Some Air Is Coming Out Of The Housing Market
The Miami Herald reports from Florida. “A flood of foreclosures has forced county offices in Miami-Dade and Broward counties to expand their services to handle the load. With more than 1,000 foreclosed homes ready to hit the auction block in February, the Miami-Dade County Clerk’s office is increasing the number of days it hold auctions from two to three per week.”
“‘We’ve been running into some serious problems,’ said Michael Henderson, a spokesman for the Miami-Dade clerk. ‘We’ve needed an extra day for a couple of months now.’”
“The number of properties scheduled for auction nearly tripled from 2006 to 10,209 in 2007, plus another 1,467 in January, according to a Miami data services company. If recent foreclosure filings are any indication, the numbers will continue to swell. Lenders opened foreclosure cases on some 8,829 home loans in Miami-Dade County in the fourth quarter of 2007, and 10,207 in Broward. Another 3,247 cases were filed in Broward in January.”
“‘It’s never been like this, not for as long as I can remember,’ said Barbara Brown, court operations manager for the Broward Circuit, Civil and Family courts.”
“She pointed out the Broward court has been auctioning about 240 properties per week since January, up from about 30 or 40 per week the same month last year. Investor Julian Dominguez Jr. added that more than 95 percent of the properties for sale were being bought back by lenders.”
The Herald Tribune from Florida. “A new study shows that ‘occupancy rates are falling and the rate of rental growth is slowing’ throughout the state of Florida. The Sarasota-Bradenton metropolitan statistical area ranked as one of the worst performers during the last year in terms of both rental growth and average occupancy.”
“‘There’s a number of property managers and owners out there who perhaps haven’t been in the market long enough to know what needs to be done to move these properties,’ said Scott Corbridge, with Sarasota Management and Leasing. ‘People might be thinking about what they were told they could get in terms of cash flow back when they bought a property, and they’re not willing to budge just yet.’”
“There is a tremendous amount of competition in the rental market these days because many people who cannot sell their properties are turning to renting as a way to ride out the slow market, Corbridge said. ‘We’ve got a lot of accidental landlords out there,’ he said.”
“Alvin Holmes, who owns a number of rental properties in the Sarasota-Bradenton area, said local landlords have been getting hit hard from numerous directions. ‘The ones I work with say this is the worst they’ve ever seen it,’ Holmes said.”
“Holmes said the drying up of construction work resulted in many laborers, particularly immigrants, simply leaving town when the jobs disappeared. At the same time, the flow of people that has traditionally migrated to Florida from the northern states has slowed in recent years — primarily, Holmes said, thanks to rising property taxes.”
“‘People just aren’t coming here like they used to, and we need that influx of people,’ he said. ‘We depend on them.’”
“Carolyn Pearson is one such owner. Pearson and her husband have lived in the Sarsota area for decades, and say that ballooning property tax bills on their four rental properties combined with the soft market are pushing them to the breaking point.”
“‘We’ve lived and invested here for almost 50 years,’ Pearson said. ‘We weren’t speculators, we’ve worked hard, we tried to do everything right … and now this American dream has turned into a nightmare.’”
“It has gotten so bad, Pearson said, that she and her husband have started looking for jobs again just to make ends meet. They have not had much luck. ‘There aren’t a lot of employers that are falling over themselves to hire someone my age.’”
“If things do not turn around soon, they will likely have to move elsewhere, she said.”
“Southwest Florida’s four biggest and best-financed real estate brokers saw annual sales drop last year — to the tune of $728 million — but that was at half the pace of the drop of the prior year.”
“That has some of the big brokers voicing optimism about 2008, with some calling a bottom to the regional market.”
“Sales of single-family homes in the Sarasota-Bradenton market dropped 11 percent in 2007, one of the better performances statewide. Only Panama City, with 10 percent, saw a smaller decrease. Charlotte County-North Port slumped 25 percent, putting it in the middle of the pack for the 20 largest markets statewide.”
“Sarasota-Bradenton is ‘definitely at the bottom,’ says Prudential Palms President Scott Sosso, whose firm saw a decline of about 17 percent last year. Sosso points to many houses that are now selling for 2003-04 prices. The 2007 median sales price was $285,700, while the December price of $246,900 was comparable to overall prices in 2004.”
