10 Moreno Valley Homes Sold 3 Years Ago and What Happened to Them Since

23802 Parkland Avenue

1474sq’        built 1986    .11 acre lot

Sale History: 5/30/2006 $355,500 $241 per Sq’ 100% financing 7.35% ADJ
4/14/2009 $55,000 $37 per Sq’ as an REO
-$300,500 -$8586 per month

16605 Vista Conejo Drive

1123sq’        built 1997    .12 acre

Sale History: 5/30/2006 $355,000 $316 per Sq’ 100% financing 9.32% ADJ
5/8/2008 $174,000 $155 per Sq’ as an REO
-$181,000 -$7541 per month

24372 Electra Court

1381sq’        built 1985    .12 acre

Sale History: 6/1/2006 $365,000 $264 per Sq’ 100% financing 7.65% ADJ

Tried to sell the house in 2008 (listing expired on 5/13/2008 at: $199,000).

Loan modification done 2/11/2009 for $313,951 for 27 years.

12659 Meadbury Drive

1582sq’        built 1982    .17 acre

Sale History: 5/30/2006 $370,000 $234 per Sq’ 90% financing 8.5% ADJ
11/17/2008 $143,000 $90 per Sq’ as an REO
-$227,000 -$7567 per month

28919 Gifford Avenue

1450sq’        built 1974    .20 acre

Sale History: 5/30/2006 $376,000 $259 per Sq’ 100% financing Conventional
Pending at: $120,000 $83 per Sq’ Short sale
-$256,000 -$7111 per month

28817 Maltby Avenue

1531sq’        built 1987    .30 acre

Sale History: 5/31/2006 $420,000 $274 per Sq’ 90% financing 2.75% ADJ
8/15/2008 $196,000 $128 per Sq’ as an REO
-$224,000 -$8296 per month

10911 Mendoza Road

2286sq’        built 1988    .15 acre

Sale History: 5/30/2006 $430,000 $188 per Sq’ 100% financing 7.08% ADJ
1/20/2009 $205,000 $90 per Sq’ as an REO
-$225,000 -$7031 per month

24634 Huntley Drive

1933sq’        built 1986    .20 acre

Sale History: 5/31/2006 $431,500 $223 per Sq’ 80% financing 1% ADJ

15346 Calle Camelia

2570sq’        built 2004    .13 acre

Sale History: 5/31/2006 $450,000 $175 per Sq’ 100% financing 6.3% ADJ
pending at $180,000 $70 per Sq’ as an REO
-$270,000 -$7500 per month

22824 Tea Rose Lane

2197sq’        built 1987    .20 acre

Sale History: 5/30/2006 $450,000 $205 per Sq’ 100% financing 6.99% ADJ
11/19/2008 $224,000 $102 per Sq’ as a Short Sale
-$226,000 -$7533 per month

6 (60%) became foreclosures, 2 (20%) sold as short sales, 1 person was able to get a loan modification and one loan seems to be OK.  The search was based on close of escrow date through MLS and 13 sales were found (3 were kicked out because the close of escrow date from a second source did not fit my search date range).  Those 3 also became foreclosures – so really the foreclosure rate was: 69%.  Really only 1 loan seems to have been successful and it was the loan with a 20% down payment.  7 out of these 10 loans were for 100% financing.  The average effective interest rate in 2006 was: 6.53% – 6 of the 10 loans had higher adjustable rate loans.  The property on Vista Conejo had an interest rate of 9.32% (the monthly payment on $355,000 at 9.25% against a 6.5% loan would be a difference each month of about $675).

It helps to look back at the insanity to understand what went wrong.  Moreno Valley home prices right now are at the levels from 2001 (over a 60% decline – over what they were about 3 years ago).  Based on responsible lending the local affordability rate was at 18% (18 families out of 100 could afford the median priced home) in the 3th quarter of 2006 – most recently the rate was at 65%.   Obviously loans were being made beyond what families could afford, often with 100% financing.  Without reasonable lending guidelines home prices were allowed to continue to increase, until reason and reality set in and the buyers disappeared.  Without buyers (or buyers able to get financing) home sales stop until the prices attract buyers (and lenders) back into the market.

Beverly A. Bayer, SRA

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