|Purchased Price||$826,845||:::||Lot Size||9,750 sq-ft|
|Days on Redfin||2||:::||Baths||2.5|
|20% Downpayment||$143,955||:::||Area||Peacock Village|
*Estimated monthly payment assume 20% down, 30-yr fixed @ 6.50%
“BANK OWNED REO! A wonderful ranch style home in a fantastic Arcadia locale. This home features a large living room with a cozy fireplace, formal dining room, upgraded bathrooms & laundry room. There is a large bonus room with a wet bar and direct access to home via the attached garage. Large front and back yard. Sold As-Is.”
Today’s property is a $330k+ loss member and serves as another poster child on the consequences of negligent lending. The 100% financing that the homedebtor used to “buy” this home soon caught up to him. The $105k 2nd mortgage is a complete wash and should they get this asking price, the primary loan bag holder will suffer over a 1/4 million dollar loss after 6% commission.
At 10,000sf, you get a decent size lot and a 2,000+ sf living area. Unfortunately, this property is located right at the intersection of 3 streets; Columbia, Balboa and Sunset. There is no escaping the noise in this high traffic cross section.
02/20/2008 $826,845 (when the bank took this property back)
Taking the 1995 price and applying a 3, 4 and 5% annual appreciation, this property would be worth:
This property listing in the low $700’s is an improvement for a single family home in a good neighborhood. However, there is still no sign of the bottom and prices are likely to drop even further over the next few years. But if you are looking to buy soon and searching for a home or investment properties at bargain prices, consider purchasing a bank owned property.
9 thoughts on “31% Off Peak in Peacock Village”
Extending your projection to 2010:
Using GRM 160 and monthly rent $2700-$3200 in 2010, the value will be:
$432k – $512k in 2010.
White House Threatens Veto of Anti-Foreclosure Bill (Update1)
By Alison Vekshin
May 6 (Bloomberg) — The Bush administration signaled it will veto foreclosure-prevention legislation being advanced by House Democrats that would offer states $15 billion in grants and loans to buy and refurbish abandoned homes.
“The principal beneficiaries of this type of plan would be private lenders — who are now the owners of the vacant and foreclosed properties — instead of struggling homeowners who are working hard to stay in their homes,” the White House said in a statement released today in Washington. House Democrats plan to advance the measure tomorrow.
If the legislation were presented to President George W. Bush, “his senior advisers would recommend he veto the bill,” the White House’s Office of Management and Budget said today.
The measure is among Democrat-sponsored proposals the U.S. House of Representatives may weigh tomorrow as lawmakers move to stem foreclosures in the wake of the subprime mortgage crisis. Foreclosure filings rose 57 percent in March from a year earlier, according to Irvine, California-based RealtyTrac Inc.
Under the House plan, states would repair foreclosed homes and find residents to fill vacancies that lawmakers say erode the value of neighboring properties. Funds would be allocated based on a state’s percentage of foreclosures, with the hardest- hit states, such as Ohio and Nevada, benefiting most.
The legislation “would create an additional incentive for more lenders to foreclose rather than attempt a workout with distressed homeowners,” the OMB said.
House Financial Services Committee Chairman Barney Frank, who proposed the plan in March, rejected the criticism, citing the Federal Reserve’s rescue of Bear Stearns.
“To complain that we want to give $15 billion to the whole country,” in light of the $30 billion Fed gave to facilitate the Bear Stearns rescue, “is like being called silly by the Three Stooges,” Frank, a Massachusetts Democrat, said today.
The veto threat “is bluster on the part of the administration,” said Andrew Jakabovics, a housing specialist at the Center for American Progress, a Democratic policy- research group in Washington. “There is broad support for this and it is building.”
The House tomorrow will also consider Frank’s plan to let the Federal Housing Administration insure up to $300 billion in mortgages after loan holders agree to reduce the principal. That legislation drew sharp criticism today from House Republicans at a news conference in Washington.
“What we’re talking about here is a $300 billion bailout for those who were scamming the market,” said House Minority Leader John Boehner, an Ohio Republican. The lawmakers offered an alternative plan including a one-time homebuyer tax credit of up to $10,000.
These proposals to bailout lenders and distressed borrowers are ridiculous. What happened to a “free market” where prices are controlled by supply and demand?