“Others are not so sure, noting that 2008 is likely to be another year marked by more mortgage problems. Southwest Florida is experiencing record foreclosures as a result of the speculative buying spree of 2004-2006, particularly in North Port, and that is adding to inventory of unsold homes.”
“The parent of First State Bank saw its profits cut 54 percent in 2007 because of provisions that it made for loan losses resulting from a troubled real estate market.”
“The Sarasota-based bank holding company revealed last month that it had boosted its total reserve for loan losses by 55 percent to a record $7.6 million. Of its residential portfolio, $5.6 million in loans, or 10.4 percent, are impaired, the bank said. Impaired commercial loans rose to $13.1 million, or about 8.54 percent of total commercial loans.”
“‘The continued decline in property values in our core lending markets have negatively impacted our profitability in 2007,’ said John E Wilkinson, the company’s CEO, in a statement.”
The Bradenton Herald from FLorida. “Stuck in the rut of the real estate downturn and facing various liens and litigation, the developers of the Bel Mare at Riviera Dunes condominiums are resorting to desperate measures to sell their units.”
“Tim Morris, CEO of Corvus International, the developer of the twin 15-story towers near the Manatee Convention Center, said the company is reducing prices on units by 25 percent or more and has instituted a unit buy-back program.”
“The deal caps Corvus International’s loss on each unit at $50,000 and requires buyers to pay brokerage fees and closing costs. There are other restrictions as well.”
“‘We just need to essentially get real buyers to become aware of what we’ve done and get them out there to take a look at the product,’ Morris said. ‘We’re trying to firm up their position and limit their downside.’”
“It’s been tough going for Bel Mare and other local condos that have faced dozens of lawsuits from investors seeking to have deposits returned because the projects weren’t finished on time. Units that had been priced from $750,000 to $1.8 million, now range from the mid-$400,000s to $1.3 million, Morris said.”
“Despite Bel Mare’s struggles, Corvus is moving forward with development of Sanctuary Cove, 252 single-family homes east of Bel Mare on the Manatee River that will range from the low $400,000s to more than $4 million.”
The St Petersburg Times from Florida. “A sweat stain has worked its way through a royal blue silk blouse and past the top polyester threads of 34-year-old Brandie McGowan-Fitzgerald’s black business jacket. Fortunately, Wednesday morning’s rush hour traffic buzzing past her left and right is moving too quickly to notice.”
“When they line up for the light at Busch Boulevard and Interstate 275 she walks car to car, dressed in full business attire, and shows her sign: ‘Single Mom Needs Work. Take a Resume.’”
“Last year, bad luck came in threes. She was laid off, had an adjustable rate mortgage push her monthly budget past her means and is separating from her husband.”
“‘Financially, right now the clock is running. I’m almost out of money. It takes a toll on you mentally. Especially as I watch my bank account slowly decrease. I have $1,000 in the bank right now until I get a job,’ she says. ‘What am I going to do?’”
The Orlando Sentinel from Florida. “Electricity to parts of the office-condo towers in The Plaza could be shut off for nonpayment at any time, and dozens of unsold residential units in the adjacent Solaire condominium will be auctioned off March 1 by that tower’s developer-owner.”
“Both actions are signs of the depth of the collapse of the downtown Orlando condominium market, which despite its troubles is considered stronger than those in other parts of the state.”
“Minimum bids for 24 of the one- and two-bedroom units in Solaire will start at $170,000. Bids for the other 18 will start at $250,000.”
“Bryan Disbrow, who lives in one of the penthouse residential units in Solaire and works across the street for SunTrust Banks in the mortgage division, said he has no doubt the tower and other downtown properties will weather the current slowdown.”
“‘I’ve been a suburban person, but now I love this,’ said Disbrow. ‘It’s very urban, and I can just walk everywhere.’”
“He said he paid $795,000 in 2005 for his two-bedroom, two-bathroom unit, which has western views, including the nightly fireworks at Walt Disney World in the distance. A similar unit of the same size, with eastern views that include rocket launches from Cape Canaveral, recently sold for $945,000, Disbrow said.”
