May 11, 2012

Congratulations to citizens of Mountain View

Housing at Mayfield mall site dumped for offices 

After almost a decade of contentious planning and untold millions to design, the 27-acre housing community planned for the Mayfield Mall site has been ditched for a $90 million deal to re-use the existing buildings as an office campus.

Congratulations to the citizens of Mountain View! You are victorious!

You stood tall and proud in the face of evil developers who threatened to add more housing to the Real Bay Area.

You fought valiantly at efforts to reduce commute times and potentially prevent housing prices from eternally going up.

You held your ground when confronted with the threat of allowing more people to live in your city.

Kudos to you Mountain View citizens. Kudos to you!

 

And kudos to the commenters of the Mountain View Voice website! Like this one!

Bravo to office space vs. housing and all the traffic that would bring. What a lot of wasted time and money over this past decade trying to fight the housing development(s). Went to a lot meetings at City Hall to fight the developments and did not feel our council members did enough for the existing neighborhood. Am very grateful the existing structure will be reused and that our beautiful trees will remain. I hope traffic through our neighborhood will be kept to a minimum. The old Mall/HP campus is lovely when the trash is picked up and and the weeds are kept down.

Because nothing says less traffic like more office space!

Comments (16) -- Posted by: burbed @ 5:00 am

May 6, 2012

12 “facts” that “may” “surprise” you about the “housing bust”

While the parent company of the Wall Street Journal, News Corporation, is getting a proper punching across the pond, let’s see how Rupert Murdoch’s business-as-usual cheerleader reports on the causes of The Second Great Depression.

Twelve Facts That May Surprise You About the Housing Bust

By Nick Timiraos, The Wall Street Journal, May 4, 2012

120505-foreclosure-sign-wsjWhat if the conventional wisdom about the mortgage crisis is all wrong?

That’s the implication of a new paper from economists at the Federal Reserve Banks of Atlanta and Boston that’s bound to spark debate because, if their premises are correct, it sharply undercuts the justification for much of the new regulation that’s been erected over the past two years.

Three economists, Christopher Foote,Kristopher Gerardi, and Paul Willen, present two narratives of the financial crisis in trying to answer why so many people made so many dumb decisions.

The first view is that the financial crisis was an “inside job” where various industry players, from the mortgage lenders to mortgage traders, took advantage of unsophisticated rubes, from homeowners to mortgage investors.

They largely discard that view for a second one—the “bubble theory” where delusional attitudes about home prices, not distorted incentives, fueled poor decision making.

120505-mcmansion-broken-windowsThis is the Wall Street Journal.  Does anyone think for a New York minute that they’d get behind the Inside Job view of the housing debacle?  Of course not.  It was obviously the fault of strawberry pickers, the Community Redevelopment Act of 1977, Barney Frank, and undeserving minorities who never should have been allowed to own property ever ever ever.  (Uppity rabble might then expect the vote, too.)

And as for the origin of this paper?  The Boston Federal Reserve?  Everyone working there is hoping to get hired by one of those market manipulators, so don’t look for their facts to bear much relation to what really happened.

Here’s the authors’ abstract of the excuse for wrecking the whole economy report:

This paper presents 12 facts about the mortgage market. The authors argue that the facts refute the popular story that the crisis resulted from financial industry insiders deceiving uninformed mortgage borrowers and investors. Instead, they argue that borrowers and investors made decisions that were rational and logical given their ex post overly optimistic beliefs about house prices. The authors then show that neither institutional features of the mortgage market nor financial innovations are any more likely to explain those distorted beliefs than they are to explain the Dutch tulip bubble 400 years ago. Economists should acknowledge the limits of our understanding of asset price bubbles and design policies accordingly.

Translation: if we blame the meltdown on irrational exuberance, then none of our friends will have to give up their bonuses. Or their freedom.

