Friday, July 13, 2012

SoCAL underwater - don't blame the rain!

Posted By CotoBlogzz

Coto de Caza, CA – One in  four homeowners in Coto de Caza/Dove Canyon owe more on their loans than their homes are worth, according to a new analysis from real estate tracking firm Zillow

When homeowners walk away from their loans or pursue a short sale, something common in Coto de Caza/Dove Canyon,  they push home prices lower, feeding a cycle that has hampered the Southern California real estate market for years.

Rancho Santa Margarita, Ladera Ranch and Lake Forest and Tustin are even worse, with  35%, 37% , 29% and 30% under water, respectively, whereas Laguna Woods Village and Irvine fare much better at 17 and 18% respectively and Newport Beach at a very low 8%

Given these underwater figures,, the ponzi schemes  associated with the homeowners association in these communities makes it even more problematic for these homeowners.  In Her book, From: Villa Appalling!  Deatroying the Myth of Affordable Community Living, Author and LA Times columinist Donie Vanitzian writes:

"If the industry has its way, one association won’t be enough.  In fact, you may pay two or three associations, a master association and several sub-associations.  Bear in mind, you are paying all these association fees on top of your regular bills and mortgage payments.  This now looks like a Ponzi scam:  Associations on top of associations all paid for by the homeowner at the bottom of the pyramid."

"The states with the lowest grades typically have trouble keeping their spending in line with their tax revenues." Pew's Stephen C. Fehr writes in an explanation of the research

or as the far left's new ad might say:  It's a simple math problem!

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