“The building’s ground-floor retail spaces remain vacant, though, and the multiplex theater next door is still unfinished, giving parts of the complex a vacant, depressed look.”
From 11 Alive in Georgia. “The foreclosure tallies keep reaching all-time highs. On Tuesday alone, 7,000 homes were auctioned off on the steps of the Fulton County Courthouse.”
“In a mere four hours, 2,000 homes will be auctioned off on the steps.”
The Atlanta Journal Constitution from Georgia. “Atlanta homebuilder John Wieland said Wednesday he’s more ‘upbeat’ about his business now than he was feeling as 2007 drew to a close amid a flood of troubling economic news.”
“In November, his $350 million luxury condominium project across the street from the High Museum of Art suspended construction plans for at least 18 months. Just days later, John Wieland Homes and Neighborhoods confirmed that 59 company employees had been laid off in a streamlining move prompted by slow home sales.”
“‘The end of last year was the most miserable time of my life,’ Wieland said.”
“Wieland noted growing house inventories and rising foreclosures in remarks to EconSouth, the Atlanta Federal Reserve Bank’s quarterly publication, last summer. ‘I am shocked, and I don’t shock too easily,’ he said. ‘I don’t know anybody out there that is ‘doing well.’ And the bankruptcies of the builders in Atlanta are starting.’”
“A new promotion offering price discounts up to $100,000 and a lifetime structural warranty on Wieland houses produced 89 sales for the company between Jan. 25 and Feb. 3, twice the number of homes the company sold in the same period last year, according to Wieland officials.”
“That provided a welcome cash infusion of $50 million for the homebuilder, which is currently marketing 30 communities with more than 400 unsold homes around the metro area.”
“The homebuilder is so pleased with the outcome of the initial promotion that it has extended the offer for an additional two weeks, Wieland said.”
“He acknowledged the challenges Atlanta’s overbuilt housing market is facing this year. With 11 months of unsold inventory , companies with swollen backlogs of unsold lots will feel the pinch of carrying charges and razor-thin margins.”
“‘Some air, shall we say, is coming out of the housing market in Atlanta,’ Wieland said. ‘But that’s good for customers and it’s good for the housing market.’”
“Home prices are likely to remain very flexible until recovery begins, Wieland said. ‘Are people going to be able to negotiate? Sure they are,’ he said.”
“‘We’re just a little part of the Atlanta market. There are plenty of buyers out there to meet our needs,’ Wieland said. ‘Somebody’s going to shrink and I’m not interested in doing it. We’re going to make it exciting enough to buy from us that somebody else does the shrinking.’”
“The latest sign of hard times in the housing industry sits in the driveway of Lot 13 at Willow Wind Estates in east Cobb County. Well, the sign is in the yard, but the evidence is in the driveway.”
“‘This Car Comes With Home’ screams a banner-size sign in front of a $550,000 home. A new Toyota Highlander, a roughly $30,000 tangible, visible incentive, is parked behind the sign.”
“Builder-developer Nader Zarrabi knew that he’d have to offer something more than a fair market price for a new home. ‘We’re always trying to come up with incentives in this business, particularly now, which is the toughest time in my career. But everyone is giving some kind of incentive, so I figured I needed to do something big and something you could see physically.’”
“So how flexible is he on this Highlander and Lot 13? Flexible enough to move it to one of the other lots. Probably flexible enough to figure out a way to just reduce the price of the house.”
“Zarrabi believes keeping homes close to their appraised value will help the buyer in the long run, as well as the neighborhood. ‘These houses appraised at $600,000, but even when we were building them, we knew it was going to be a soft market, so we listed them in then mid-500s.’”
“‘It wouldn’t make sense to drop the price more because it drops the values of houses all around. This way, the price stays at mid-500s, and the incentives aren’t recorded on sales records. In five years if you want to resell, it helps, he said.”
“Oh yeah, the refrigerator, washer and dryer come with the home, too, the sign says in much smaller letters.”
‘It has gotten so bad, Pearson said, that she and her husband have started looking for jobs again just to make ends meet. They have not had much luck. ‘There aren’t a lot of employers that are falling over themselves to hire someone my age.’ If things do not turn around soon, they will likely have to move elsewhere, she said.’
