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.

15 comments:

Realestateslasher said...

F H A New Limits for Kern ?

Jon Vaughn said...

Yes. $368,750.

Unknown 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.

http://www.ftb.ca.gov/individuals/txdlnqnt.shtml

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.

http://kepler.sos.ca.gov/list.html

Rinkevichjm said...

Have you seen this:
http://ridgecrestca.com/articles/2008/03/18/news/top_story/news00.txt

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

WaitingToBuy said...

http://people.bakersfield.com/home/Blog/MoneyTalks/23938

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.

http://money.cnn.com/2008/03/31/news/fed-backlash.fortune/index.htm?postversion=2008033113

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

Hard Money Lenders Direct in California said...

good job, great article

Hard Money Lenders Direct in California said...

california hard money lenders, california hard money lenders, texas mortgage refinance, california mobile notary, atm machines for sale

Hard Money Lenders Direct in California said...

What Is Hard Moneyand How Will It Benefit You?



Have you heard the term "Hard Money," but you're not sure what it means? Perhaps you know what it is, but you're unsure where to find it. Hard money is financial backing from private investors in the form of a loan. It is one of the best ways to get a business project off the ground, but you have to know how to obtain it the proper way.



Hard Money loansare often used for construction projects. Typically, the lender loans the money in stages. For example, let's say you own a plot of land and you want to develop it. A lender will agree to back you on the project. They will loan you a percentage of the money at the beginning of the project,more during the middle of the project and a final installment near the completion of the job.



Lenders often pay the contractor for their work directly. For instance, once your contractor completes the foundation of the new building, the lender pays them a specific amount directly. Then, when the electricians finish wiring the building, the lender pays them directly as well. All contractors receive their payments direct from the Hard Money lenders.



Private investors often prefer this approach because it gives them greater control over their money and their investments. You don't have to be a big real estate mogul to get Hard Money from investors. Many investors are willing to support many different types of projects. Private investors will financially back projects like single family residences, condos, townhouses, apartment buildings, hotels, motels, office buildings and shopping centers. However, they will not usually invest in undeveloped land.



While Hard Money lendersare willing to loan to residential investors, they most frequently invest in commercial real estate. This is due to today's instability in the housing market. Commercial investments are simply a safer bet for recouping funds an investor puts into a project. Because of skyrocketing foreclosure rates in the modern housing market and property values dropping at record rates, there is considerably less risk involved for the investor in commercial projects.



Commercial real estate is a very competitive market, but Hard Moneyinvestors are willing to buy properties, remodel existing structures and even build new properties. The commercial real estate market is still alive and well. In fact, today's commercial market is very similar to the residential market that profited so many people just a few years ago.



Hard money lenders are still in the game. In fact, they are busier than ever because banks are making the lending process more exclusive than ever due to a record number of people defaulting on their loans. Knowing how the private lending process operates is half the battle when it comes to finding private investors for your commercial real estate project. With a little research and networking, you will find the perfect backer for the commercial real estate project of your dreams. The hard money for the project is out there; all you have to do is find it.





Contact Hard Money Lenders now!