Wednesday, March 05, 2008

Foreclosures everywhere! County reviewing 40,000 homes

Developer foreclosures - Bakersfield Californian:

$74 million loan to Irvine-based developer SunCal Cos. for a major housing project in Shafter was foreclosed on Wednesday morning at a public auction on City Hall steps.

SunCal’s outstanding debt to national homebuilder Lennar Corp. had reached almost $86 million with interest and fees by auction time. Opening bids for the 515-acre site started at $10 million. No one made an offer, so the property went back to Lennar.

A pair of Wasco properties borrowed against by Eagle Meadows of Wasco companies operated by Stockton-based developer Kent Hoggan went back to lender Investment Grade Loans Inc. after no one answered the opening bid call at $100,000 apiece.

About 77 acres at Gromer and Magnolia avenues and 75 acres near Palm and Filburn avenues carried about $4.2 million in debt. Both are currently agricultural sites.

Sacramento developers finding out Bakersfield's streets are not paved with gold, from the Bakersfield Californian:

They live in one of eight homes completed before Sacramento developer Reynen & Bardis Communities Inc. halted construction here late last year, leaving idle partially constructed houses on many of the cul-de-sac’s dirt lots.

Hidden Grove’s future and that of at least seven other local Reynen & Bardis projects in Bakersfield, Wasco and Shafter are up in the air as the homebuilder’s finances teeter.

Still, Reynen & Bardis is among a dozen or so developers who have defaulted on Kern projects carrying loans of $2 million or more, according to an ongoing Californian survey.

It’s the first time metropolitan Bakersfield has seen such a spike in developer defaults and foreclosures, real estate professionals say, and it’s unclear what the final impact will be.

Foreclosures reach a new record, again, Bakersfield Californian:

Foreclosures reached another new high in Kern last month, according to the latest report from the Kern County Recorder’s office.

The monthly tally shows 586 properties foreclosed in February, up from 512
the previous month and 107 in February 2007.

Default notices, meanwhile, arrived at a steady pace despite the short month, with 1,177 recorded. That’s just two more than January’s count, but more than double the 502 sent out a year ago.

The following was posted on the Counties website. Kern Assesors Website:

Kern Residence Values Decline

The Assessor is in the process of reviewing more than 40,000 residential properties in Kern County as a reduction may be necessary for these properties due to the downturn in the housing market. These reviews are for purchases that occurred between July, 2004 and December, 2007. The Assessor will be determining the market value of these properties for January 1st, 2008. If the market value for January 1st, 2008 is less than your current assessed value, an adjustment will be made. This adjusted value will be reflected on the 2008-2009 tax bills. All properties that have a lower value will receive notification via US mail by July 15th, 2008. It is not necessary at this time to contact the Assessor’s Office, the review will be automatic. If, by the 1st of August, you have not received a determination of value from the Assessor’s Office, and you feel your value is too high, please contact the Assessor’s Office at (661) 868-3485.


Realestateslasher said...

F H A New Limits for Kern ?

Jon Vaughn said...

Yes. $368,750.

Mark said...

Has anybody been able to see what property tax payment defaults are like in Kern or LA County? I imagine this to be the next big story.

Rob Dawg said...

No, I've already explained this. Wait until the very last minute to file an appeal. Either a deep but fair cut in the hopes they just give it to you or a totally outrageously low number that you refuse to negotiate until it gets scheduled before the board.

hankmeister said...

The property tax thing is unlikely. I believe it takes 7 years before the County can lien the property. Property with active debt service typically will get the taxes paid before that. Hence all the vacant lots in Cal City constantly up for auction.

xs10shell said...

Let's start a new government program of buying surplus houses and giving them to the needy. Because in this great country of ours there is no reason why everyone shouldn't have (you fill in the blank).

Or how about paying developers to plow under all their new construction and then subsidize them to not build?

Dwight K. Schrute said...

Check out the California Tax Board list for the most delinquent taxpayers. Kent Hoggan is 7th on the list owing $5,775,389.44 in personal income tax.

Also you can check out the Secretary of State website and run a search using Eagle Meadows in the LP/LLC section and see all of his companies. Looking at all of these I think we can expect a lot more defaults & foreclosures from him.

James said...

Have you seen this:

But of course all those jobs aren't anywhere near Bpatch.

WaitingToBuy said...

Realtor "disputes" that the value of her home has fallen. That's rich.

nddl04 said...

How Greenspan screwed the pooch. Looks like his retirement might have something to do with what he saw on the horizon.

Rob Dawg said...

Wassup bud? Nothing for a month?

Bakersfield Bubble said...

Hey rob!

I am still at all the regular blogs. It appears the story has been told locally - foreclosures set a new record (again)this month, prices down more, etc... If this keeps up I might be underwater on my years ago purchase - LOL.

One new tidbit - A former real estate moguls wife has applied for an $8 an hour job - pretty humbling experience. From a McMansion to McDonalds all in a year - BAHAHAHAHAHA

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