Saturday, January 31, 2009

Crazy Carnes - Final Chapter(?)

Chandra & Michael Carnes, Loco House Buyers Debtors Renters
(Part 1)

The final chapter of the Carnes' has arrived... for this bubble, that is. They started their real estate adventure by "purchasing" a million dollar abode (5903 Mountain Hawk ) under the guidance of super realtor, Chris Nunez. When the benefits of interest only payments disappeared, they managed to sell at a small loss and "purchase" another house (1086 Elsbree Ln ). This, however, was a price too far, and a little over a year later they were forced to sell using a short sale. But here is an alternative thought: they purchased this house for its peak sales price and then months later put it back on the market. Hmmmmm...

Sale History
07/29/1994: $241,500
09/21/2007: $640,000 - peak sales price
Feb 2008 - back on market - why so soon??
01/23/2009: $525,000

Zillow: 1086 Elsbree Ln Windsor CA 95492
Price Paid: $640,000
Days on Zillow: 292
For Sale: $669,000 $659,000 $599,000 $540,000
Recently Sold: $525,000

On the sale price of $525K, the buyers are foolish. Unless they have money burn (which is what they're doing), they'll watch the value of this house fall to under $400K. My guess is that they sold a few years back and have been renting, waiting for that "bottom", but most people still don't grasp the magnitude of the economic problems this country is facing.

This story is probably repeated hundreds of thousands of times all over the country. What made the Carnes' story unique is that they openly discussed their insane spending spree on PBS--NOW Part 1, Part 2.

3552 Kendell Hill Dr

494 Quince St Windsor CA


Hobo said...

Hmm...$640k - $525k = $115k, or ~15k over their combined pre-tax 2007 income. With California unemployment approaching 10%, I wonder if both of them still have jobs.

I'm having a hard time getting my mind around a $115k loss in a year and three months. Why would they even bother to sell? When you do a short sale, do you have to sign a note for the difference? I think that is what Casey Serin did for his short sale attempt. So why bother with the short sale at all, when you can walk away and owe nothing?

$115k. $115,000. One hundred and fifteen thousand dollars. I'm still having a hard time comprehending that type of loss. And the sad thing is, the new owners will face the same thing over the next year! How do these people do it? I got pissed this week when the bank wanted to charge me $5 for a $30 money order, when the grocery store charges $0.50. $115k...mindblowing.

Tyrone said...

I got pissed this week when the bank wanted to charge me $5 for a $30 money order, when the grocery store charges $0.50.

HOBO, I'm with you. I'm very 'anti-fee'. I avoid them at all costs. And unless it's absolutely avoidable, I never pay fees to use my own money.

You ask how they do it? I don't know. Just a few years ago, $500K was a LOT of money, but I think those days are coming back. Sad thing though, we're all going to pay for that easy, cheap, free money.

The Ace said...

The return of the Blonde Bimbos.

I like it!

The Ace

tom12008 said...

The latest episode in the Carnes saga (I did not say last; I don't think Mrs. Carnes can stop herself)is astounding for the fact that it sold for so much. The reduction from $540K to $525K is a reduction of under 2.8 percent, and it was enough to get someone's interest.