‘Her frustration level has peaked. “I’ve applied on every job site there is. I’ve looked through the paper every day. Nothing. Not even a call back. I feel like the resumes are going nowhere. So I had to take it a step further and get out here,” she says. For McGowan-Fitzgerald, the urgency outweighs the stigma. Her kids tease her.’
‘They razz me. My son asked me the other day ‘what street were you walking today,’ but God forbid this ever happens to them. They need to know they have to get out there and work for what they want. Right now I can provide for their needs, but not their wants, and that’s hard.’
These familiar types of stories to previous busts. I have seen posts that the time to buy is when people say RE is a terrible investment. As I recall, the lows are closer to when owning a house is the last thing on most folks minds.
Also, note the Atlanta developer, seriously undercutting the existing market and whose only concern is that his firm survives. IMO, they are all thinking that way.
Here is real easy solution for her. Her soon-to-be ex-husband is employed - the full text of the article says he is a firefigher. Hand the brats over to their father. He can support them and they live with him.
She takes any job - including McD’s.
Want to bet she voted for both Bush brothers?
RE: Here is real easy solution for her. Her soon-to-be ex-husband is employed - the full text of the article says he is a firefigher. Hand the brats over to their father. He can support them and they live with him.
There’s your typical contemporary cop-out.
Make the father the financial bagman for the woman’s shitty decision making process.
“Make the father the financial bagman for the woman’s shitty decision making process.”
How is taking care of your own children being a “financial bagman”? There both responsible to support them no matter what the other is going through.
Hear, hear aimeejd. How many times do men leave women with the full burden of raising kids when the marriage ends? A lot.
How many women fight tooth and nail to get the kids + the support.
I have met only one spectacular man that took the responsibility of their kids after divorce.
I personally know 8 single mothers and only one has a husband that pays their child support and is involved actively in their childrens lives.
My husband is a product of a father that dropped him off at a relatives house and said “I don’t want to do this anymore” never to be heard from again.
The man that will stand up and be there for their kids regardless of how responsible or irresponsible the mother is, is the epitome of true manhood.
I know. I married one.
in our legal system, “fatherhood is a privilege; motherhood is a right”.
been through the meat grinder of florida/hillsborough county so-called family court justice system.
still living the nightmare.
Everyone here is commenting without knowledge of the facts of this case. Some men do leave their wives with the financial burdens; some women do fight–sometimes very dirtily–tooth and nail for the kids and financial support, relegating the father to the status of a mere, but much-reviled, wallet. We don’t know what Ms. McGowan’s facts are.
Well said, WCD. If this woman truly made a good-faith effort to make her marriage work, but was stuck with an insufferable ass of a husband - as is too often the case - I’d be a lot more inclined to give her a break. If, on the other hand, the marriage ended because she made her husband’s life pure hell - as is too often the case - then, you made your bed, you lie in it, babe. Learn something! The grass ain’t always greener.
Her kids sound like selfish, inconsiderate brats - funny how the apple never falls too far from the tree. As a kid I would’ve been mortified at the idea of my mom handing out resumes at intersections, and would’ve done whatever I could to alleviate the family financial situation.
“Want to bet she voted for both Bush brothers?”
BINGO. Another textbook case of people voting for airy fairy BS like flags and gays in lieu of their own economic interests. Won’t happen this time considering those same folks finally figured it out.
I am not unsympathetic to that view, but it’s just as likely that she didn’t even vote.
You can tell that from the article?
I’m amazed to see people on this board, who otherwise seem intelligent, so obsessed with Boogeyman Bush. As if every problem in the world started exactly on January 20, 2001.
I’d suggest saving the partisan politics for another blog, and stick to real estate. Not everyone here suffers from Bush Derangement Syndrome.
Nah it started when the first B was in the CIA and THEN the WH and then when jr was owning co’s that went bk or at least run them into the ground and then when B was gov and single handedly plundered TX and THEN when B became P.
It started alot sooner but he definitely plunged the toilet plunger.
Seems your plunger-based memory skipped a decade; perhaps you’ve heard of the DotCom meltdown, for example.
“Want to bet she voted for both Bush brothers”?
She probably did, the big dummy! If she had only voted for Al Gore( who really won, BTW) then she would have never found herself in this predicament. Those 2 SOB’s ruined the whole country of 330 million. When will we ever learn? Nows our chance… for change! To what is the question?
