Homebuilders Offer Mortgage only to Push It Down The Throats of Unsuspecting Buyers who Can Not Afford It

The reckoning time has arrived. Homebuilders have created a monster that wants to swallow their business. It has also created a major headache for many ordinary folks.

Many observers are now saying that it was written the boom would come to an end. It was just a matter of time. In addition to banks and conventional lenders, homebuilders entered the prosperous field of mortgage to make money. The result are half-completed, half-empty houses and subdivisions all over California and the Central Valley.

In addition to spitting out subdivisions, many of which now stand half-empty, builders jumped into the mortgage business to a degree they never had. Wall Street provided the same encouragement it offered other lenders. Even as the housing supply began to exceed demand last year, builders kept sales brisk by pushing adjustable-rate, interest-only, and other risky loans. In some cases they attracted clientele who couldn't afford conventional mortgages. In others, builders allegedly violated federal lending standards to get customers to sign on the dotted line. KB Home (KBH ) paid a record $3.2 million settlement in July, 2005, to resolve allegations by the Housing & Urban Development Dept. that the builder's mortgage unit overstated borrowers' income, among other practices, to obtain loan approvals. KB, which denied wrongdoing, sold its loan business before settling.

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No Health benefits, No Severance Package, Nothing: American Home Mortgage Investment Corporation Closed Its Door

The rumors turned to founded news. They also turned to fears for many of American Home Mortgage employees who received their last check on this fateful day. No benefits, no severance package. Nothing. Yet, they have mortgage to pay too. There is no way they could see this coming. Workers were cleaning their cubes and offices. Many observers attributed the company’s undoing to the weakening of the real estate market and of the secondary mortgage market, the commerce in financial instruments built from bundled mortgage obligations, which was American Home Mortgage’s specialty.

Now many homeowners who have their mortgage through this company have to find a new one. American Home Mortgage bailed out or checked out.

Find more housing news at Openhouselead.

Central Valley Malls Overrun by Teens, Tweens Are Taking Measures: River Park Blinks First, Stared Down by Teens

River Park officials have been putting the fire on teens, tweens and those under 18 years of age for wanting to hang out at the new shopping center in Fresno. Kids who are found without parents will be asked to leave the premises. Such was the goal. Then under 18s started organizing themselves and asking for signatures. Now River Park Officials balk down. They want to postpone their clamming down and hope to end the Summer season. The message was clear to the teens who could not be there after 6 pm. It appears that River Park shopping center did not want them there anymore. There were many who said that the teens were not spending money at the shops. They only shop at Jamba Juice. By congregating there, they chase away families who could spend more.

The teens said they are hanging out at skateboard which is next to the pizza shop. After all, they claim to have made the new shopping center hip. Now they are thinking about going to Sierra Vista mall which has a new theater, Manchester Mall which has lots of parking and Fashion Fair which has another skateboard. They may even go to Fulton Mall. That is farfetched.

All over the US, mall operators have to decide about how to deal with teens who outnumber adults, specially unsupervised teens who roam all over their premises. River Park is reconsidering or giving their ideas more time. Maybe it was just a warning.

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Tours of Great Architecture and Elegant Homes in Fresno's Old Fig Garden

An old Fig Garden home tour allowed me to know more about some great homes that I have seen in the area bounded by Shields, Shaw, Blackstone and Fruit avenues. I have come to find out through the presentation by Archivist and history professor Kevn Enns-Rempel and long-time real estate agent Paula Conner, that this is one of Fresno's most unique communities. On this home tour, there were five houses in Old Fig that were constructed between 1920 and 1948. The homes included the 711 E. Ashlan Ave. built for Sen. Morris B. Harris; a 1937 house on Wilson Avenue constructed by Gareth Gillis of Sterling Laundry; a 1933 colonial Revival on Van Ness Boulevard that has original windows and an H floor plan. It was built for businessman Leon Levy and his wife, Elizabeth Levy.

