Just a quick FYI: I upped the spam protection to a more strict level, which carries the warning that it “blocks more spam but may block some people.” If you’re being blocked while trying to comment, shoot me an email.
In other news, according to Suze Orman, the Seattle real estate market is “booming.”
Suze’s final step is the most drastic. Suze tells Felice and Phil they must sell their California home and move to Seattle, Washington. With a booming housing market and high-tech industry, Suze says Seattle is particularly well suited to both Felice and Phil’s strengths—Phil is a computer contractor and Felice was once a mortgage broker.
What the heck is a “computer contractor”?
Update: Well, I’ve had a few people email me that they were unable to comment, and no noticeable decrease in the amount of spam flowing into the Akismet spam bin, so I’m turning off the strict filtering. Also, I don’t know if that Craigslist flip was posted in the comments to this post as a serious attempt to spam or as some kind of joke, but I’m leaving it in, because it’s good for a laugh.
Ben » Oct 18, 2007 at 10:58 pm
Maybe you are not joking. Phil is somebody who is contracted by 6 or 9 months at a time to write code or test it, typically.
There is a lot of demand for that up here, but it doesn’t pay enough to buy anything up here either.
christiangustafson » Oct 18, 2007 at 11:16 pm
I posted some excerpts from this over at HP. The people that Suze is advising are toast. The wife is borderline insane with her shopping habits. The article makes for a good shocking read.
Phil and Felice really have $135,000 in credit card debt. They also pay $1,700 a month for their three cars.
Their two mortgages total $658,000. Because their mortgage is a negative amortized loan, Suze says that means their mortgage will increase by $20,000 every year. “There is no longer any equity in this home at all, and all you are paying is $1,800 a month on it and that is to adjust in a few months up to $3,300 a month,” she says.
They are also two weeks behind on their mortgage payment. “There is no money left in any bank accounts. All your credit limits are almost used up,”
Folks, this couple is the median family in California.
MicrosoftBuyer » Oct 19, 2007 at 1:28 am
Microsoft will pay Phil $25/hour, for 9 months.
MicrosoftBuyer » Oct 19, 2007 at 1:29 am
Felice will not find a job here. Many MS employees are partime realotors or loadn officer.
Buceri » Oct 19, 2007 at 4:31 am
And Felice will not be feliz, when she stays home unemployed without seeing the sun for 9 months.
Buceri » Oct 19, 2007 at 4:32 am
For some of you, monolingual infidels, feliz is happy in Spanish.
Leo » Oct 19, 2007 at 7:16 am
“Computer Contractor” :))) Author could be more specific: maybe “Hard drive contractor” or “RJ-45 Contractor”? :)))
SLTO » Oct 19, 2007 at 7:31 am
saw that segment and it was classic keeping up with the Jones’s
they make 100K a year and they have a 650K home… threw 2K parties with petting zoo…
husband knew they were in trouble, just not how much… first of all he knew they could not afford that home they bought… and that alone says a lot…
that lady had major mental health issues… she should be seeing a therapist…
the kids will learn a valuable lesson growing up… if they ever make it out of the poor house… (they are way beyond bankrupt… ) I’m surprised they were not advised to file bankruptcy… that should have been step 1.
laxtosnoco » Oct 19, 2007 at 7:44 am
I’m ashamed to say this, but I saw the episode last night. I felt dirty afterwards, but I could not look away. These people behave (and I mean this in the most literal way) like children.
Still, I can’t believe you folks are suggesting the family not listen to Suze. She wears long animal print blazers, talks in a loud monotone voice, and has a strong background in baked goods (see: http://en.wikipedia.org/wiki/Suze_Orman )
John » Oct 19, 2007 at 7:55 am
http://seattle.craigslist.org/sno/rfs/453314419.html
Fsbo! Home remodeled to brand new condition. ok.. so I have had this home priced at $569,000 with $30,000 cash in your pocket.. I have had it at $549,000 with a $10,000 buyer bonus.. I have offered 100% seller financing… I have offered lease purchase.. and so on. I have spent $100,000 remodeling this home and it is truly a gorgeous home. Alot of thought, care and heart went into this home and it truly is wonderful! COME MAKE ME AN OFFER! Even at the 549K Price it is still the best priced home in the whole Bothell/Mill Creek/Lynnwood area with the lot size it has and the finishes the home has.