120505-fed-theoriesThe above diagram is from the research paper, and it neatly blames the victims for believing housing prices only go up.  Notice who’s missing from the picture?  Realtards.  You know, the people who tell you that housing prices only go up.

Fact 1: Resets of adjustable-rate mortgages did not cause the foreclosure crisis.

120505-mortgage-ratesBanks weren’t wrong for issuing adjustable rate loans, borrowers are the problem for having crap credit.  Bad credit meant those borrowers could have an adjustable loan or remain renters. 

Hey, what do you expect when you loan to a bunch of deadbeats?

We’ve got 11 more of these delightful “facts” waiting for you after the break.

(more…)

Comments (16) -- Posted by: madhaus @ 5:15 am

April 28, 2012

BMR Coming to Menlo Park?

Some cities are more compliant than others in providing BMR (Below Market Rate) housing.  Perhaps Menlo Park will be getting off the “But we don’t have any below market residents” excuse pot.

Menlo Park eyes below-market rental housing

HIP Housing proposes deal with Menlo Park

120426-willow-pierceby Sandy Brundage, Almanac Staff

The city of Menlo Park has its eye on a Willow Road apartment complex that might be purchased for use as below-market-rate rental housing — something that currently doesn’t exist in Menlo Park.

The 12-unit complex, located at 1157-1161 Willow Road, comes with a price tag of around $2 million, according to a representative from HIP Housing, a nonprofit organization that specializes in finding below-market-rate housing and hopes to partner with Menlo Park on the deal.HIP currently operates 13 rental properties in San Mateo County.

120426-willow-backThe Willow Road complex would rent nine units to people earning less than 50 percent of the regional median income of $81,300, and three units to those making less than 30 percent. Rent at the complex would fall in the range of $610 to $1,016, according to a staff presentation.

A real estate listing described the property as vacant and partially renovated; it also said the complex had won a renewable energy award for upgrades such as solar panels and efficient lighting. Laundry and parking are available on site.

The apartment buildings are not currently for sale (the first is pending, the second is merely delisted).  They were built in 1958.  If you want to dig deep into the offering memorandum for the two buildings, have a look at this PDF.  And check out the pictures.  Solar panels!  Sweet!

120426-willow-offerpix

Assuming the rental numbers are correct, that would give this complex a rent ratio of 10.26.  BUY!!!!!!!!  Then again, I’m not sure I trust these numbers.  Notice something hinky here?

120426-willow-math

While Burbed has yet to amass a huge portfolio of investment property, even we can tell the difference between a 5 and a 50% vacancy rate.  This is another great reminder of how Real Estate Professionals deserve those hefty commissions, whether commercial or residential.

Discuss this neighborhood, older apartment homes like these, BMR housing, any Open Houses you visited, or anything else you can think of. Yes, this is your weekend open thread.

Comments (9) -- Posted by: madhaus @ 5:08 am

April 23, 2012

Trespassing Squatters Occupying Short Sale Property File TRO Against the Selling Agent. Yes You Read That Correctly.

Happy Monday!  We’ve got another exciting story for you, about some riveting residents who really respect realtards.  Read on!

Squatters issue restraining order against real estate agent

120421-antioch-squattersKTVU Channel 2,
Posted: 9:49 p.m. Friday, April 20, 2012

ANTIOCH, Calif. —  A Bay Area real estate agent said she’s being taken to court by squatters in Antioch who have taken over a house she’s trying to sell.

As many as three people have been living in the Concord home since December. Even though the owner never gave them permission to move in, they’re apparently not moving out without a fight.

Real estate agent Melissa Case said she can’t get too close to the four-bedroom, two-and-a-half bathroom home she’s listed for sale in Antioch because the unauthorized residents took her to court.

"I have a temporary restraining order against me right now," Case said. "I cannot come within 50 yards of the home, which was filed by the squatters."

