Keep in mind that these NODs are based on the original (or modified) construction deeds of trust, and may not represent the actually amount of the default. Still, an impressive catch for one afternoon.
– Caviata Attached Homes $27,476,632. Weird project at Kiley Ranch from (Nevada) Pacific West Companies that appears to have gone rental.
– Town Center Residential $18,500,000. This is the Village, people. Monterey Development Group at Somersett.
– MDG NV Investors $18,500,000. Another one from Monterey Development Group, This is an unfinished 11 lot development that centers on Back Nine Trail, but somehow ties into the Town Center project through a chain of ownership. Surrounded by Toll Brother’s Sonterra expansion (have you checked out their new color schemes yet?).
When you add in West Haven’s crash and burn at the Ledges, the abandoned projects in the ‘Sett are not a places you want to visit on a windy day. Kiley and Wingfield are in even worse shape, and don’t even go near Stead if you value the paint finish on your car.
Just thought you might want to know.
Random Walk
So, for my education, what does it mean when Monterey gets an NOD for The Village? Does this represent their default on the financing of the unsold units? There don’t appear to be THAT many unsold houses remaining: 20-30 maybe from 200+
Or do they carry the financing past the point where they actually sell most of the units? Just curious…
Monterey appeared to be a fairly conservative builder. They sold “The Vue” to Pulte as they saw the market topping out, I know.
Martin
The Village was where the bank (Wells?) auctioned off the condo for 68% less than the original selling price wasn’t it?
What is happening in the Village is that the builder is going to be in competition with the banks in a race to ever lower and lower prices. If you are the builder, why not just let the unsold inventory go to the bank, and then the banks can just compete with each other in the race to the bottom.
It must be fairly difficult to have bought one of these places back in the heyday of the bubble and now observe them selling for more than 50% less than you paid.
BanteringBear
I think it’s quite clear that the worst is not behind us. Who could argue it is? Foreclosures continue at a record pace, and there is little news on the economic front to indicate any sort of recovery in the way of jobs- quite the contrary.
For kicks, I just pulled up all of the listings in Incline Village, you know, where only the “wealthy” people live. For such rich people, they sure are having a hard time paying for their houses. The numbers of “bank owned” and “short sale” listings are vast. All hat, no cattle.
I was actually in Tahoe last week. I know that it’s an odd time of year given that the ski season is pretty much over with, and the summer vacations have yet to start, but it was D-E-A-D dead. I have never in my life seen such few people at the lake. Ever. Looks like Tahoe wasn’t so special after all…
Raymond
Perhaps Don C will argue that $65,000,000 in defaults in one day is a sure sign that the worse is over. Surely Don C will find something in this news to suggest that the recovery is at hand. The NAR says it is, so surely it is.
smarten
Hey BB. You came to Tahoe last week and didn’t let JJIncline and me know? We’re hurt!
Are things dead here? Yes. But they’re always dead this time of the year.
Are there a lot of short sale listings and REOs? Yes. But if you look behind the raw numbers, I submit you’ll discover most are crap.
The nice stuff which is fairly priced [based upon historical, bubble pricing comparison] is quietly being plucked from the vine. To give you an idea, YTD there have been 19 SFR sales, half of which have been for $2M or more! And right now, there are 14 SFRs [an incredibly high number for this time of the year] I know of that are in escrow.
I previously reported how a POS [according to your description] REO garnered 16 offers [including mine] after just two business days on the MLS. There’s another one I’m aware of that garnered a mind boggling 25 offers in about 10 days. Now granted, both properties were priced ridiculously low w/the intent of inciting a bidding war. Nevertheless, 25 buyers willing to come to the table in a matter of days for a single SFR in this market?
IMO there’s very little nice stuff left for sale in IV that’s attractively priced and that wasn’t the case just a couple of months ago.
I think things are changing. Stay tuned!
inclinejj
I think the market is in the calm before the storm..
Very little of what I am seeing is purchase money being put into default or foreclosure. Most of it has been a chain of refinances and living on the bank/lenders equity lines.
I have noticed down in the Bay Area(San Mateo County) the nod’s have just about tripled in the last couple months..
I have noticed a huge increase in NOD’s in Washoe County also..
