Thursday, March 06, 2008

Grab 'em While You Can

Take firm hold of something you value because when this mess takes effect it may be the only thing left worth squeezing.

From Businessweek:
14 Calif. counties get maximum FHA limit

Counties that get the $729,750 maximum for FHA loans are likely to get that same level for Fannie and Freddie mortgages, experts said. HUD is expected to designate new Freddie and Fannie limits for other parts of the country too.

In California, the counties at the maximum level for FHA loans are Alameda, Contra Costa, Los Angeles, Marin, Monterey, Napa, Orange, San Benito, San Francisco, San Mateo, Santa Barbara, Santa Clara, Santa Cruz and Ventura. At the other end, Lassen, Modoc and Trinity counties are subject to a loan cap of $271,050 -- a standard amount in an area with normal home prices.

Won't that be just peachy. All those $700k loans causing so much trouble for banks and investors can now get dumped into the taxpayers' lap via FHA, Fannie and Freddie. And what does $700k get you in bucolic Ventura County? maybe you'd be interested in this:

Sweet Camarillo bungalow 1,662 Sq. Ft. only $679,900. Good to know your nation invests in only the best. Oh, and don't forget, while some lucky homeowner kicks back in thissartorial castle three families in non-bubble areas go without getting mortgages as the money is all in this one beauty.

Perhaps something a little newer. This honey is what happens when planner social engineering and developer greed mesh:

Built in 2006 this 5 Bed, 3 Bath 2,851 Sq. Ft. is a modern classic in the Neo-Traditional style. What is NeoTrad? In this case it means a 2,851 sf house on a 4,347 sf lot.


wagga said...

Fishnet First!

Lou Minatti said...

Second, and you're up early or late, Rob.

Rob Dawg said...

Early. Wagga is probably still up late fueled by coffee and beer trying to ship his latest build. Me, something woke me and couldn't get back to sleep. Perhaps the sound of a -300 point day on the DOW?

If the Ventura market is scary you should get Wagga to tell you about Fresno. Yikes. In the meantime any interest in those fine examples of affordable housing? I know, you can get 4 as nice or better for those prices.

Bill said...

But you can talk to your neighbor from inside your house w/o raising your voice!

>What is NeoTrad? In this case it means a 2,851 sf house on a 4,347 sf lot.

Lex said...

"Exterior construction: stucco..."

That makes you the stuccee.

Property Flopper said...

Wow... Just wow. Every now and again I see one like this and just have to share:

Not so much the property, but the ad itself. I love that he wants to be someones agent.

Akubi said...

What is NeoTrad?
In this case, it appears to be one of those horrid, oversized Arts and Crafts revival houses they are building everywhere. The beauty of Arts and Crafts houses is craftsmanship which they completely lack.

Akubi said...

Carlyle Capital Corporation (CCC) said it received margin calls totaling more than $37 million from seven financing parties on Wednesday and was unable to meet the demands for extra collateral to cover its market positions for four of them.

It said it received one default notice and expected at least one more.

Listed on the Amsterdam exchange last July, CCC invests in products including investment grade mortgage-backed securities.

CCC as of last month had a $21.7 billion investment portfolio of AAA-rated floating-rate capped U.S. mortgage-backed securities issued by Fannie Mae and Freddie Mac.

Property Flopper said...

Should come as a surprise to nobody, but...

Home equity has been dropping, now it's crossed the 50% mark.

Rob Dawg said...

I was going to blog about the equity but the MSM is all over it. Once they spreading their lies it gets harder to be heard.

It's pretty bad. Merced, Fresno, Bakersfield. What happens isn't symetrical. When the gardener walks away from 4500k tract home the taxes don't get paid, the school is still being built for his kids, the minimall sits empty and the video store goes out of business. the autoshop guy follows. Pow 4 more empty houses. All that real estate on margin was supporting businesses on margin.

wagga said...


Other than the reset chart for the next few years, this about the scariest thing you've posited. And I'm not talking fishnet, either.

And the "About me" big wave thingie is busted.

And I slept in til 5am today - my bad.

Lou Minatti said...

For the life of me I cannot understand why anyone would buy a single-family detached house that has no useable yard. What's the point?

H Simpson said...


It is like a condo without hearing the neighbor knocking the old lady's head into the common wall.

But you still hear them screaming at each other...