Case is definitely a Real Estate Professional.  You can tell from the way she talks, because it reads just like listing copy we see every day here.  The home was filed by the squatters,  Got it.  So you’re going to love this next quote from Ms. Case:

“Actually the police came out and verified that their… rental agreement? [air quotes]… was false and full of misspellings.”

Because nothing says Real Estate Professional like an example of their work product written up full of misspellings.

Here’s the house, and it was not easy to find.  Case described it as a “four bedroom two and a half bath” but Redfin listed it as a 4/3.  Also just to really mess with our minds, the article also said it was in Concord (see the second paragraph above).  Do you have any idea how many freaking short sales there are in Antioch? Or Concord?  Let’s just say I have a feeling we’re not in Los Altos anymore.

5116 THISTLEWOOD Ct
Antioch, CA 94531
$149,000

120421-thistlewood-redfin

BEDS: 4
BATHS: 3
SQ. FT.: 1,873
$/SQ. FT.: $80
LOT SIZE: 5,900 Sq. Ft.
TYPE: Detached
STYLE: Traditional
STORIES: 2
YEAR BUILT: 1991
COMMUNITY: Antioch
COUNTY: Contra Costa
MLS#: 40568008
SOURCE: EBRD
STATUS: Pending
ON REDFIN: 23 days

End of Court Location and Across the street from the neighborhood park!! This home needs TLC.

End of Court!  Get it?  Get it?  Because the agent got taken to court!  Ahahahahahaha!

And speaking of short sales, the “homeowner in Berkeley” picked up this winner of a house for $460,000.  In 2004.  The current asking price is 23% less than what the house sold for, new, in 1992.  Perhaps “needs TLC” means “Teardown, Level and Condemn.”

Comments (17) -- Posted by: madhaus @ 5:08 am

April 22, 2012

Happy Birthday Dear Earth Day, Happy Birthday to You

120421-earth-dayToday is the 43rd Earth Day, so thank you Senator Gaylord Nelson (D-WI)!  How should Burbed celebrate Earth Day?  Let’s talk green houses. 

Hold your stones, I don’t mean glass houses.  I mean green, as in sustainable.  Green as in energy efficiency.  Green as in non-polluting, or at least less polluting.  And green as in whatever you left in the fridge is no longer before its time.

Berkeley architect attains enegy [sic] self-sufficiency in 1,800-square-foot home

Michael Freeze, BlockShopper.com, on SFGate.com
Sunday, April 15, 2012

120421-camelia-office

When Chris Parlette, an architect by trade, went green with his Berkeley home, holding back wasn’t an option.

Parlette took his 800-square-foot home, built in 1920, and turned it into a solar-powered building that spanned more than 1,800 square feet. He described his idea of green residential living as a way of pushing the envelope to energy efficiency.

"Being an architect, I spent of lot time thinking of what I wanted to do with other clients’ houses," Parlette said of his home, located at 1147 120421-camelia-kitchenCamelia St. "Gelling these architectural ideals I had, I wanted to put it into practice with this home with mainly solar and green ideas."

A 3.2-kilowatt photovoltaic solar electric system in the form of panels brings power to the home, and it actually provides more electricity than Parlette needs. Aside from the abundance of power, the home, he rightfully noted, also is aesthetically pleasing.

There’s glass aplenty in this Berkeley home, and you’ll definitely hit the solar panels if you toss rocks at the roof.

120421-camelia-outsideYou can see more about the home over on the agent’s website, and there are even more pictures if you head over to Redfin and admire the listing.  But rather than splat out the nitty gritty details ($799K), let’s just use this house to start a discussion on how energy efficient your own home is, or is not.

Newer homes are not necessarily greener, either.  Not only is a lot of new construction done with shoddy materials and plenty of corner-cutting, but isn’t it greener to move into an existing home rather than have a new one built for you?  There are over 1.1 million empty dwelling units in California per the 2010 Census.  That’s 8.1 percent of all California homes.

Are you considering any energy improvements such as better insulation or putting in solar panels?  Is your house a lean, clean, green machine or is it a giant carbon sink?

