Comments on: Good Deal or Not? Update

By: Steve

Steve — Thu, 04 Dec 2008 22:38:11 +0000

I also suspecet the transaction is to write down the financial loss as well as to take clear title so the bank can put it on the market. I will look it up and see what is in there.

By: hipchickindc

hipchickindc — Thu, 04 Dec 2008 21:03:07 +0000

I’m sure you can, but what sometimes complicates the numbers are second trusts (either with the same bank or another), as well as renovation loans (in some cases set up as a second), as well as third party liens (like taxes, back condo dues, etc.)

By: Steve

Steve — Thu, 04 Dec 2008 20:41:29 +0000

I have no idea about the accounting, but I bet if we went on DC land records we can find out what the value of the note is.

By: hipchickindc

hipchickindc — Thu, 04 Dec 2008 18:26:48 +0000

Steve, that sounds about right. I’ve seen some very weird numbers on the buy backs, though, and don’t know if particular banks record the buy back differently for accounting reasons.

By: Davey

Davey — Thu, 04 Dec 2008 17:47:22 +0000

If it’s in unlivable condition, has had leaks, and needs major repairs (new hvac, new wiring, etc), then the price doesn’t seem that ridiculous. It could easily be a $200,000 or more renovation. A renovated house around there in the 400s seems more or less market value, no?

By: Steve

Steve — Thu, 04 Dec 2008 17:46:57 +0000

hipchickindc – I think the foreclosure rules require the bank to auction the property. If it does not sell, then they “buy” it back. The amount is that which was owed on the note Had something similar happen to the house next door to me. I called the auction house to ask what was up with the auction, that that is how it was explained to me anyway.

By: OB

OB — Thu, 04 Dec 2008 17:08:55 +0000

My friend bid on that house before the toilet overflow and rescinded after the overflow. It was quite bad- multiple floors bad.

By: hipchickindc

hipchickindc — Thu, 04 Dec 2008 16:25:01 +0000

Oh, we priced that way during the nutso market, too

By: vonstallin

vonstallin — Thu, 04 Dec 2008 15:48:30 +0000

Good points, I guess with the Housing Market getting real ugly, you need to use every marketing strategy available.

By: $ ?? easily swayed

$ ?? easily swayed — Thu, 04 Dec 2008 15:40:03 +0000

a much much smaller scale, like buying a sweater for $67.50 feels more reasonable than $70.00