Option ARMs Come Back into Center Stage: 350,000 Active Option ARMs with over 200,000 in California
Option ARMs are the gift that keeps on giving this holiday season.  As it turns out, these pesky toxic mortgages are still sitting waiting to hit recast periods.  Like a street vendor taco these things went down nicely and appeared cheap but came with a hefty aftermath.  The last option ARMs were made in 2007 yet they are still causing much pain in the housing market.  Attorney G

What Should a Home Really Cost? Using Real Estate Valuation Methods to Arrive at a Sustainable Mark
One central issue being avoided by many on Wall Street including politicians revolves around pricing homes to reflect sustainable fundamentals.  What should a home cost?  I know this question may seem too simplistic on the surface but really it is the fundamental issue surrounding the housing bubble.  In reality this debt bubble bursting was a reflection of assets being valued much too high.  In a classic economic sense this was a bubble.  Yet in many bubbles including the

Real City of Genius: Today we Salute Pasadena. When losing $300,000 is Actually a Gain for Housing
Attorney General Jerry Brown has most likely received a response from the top 10 option ARM lenders in California given that November 23rd was the deadline to respond to his initial request for data.  Hopefully we’ll have a better sense of how deep the mess goes in the state but given the massive amount of

Forget about the 2012 Apocalypse Movies because California has Enough Problems in 2010. 10 Charts s
In the last few days, we have gotten a better picture of macro trends impacting the California economy.  You would think that a bad overall economic climate would at least temper the bullish attitude of some folks that think California housing is somehow going to have another blowout year.  This week the non-partisan California Legislative Analyst Office announced that California will be dealing with $21 billion in budget deficits in the current and next fiscal years.  K

Real Homes of Genius: Today we Salute you Compton, El Monte, and Downey. Four Examples of Foreclos
This weekend, I was having a conversation with an investor colleague and they brought up a crucial observation regarding the California housing market.  New home buyers are jumping in head first into the drained pool thanks to FHA insured loans and investors are picking up many homes side stepping banks, but the move up buyer and seller is now fear stricken.  Do people sell their current home in this market and pay a higher price for a home in a more prime area even though prices are still inflated?  Or do they wait