Btw I like the quiet season between ski season and summer and fall…
Colon
It is interesting how the daily grind of a collapsing market oh so slowly makes its mark. Three years ago, the thought of $65,000,000 in defaults in one day (even if it is just 3 borrowers) would have seemed unfathomable. Now, it’s essentially unremarkable.
marcus
smarten= the new cheerleader for lake tahoe real estate!
smarten
Today the 20th Incline Village SFR since January 1 closed escrow at $4.5M! A lot of money by anyone’s standards but considering the square footage [9,458], quality of construction and original $8.9M listing price, the buyer received very good value for his/her dollar.
So that means 10 of the 20 SFR sales YTD, have been in excess of $2M [it also means that’s where your median sales price sits].
Now who the heck is going to spend more than $2M for a second home in Incline Village since the first of the year in this market? Obviously 10 buyers so far.
Now how many SFR sales in excess of $2M were there in all of 2008? The answer is 13.
This isn’t being a cheerleader marcus; these are the facts. And I submit there’s something happening.
GratefulD_420
Smarten –
yes, the multiple offers and bidding war scenario are very true on those few properties. remember I just suggested this as the best known tactic to Diane a few days ago. It is bold, however in the end should result in receiving today’s market price.
withbregard to “I think things are changing. Stay tuned!”
Best of luck. When looking for changes please always refer to the IMF chart for resets of ALT-A’s. We are currently in a lull, and the highs will soon return.
marcus
smarten the 1st of january has PASSED .. was it the best time to buy still?
billddrummer
I think the Incline sales volumes are an excellent barometer of post-bubble pricing. Smarten notes that a 9458 s.f. upper end home sold for $4.9 million.
That’s great.
Of course, it’s a 49% haircut from the original list price.
I didn’t do any research on how long this property had been listed. Any bets that it was on the market more than 2 years?
CommercialLender
Smarten,
Any sense who these buyers are? Could it be retiring babyboomers who did fairly well over the past decades, got hit but still have decent cash, said “I’m done” and finally moved to the lake for all the standard reasons of taxation, etc.? If so, its the same buyer for IV property as has been for years – nothing new there – but that would point to an interesting strata of demand. Any idea?
inclinejj
From Don Kanare’s blog
Changing hands to a new owner is the gorgeous home on the Championship Golf Course at 336 – 5th Green. This is an absolutely stunning high end home featuring five bedrooms, five full baths, two half baths and over 9400 ft.² of living space on a level half acre lot. The final sale price of $4.5 million is approximately half of the original asking price of $8.9 million when this property first came on the market back in October 2007. This property ended up being a short sale and the new asking price of $4.9 million must have made this very attractive to the current buyer. It’s too bad that the sellers did not reduce the asking price by $1 million before switching listing agents, because the previous listing agent worked extremely hard to market this property.
RubiconTrailer
So a property sold at Tahoe for 50% less than original asking. So? Let’s not get stars in our eyes because of the dollars. There are a lot of rich people in the world who have a lot of money to spend on a house. A market where houses are selling at short sales for 50% off of initial asking, and for less than the seller owes, is not a recovering market.
When a property at Tahoe sells for more than it did in 2006, let me know.
Reno Ignoramus
If I may return this thread to the topic of foreclosures, I read in the LV Sun online edition today a rather amazing story.
According to the Sun, Nevada Assemblyman Morse Arberry is suing Countrywide to stop foreclosure on two houses he owns in LV. The Sun reports that in the suit, Arberry accuses Countrywide of concealing from him at the time he financed the two properties that “real estate prices were artificially inflated and would decline”. Arberry alleges that real estate prices were artificially inflated because of policies adopted by Countrywide and other mortgage companies.
Mr. Arberry, the Chairman of the Assembly Ways and Means Committee is alleging in a lawsuit that Countrywide knew real estate prices were too high and it should have talked him out of buying the properties. Amazing.
Just when I think we have seen everything there is to see with respect to the bubble, something else comes along.
Maybe Diane, instead of trying a short sale, ought to file a lawsuit against her lender accusing it of failing to advise her she was paying an artificially inflated price.
smarten
Sorry to hijack the topic back to IV RI, but let’s say some home you’ve had your eye on for quite a while becomes available at 50% of its pre-bubble pricing. Is it all right to pull the trigger and purchase even though according to most of the naysayers on this blog, we haven’t reached market bottom [whatever that actually means]? If it’s the home you want [to live in]; located where you want; at a price which you believe represents value; and at historically low purchase money financing interest rates; what’s the problem?
