Comments on: Foreclosure Numbers Keep on Rising http://blog.redfin.com/losangeles/2008/10/foreclosure_numbers_keep_on_rising.html Redfin Los Angeles Sweet Digs Thu, 09 Feb 2012 13:33:45 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Nick http://blog.redfin.com/losangeles/2008/10/foreclosure_numbers_keep_on_rising.html/comment-page-1#comment-18174 Nick Wed, 08 Oct 2008 18:26:15 +0000 http://blog.redfin.com/losangeles/2008/10/foreclosure_numbers_keep_on_rising.html#comment-18174 A ton of these are based on the in-fill building frenzy around the edges of LA where we used to have some open space, horse property or less dense single family home neighborhoods. Developers paid double the market price for 2-3 properties and crammed them with detached-condos, OOOPS, sorry, RE-folks, I mean "small-lot-homes". I almost reduced the selling price by a hundred grand there. Passing the law that allowed "detached condos" to be sold as "small lot homes" was very clever, and drove up condo prices, and then relative to that, home prices, further inflating home prices beyond the normal high end of the cycle. OUCH! I hope the RE Developer's lobby invested their paychecks somewhere besides RE. A ton of these are based on the in-fill building frenzy around the edges of LA where we used to have some open space, horse property or less dense single family home neighborhoods. Developers paid double the market price for 2-3 properties and crammed them with detached-condos, OOOPS, sorry, RE-folks, I mean “small-lot-homes”. I almost reduced the selling price by a hundred grand there. Passing the law that allowed “detached condos” to be sold as “small lot homes” was very clever, and drove up condo prices, and then relative to that, home prices, further inflating home prices beyond the normal high end of the cycle. OUCH! I hope the RE Developer’s lobby invested their paychecks somewhere besides RE.

]]> By: WSJ: 1 in 6 Homeowners ‘Underwater’ | Redfin Los Angeles Sweet Digs http://blog.redfin.com/losangeles/2008/10/foreclosure_numbers_keep_on_rising.html/comment-page-1#comment-18167 WSJ: 1 in 6 Homeowners ‘Underwater’ | Redfin Los Angeles Sweet Digs Wed, 08 Oct 2008 15:35:33 +0000 http://blog.redfin.com/losangeles/2008/10/foreclosure_numbers_keep_on_rising.html#comment-18167 [...] Redfin posts: Foreclosure Numbers Keep On Rising The Q3 Foreclosure Report is In Debt, the Engine of Prosperity, is Out of [...] [...] Redfin posts: Foreclosure Numbers Keep On Rising The Q3 Foreclosure Report is In Debt, the Engine of Prosperity, is Out of [...]

]]> By: SO_CAL_RETAIL_SLUT http://blog.redfin.com/losangeles/2008/10/foreclosure_numbers_keep_on_rising.html/comment-page-1#comment-18039 SO_CAL_RETAIL_SLUT Mon, 06 Oct 2008 04:22:31 +0000 http://blog.redfin.com/losangeles/2008/10/foreclosure_numbers_keep_on_rising.html#comment-18039 I now you mentioned that Palmdale and Lancaster are a mjor problem, but klook at the numbers for Pacoima, Sylmar and Panorama City areas of the San Fernando Valley and withing the city limits of Los Angeles. My concern is that we are just seeing the beginning of trouble as most od these homes are entry-level and lower income areas that were impacted first by the mortgage mess. This is going to spread to those who purchased and/or refinanced with good/prime credit who also chose the pick-a-pay loans, and not all were written by WaMu. Those ARM loans have begun to mature, with many on a three and five year balloon schedule. Many just will not be able to afford those increased payments who now reside in the more desirable areas of the valley. Now, the LIBOR rate which most, if not all of the pick-a-pay loans are based on. How are they going to be able to refinance? I'm afraid much more and severe troubles are coming are way. I now you mentioned that Palmdale and Lancaster are a mjor problem, but klook at the numbers for Pacoima, Sylmar and Panorama City areas of the San Fernando Valley and withing the city limits of Los Angeles.

My concern is that we are just seeing the beginning of trouble as most od these homes are entry-level and lower income areas that were impacted first by the mortgage mess.

This is going to spread to those who purchased and/or refinanced with good/prime credit who also chose the pick-a-pay loans, and not all were written by WaMu.

Those ARM loans have begun to mature, with many on a three and five year balloon schedule. Many just will not be able to afford those increased payments who now reside in the more desirable areas of the valley.

Now, the LIBOR rate which most, if not all of the pick-a-pay loans are based on. How are they going to be able to refinance?

I’m afraid much more and severe troubles are coming are way.

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