Irvine Inspiration

Here is a sample from the Irvine Housing Blog of what I would love to find in the NJ area:

So lets walk through the mortgage history of this property and see just how bad HELOC abuse can get…

* 7-20-2001 The house was purchased for $397,000 with a first mortgage of $317,600 and a downpayment of $79,400.
* 11-07-2001 HELOC for $48,000 taking out over half of downpayment.
* 8-26-2002 Refinance for $360,000.
* 11-26-2002 HELOC for $29,000
* 11-26-2002 HELOC for $71,000
* 6-18-2003 HELOC for $56,000
* 6-18-2003 HELOC for $100,000
* 6-1-2004 Refinance for 517,500 –probably paid off HELOCs at this point.
* 10-22-1004 HELOC for 89,900.
* 4-21-2005 Refinance first mortgage of $624,000
* 4-21-2005 Refinance second mortgage of $156,000. Total debt of $780,000 at this point.
* 9-12-2006 Refinance first mortgage of $948,750.
* 9-12-2006 Refinance second mortgage of $189,750. Total debt of $1,138,500. No HELOCs

So there you have it. This homeowner went to the housing ATM 8 times over a 5 year period and pulled out $820,900.

This is the fascinating example of the excess of the last decade.