22 Water lily Court
So many of the foreclosure properties we have investigated have been the victims of serial refinancings. But lately we have been running into another frequent seeming cause of foreclosure. And we are calling it; Peakage Buying. We are not calling it Strategic Default because we have absolutley no knowledge of the owners thoughts, motivations, or situation.
22 Water Lily Court was purchased in December of 2006 for $1,795,000. “Wow!”, you say, “$1,795,000? For a tract home?” Yup, yup, yup, with 10% down. Probably seemed like a good idea at the time.
12 Water Lily Way is currently listed as a short sale for $1,099,900. Hmm-m-m. 20 Water Lily Way recently sold for $1,225,000, and 36 Water Lily Way, which by my untrained eye seems to be the same model as 12 Water Lily Way, recently sold for $1,090,000. I am guessing the owners of 22 Water Lily Way can rent the same home for less than half of what their mortgage and taxes and insurance and maintenance currently run, and not incur any more depreciation. Just a guess.
Anywhoose, the trustee sale is scheduled for 12/04/09 with a published bid of $1,415,322. (Just a thought; If one were to call up the foreclosing lender and/or trustee and let them in on the amount one may be willing to bid on a property up for auction, might the lender or trustee start the opening bid at the whispered amount? Just a thought)
bb5
December 3rd, 2009
Mama mia that hurts. That’s the perverse thing with the last 5 years, serial refinancers getting bailout attention while “Peakage” (love it by the way) bought at a time when the American dream of home ownership was being encouraged. I’ve brought this up before with job relos etc., but there are no solutions for these people because they are way under water and don’t have an Agency loan. Only solution is that these people are SOL?
cdcrez
December 3rd, 2009
@bb5
The loan mod thing looks attractive for some, but is there some limit on LTV which precludes a loan mod?
bb5
December 3rd, 2009
Have no evidence, but I would suspect loan mods on jumbo non-agencies are hard to come by
C Delroy Spuckler
December 3rd, 2009
Why are we making a distinction between people who are under water and who aren’t? The money I lost in my home equity is just as real as people who are underwater lost in their home equity.
Trinity
December 3rd, 2009
@C Delroy Spuckler
I agree Spuckler. I have neighbors that got a sweet loan mod because they racked up charges on their house and are under-water. I have the same bank… no such deal for me because I have unfortunately been payin’ down my principle.
C Delroy Spuckler
December 3rd, 2009
@Trinity
Heh heh… I’ve got a worse one. I cancelled one credit card 2 months ago and replaced it with another one with a better cashback policy (the one I replaced was a backup card, I hadn’t charged on it in like 3 years). This lowered my FICO score because it shows up as I applied for a new line of credit in the past 6 months (but I get no credit for closing the other card). At the same time I paid off another loan. So my total number of credit lines dropped by one, my total available credit dropped marginally, and my credit score dropped.
I guess I don’t get it.
cdcrez
December 3rd, 2009
@C Delroy Spuckler
We make the distinction because reality makes the disticntion. Those who are underwater are a thousand times more likely to get foreclosed rather than sell. The loan mods purpose is to diminish the number of foreclosures.
timm eubanks
December 3rd, 2009
Bottom line… The government getting involved sucks! Always screws the people trying to do the right thing.
Trinity
December 3rd, 2009
@cdcrez
Yeah,I know, it just seems unfair that the best rates go to people that chose to go “exotic” or extracted out all the equity. I’d like to be able to have a 2% or 0% loan like my neighbors!
cdcrez
December 3rd, 2009
@Trinity
It is worse than unfair. It is the opposite of everything this country stood for.
C Delroy Spuckler
December 3rd, 2009
@cdcrez
Equality of outcome, not equality of opportunity.