4 bedrooms 2.5 bath 2115 sq ft
3 car garage with new epoxy garage floor and new garage openers
almost a 12,000 sq ft lot with all brand new landscape, greenbelt, privacy trees
New Cedar siding
New Roof
New Driveway
New front porch
EVERYTHING on interior of home has been replaced and is new
designer finishes
extensive use of granite
extensive rich dark hardwoods
spa master bath with tile floors, tile double shower tile surround corner soaking tub
brushed nickel fixtures
big entertainment size deck
amazing kitchen
wainscotting, pillars, crown molding, high end carpet and the list goes on.
Tucked away in the back of a culdesac and fully fenced.
Northshore schools.
17 199th st se
Bothell 98012
Owner is agent
Sean
softwarengineer » Oct 19, 2007 at 8:02 am
PERHAPS A COMPUTER CONTRACTOR IS THE SAME AS A CONTRACT ENGINEER?
They’re the first to get laid off during a downturn [like now?] and although they make double pay: they get no medical benefits, job stability and retirement. They tend to be between jobs for long bouts frequently too and when they do get another temporary job, it doesn’t last long.
Those folks are like professional football players, they better save at least half their money for their career endings soon.
Tacoma Troll » Oct 19, 2007 at 8:36 am
One thing she said does hold true however.
“You create your own problems and then you feel sorry for yourself and you think you’re victims,” she says. “We’re not victims to our circumstances. We are the creators of our circumstances.”
rose-colored-coolaid » Oct 19, 2007 at 10:05 am
John, are you trying to sell that house here? If you are, this is not the place for it.
If you just like to point out places, the correct way to do that is on the forum instead of spamming the main pages here.
On a side note, if you’re the seller, I’ll make you an offer of $300,001. Deal?
jess » Oct 19, 2007 at 10:05 am
Y’all may not agree with me, but I thought John’s spam was pretty funny. A desperate person begging us to buy his house in the middle of a thread discussing desperate people. Brilliant! I’ll pay $550K (maybe) if I’m close in to downtown so my commute will be short, but I won’t pay $550K for the right to sit on I-5 and Lake City Way for who knows how long every day. Sorry!
wreckingbull » Oct 19, 2007 at 10:17 am
From the Wikipedia article cited above:
“On a recent Oprah, Orman advised viewers to search through their closets for misplaced money.”
Wow, what great financial advice. Buying at the absolute peak of a market that is just starting to deflate gives new meaning to ‘misplaced money’.
Wm Swanson » Oct 19, 2007 at 10:19 am
Have to believe all those dollars sunk into Johns house for upgrades will ultimately result in less net to him if/when the house is sold.
Mike2 » Oct 19, 2007 at 10:30 am
Suz is seriously deluded if she thinks a family of 8 with $150K+ in debt can live here on a single salary of $60-72K/yr + a part time barista paycheck.
Dream on.
disbelief » Oct 19, 2007 at 10:46 am
Let’s see:
BA in Social Work, from baker(10 yrs) to Account Exec, to VP of Financial Services in 3 yrs. What’s missing here?
Is this just a case of omitting details such as nepotism or maybe an affair with some geezer banker older than her father?
Or maybe with her Social Work degree she was just very adept at steering the downtrodden into loans with exorbitant rates?
I would be interested to know the real story- especially since I’ve never heard her say much except offer the most basic common sense advice that really shouldn’t have to be told to full-fledged adults. “check the interest rates on your credit cards… see if you can obtain a better rate” OMG such insight!