Discuss your home, or particularly good or bad examples of sustainable energy in homes, or how you’re celebrating Earth Day, or anything else you’d like in this Open Thread.

Comments (14) -- Posted by: madhaus @ 5:09 am

April 21, 2012

Pride of Ownership: Los Gatos Edition

Thanks very much to Burbed reader Kir for passing along this nugget from her blog Inside Los Gatos.  While this is a commercial property, there’s no reason why it couldn’t be returned to its original purpose as an ostentatious trophy home.

120420-santacruz-house

Pride of Ownership Retail Investment | Los Gatos

115 N. Santa Cruz Avenue
Los Gatos, CA 95030
$4,900,000

Building Size: 7,300 SF
Price/SF: $671.23
Property Type: Retail
Property Sub-type: Free Standing Bldg
Property Use Type: Net Lease Investment with 10+ years left on lease
Cap Rate: 5.14%
Occupancy: 100%
Tenancy: Single
Lot Size: 17,987 SF

Highlights

  • Iconic Historic Building – One of Los Gatos’ Most Well Known Landmarks
  • Irreplaceable Downtown Los Gatos Location
  • 100% Leased to Experienced Restaurant Operators
  • New 10 year Lease w/Scheduled Increases
  • Minimal Landlord Obligations
  • Recent Extensive Renovations

Here’s what Kir had to say about this place over on Inside LG:

Coggeshall Mansion is For Sale

120420-palacio-dallasOne of our readers sent me a real estate flyer about the Coggeshall Mansion. I was going to post it in my "Where to Build a School" column, but decided it would be just too ridiculous of an idea; however, I want to share the fact that you can own a piece of historic downtown Los Gatos.

The history of the Coggeshall Mansion is interesting, to say the least. The house was originally built for Mary G. Coggeshall, a wealthy widow with two children. According to Alastair Dallas, "Once a grand home, one of many along N. Santa Cruz Ave., the Coggeshall Mansion was built in 1891 and converted into the Place Mortuary in 1917. When it re-opened as the Chart House restaurant in 1976, the bar in the back was called the Embalming Room. After the Chart House closed, the restaurant was known as Trevese from March 2007 to Fall 2009…" Now, Palacio inhabits the mansion.

Hooked on Los Gatos has a 1949 flyer depicting the Place Funeral Home. You can check it out HERE. In fact, many of the locals swear the mansion is haunted.

120420-place-funeralSo not only is the former home being sold at a premium as commercial in-town property, it comes with “bunus” ghosts.  Here’s some more on the hauntings mentioned above.

Unfortunately the link above is to yet another Google product called “knol” that’s being abandoned for insufficient awesomeness. That means the link above may not work after May 1st.  Sorry about that. 

Here are the links given in that article about the ghosts, like the one who runs up huge bar tabs or the little girl who turns wine bottles hiding the label, or the little boy running outside the building.

This house/restaurant/funeral parlor is definitely for someone who had a huge pile of stock option cash dumped in their lap who wants to one-up all those Facebook poseurs househunting in Palo Alto and Hillsborough.

Thanks very much to Kir for allowing us to reprint articles that mention real estate.

Comments (4) -- Posted by: madhaus @ 5:06 am

April 15, 2012

The Worst Company in America is in the Bay Area!

120413-consumerist-mastheadLast year was an exciting March Madness playoff leading to a nail-biter of a final playoff.  Which was the Worst Company in America?  Was it BP, which destroyed an entire ecosystem, or was it Bank of America, which merely melted down an economy?

Those who voted for second-place B of A may have been hoping for another chance this year, but there’s a new Winner (and by that I mean Loser) in town.  According to the 2012 March playoffs hosted by The Consumerist, the worst company in America is… drumroll please… EA!