My original point was only that something’s going on in IV and most of the higher end stuff that was nice and fairly priced has been plucked from the vine by someone [or a group of someones]. Now if there’s nothing more out there for sale that tickles your fancy; at a price you feel represents value; and there’s nothing coming down the pike you’re interested in that is a foreclosure or REO; does the answer become simply to sit on the sidelines [potentially] forever if an opportunity [something you want at 50% of its pre-bubble price] is staring you in the face?
DownButNot Out
Bingo, smarten. It has to be a personal decision, but for me it’s a no brainer. Buy what you like, assuming you going to hang on to it.
SkrapGuy
So now the the Chairman of the Nevada House Ways and Means Committee joins the legions who claim it was all somebody’s else’s fault. What a bunch of crap. This guy, like all the other flippers buying houses in LV in 2004-2005 thought he was going to make a killing. Then when his dream of big profits leveraged with cheap bubble money goes afoul, he sues the bank for not telling him that prices were inflated and bound to go down. He ought to be ashamed to show his face in Carson City.
DownButNotOut
SG – your right on from our view, politicians just think differently than we do. Here’s a suggestion to sturdy up our economy;
1- Winning party in a lawsuit will be reimbursed for their attorney fees.
2-Legalize pot so as to tax it and stop enforcement expenses.
3- NO ONE – absolutely NO ONE will receive government benefits if you’re not a US citizen.
4- Unions rules will be changed to allow individual voting rather tham lump sum group voting.
Problems solved and I’m not even running for office.
inclinejj
Assemblyman feels pinch of real estate market slump
By Jeff German
Wed, Apr 29, 2009 (2 a.m.)
Related Documents
Download the lawsuit
Full text of Assembly Bill 149
Sun Topics
Real Estate in Crisis
Sun Archives
Nevada leads nation as foreclosures set record in March (4-15-2009)
Las Vegas Assemblyman Morse Arberry, longtime chairman of one of the Legislature’s influential money committees, is going to court to try to stop foreclosures on two of his rental properties and pushing for state laws that would address situations like his.
The Las Vegas Democrat, first elected in 1984, said the lawsuit is part of his efforts to stay afloat in tough economic times.
He said the declining real estate market has forced him to downsize his own Canyon Lake Mortgage company and that he has been experiencing financial troubles like many Nevadans.
The Nevada secretary of state’s office has declared his company in default because it hasn’t submitted its annual list of officers and accompanying fees for 2008. If the list and fees, which total $200, aren’t submitted by June 30, the company’s license to operate in the state will be revoked, officials said.
“I’m just trying to hang on to what I’ve got,” Arberry said. “I’m not above what everybody else is going through. I have problems too.”
Amid his troubles, Arberry introduced Assembly Bill 452 in March, a measure that would have extended the time before a foreclosed property could be taken over.
Arberry said a lawyer asked him to sponsor the bill, but it died in the Assembly Judiciary Committee after the lawyer did not provide the committee with requested information.
But another foreclosure bill, sponsored by Assembly Speaker Barbara Buckley, D-Las Vegas, was approved by Arberry’s Ways and Means Committee on Monday, the same day Arberry filed his lawsuit against Countrywide Home Loans.
That bill, AB149, requires lenders to meet with the owner of a property on the verge of foreclosure to try to reach new loan agreements — which is what Arberry sought to do with Countrywide.
“I understand what everybody is going through,” Arberry said.
Arberry’s nine-page lawsuit charges that for the past several months Countrywide, which was bought by Bank of America in 2008, has moved to foreclose on the two homes and “rebuffed” his efforts to try to resolve a dispute over what he owes on the properties.
A Bank of America spokeswoman did not respond to a request for comment.
Arberry’s lawyer, George Kelesis, said the mortgage records he has reviewed show Arberry is “up to date” on his payments.
“What is happening here is what is happening to virtually everyone in this country,” Kelesis said. “The financial institutions are not capable of providing accurate information about their payments so they know where they stand.”
Arberry complained that he has been trying to work out a loan modification with the lending giant, which this week started doing business as Bank of America Home Loans, “but it’s very difficult. Banks just aren’t listening.”
Countrywide has refused to “participate in any resolution that does not involve him paying the full amount” the company says it is owed, the suit alleges.
The suit accuses Countrywide of concealing from Arberry at the time he bought the two homes that real estate prices, largely as the result of policies adopted by the mortgage companies, were artificially inflated and would decline.
