This is from the front page of the Bakersfield Californian (no link yet):
Local foreclosures and defaults hit new records in October, the latest county data show. Some 372 Kern properties foreclosed while 945 defaulted, the highest monthly counts in each category since January 1995 when the county recorder's office started tracking filings. A year ago October, 41 foreclosures and 351 default notices were recorded.
Based on my own count, it appears the local Hispanic community has not received the memo that there is a housing bubble. Unfortunately, they are now receiving the memo via a default notice. Hispanic surnames make up, on average, 70% of the weekly defaults.
19 comments:
it is sad to say that when I look at model homes to past time, the majority that are also looking are minorities. I too am a minority and it pains me to see many who are already at a socio economic disadvantage make their situation worse. How long can anyone really service the debt that would be incurred after a purchase of even a modest home in today's prices (after a drop of already 20-30%). Homes must still continue to decline. Best wishes to you all here and hopefully homes wil go back in line with incomes. My wife and I sold last yr and are currently living in a small apartment. Funny thing is after we sold, we realized how much happier we are with our rental--cheaper, less noisy, more efficient.
ABC7 Los Angeles had a story last night about a nice young Hispanic couple who picked up a foreclosure at auction for $130,000. They had big plans. At those prices maybe they are right. Live there for $1000/month and not worry about value.
Sadly most of the hispanic are taken advantage by their own. They speak the language and feel comfortable with them, then they tighten the screws on them and they never even know it.
$130k would be very reasonable in this town, that was our median in 2002 (pre-boom).
Crisp no longer a member of the MLS
See:
http://www.kget.com/news/local/story.aspx?content_id=628bd970-0bdd-4a56-89b9-1cf3982b4913
Awfully quiet relative to this guy. I'm thinking quiet enough that the hammer will drop soon.
Thoughts?
BAKERSFIELD - Real estate agent David Crisp is no longer an agent on the Multiple Listing Services -- a tool used by real estate agents to advertise properties for sale.
Linda Vernon of the Bakersfield Association of Realtors said Crisp has not paid dues required to post properties, but said Crisp is still in good standing as a realtor with the association.
The FBI raided Crisp's home as part of a mortgage fraud investigation in September.
The Department of Real Estate has filed a complaint, the first step in pulling his license.
_____________________________
Thanks for the tip Professor Shays
What are the requirements to remain in good standing? LMAO. All of these local associations are a joke. Zero enforcement of anything, they are simply dues collectors.
Good read from the NY Times
Homeowners Feel the Pinch of Lost Equity
Based on number of listings in their inventories, the top three agents in our County have 112, 103 and 82 listings, EACH. 99% of all of those are strictly Bank Owned Properties!
As of 11/8/07: 4977 Residential Listings. Of those:
758 Bank owned
607 Short sale (asking lenders to take less than owed on loan in order to avoid foreclosure)
WOW!
I had the same thoughts about the "new wealth" created for minorities over the past 5 years, in a blog post called Welfare to Work..and Back Again
Carl Cole just put his personal residence on the market!
12504 Crown Crest Drive
$699,000, subject to SHORT SALE approval.
758 Bank owned
607 Short sale
Yes - wow! with more to come
Another wanna be mogul goes bust -
From KUTV in Utah. “Bill Gephardt continues his series of special investigations into the business of questionable real estate deals. This isn’t just about one or two cases. This is about dozens of people pushed to the brink of financial ruin.”
“Dave Ormsbee has never been inside this Draper home, which he now owns. Dave says it was his good credit alone that bought a home in Draper and a house in St. George, both with no money out of his pocket.”
“Now at the age of 27, Dave owes more than a million dollars in mortgage loans. Sounds like he makes a lot of money, but quite the opposite is true. Dave is a college student and waits tables after school.”
“He makes maybe $11,000 a year, yet he bought the Draper house for more than $700,000. ‘You’re a server at a restaurant. How can you afford a $719,000 house? I can’t,’ says Dave.”
“Despite that, Dave was given mortgage loans on not just one but both of the homes. But how could a college student making $11,000 a year convince any lender to give him a million dollars in mortgages? Take a closer look at Dave Ormsbee’s loan application. It shows him as the owner of his own company, Ormsbee Graphic Design.”
“But there is no such physical company, it’s all created on paper, he says. ‘That’s the company that they had me make up,’ says David.”
“And the loan documents show David doesn’t make $11,000 per year, but $18,500 a month. ‘Do you make $18,500 a month? Nope. I don’t make that a year,’ says David.”
“Dave says he didn’t fill-out the documents. He admits he made the mistake of never looking at what he was signing. ‘There just so much signing going on that you just don’t care what you’re signing after a while,’ says Dave.”
http://www.kutv.com/content/news/topnews/story.aspx?content_id=a72d7bc0-9182-4158-b811-acc4bd61f2df
So, who's to blame for this debacle? The Realtor? For selling this kid the property? The Broker/Mortgage company who made the loan? Or maybe, just maybe --- the person who could have stopped this nightmare immediately by saying "No, I make $11,000 a year and I cannot afford to do this"... this college student--this buyer who sought out people to show him how to get what he wanted. He wasn't led like a sheep-- he actively participated -- he even states the company listed on the application (a paper company) was created by him --- "‘That’s the company that they had me make up,’ says David.”--and HE DID IT..HE COMMITTED FRAUD .. and he signed all the documents... AGREEING TO THE FRAUD ....didn't bother to read them....just did it. And yet, he is now and probably will be forever viewed as the poor uninformed or underinformed consumer who needs the government to step up and bail him out and protect him in the future thru legislation from the money grubbing people who took advantage of him (sniff sniff). Sorry, no sympathy here. Step up young man, you didn't just sign unread documents, you created and participated in fraud! Doesn't matter who advised who on what...the action was the choice. It's called accountability! Step up and take your medicine!
Silentone,
I couldn't have said it better!
silentone said...
"So, who's to blame for this debacle?"
When all is said and done, the blame falls on the Middleman.
Without the greed of Middlemen, no doc loans would never have happened.
Business models based on commission compensation always lead to corruption in the long run.
If you think your time is really worth 3 or 4 figures per hour, have the integrity to bill the labor by the hour.
Middlemen produce nothing tangible, and only make those who produce in our economy poorer.
I would go all in to see the river,
if a realestate agent that was told by a buyer that he wants to buy his dream home and points the home out in the area the buyer wants to live and says I want this house Agent sends him to his bank his bank sends him to a subprime lender and makes it all happen
now i say what agent woulden't write up the deal ?
Why put any blame on the agent
2004-2006
Buyer finds RE agent, wants to buy "dream home".
Honest agent would tell buyer,"We are in the middle of a price bubble, and the property value is presently inflated. You might want to reconsider"
Commission Monger RE agent would tell buyer, "RE values only go up! Great investment! Where's my 6%?"
Commission Monger RE agent sends gullible buyer to the bank. The bank has skin in the game,(not a middle man) finds the buyer too risky.
Gullible buyer goes to Sub Prime Mortgage Broker recommended by "caring" RE agent. Agent gets 6% regardless of buyer situation.
Commission Monger Sub Prime Loan Broker provides toxic loan for buyer that maximizes broker commission and under the table kickbacks. Broker laughs all the way to the bank knowing he made out big time, regardless of buyer situation.
"Caring and honest" RE agent closes deal while ignoring buyer situation, and gets 6% after producing nothing. Laughs all the way to the bank.
Yeah, why blame the agent.
Realestate Agents don't have a crystal ball
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