And EA was not content to merely ignore this ignominious achievement.  Nooooo!  EA, showing that the voters knew damned well what they were doing, actually made this stupefyingly ill-suited statement:

We’re sure that British Petroleum, AIG, Philip Morris, and Halliburton are all relieved they weren’t nominated this year. We’re going to continue making award-winning games and services played by more than 300 million people worldwide.

120413-consumerist-eaBP wasn’t even in the running this year because they won last year in a very closely contested contretemps. But Bank of America was back, of course.  And once more B of A (it stands for Bunch of A’**holes) failed to “survive” the final death match.

Also, AIG won in 2009 and Halliburton won the very first WCIA contest in 2006.

Other Bay Area companies nominated for this dubious honor include:

120413-netflixNetflix, who lost its first match against GameStop.  This one was a blowout final sale.

120413-wellsWells Fargo also failed to advance when it was locked in the vault by CitiCorp.

120413-googleGoogle similarly lost its maiden match to Apple by 404.

120413-appleBut Apple shouldn’t get a swelled AirBook over the experience, as it was easily short-circuited 2 to 1 by AT&T.

120413-paypalPayPal was knocked out in the quarter finals by WalMart in a Photoshop finish. But PayPal got that far by defaulting on CapitalOne in a walkover, and similarly slammed the receiver down hard on Charter.

120413-facebookFacebook had a much stronger string of worsts.  It cut the power to Sprint by 4 to 1, and gave the US Postal Service a definitive Return to Sender, before falling to AT&T, who wrote the book on bad service.  Facebook simply didn’t have enough Dislikes. 

120413-eaAT&T was in turn Ctrl-Alt-Deleted by EA, with 3 out of 4 voters gunning for the gaming goon.  EA shut down Sony, closed out Best Buy, and blacked out Comcast to qualify for the semifinal with AT&T.

Which company do you think should have won the WCIA this year?  And which Bay Area companies that weren’t nominated do you think should have been?

Comments (8) -- Posted by: madhaus @ 5:11 am

April 14, 2012

Saturday Soak: Your weekend Open Thread

120413-lightning-bridge

This image from SFGate shows eight lightning bolts hitting the Bay Bridge on April 12th.  How did you enjoy nature’s fireworks Thursday night?

You can also discuss this New York Times piece observing that California’s North/South divide is overblown.  The real divide is West versus East, and we coastal huggers are doing fine economically.  Inland is a much different story.  Stockton is looking into bankruptcy.  People moved inland, but the jobs didn’t follow, and then the housing values collapsed.  The coastal regions are more politically liberal and more eager for environmental policies that inland residents object to.  And geographically, a beach is not a desert.

This is an Open Thread.  How’s your weekend going?  Seen any good Open Houses lately?  How about those local sports teams, eh?

Comments (8) -- Posted by: madhaus @ 5:03 am

April 8, 2012

Lights Out for Los Gatos Painter Thomas Kinkade

Here’s something to deepen your observation of Easter.  While devout Christians celebrate the resurrection of Jesus today, this man’s passing on Good Friday leads to a kind of different kind of immortality, and we are not talking about paintings.

Thomas Kinkade, one of nation’s most popular painters, dies suddenly in Los Gatos at 54

120407-kinkade-2002By Mike Rosenberg, San Jose Mercury News
Posted:  04/06/2012 06:43:30 PM PDT; Updated:  04/07/2012 03:41:26 AM PDT

Thomas Kinkade, the “Painter of Light” and one of the most popular artists in America, died suddenly Friday at his Los Gatos home. He was 54.

His family said in a statement that his death appeared to be from natural causes.

“Thom provided a wonderful life for his family,” his wife, Nanette, said in a statement. “We are shocked and saddened by his death.”

120407-kinkade-tasteHis paintings are hanging in an estimated one of every 20 homes in the United States. Fans cite the warm, familiar feeling of his mass-produced works of art, while it has become fashionable for art critics to dismiss his pieces as tacky. In any event, his prints of idyllic cottages and bucolic garden gates helped establish a brand — famed for their painted highlights — not commonly seen in the art world.

