, paid $235,000 for a three-bedroom, two-bath bank repossessed home in Elk Grove on a street she thought she could never afford.

"Three years ago we would never have thought we could purchase a house like this," Leon said Thursday. She said the bank paid closing costs and did the deal without a complication. [my comment: Gee, I wonder why.]

"A lot of these foreclosures are not being purchased by investors, but by first-time buyers and people who want to live in them a long time," said Chris Saizan, a real estate agent in Elk Grove.

Well, I am glad that there are still 26 year olds that can still afford a house. Let's see...using the 2.8 rule for a traditional loan...(235,000/2.8)...that means she/they are "hopefully" making around $85,000 in order to "afford" this home.

Assuming that they qualified for a 5.89% 30 Year Fixed (no money down) there would be a monthly mortgage payment of: $1392.37. That is just for P&I - throw in taxes and insurance and you are looking at about $1800+. That doesn't even begin to touch on maintenance which is always overlooked - therefore, for this exercise, we shall do the same.

It looks like you can rent a brand new 3/2 home in Elk Grove for about $1300-$1400 (which includes maintenance and often includes yard care, etc.). So, take the $400 difference that you were apparently going to spend anyway and start socking it away (maybe even pay off those credit cards that you are still charging on). At the end of 2 years you would have about $10k in the bank and ready for a decent down payment, but I guess the idea of saving is old fashioned.

Now, don't get all cranky. I am not saying that Cassandra didn't do exactly that in the last couple of years...she probably did. She probably saved up 10%-20% down and had planned her retirement and everything. Yeah...that's it.

So, let's just say that the values continue to drop (regardless of what anybody says, there is no evidence that we have hit the bottom). What if the depreciation for Elk Grove is only 9% for 2008 instead of the 26% that we saw in 2007? And then a 5% in 2009? How much will Cassandra's home be worth then?

$235,000 * (1-.09) = $213,850: $21k loss for 2008
$213,850 * (1-.05) = $203,157: $10k loss for 2009 ($32k loss in 2 years)

At the beginning of 2010, they will still owe about $30k more than it is worth.

Then, let's say that there is an appreciation of 5% per year after that (though, I think that will be rather high). In 2013, the same house will be worth $235k - which is what they paid for it. They will have about $17k in equity, so if they plan to move at that point, I hope that the bank pays their closing costs then too.

It cost the "owners" $21,600/year ($108k total) to live in the home. Does it work out that it is still an advantage to write off the interest on this? Hmm...this is sort of a ramble. I am sure all of you are smarter than I am on this stuff. It just doesn't seem like a good deal at the moment. Am I wrong?

Well, I hope that Mr. Saizan is correct that they will want to live in it "a long time".

I know, I know...I am a bitter renter.

Bonds...More Bonds...

More bonds...more bonds...

My head is spinning with how many bonds are out there, approved, and are stacking up along with more and more debt for the state and various counties for future generations. It seems fairly simple; a bond is nothing more than borrowing money today against revenue tomorrow, regardless of the amount of revenue that will be there. The money is "borrowed" at a discount, so, the county will actually get less than they owe - sort of a like a home buyer in the last few years.

Then, later down the road (but let's not think about that right now), we will have to pay this money back. Where will the money come from? The General Fund or we may in fact have to raise another bond or taxes in order to pay off the former bond. And why? Because no one likes to say that we are raising taxes...when we are raising funds in the future to pay down the bond from collected tax money, which leaves less tax money for other things...which starts the cycle all over again and may require another bond, blah, blah, and more political blah.

How come no one is asking questions like, "Where is all that revenue from the California Lottery going?" I thought that was going to be the magic bullet that would solve all of our financial issues. But, instead we see that the Lottery only accounts for about 2% of K-12 spending. Additionally, we apparently cannot leave the decision in the hands of the Local School Boards as to where to allocate the funds. In 2005-06, they spent about 64% of the funds on salaries and benefits. Then, they want to ask the educators to take a pay cut because times are hard. Sheesh!

There is a lot more to this than I can write in a single entry, but I have friends that are teachers and they give me the low-down on what they go through just get books in the door. It is ridiculous.

So, why am I discussing this on a "real estate" blog? Because this all has to do with decreasing revenues from local property tax. More depreciation leads to wider gaps in budgeting - but, no one wants to give up new spending based on increased property tax revenues. So, pass a bond because the sheep won't understand that we still have to either raise taxes or cut spending in coming years in order to pay for it.

Well, there is one more option that I believe that they are all counting on; that is that revenues will increase because the housing market will bounce back like a Jack in the Box once the two boys on the hill (Bernanke and Paulson) stop turning the little crank. Good luck with that.

Frustration is nigh. I am done.

Comparison Shopping...

Perusing the foreclosures in the area, Ione definitely stands out as a city that is looking down the barrel of a depreciation cannon. There is a sign on Highway 49 that says "Smart people are buying now." I always laugh when I see that and I always wonder if they know how offensive that statement is; the conclusion being that if you are not buying now and in fact waiting for something that seems reasonable and sensible, then you are a fool and a dolt. We shall see.

