Sunday, January 08, 2006

Deflation showing?

In a recent report, Courtney Love's home went into default and was put up for aution. The report stated that no bids were received. The report stated the debt was around $365,000 in outstanding debt. From the description, it seems that the property should have been able to get well over that amount in appraised value. Yet the report states no bids were received.
A Los Angeles mortgage company owns the historic bungalow Courtney Love bought in the late 1990s, after a foreclosure auction generated no bids."

"WMC Mortgage filed a lawsuit last year in Thurston County Superior Court, seeking foreclosure after Love stopped paying the bills."

"The debt on the house totaled $386,000, which includes court costs, sheriff's fees and interest, said Thurston County Sheriff's Sgt. Dan McLendon. Love could have prevented Friday's auction by paying off the debt."

"McLendon said he expected some bids after fielding about 100 calls from people expressing interest in the property, likely due to the celebrity connection."

"It really kind of shocked me," he said of the lack of bids. "We anticipated a lot of folks coming out."

"Love, widow of Nirvana frontman Kurt Cobain, bought the property in 1997 for Cobain's family. In the foreclosure lawsuit, she is named as a trustee of the Courtney Love family trust."

"Love stopped paying the mortgage in December 2003, court documents say. The house had been occupied by Cobain's sister, Kim, who moved out before the auction."

"The house, built in 1903, is on 13 acres bordering Capitol Forest in Littlerock, about 10 miles north of Olympia. It is one of the last remaining structures from the town of Bordeaux, which was demolished in 1941, according to county records, and is listed on the local historical inventory."
What do you guys make of this?

This has the smell of deflation starting to occur. If they could get a single bid at the auction. That is just weird. One of the only explanation I cam make of it, is that it is either indicating deflation and/or the mortgage company is doing some funny business to screw the mortgagee, Love, for more money than they are rightfully owed.

4 Comments:

Blogger Los Angeles Friends In Deed said...

LA-RealityCheck said...
"We could repeal Prop. 13 tomorrow, lots of folks would lose their properties but NOBODY WOULD PAY LESS!"

The people buying and being taxed at todays real estate prices, thosed they were locked into at time of purchase, are currently subsidizing the cost of services received by corporate owned real estate.

There is a large segment of real estate owned by corporations which are currently allowed, to my knowledge, from increased property tax assessments when the real estate is bought and sold.

To my knowledge, how this works is that the real estate is owned by the corporation, and the owner of the corporation merely sells the corporation, along with all it assets ofcourse, which include the real estate being sold.

This thereby skirts under the radar of prop 13 as not being sold, since according to the perverted legal precedence has be declared a "person" with all the rights of a person. And as a person, the corporation still owns the real estate.

So therefore, all those, "little guys", are subsidizing of these corporate owned profits.

In conclusion, if prop 13 were to be amended to remove this corporate welfare(subsidy), we would have more money on the table, and therefore reduce the taxes of everyone else,

So, in my observation, an ammendment to prop 13, would make it possiblie to reduce the property tax of those that have been paying an unfair share for services we all receive.

And even if for some chance it did not reduce the percentage of property tax of current tax payers, it would certainly provide for more just taxes for all, by removing wrong subsidies.

Los Angeles Friends In Deed

1/16/2006 5:30 AM  
Blogger Los Angeles Friends In Deed said...

it is interesting that people are commenting about the Tokyo Stock Exchange closing early.

I was reading a report that the chairman of the exchange claimed the the computer servers were running close to maximum levels and he shut down the exchange because he feared they would becom overwhelmed.

I read a report that the 1989 stock crash was claimed to be as a result of, at least in part, a result of technology glitch.

And I read a report that during the 1929 stock market crash that the technology of that time the "stock ticker", which was first invented by Edison was having trouble keeping up with the volume of transactions.

see quote:
" During the stock market crash of October 1929, the mechanical printers could not keep up with the volume of trades. As the tickers fell behind the volume of trading, panic gripped investors."
source - picture of the 1929 stock ticker

Los Angeles Friends In Deed

1/18/2006 6:38 AM  
Blogger Los Angeles Friends In Deed said...

I think Al Gore's Martin Luther King speech subject is very well connected to the housing bubble we are in. You can listen to the mp3 of the speech(1/16/2006 - Constitution Hall, Washington, DC.

Los Angeles Friends In Deed

1/19/2006 1:47 AM  
Blogger Los Angeles Friends In Deed said...

I would like to give a mini "open House" report. I did a survey of open house signs seen on Lincoln blvd from Venice blvd to Pico blvd. This area include a portion of Los Angles (venice area) and southern part of Santa Monica.

I saw a little more than 30 open house signs on Sunday afternoon along this strip of road, at intersections.

I would like to also comment that just south of this region, in the Marina Del Rey and Play Del Rey area, there was even more "open House" signs at intersections.
There was also live people carrying promo signs for various condo/loft complexes that had units for sale.

Additionally, on top of those, there was construction for several hundred condo's. They were in mid-construction. They appear to be about a couple months, or less, away from completion. These condos can be seen on Lincoln, just south of Jefferson.

It appears that the season people predicted has begun. The Open houses are dramatically increasing in numbers, compared to december and november 2005.

Los Angeles Friends In Deed

1/31/2006 1:11 PM  

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