“I’m a warrior for light,” Kinkade told the Mercury News in 2002, alluding not just to his technical skill at creating light on canvas but to the medieval practice of using light to symbolize the divine. “With whatever talent and resources I have, I’m trying to bring light to penetrate the darkness many people feel.”

120407-kinkade-products

Now, if you want to instead refer to the Los Gatos Patch (an AOL-owned series of hyperlocal blogs), Kinkade actually died in Monte Sereno, while with his live-in girlfriend, as he had been estranged from his wife for two years.  That would explain why his family was in Australia at the time of his death.  Kincade’s passing is indeed relevant to the Real Bay Area, since he lived in Los Gatos.  Or Monte Sereno, depending on which reported version you prefer.  But this scan of the firefighters’ frequency shows an engine was dispatched to 16342 Ridgecrest Ave, due to a 54 year old male “drinking all night, not moving.”  That address is owned by someone named Kinkade, and also had an “under influence of drugs/alcohol” arrest there last year.  The address is missing from most property databases, though, including the Recorder’s Office.

120407-kinkade-vallejo-village-at-hiddenbrookeKinkade certainly has his staunch supporters and determined detractors.  This Mercury News article generated 150 comments in just a few hours and had more than 250 by the following afternoon.  Most Merc articles draw under 20 comments.  The NY Times obituary generated an even more derisive stream of criticism, while the Washington Post put the negative commentary in the article itself.  The daddy of all Kinkade-dissing news items has to go to this 2006 Los Angeles Times piece, though.

But there’s an aspect of Thomas Kinkade that had managed to elude us all this time.  It turns out that his kitschy paintings of cottages in the woods inspired multiple housing developments.

That’s right, for the fan who isn’t content with buying a snowglobe or a throw rug, there were plans for actual tract houses trying to look like his paintings.    And one of the first such developments, the Village at Hiddenbrooke, was built in Vallejo right as dot.com went dot.bomb in 2001.  4259 Andover, The Villages at HiddenbrookeThe homes were 1800-2600 square feet on 4000 square foot lots.  The large photo above is interior décor from one of those model homes.  Most of the links to the builder and the development in the Salon article are now defunct.

It’s not easy figuring out which streets in Hiddenbrooke are part of The Village.  And given that the builder was London-based, that’s a particularly interesting name for a community accused of being somewhat, um, ersatz.  Here’s a home that sold last year, and do check out its history, because it sold for less in 2011 than when it was sold new nine years beforehand.  You can check out the neighborhood on Redfin but nothing seems to be for sale there now.

However, Kinkade did not stop with just the one housing development in Vallejo.

Architect Rann Haight, left, financier Roger Stewart, center, and builder Steve Torres have signed a deal to build luxury homes that will be based on the Thomas Kinkade paintings on the table in front of them in Coeur D'Alene, Idaho, April 21, 2006. The luxury homes, to be built around Lake Coeur d'Alene, will cost $4 million to $6 million. (AP Photo/SPOKESMAN-REVIEW, Jesse Tinsley)The photo at right shows the team planning for five Kinkade-inspired $4 to $6 million luxury homes around Lake Coeur d’Alene in Idaho named The Gates of Coeur d’Alene.  This project was launched in (of course) 2006, at the height of bubblicious housing insanity.

Plans for 100 homes based on the cottage paintings were being developed later that winter for a project in Columbia, Missouri called The Gates at Old Hawthorne.  Prices were expected to come in at $500,000 to $1 million.  It’s not clear if any of these plans came to fruition, as the builder’s website no longer seems to exist.  This 2007 article reflects the typical attitude of housing boosters, acknowledging the slowdown but insisting that It’s Special Here and full steam ahead for the Kinkade development:

120407-kinkade--missouriThe homes are being built at a time when the U.S. home market is declining. However, Columbia and Boone County have been able to avoid the national trend. The median price for new single-family homes in Boone County has steadily increased, going from around $136,000 in May 2003 to a little over $188,000 in May of this year. And while the price of new homes is rising, the number of homes being built has decreased from 79 single-family units in May 2003 to 52 this May.

