El Camino Real prices down 11.7%

NEWS

Jan 172012

Don’t loan HELOC abusers money

Every once in a while, I see a private party loan get recorded in the property records. These usually come at the end of a long series of refinances and represent a personal loan from a friend or family member. These are almost always a bad idea. Whatever relationship these two people had is now ruined because the loan will likely never be repaid.

This property was purchased for $265,000 on 6/23/1999. The owner used a $212,000 first mortgage and a $53,000 down payment.
On 5/22/2002 he obtained a stand-alone second for $50,000.
On 5/27/2003 he refinanced with a $304,500 first mortgage.
On 11/13/2003 he obtained a stand-alone second for $120,000.
On 2/7/2005 he refinanced with a $455,000 first mortgage.
On 5/3/2006 he got a stand-alone second for $150,000.
On 4/22/2008 he borrowed $20,000 from a private individual.
Total property debt is $625,000.
Total mortgage equity withdrawal is $413,000.

He hasn’t been served a default notice yet, but I image this owner is part of the non-paying shadow inventory. People who put their houses up for short-sale rarely make payments during the process. Why would they?

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Proprietary Irvine Housing News home purchase analysis

5151 DOANOKE Ave Irvine, CA 92604

$360,000 …….. Asking Price
$516,000 ………. Purchase Price
3/25/2004 ………. Purchase Date

($156,000) ………. Gross Gain (Loss)
($41,280) ………… Commissions and Costs at 8%
============================================
($197,280) ………. Net Gain (Loss)
============================================
-30.2% ………. Gross Percent Change
-38.2% ………. Net Percent Change
-4.5% ………… Annual Appreciation

Cost of Home Ownership
——————————————————————————
$360,000 …….. Asking Price
$12,600 ………… 3.5% Down FHA Financing
3.93% …………. Mortgage Interest Rate
30 ……………… Number of Years
$347,400 …….. Mortgage
$94,686 ………. Income Requirement

$1,645 ………… Monthly Mortgage Payment
$312 ………… Property Tax at 1.04%
$0 ………… Mello Roos & Special Taxes
$90 ………… Homeowners Insurance at 0.3%
$400 ………… Private Mortgage Insurance
$0 ………… Homeowners Association Fees
============================================
$2,446 ………. Monthly Cash Outlays

($254) ………. Tax Savings
($507) ………. Equity Hidden in Payment
$17 ………….. Lost Income to Down Payment
$110 ………….. Maintenance and Replacement Reserves
============================================
$1,813 ………. Monthly Cost of Ownership

Cash Acquisition Demands
——————————————————————————
$5,100 ………… Furnishing and Move In at 1% + $1,500
$5,100 ………… Closing Costs at 1% + $1,500
$3,474 ………… Interest Points
$12,600 ………… Down Payment
============================================
$26,274 ………. Total Cash Costs
$27,700 ………. Emergency Cash Reserves
============================================
$53,974 ………. 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 # P808175 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

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