Archivist and history professor Kevin Enns-Rempel's presentation and the homes tour made me realize that the story of Old Fig Garden is very important to Fresno City's development. It is also the story of a visionary, a giant, a very important man named J.C. Forkner. He was a one-time lawyer from Kansas who turned to real estate development. Fresno will see many other people who try to follow in his footsteps. He knew what he was doing. He had the experience to back it up. He started developing property in Kansas where he began settling people on foreclosed farms after the panic of 1893. Then, he moved to Los Angeles in 1900 and continued to make land deals in the Central Valley, specially Bakersfield. He started pouring over information in the Fresno Historical Society. He became convinced that Fresno would become the largest city in the San Joaquing Valley. So he started buying 12,000 acres of hardpan and hog wallow north of downtown where he spent $8 million developing home sites. He impacted development in Fresno on a major scale. He had built 135 miles of lateral ditches and twenty-five miles of canals to carry water to his property that later became Old Fig Garden.

J.C. Forkner did something else. He bought 46 Fordson tractors to level the land. Henry Ford was so impressed by this purchase that he decided to drive to Fresno in his Model T to check out the work. Forkner's workers used 660,000 pounds of dynamite to blast holes through the hardpan so that 600,000 fig trees could be planted. Eventually, he had the world's largest fig orchard. His field workers also planted 60,000 deodar cedars, oleander and eucalyptus along the nime-mile stretch of Van Ness Boulevard and all the way to the San Joaquin River. Mr. Forkner found some resistance and criticism from the Fresno Chamber of Commerce which condemned the project as worthless. He was accused of being a "swindler." All he did was to convince buyers to buy 10 to 40 acres of land to build homes and grow figs for profit. That was a good offer. Fig Garden took decades to build. All the homes had different styles. Here are a few styles you may run into: Period revival, bungalows, adobe and ranch can be found in Old Fig Garden. Many of the homes have libraries, sitting rooms, basements, leaded windows and other features common in those days.

In his presentation, Mr. Enns-Rempel highlighted the role of the sprawling single-story ranch-style house. It played a significant role in the development of the neighborhood. The ranch-style house was oriented toward the backyard instead of the front. This style took shape in the '30s and quickly became the style of choice of developers in post World War II.

Golden Boy, Oscar De La Hoya, Sold Big Bear Lake Home. Any Buyers?

Oscar De La Hoya has just sold his Big Bear Lake property for $2.1 million. Tito Ortiz, a mixed martial arts champ, the Huntington Beach bad boy, bought it. People En Espanol named Tito Ortiz one of the 50 Most Beautiful Hispanic celebrities. Oscar De La Hoya listed the home for $2.5 million. It sits on an acre. It was his retreat. The champion was not using the home much because he lives and trains in Puerto Rico. Oscar designed the one-bedroom, 3,900-square-foot main house and three-bedroom, 3,200-square-foot guest quarters in Big Bear. He bought the land in the 1990s. He did something else. He converted his four-car garage in Big Bear into a gym that was also equipped with a steam room.

The gated property has a putting green and stream with a footbridge. The main house has an indoor spa and waterfall.

Flippers, Speculators Cause Housing Slump in Las Vegas, Florida and Elsewhere

Frenzied flipping and speculation leave many housing markets and builders with a large inventory of homes to get rid of. For a long time, the housing market was on steroids. It was high time that the correction got started. Long gone are the days when people were spending nights in parking lots with TV, snacks and drinks in the company of thousands of people doing the same thing. They wanted to have their place in line towards the purchase of a home which they intended to get rid of immediately. No, it was not the release of a hot movie or a video game. Flippers took over the markets in Las Vegas and Florida. They waited in line for hours. They wanted to purchase and cash out of it soon. When the home prices took a dip, many investors were left with homes they could not afford. Many of them abandoned their downpayments or deposits. Those who had already completed the deal end up filing for foreclosures. Financial disaster was the name of the game. New home builders had to adjust in order to not add to the glut of homes on the market.

Emmy Winner, Brad Garrett's Home on the Market

Emmy Winner Brad Garrett has put his ome in nearby Hidden Hills on the market for $9.5 million. He has lived there since 2004. The compound is a sprawling 10,300-square-foot French Country which he has built himself. It has a theater, a large playroom, a playhouse, a six-car garage, two yards, a pool, and park and greenbelt views. The home has plank-hardwood, stone floors, leaded-glass windows, a slate roof and high ceilings. Garrett does voice over for animated features such as Casper and a Bug's Life.