Of course, I wonder of those same agents told their clients 12-24 months ago that it was not a good time to buy. Likely, they have never told anybody that it is a bad time to buy.

This house in Ione at 2108 Village Dr. is a great example of why it is such a smart time to buy. According to Amador.WhoBoughtWhat.com this property was last sold in March 2006 for $365k. It was probably brokered through those agents on Highway 49.

So, $365k in 2006...soon foreclosed upon...and now less than 2 years later it can be picked up for $248,900! Wow! $116k off the last sales price and yet the lender is still having a hard time unload this place. Apparently, those in Ione haven't seen that sign on 49.

In fact, NexTag doesn't understand the market in Ione either; they are currently listing the value as "NexTag Estimate: $372,300". Someone better let that lender know that they are pricing it way too low.

NexTag Description

2108 Village Dr, Ione, CA 95640
NexTag Estimate: $372,300 (as of 12/23/2007)
Appreciation Since Last Sale: $7,300 (+2%)
A comfortable 3 bedroom, 2 bathroom single family home in Ione, California. This home, built in 1996, measures 1,232 sq ft on a 47,916 sq ft (1.1 acre) lot. Amenities include central heating, central cooling, and fireplace. NexTag estimates this Amador county home's value to be $372,300.

If smart people are buying now, I figure if I wait long enough to buy, I will be really smart.

Foreclosure Lane...

It must really stink for all those that actually bought their homes with the idea of living in them and being able to afford them, only to see that the frenzied, post Dot Com bust, housing bubble is impacting your American dream.

Foreclosures are hard for the people that are going through them, hard for the economy, but they are just as difficult to deal with for the people that are left in neighborhoods surrounded by them. The impact of this bust for the average person that didn't seek to dive in the deep end past the safety nets of financial prudence is heavy indeed. There is one in my neighborhood that has been vacant for several months which casts a negative light on the whole block.

I noticed in the post from Monday "New Trustee Sale Announcements", that there are actually 2 streets that have 2 future REOs on them apiece.

Preston Ave.
424 PRESTON AVENUE IONE, CA
445 PRESTON AVE, IONE, CA

Church St.
219 South Church Street, IONE
311 S. CHURCH STREET, IONE

What a deal! As one man said, "Life is a deal. It is either a big deal or a little deal, but it is a deal!"

New TSAs...

A few new Trustee Sale Announcements today with some sleuthful commentary. All announcements courtesy of the Ledger Dispatch.

PUBLIC NOTICE NOTICE OF TRUSTEE'S SALE TS # CA-07-110924-JB
940 Carbondale Rd Ione, CA 95640
Notice of Sale: $267,153.38
Date of Sale: 2/28/2008

PUBLIC NOTICE TSG No.: 2866068
15031 Maranatha Way , Sutter Creek, CA 95685
Notice of Sale: $221,661.03
Date of Sale: 2/28/2008

PUBLIC NOTICE NOTICE OF TRUSTEE'S SALE TSG No.: 3504915
16050 Meadow Lark Lane, Sutter Creek, CA 95685
Date of Sale: 2/28/2008
Notice of Sale is: $567,555.33
-----------------------------------------------------------

The place on Meadow Lark Lane in Sutter Creek has an interesting background and fairly recent history. According to Amador WhoBoughtWhat, this place was most recently purchased less than a year ago for $680k. Wow, now that is a bust and a half at lightning speed!

Consider that someone approximately 10 months ago actually negotiated a deal to purchase a home in which they are currently in default. 10 months!

Apparently, they thought they were getting a deal at the time by paying $680k, since the previous owner had purchased it 2 years earlier for $715k. Ouch!

Check out the history at: 2BD in Sutter Creek sells for $680K

Walking Away...

Wow, I never thought that I would see the day that "walking away" from a mortgage would be a profitable business. CNN Money does not offer much in the way of a positive picture with this running as their lead.


There are more and more reports about people that have a new perspective on their homes/mortgages. It is a new paradigm in which the old guard at BofA, Wells Fargo, Citi and a host of others were taken completely unaware.

The new mortgage culture does not see their debt as a moral obligation, but instead sees their mortgage as nothing less than a business transaction. This is confusing for the golden parachute crowd in that for the first time in American history, the consumer shares their same viewpoint. It puts a major monkey wrench about the size of a gorilla in the cogs at the mortgage servicing factory and is wreaking mass havoc at the top.

Basically, the new "walk-away" culture says to themselves, "Why should I continue to pay for an increasing monthly mortgage amount on a depreciating piece of property/real estate?" They see it as a business transaction - if a business is losing money in a certain sector of their market, they shut the doors. Corporations don't feel a moral obligation to continue to pay for things or people that do not perform, therefore, why should the mortgagee?

Interesting question - we will touch on that more later, but here is a new company that apparently is doing very well that counsels people whether they should walk away or they should stick it out. Wow. No, this is not a joke.



