On our cul de sac, six out of nine of the houses are at varying points in the foreclosure process.
As depressing and sad as this is in terms of the personal wealth of these people being wiped out, I'm now starting to wonder what this is going to do to the community? From what I understand, the lenders generally show up at the auctions on the courthouse steps and bid the amount of the loan for the properties. What happens next? Do the banks maintain the homes? Do they pay the HOA fees? Do they keep the utilities connected?
When massive numbers of houses start to be foreclosed upon, what is this community going to look like? What does it do to the community if the banks just hold these properties until the price goes back up to cover the $790,000 note when the houses are sitting on the market at $550K?
I keep half-expecting to see tumbleweeds blowing down the street.
Replies
27
SoWal Insider
Anybody care to make a list (or better yet a map) showing 1) planned communities that went into foreclosure before the developers broke ground, 2) communities like Walton Rose that have a significant number of unfinished homes in foreclosure, 3) communities that have a high number of homes in foreclosure?
I doubt it.
THE? Beach isn't as forthcoming about the situation as Central and Southern Florida. They're more apt to close their eyes, stick their fingers in their ears and go "la-la-la-la-la."
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Beach Fanatic
Shelly, I believe you answered your own question in another thread. I attached the comment below. I believe it was bankers willing to write loans that should not have been written and I believe it was sellers (not necessarily just realtors) who sold property/homes to people knowing their world was going to crash on them eventually. The seller made their buck and to heck with the circumstances someone else would be dealing with later. I'm not trying to regulate other's conscience, but there were a good number of people who must have been keeping theirs in a jar under their bed while they conducted business deals.
You forgot to finish the story:
.....Loan Officer pulls credit, which shows a mortgage taken out in 2004 that now has a 60 day late on it and a past due balance of 2 full payments. There is a $450 car payment that began in 2006. There is another car payment of around $550 taken out 4 months earlier. Credit score is around 540.
Loan Officer: Congratulations, sign here, here, here and here, initial here and here....here's your check.
(Afterall, how else did these "deadbeats" get their hands on the money in the first place?)
You forgot to finish the story:
.....Loan Officer pulls credit, which shows a mortgage taken out in 2004 that now has a 60 day late on it and a past due balance of 2 full payments. There is a $450 car payment that began in 2006. There is another car payment of around $550 taken out 4 months earlier. Credit score is around 540.
Loan Officer: Congratulations, sign here, here, here and here, initial here and here....here's your check.
(Afterall, how else did these "deadbeats" get their hands on the money in the first place?)
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