Is Greed to Blame for the Real Estate Slump? Check Yourself and Neighbor's Motives

For quite some time now, the real estate market has not been able to climb out of the slump it has been in. Many people are saying that greed was the source of the slump. They are talking about real estate agent greed, builder greed, mortgage industry greed, seller greed and buyer greed. So greed in every part of the real estate market has brought the slowdown.

Buyers are expecting more for less. Developers are offering incentives like multiple free mortgage payments and significant upgrades for free. No wonder that the seller of an existing home can not compete with that. Many observers are blaming real estate agents who have been encouraging sellers to list their homes at sky-high prices. They convince the sellers that their homes are worth more than they actually are. No wonder that you will see "For sale" signs all over the place. That does not mean that the prices are coming down any time soon.

David Beckam and Posh Spice Victoria's New Home in Beverly Hills

Beverly Hills welcomes Real Madrid midfielder David Beckam and former Posh Spice Victoria to their new home. The powerful couple paid $22 million for a 13,000-square-foot house on slightly more than an acre with city and ocean views.

Beckam will play for the Los Angeles Galaxy of the MLS. He will join the team this Summer.

Wood Pellets Shortage Hurts California Homeowners: Demand for Pellets Goes Up

In the midst of the Deep Freeze, California homeowners can not find wood pellets to feed to their pellet stoves. In an effort to find a few bags, I set out to visit various local stores that usually carry the pellets. i stopped at Home Depot and Orchard Supply. I was unfortunate. I could not find any pellets. On these short journeys, I heard about a pellet-manufacturing plant that got burned. This rumor was dropped because it was only a rumor.

Lack of sawdust supply from home construction causes the severe shortage for those of us who pay big money to have these pellet stoves installed in our homes. In the past few years, wood pellet stoves have provided a reasonable heating solution to many Southern, Northern and Central California homeowners. After the shortage hits, many of us start asking, "What's the point of having done so much of this preparation when we can not get the pellets?"

The Pellet Stove Industry and manufacturers should pay attention to their product supply. It is a question of being left in the cold of the Winter months. Once again, this scarcity shows how many other industries depend on a robust housing industry. If many houses are not being built, a reduction in the production of sawdust will produce shortage. We, pellet-stove owners, want to keep our stoves burning. We want the pellets when we want them. We do not want this short supply to cause the prices to go up.

Miami and Las Vegas May Have Surplus of Condos; Time to Convert Back to Apartments

Right here on the Las Vegas Strip, condominiums towers are competing with each other. Near Hilton hotels sits a tower that is being marketed to eventual owners. Right up the Strip, Donald Trump is building his hotels. Timeshares are a huge business here in Las Vegas. Something has been happening to the condo market. Well, sorry to say, the market for condos is no more. Banks have started scaling back loans to condo builders. Some industry insiders are saying that some bankers have even demanded builders to sell and cut back on their projected developments. So these lenders are tightening the purse strings for the condo market. It was too much of a good thing. Who does not remember the rush to convert any apartments into condos just a few months ago? As the investors fly out to greener pastures, there is a reconversion of the condos to apartments.

Celebrity Homes: How Would You Like To Have A Picture-Perfect Martha Stewart Home?

No, you do not have to buy a home in Hollywood Hills, Malibu and other Orange County's exclusive spots. If you have the money, KB home builder can find you the right Martha Stewart's inspired home. KB Home is trying to capitalize on the celebrity factor to attract buyers. The more traffic is generated by names such as Martha Stewart and others, the better it will be for the company's bottom line. KB Home has teamed up with home maven to give a boost to its brand. Despite the prison terms for securities violation, Martha remains a very important person to have on your company's side. As KB Home is building homes in the West, many potential buyers want their home to look and have everything a Martha Stewart's home could have. That means they are willing to spend a little bit more money on upgrades. That is good news for KB Home.

In these times when home builders are paying card holding journeymen and women to stand on the corners of streets, kB Home seems to find a good way to bring people to its developments.