norcaljeff_IHB
New member
Good article. These on the ones that I enjoy showing to people who say things like "OC real estate won't fall" or "In Pacific Beach, real estate will keep going up since only really rich people own and invest there." Well as you'll read I'd say a 28 year old mortgage broker a.k.a flipper, the gig is officially up. I'd propose there are many others like him who own in Irvine and are getting a wake up call every morning lol.
http://www.signonsandiego.com/uniontrib/20081128/news_1n28credit.htm
Matt Sauer, a young, single mortgage broker, planned to get rich quick after graduating from college. By age 28, he owned properties in Pacific Beach, Las Vegas and Florida. To save money, Sauer, now 30, cut back on dining out and moved in with three roommates. He also has re-evaluated his views on debt.
Mark Miller, a San Diego bankruptcy lawyer, is seeing the fallout. His offices are buzzing with young couples, many facing foreclosure and some owing as much as $200,000 on credit cards. ?We have finally gotten over the concept that debt equals wealth,? Miller said. ?I'd get guys coming in with their arms crossed, saying, 'I'm only here because my wife dragged me in.' Now I am seeing capitulation.? Alger and his wife bought a one-bedroom condo in Mission Valley as newlyweds. A few years later, they turned it into a rental property and bought a three-bedroom condo nearby, where they planned to raise their two young children. Money was tight on his $32-an-hour job as a sheet metal worker, especially after his wife quit working as an aesthetician and went back to nursing school. It didn't take long for their financial house of cards to collapse. When their interest rates adjusted, the Algers used a home equity line of credit to pay their property taxes. This spring, Dan Alger lost his job. The Algers defaulted on both mortgages in a matter of months.
Too bad they don't find religion before the greed/problems set in.
http://www.signonsandiego.com/uniontrib/20081128/news_1n28credit.htm
Matt Sauer, a young, single mortgage broker, planned to get rich quick after graduating from college. By age 28, he owned properties in Pacific Beach, Las Vegas and Florida. To save money, Sauer, now 30, cut back on dining out and moved in with three roommates. He also has re-evaluated his views on debt.
Mark Miller, a San Diego bankruptcy lawyer, is seeing the fallout. His offices are buzzing with young couples, many facing foreclosure and some owing as much as $200,000 on credit cards. ?We have finally gotten over the concept that debt equals wealth,? Miller said. ?I'd get guys coming in with their arms crossed, saying, 'I'm only here because my wife dragged me in.' Now I am seeing capitulation.? Alger and his wife bought a one-bedroom condo in Mission Valley as newlyweds. A few years later, they turned it into a rental property and bought a three-bedroom condo nearby, where they planned to raise their two young children. Money was tight on his $32-an-hour job as a sheet metal worker, especially after his wife quit working as an aesthetician and went back to nursing school. It didn't take long for their financial house of cards to collapse. When their interest rates adjusted, the Algers used a home equity line of credit to pay their property taxes. This spring, Dan Alger lost his job. The Algers defaulted on both mortgages in a matter of months.
Too bad they don't find religion before the greed/problems set in.
