On the
AllForeclosure Message Board, there is this
message posted about a condo in San Diego:
We made an extremely bad investment 4 years ago when we bought our condo. There are several foreclosed units in our community, making it impossible to sale. We're asking 30% less than we paid and can't even get buyers to look at our property. The neighborhood is going downhill fast. I have personally witnessed drug deals, gang activity and people fornicating in park cars outside our house.
We want out, right now we have good credit and are current on all bills. But I am willing to throw it away to get out.
As a last resort we are considering buying a new house while our credit is still good and waling away from the condo. Anyone have any thoughts? What would happen if we just cut our loses now and let the bank take it back.
In their
subsequent post the desperate seller writes:
I forgot to mention a few more key points that are leading us to explore this idea.
The property is in colorado, the builder walked away from the property 6 months ago with 3 buildings left to build. The builder ran out of money to pay his subs so the subs posted leins againt the entire community. It think that about sums it up
Thanks for your input
Looks like they bought a newly built condo in a marginal neighborhood. Despite buying 4 years ago and listing it at a 30% less then they paid, they still are having trouble selling. This condo project must have been an absolute disaster. Yikes!
Posts
The "chatter" is really picking up. More and more bubble articles appearing in my Chicago Tribune. I thought the midwest which was supposed to be immune from a real estate slide. :)
ReplyDeleteI usually don't comment on this stuff, but the mentality here just kills me. These guys are willing to be foreclosed on just to avoid seeing people "fornicate" in parked cars?
ReplyDeleteAmazing.
It's a new paradigm, and everybody who doesn't buy, now, will be priced out forever. Anybody who does buy will be rewarded with a lifetime of riches, as their property will continue its 30% yearly price increase.
ReplyDeleteRenters, and anybody born in a future generation, will not be able to afford a $10,000,000 starter home in 15 years. They will live in tent cities, and Hondas.
This asset bubble is different than all of the others - it will never slow down, or pop. The gains are permanent.
That has been the problem all along. People who have nothing to lose borrow mucho dinero, if they make a profit, good, if they don't, they walk. There is little or no downside risk in this lending environment, meanwhile, the prudent are punished.
ReplyDeleteI suspect this scenario will be common as downtown condo buyers come to realize why their parents and grandparents fled to the quiet, boring suburbs. Human nature just doesn't change that much in 40 years.
ReplyDeleteAnonymous said...
ReplyDelete"I suspect this scenario will be common as downtown condo buyers come to realize why their parents and grandparents fled to the quiet, boring suburbs. Human nature just doesn't change that much in 40 years."
Uhhhhh ... From the description of the place, it sounds like this place IS in the suburbs ... Have you been to Arlington or Silver Spring lately?
I'm not a lawyer, but I do know that California only lets a lender pursue a single method of dept recovery. They can go after the property, or sue the owner(s). They can’t due both. In the past, lenders have always taken back the house as their single redress.
ReplyDeleteYour credit would take a big hit. Your credit would show “lates” for 30, 60, and 90 days before the bank took final action.
I would guess that if you can buy a house in another state, before the s**t hits the fan, you should.
Definitely get a Real Estate lawyer’s opinion.
"Uhhhhh ... From the description of the place, it sounds like this place IS in the suburbs ... Have you been to Arlington or Silver Spring lately?"
ReplyDeleteDude, Arlington and Silver Spring are not suburbs. To me, they are part of DC. Centreville, Manassas, Ashburn are suburbs.
David:
ReplyDeleteWell actually, we benefited from such a case; the owners before us purchased the 2 bedroom condo but their family grew while the price got cut in half; they did exactly what you suggest. Is it right? I'm no judge. Take care of yourself and do what you think is best. Good luck.
David:
ReplyDeleteP.S. Do a search on the internet for "short sale real estate."
It might be time to play hardball with the Mortgage Co. If the regional market is bad they don't want the property...they won't be able to sell it any better than the builder that walked out.
ReplyDeleteAlso, if your unit is subject to the builder's liens this will be a problem for the Mortgage lender, so use that as leverage as well. And get an attorney!