I don’t buy 2 arguments:
Vacancies would “erode” the value of neighborhoods. – When prices drop to affordable levels, these same homes will be bought up. Right now they are overpriced and its value is determined by what buyers are willing to pay for them.
Distressed borrowers will lose their homes. – So what? That’s what apartments and starter condos were made for. Trust me, these people aren’t going to end up on the streets. They will just have a SAVE and be RESPONSIBLE with their money like the millions of homeowners before them who had to put 20% down and take on an affordable fixed mortgage payment.
If the FEDs can’t even get a grip on the economy, what makes politicians think they can do any better? Is someone going to bail me out because my BX stock is down 30? I didn’t think so.
I think the REO price on this property is still out of touch w/real purchasing power. My mother just went to a foreclosure sale 2 days ago in Pomona, and she said the site was packed w/30 or 40 buyers. There was a man, who might have been a representative of some special group, who was out bidding everyone for decent properties in the Arcadia area. If the demand for foreclosure properties in SGV is this strong, is it safe to assume that even with the increase of foreclosure and NOD filings, it will take some time (maybe 09′ or 10′ or never, as many real estate agents want us to believe) b/4 prices drop closer to the buyer’s income?
Since I deal closely in real estate investments, I can tell you that there are many “professionals” out there who continue to be optimistic regarding our housing market. These people who say Arcadia won’t be hit as hard are the same folks who told me that Irvine was IMMUNE to the housing crisis because Asian wealth and a stellar school district will keep prices afloat.
Ok, they were right about rich Chinese immigrants and the schools. Unfortunately, that isn’t preventing Irvine housing prices from crashing with the rest of Orange County. Heck, Irvine Housing Blog celebrated this past Cinco de Mayo by profiling a $500,000 loss on one property.
But as you mentioned, I do think that we have 2-3 more years of declining values before homes become affordable again. We’re already 5 months into 2008 and I doubt the influx of Summer inventory will help prices any.
The great accelerator of home price declines is going to be the CC cancel, lower limit, and/or doubling of your interest rate notice that is going to go out in late summer.
Do some article search on the amount of CC debt is out there and how much it is increasing qtr over qtr? and if you think that this isn’t going to happen, take a look at how fast the debt settlement and bankruptcy industry is growing.
With no more refinancing, and no more home equity lines, people have moved to using their CC’s, when this is cut off…. say goodnight grace.
The only question is when, which can be taken both ways… why hasn’t it already happened… or when is it going to happen… after the election… and while this may seem a little squeaky… once this cat is out of the bag… the economy will screech to a halt… and the negative backlash will terminate any chance of John McCain getting in office….or it could be that the banks are so overwhelmed with the scale of this crisis, they have no idea what they are doing…
I actually think the later is most realistic…. I think that this is the largest economic crisis they have ever seen, and things are happening so fast, that they are… just trying to keep up
I’m with you. This isn’t your typical “doom and gloom” prediction. The U.S. right now is in uncharted territories.
Quote and articles like this will be the norm for the next 2 years:
“Of homeowners nationwide who purchased when U.S. home values peaked in 2006, one out of every two (51.6%) now owes more on their mortgage than their home is currently worth.”
From: Your house is so underwater you need a submarine to get in the front door.
I am with you…. a lot of my friends that are I consider somewhat financially savvy…. feel like they are dreaming or having a bad dream.
One of them has tired of being bullish, and states, “things are so fundamentally out there, it is hard to look at the data and not see the worst”
but how bad are things going to get…. no one knows… but if I was a betting man (Las Vegas is seeing a down turn)… I would say severe…
just found this blog today! great info here and much appreciated 🙂 Actually me and my father just went by this property today. He was pretty excited about it ( the insides of the house need major touch up, kitchen, backyard, windows and floors ). However he’s always been one to spend the time into redesigning a house. We actually live in arcadia already, and I’m about at the age where i should be home shopping. To be honest, i also thought it was a pretty big property for the price, with the right home improvements it could be nice. However, seeing this post got me doubting ( thank god i grew up in the age of web 2.0 and blogs 🙂 ). It’s my first experience with home purchase so all this information is really still new to me. Anyway, going to think some more now about this one now….
PS i’m actually planning to buy this property for investment then possibly rent it out… (I enjoy living at home. 😛 )
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