Here is the link for the new company: You Walk Away

Serving Others Brings a Smile...

With all of the bad news in the media concerning real estate, the economy and a myriad of other issues, I thought that this article in the Amador Ledger Dispatch touched on something that many in this nation have forgotten about - serving others. I have always found it is a blessing to be able to sacrifice time and resources in order to help those that need it. Thank God we still have those that feel the same.

'Smiles For Kids'

Jackson Creek Dental Group hosted its 23rd Annual "Smiles For Kids" day at their office on the corner of French Bar Road and Highway 49. Part of the California Dental Association's "Give Kids a Smile" program, it offers free dental care to kids without dental insurance. Sandy Garcia, Jackson Creek Dental Group's coordinator/marketing manager, said the dental office served 55 children last year, up from 28 children in 2006.

More Taxes...

The general idea of government is fairly consistent: when revenues increase (like when a boom in housing brings in more taxes) create new expenditures in order to burn through this new surplus. But, when revenues decrease, the opposite does not occur - the budgets rarely get cut. Instead new "fees" (taxes) are created to fill the gap because of the shortfall.

The Calaveras Enterprise is reporting one of these increases that California is planning for all current homeowners. The idea is that they cannot count on taxes coming through your property tax, because...well, your homes are depreciating and there are so many vacancies now that they are not reaping the harvest that they used to. So, instead of trying to budget appropriately like any common citizen would do, they need to increase revenue in order to cover their mismanagement.

They know that they cannot raise your property tax - many people are fighting the current valuations that the county has assessed in this depreciating market. But, they figure the best way to collect on a large scale would be to insert a fee or "surcharge" - not on the value of your home - but on your insurance policy. That way they will be sure to get it.

Leave it to California politicians to increase the tax on your house, without increasing the tax on your house.

Nice - here is the link. Calaveras Enterprise: Governor proposes new Cal Fire fee for 2008-09

What are the odds...

Is this some country or what? Why are we spending billions (potentially trillions) in Iraq to bring them freedom and democracy when in the end it appears that the will of the people don't matter anyway and can be stifled through litigation and financial arm-twisting?

The Ledger-Dispatch is reporting that all of you who thought this issue was laid to rest when you cast your vote are just a bunch of flag-waving sheep. This is sick.

From the Ledger-Dispatch (Full Article):

In 2005 Amador County residents voted against a second Indian casino in the county by a resounding 85 percent.

But now the county board of supervisors is asking the populace to carefully reconsider the issue. They have scheduled six public workshops to consider whether the casino should be allowed to go forward.

New Trustee Sale Announcements...

Just a quick list of soon to be REOs recently published in the Ledger Dispatch here in Jackson, California. The courthouse steps are rather busy - I predict this will continue throughout 2008.

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PUBLIC NOTICE NOTICE OF TRUSTEE'S SALE Trustee Sale No.: 45078
213 K New York Ranch Road, Jackson, California 95642
WILL SELL AT PUBLIC AUCTION TO THE HIGHEST BIDDER FOR CASH
$229,319.17
Date of Sale: 02/08/2008

PUBLIC NOTICE NOTICE OF TRUSTEE'S SALE TSG No.: 3464718
16622 South Madrone Court, Pioneer, CA 95666
Notice of Sale is $282,314.88
Date of Sale: 02/14/2008

PUBLIC NOTICE NOTICE OF TRUSTEE'S SALE TS No. 07-50256 Title Order No. 3488020
Date of Sale: 02/13/2008
23082 RODEN LANE, PIONEER, CA, 95666
Notice of Sale is $405,909.99

NOTICE OF TRUSTEE'S SALE Trustee Sale #CA0813672
Date of Sale: 02/14/2008
445 PRESTON AVE, IONE, CA 95640
Notice of Trustee's Sale is: $288,987.56

PUBLIC NOTICE NOTICE OF TRUSTEE'S SALE T.S. No. GM-108171-C
Date of Sale: 2/15/2008
424 PRESTON AVENUE IONE, CA 95640-0000
$218,613.82

PUBLIC NOTICE NOTICE OF TRUSTEE'S SALE Trustee Sale No. 0710258JV
Date of Sale: 2-19-08
219 South Church Street, IONE, CA
$240,717.99

PUBLIC NOTICE TS# 3466.127
Date of Sale: February 15, 2008
1400 W. MARLETTE STREET, SPACE 12, IONE, CALIFORNIA 95640
(No price listed)

PUBLIC NOTICE BRS# 303307 TSG# 90-6946
Date of Sale: 2/19/2008
19095 PINE DRIVE EAST PIONEER, CA 95666
$135,492.02

NOTICE OF TRUSTEE'S SALE T.S. No: A345746
Date of Sale: FEBRUARY 7, 2008
311 S. CHURCH STREET, IONE, CA 95640
$52,468.39

NOTICE OF TRUSTEE'S SALE TSG No.: 3464718
Date of Sale: 02/14/2008
16622 South Madrone Court, Pioneer, CA 95666
$282,314.88