Good morning. I see rays of sunshine in the back yard this morning, which is a welcome, if temporary, sight. I also see some blooming flowers, which is a reminder that even in the rainy days of January, L.A. dazzles. Pieter Severynen does too, with another installment of "Tree of the Week."
The Evergreen Pear - Pyrus kawakamii
"The 20-odd species of pear trees come in two kinds: (edible) fruiting and ornamental. The evergreen pear is one of the ornamentals. Left to its own devices this mainland China and Taiwan native grows into a sprawling 15-25’ tall and wide big shrub, but our custom and taste is to shape it into a bare-trunked single or multi stem tree. This is accomplished by staking the trunk until it is self-supporting, cutting off any would-be branches sprouting along the trunk and selecting and shortening the long branches in the crown that grow in every direction to upward and outward facing buds, thus establishing a structural framework. Treated this less-than-natural way, the evergreen pear becomes an elegant open-structured small weeping tree with gracefully pendulous branches and drooping branchlets.
"Part of the Rose family, the tree is evergreen when the climate cooperates; in cold winters it may be partially deciduous. But the glossy, oval, 2-4” long leaves turn purple or red in winter. New growth is shiny light green. During good years spectacular clusters of white flowers completely cover the tree anytime from November to spring. Hard pruning prevents flowering. The tiny, ½” fruit, if it forms at all, is buff to black in color. The rough, deeply furrowed charcoal gray bark looks attractively picturesque, especially after rain.
"Once established, the tree needs little pruning. It can live from 50 to 150 years. Very tolerant of a range of soils, it loves full sun and gets by on moderate watering. But it suffers from fireblight, especially in wet winters. This bacterial disease turns isolated shoots and branches brown or black, making them look as if they went through a fire. The remedy to this usually non-fatal but contagious pest problem is to remove the affected branches 8-12” below the dieback point. Lesser problems that may also diminish the value of this otherwise beautiful small tree are a leaf spot disease that causes partial defoliation and sometimes aphids or scale."
Thanks, Pieter.
Email Pieter: plseve@earthlink.net
Photo Credit: www.sheridangardens.com
A couple of noteworthy headlines from the S&P/Case-Shiller housing price index today: According to Case-Shiller data, L.A. still has America's biggest housing price gains since 2000 (aka America's biggest housing bubble), but L.A. prices are falling faster than any other city in America.
"I did not get House #1 with a liar loan; it was fully documented. I could have put money down but chose to hold on to my cash. As it turns out, the value has dropped so much, it would have just been money down the drain anyway. I never planned to flip the place or make a quick buck (although I don't see anything wrong with making money). I just figured I'd sell or refinance it before the ARM readjusted. At the time I was looking, it was one of the cheapest condos I could find in a decent area.
"I don't have a grudge against big companies (hell, I work for one) or feel like I'm 'sticking it to the man.' Like many posters have said, it's just business.
I have a good income, credit, and savings, so am qualified to buy House #2 using my savings as a down payment. I have adequate income to meet the lenders' debt ratios to cover both homes, and then some. Servicing the debt is not an issue. Ironically, House #2 is a short sale.
When I applied for the loan on House #2, I expected the lender to question the upside-down status of House #1 (they can Zillow as well as I can), but they approved the loan with no questions or issues. I was surprised that they didn't even ask how much the new ARM payment on House #1 would be, but was told that they don't take that into consideration. Huh?
As for Big Lender on House #1, I called their loan department to see if I could refinance the mortgages and was told they don't refi homes with negative equity. I asked the loan officer if they have any programs available for people in my situation. He said he didn't know of anything, but that they did have loan counseling people available, but you have to fill out a questionnaire first before they'll talk to you. So I called another 800 number to get the questionnaire and requested it via their automated voice system. That was 2 weeks ago; no questionnaire (not that I have a hardship anyway). Later, buried on Big Lender's website, I saw where they supposedly contact borrowers 4 months before their loan reset, which would be early February. We'll see.
In terms of selling House #1, this is a cookie cutter condo in a town full of them, so it's easy to figure out its market value (zilch) and average days on market (eternity). There are plenty of short sales right here in the neighborhood, and they are not moving.
Finally, I realize my credit score will take a hit, but remember that I don't need to rent since I own House #2. I have stable long-term employment, decent car, and no debt so speak of. So what if my car insurance goes up a bit. Incidentally, the Federal tax-exempt status on mortgage debt forgiveness is only temporary, so if you are considering walking away from your equity-less home, better call your CPA and lawyer to find out the rules and start making plans..."
Thanks, Blue. Your thoughts? Comments? Be respectful, and please don't expect Condoblue to explain every intricate financial detail of these transactions. There's a lot of information here.Read below for Condoblue's first post.