“In general, our home market is good, (but) it’s not as good as last year’s,” said Brent Jones, president of the Columbia Board of Realtors. According to Jones, the present home market is a buyer’s market. The effects of the market are even more apparent in the sale of high-end houses, like the Kinkade homes. […]

“News stories give the idea that the market is homogenous,” Jones said. He cited cities that have experienced extreme home appreciation, and are now experiencing just as extreme depreciation. The Columbia market is relatively stable and hasn’t had the appreciation that other markets have experienced, .

However, market fluctuations are not a concern for HST.

“One of the reasons we came to Columbia is because Columbia’s economy is so strong,” Stewart said. Sales of the Kinkade houses are surpassing the inventory, Stewart added.

120407-kinkade-empty-caveThere is no evidence that either of these Kinkade-inspired home developments were ever built.  Most references to them are from 2006, when everyone was drunk on Kool-aid.  Here’s an application for an alternative use for the Missouri land, which suggests nothing was ever built from the Kinkade project.  The Gates of Old Hawthorne website is gone, and here are some empty lots for sale from that project.

Just like the empty cave in today’s Holiday Story.

Have yourselves a Happy Easter, and remember: This means Spring Bounce has begun!

Comments (19) -- Posted by: madhaus @ 5:09 am

April 7, 2012

Foreclosures, Ho!

Americans brace for next foreclosure wave

120405-foreclosure-waco-belongingsBy Nick Carey, Reuters
GARFIELD HEIGHTS, Ohio | Wed Apr 4, 2012 7:09pm EDT

(Reuters) – Half a decade into the deepest U.S. housing crisis since the 1930s, many Americans are hoping the crisis is finally nearing its end. House sales are picking up across most of the country, the plunge in prices is slowing and attempts by lenders to claim back properties from struggling borrowers dropped by more than a third in 2011, hitting a four-year low.

120405-foreclosure-fullerton-evictBut a painful part two of the slump looks set to unfold: Many more U.S. homeowners face the prospect of losing their homes this year as banks pick up the pace of foreclosures.

"We are right back where we were two years ago. I would put money on 2012 being a bigger year for foreclosures than 2010," said Mark Seifert, executive director of Empowering & Strengthening Ohio’s People (ESOP), a counseling group with 10 offices in Ohio.

"Last year was an anomaly, and not in a good way," he said.

In 2011, the "robo-signing" scandal, in which foreclosure documents were signed without properly reviewing individual cases, prompted banks to hold back on new foreclosures pending a settlement.

120405-foreclosure-ny-busBut nobody in the Real Bay Area got foreclosed on, right?  This is what happens in flyover states.  And flyover cities, like, um, San Jose.

And while nobody would mistake the Bay Area for the troubled city of Stockton (where home values are not expected to hit 2006 values again until the year 2030), the resumption of the Foreclosure Express by many banks will be leading to more short sales and bank-owned properties.

Blame it on the settlement that 49 states made with the major banks.  Now that the process is no longer under so much uncertainty, foreclosures that have been put on hold will resume.  And this time around, the lucky participants won’t be brought in courtesy of high-interest, no-down subprime loans.  Plain old unemployment will be the cause of most of the unpaid mortgages.

Zillow is projecting all kinds of gloom and doom because of this, including a housing market that won’t hit bottom until next year, and stay on the bottom until 2016. 

"The hangover from this crisis will far outlast the party of the boom years," said Zillow chief economist Stan Humphries.

Share your predictions on how this economic tragedy that could evict millions of homeowners will affect the Real Bay Area.  This is an Open Thread.

Comments (9) -- Posted by: madhaus @ 5:10 am
 
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