The former owner of today’s feature REO timed the market well. The bought at the bottom of the last cycle on 11/10/1997. They paid $222,500 using a $211,350 first mortgage and an $11,150 down payment. Off that tiny investment, they proceeded to pull out $306,000 in mortgage equity withdrawal over the ensuing 10 years.
These borrowers weren’t periodic HELOC abusers who were paying off yearly credit card bills. In fact, they were prudent up through 2005 when they refinanced with a $395,00 first mortgage. It appears that doubling of their mortgage debt was enough to push them over the Ponzi threshold requiring further cash infusions to make payments.
They got a $469,000 Option ARM on 1/30/2007, and they got another one for $517,500 on 7/27/2007. They stopped making payments, and the property was sent to auction on 10/21/2011 where the bank bought it for $488,750.
IMO, their current asking price is delusional. The market for this house is closer to $550,000 rather than the $619,000 they are asking.
– —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- — ————————————————————————————————————————————-
Proprietary OC Housing News home purchase analysis 
8 STAR THISTLE Irvine, CA 92604
$619,900 …….. Asking Price
$222,500 ………. Purchase Price
11/10/1997 ………. Purchase Date
$397,400 ………. Gross Gain (Loss)
($17,800) ………… Commissions and Costs at 8%
============================================
$379,600 ………. Net Gain (Loss)
============================================
178.6% ………. Gross Percent Change
170.6% ………. Net Percent Change
7.3% ………… Annual Appreciation
Cost of Home Ownership
——————————————————————————
$619,900 …….. Asking Price
$123,980 ………… 20% Down Conventional
3.95% …………. Mortgage Interest Rate
30 ……………… Number of Years
$495,920 …….. Mortgage
$123,892 ………. Income Requirement
$2,353 ………… Monthly Mortgage Payment
$537 ………… Property Tax at 1.04%
$0 ………… Mello Roos & Special Taxes
$155 ………… Homeowners Insurance at 0.3%
$0 ………… Private Mortgage Insurance
$155 ………… Homeowners Association Fees
============================================
$3,201 ………. Monthly Cash Outlays
($380) ………. Tax Savings
($721) ………. Equity Hidden in Payment
$169 ………….. Lost Income to Down Payment
$97 ………….. Maintenance and Replacement Reserves
============================================
$2,366 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$7,699 ………… Furnishing and Move In at 1% + $1,500
$7,699 ………… Closing Costs at 1% + $1,500
$4,959 ………… Interest Points
$123,980 ………… Down Payment
============================================
$144,337 ………. Total Cash Costs
$36,200 ………. Emergency Cash Reserves
============================================
$180,537 ………. Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..
We're sorry, but we couldn't find MLS # C11152853 in our database. This property may be a new listing or possibly taken off the market. Please check back again.
Competing Listings
 |
$566,501 6 FERN Cyn |
0.1 miles 3 bd / 2.25 ba 1,899 Sq. Ft. |
|
 |
$569,000 9 PENNY Pnes |
0.12 miles 3 bd / 2 ba 1,900 Sq. Ft. |
|
 |
$539,000 12 GOLD Blf |
0.41 miles 3 bd / 2 ba 1,686 Sq. Ft. |
|
 |
$549,000 3762 BLACKTHORN St |
0.59 miles 4 bd / 1.75 ba 1,640 Sq. Ft. |
El Camino Real Distressed Listings
Showing properties
1 - 4 of 4.
See more IR - El Camino Real Distressed.
(all data current as of
5/18/2012)
-
$699,900 : 4931 Karen Ann Ln, Irvine3 beds, 5 full, 1 part baths
-
$579,900 : 8 Star Thistle, Irvine3 beds, 2 full baths
-
$549,000 : 27 Butterfly, Irvine4 beds, 2 full, 1 part baths
-
$429,000 : 6 Santa Fe, Irvine3 beds, 1 full, 2 part baths
Listing information deemed reliable but not guaranteed. Read full disclaimer.
El Camino Real Equity Listings
Showing properties
1 - 5 of 18.
See more IR - El Camino Real Equity.
(all data current as of
5/18/2012)
-
$549,900 : 17 Woodrush, Irvine3 beds, 2 full baths
-
$389,900 : 25 Snowberry 32, Irvine3 beds, 2 full baths
-
$499,000 : 7 Montgomery 43, Irvine3 beds, 3 part baths
-
$499,900 : 5132 Greencap Ave, Irvine3 beds, 2 full baths
-
$479,000 : 1 Black Oak, Irvine3 beds, 1 full, 1 part baths
Listing information deemed reliable but not guaranteed. Read full disclaimer.
For more Irvine news, market analysis and property profiles, please see the Irvine Housing News.
Hey OC Housing News readers!,
Please check out North Orange County Housing News, it’s part of the Orange County Housing family of blogs.
http://northochousingnews.com/
Thanks,
Mike
Man, it’s almost 2012 and these massive equity withdrawal parties that went on never get old.
5 years from now younger people are going to look back at these stories with a lot more anger and resentment. Others are going to say “Damn, what a shame, those sure were the good ole days!”.