Poster » Oct 19, 2007 at 11:36 am
Spammy house sales and mortgage history:
Recording Date: 1/11/2007
Sale Price: $416,000
Mortgage Date: 07/31/2007
Mortgage Amt: $450,000
redmondjp » Oct 19, 2007 at 1:11 pm
Regarding the ’spam’ house above — lessee, first they overpaid for a fixer, then borrowed more than the house’s value (thank$ Mi$ter Apprai$er!) in order to upgrade the house with all of the latest ‘must-haves’ (that brushed nickel finish is to-die for, oooooohhh!), and put it back on the market only to find out that they have arrived at the flipping party too late, as all other flipper-wanna-bes have already left, leaving them being the ones known as the bag holders or f#@ked borrowers (FBs).
There is no way that this can be true, according to what I’ve been reading on blogs written by local RE professionals. Maybe they are using doublethink (I’m still reading 1984) – - war is peace, freedom is slavery, ignorance is strength, debt is wealth.
EconE » Oct 19, 2007 at 1:30 pm
maybe soon that spam house will have a CL listing like this one someone posted on HP.
http://sfbay.craigslist.org/sby/fur/450681739.html
olaf » Oct 19, 2007 at 2:03 pm
Hah — that posting by “John” made my day. What a wonderful example of a clueless realtor NOT knowing his audience.
It’s as if a Twinkies salesman had posted an ad in a Vegan discussion group.
greenthums » Oct 19, 2007 at 2:20 pm
softwarengineer:
When this current global credit bubble explodes everyone’s going to be looking for work, including you.
ken » Oct 19, 2007 at 2:30 pm
So one of the townhouses on my street dropped 10k. Its one of 12 identical houses. It the last one left for sale. 7 sold at 339k, 1 at 334, 3 rented by builder and this one up for 329.
Im sure those 8 people that bought are happy.
laxtosnoco » Oct 19, 2007 at 2:54 pm
Disbelief,
Making VP at an investment firm like our friend Suze did is not that big a deal for a good salesperson. No nepotism required, but she did have to get some high net worth individuals to let her run their portfolios. That’s what is mind boggling.
shotsix » Oct 19, 2007 at 4:30 pm
Does anyone know why the inventory for King County has remained relatively stable for the past month? I plotted it out in Excel and was expecting a spectacular upward trend… but found a boring flatness (or even a slight decline). Is this just a seasonal influence on the general downward housing trend?
Ira Sacharoff » Oct 19, 2007 at 6:06 pm
From my perspective: There are a whole lot of expired listings out there. The classic stand off:
While buyers are on the sidelines waiting for prices to drop more, sellers are getting disgusted because they’re not getting offers on their insane asking prices, so they are pulling them off the market waiting for prices to rise(huh?) or renting them out. I check the NWMLS listings every day and see many, many expired listings. That’s supposedly a source of wealth for agents. Contact the folks whose listings have expired, and convince them that you will do a better job than the last agent at selling their property.
;
deejayoh » Oct 19, 2007 at 7:11 pm
it’s seasonal. Go to Tim’s spreadsheet, or look at this chart. you’ll see that inventory drops every year at this time. Actually, this is bit later than usual, and the drop is insignificant relative to normal.
Page 2 of the same pdf is more interesting. Look how LOW the absorption has fallen!
Ron » Oct 19, 2007 at 8:05 pm
Just travel the Apartment to Condo Conversions.. and see whats really happening to the Real estate markets here.
Serious: 3 different locations last weekend- one with 125 units 3-4 months on market 5 sold …. 12 out of 98 units Riverstone Condo/apartments sold in over 7 months.. another up street 1 out 11 units in about the same time frame.. this markets going bust as well~!!
Joel » Oct 21, 2007 at 11:38 pm
Riverstone just put their Phase II units up for sale. So it seems that not all 98 were for sale at the same time, but I’m pretty sure they didn’t even come close to selling the units from Phase I so Phase II is going to be a big bust.