FHA increase is a bust per these brokers.

 http://implode-explode.com/...

 THere are numerous stories over the housing bubble blog and the Orange County register of Suncal defaulting on land and investment properties all over... I think they drank too much kool-aid!

 Here are a few:

A lender foreclosed today on two apartment buildings in Tustin where SunCal Cos. planned to build townhomes. That brings to four the number of properties the Irvine-based land developer has lost to foreclosure in the past eight days. SunCal also lost a Santa Ana complex to foreclosure on Monday and a 1,300-acre tract near Reno, Nev., on Feb. 27.In addition to the foreclosures, numerous liens, lawsuits and complaints have been filed alleging that the company owes at least $5.8 million in unpaid debts is behind schedule on two development projects

The minimum bids required to buy the properties up for auction today totaled $22.5 million for both parcels. There were no bidders, allowing the lender, D.B. Zwirn Special Opportunities Fund, to repossess the properties. One was the Rancho Sierra Vista apartments at 1972 Mitchell Ave., the other was an apartment complex at 14421 Red Hill Ave.

Residents of the Mitchell Avenue property expressed relief that the apartments had been spared from the bulldozer.

“If they could have a management company that would maintain it as it is, that would be wonderful,” said Peggy DeBeau, 78, a 21-year resident of the Rancho Sierra Vista apartments. “We would very much like to stay here.”

David Levy, whose mother has lived in the complex since 1978, said demolition is “off the table,” and has been since the housing market soured, making the townhomes unfeasible.

“It’s (now) owned by a Wall Street hedge fund that hopefully will contract with a reputable property management company,” Levy said.

Meanwhile, in Barstow, further problems surfaced. That’s where SunCal is developing a 25,000-home project that would triple the size of that town. According to the Desert Dispatch, the Register’s sister paper in Barstow, work has slowed on the Waterman Junction development, and SunCal has fallen $59,000 behind in payments to a city account used pay expenses related to the project.

http://lansner.freedomblogg...

Troubles are mounting for the Irvine-based developer that lost a battle last fall with the Walt Disney Co. over a proposed residential project in Anaheim’s resort district, then lost the land planned for the development.

SunCal Companies, a 70-year-old, family-run developer with projects throughout California, Arizona, Nevada and New Mexico, has been sued seven times in Orange County since October by companies claiming the firm or its affiliates defaulted on loans, court settlements or bills for construction and consulting work. The company also faces complaints and legal action over alleged work stoppages on pending projects.

In at least two cases, defaults have resulted in foreclosure action. A lender foreclosed on 1,300 acres in Sparks, Nev., where SunCal planned to develop homes and businesses. A Santa Ana apartment complex on North Bristol Street (see picture) was repossessed Monday in another foreclosure sale, and a third sale on two Tustin apartment buildings is scheduled for Thursday.

Elsewhere in California, work has slowed on SunCal’s McAllister Ranch project in Bakersfield, and the company has been beset by claims from contractors and suppliers alleging they are owed $2.2 million in unpaid bills.

SunCal blamed financial troubles on the tight housing market. David Soyka, senior vice president of public affairs, issued the following statement:

“Like every other homebuilding and land development company, we are facing market challenges.The entire industry is affected, and we’re working with our lenders and Wall Street financial partners, both public and privately held companies, to decide how to adjust our business plans.”

http://lansner.freedomblogg...

 Thanks for story links Bubble...

Two more liens filed in last two days, the latest check found.

-- Gretchen