Countrywide also concealed from Arberry, the suit alleges, that he would lose all of the equity in the properties once they dropped in value, making it impossible for him to refinance with an affordable mortgage.
And the company’s lending and foreclosure policies, the suit says, doomed his loans to foreclosure.
The suit seeks a temporary restraining order and a preliminary injunction to prohibit Countrywide from moving forward with the foreclosure proceedings against the two homes — one at 2735 Gazing Stars St. in Las Vegas and the other at 2020 Fred Brown Drive in North Las Vegas. Arberry paid $230,000 for the 925-square-foot Gazing Stars home and $255,000 for the 1,548-square-foot Fred Brown home in August 2006, according to the online records of the Clark County Assessor’s Office.
The two homes are among seven properties the assessor’s office says Arberry owns in the valley, including a 6,279-square-foot home at the Canyon Gate Country Club at Sahara Avenue and Durango Drive. He is listed as a co-owner of that property with Virgie Vincent, owner of Sahara Mortgage Corp. The purchase price of the home in June 2006 was $1 million, records show.
A company Arberry and Vincent formed in 1998, Titan Investment Inc., also is in default, online records at the secretary of state’s office show. Titan Investment owes the secretary of state $200 and a list of officers that was supposed to be filed by Dec. 31. The company has until that date this year to submit the fees and the list or face revocation of its corporate license.
EdBear
OMG, doesn’t this make your blood boil? Where do we get these guys, and how do they keep getting elected?
Answer:
They pander to special interests and give them lots of our money.
Case closed
billddrummer
To Mike,
Caviata at Kiley Ranch was originally slated to be a condo project, but 85% through construction the developer (PacWest, who brought us Fallen Leaf) decided to convert it to rentals instead. That required additional work to convert the property to apartment code, mainly for fire exits, stairway widths, and the like.
Leaseup has been slow because the rents are high for that area, and people looking to rent are electing to be closer to town.
The units are nice, but not compelling. The setting is peaceful, but not convenient.
And Here. We. Are.
I don’t know whether there’s enough cash flow in the project to service this loan, and I seem to remember another NOD filed on the adjacent project (can’t recall the name now, but a similar story).
Altogether, there are about 400 doors in both complexes. A lot of rental property to absorb in Spanish Springs, where you can buy a house with an FHA loan for less than your deposit and rent on one of these places.
Not to say that FHA is a ‘good’ loan necessarily, but it is the way most people got into their first home in the 1980s.
Now it’s the entry level loan of choice (again). Just goes to show that history does sometimes repeat, and definitely rhymes.
Waterstone Resident
The other place is Waterstone, across the street from Caviata. There are 203 apartments (supposed to have been condos) here. Rents have come down, but are still high… but it IS a nice complex. I just hope we all don’t get evicted when the bank takes it back.
billddrummer
To Waterstone Resident,
I hope you don’t either. And remember, NV is a landlord friendly state, and the owner only has to give you three days notice if the property is sold at auction.
Perhaps you could camp out on Virginia St and look for the auction notice????
billddrummer
Another thing–
Both Waterstone and Caviata are zoned as condos but assessed as apartments. So some time in the future the owner could restore the condo status without much trouble, and evict all the tenants. You’d probably get an option to purchase (at a price they will set for you), but it’s still a risk.
Waterstone Resident
We’d like to buy the place we are renting. One issue with the 3 day notice is that I am often out of the country for a month at a time for work. I don’t want to return home to find I’ve been evicted.
I would think that in a sale, the new buyer will WANT tenants as an apartment complex without tenants is pretty useless.
billddrummer
To Waterstone Resident,
I see your dilemma, and it seems to me that you’re right–some cash flow is preferable to no cash flow.
I suppose if you are out of the country, you’d need to check published public filings in the RGJ (although I’ve had very poor luck searching through them), to make sure you have a chance to act if something goes awry.
smarten
Waterstone Resident and billdrummer – we’ve addressed this issue before on the blog. As an interested person in the property, a tenant can record with the Recorder a request for notice of default under existing deeds of trust. That way if a NOD is recorded, the tenant becomes one of the persons legally entitled to actual notice.
billddrummer
To smarten,
Great idea, and I’d forgotten that it was covered before.
Thanks.
Waterstone Resident
A notice of Sale was issued for Waterstone. It will be up for auction June 3 at 11am on the Washoe County Courthouse steps. So… are the tenants destined for eviction?