Oh right Ann,
AS IF the moron Clinton has a plan besides communism, top-down social engineering, and elimination of U.S. military strength.
When did smarmy Liberal Elitists repeal the logical fallacy of “Post Hoc Ergo Propter Hoc”? Personally, I don’t care for Bush at all. I didn’t vote for him. I didn’t vote for the Dumocrat either. But I can tell you one thing. The Coastal Liberal Democrats have completely underestimated the pure HATRED many Americans have for Hitlery.
This will be a very Dis-United States for many years as the political dichotomy between those who favor governmental support of the intrusive entitlement state, and those who favor a return to private initiative, family values, and national security will get wider, more acrid, and destructive.
Balkanization, anyone?
This is probably for the bits bucket list, but why such hatred for Hilary Clinton? I don’t agree with her politics and tend to lean toward Ron Paul with my own political views but just don’t understand the reasoning behind such disgust with her.
Maybe it is that she is more transparent than the other candidates. We would rather the fantasy that our officials serve the common man, are honest, intelligent and have somehow risen to the top of the crime syndicate without corruption.
To “absolutely hate” one of these figureheads is to abhor our own stupidity.
Think Richard Nixon. Hillary and “tricky Dick” have a lot in common, including an obsessive desire for power, no political principles, an enemies list, and a paranoid personality (e.g., “vast right-wing conspiracy”).
Oh, I think events have shown Hillary was right about the vast right-wing conspiracy.
We would rather the fantasy that our officials serve the common man, are honest, intelligent and have somehow risen to the top of the crime syndicate without corruption.
To “absolutely hate” one of these figureheads is to abhor our own stupidity.
BUT “WE” do NOT want to get involved in actually VOTING or going to local city council mtgs or ‘learn’ our children about CIVICS or history, or actual schooling.
It seems “we” would rather pay attention to hockey, football and celebs than KNOW our constitution and what is happening to our Rights that are being dismantled.
So, instead of VOTING consistently and teaching ALL children about Voting and civics/history, just turn on the tv.
Do “you” even know if your vote was counted?
Or why the elected officials want to change the way voting is done?
Turn Fox FAUX back on. That oughta do it.
“are honest, intelligent and have somehow risen to the top of the crime syndicate without corruption.”
“Think Richard Nixon. Hillary and “tricky Dick” have a lot in common, including an obsessive desire for power, no political principles, an enemies list”
LOL
You’ve just described ninety percent of all politicians on this planet.
right on. All career politicians are all the same bs wrapped in differnt paper
“a very Dis-United States for many years”
In other words, just more of the same.
Regardless of how you feel about Bush, Hillary, or whoever, please stop the infantile slogan-spouting and demonization of the candidates.
“I have seen posts that the time to buy is when people say RE is a terrible investment.”
IMO that’s not going to happen until we move through the current wave of wanna-be vultures going bust. Once these self-proclaimed “experts” are stripped naked we will begin another strong plunge downward.
Also, I’ll admit the Fed’s recent moves and govt promises of intervention have resurrected some optimism. The false sense of wellness likened to a doctor telling a terminal cancer patient that he’s going to be fine. I’m guessing it’s going to take until late spring/summer for folks to finally realize it ain’t comin back, and there’s nothing any entity can do about it. That’s when I believe we’ll see the final, prolonged, and painful downward leg of housing.
Right now we’re still in the stick shaker, but the wing hasn’t stalled just yet. So far the Fed has been trading what little altitude it had for airspeed, but October will be crunch time. The fools could’ve just accepted the fact that this plane has lost power and started looking for a place to set her down. Instead, fantasy trumped reality and the fools actually believed they could hold on to altitude regardless of whether the engine was still turning.
October is stall/spin month. We’ll be picking up the pieces from the crash site for a while and even after all the parts are karted off to the junkyard, the memory of watching the plane have a wing drop off, roll inverted and smack the ground nose first will be burned in everyones’ minds for a VERY long time.
Nice crash and burn metaphor….
Yes, nice metaphor.
The real troubles came from ppl with no skin in the game playing the debt leverage game. As long as banks get back to conservative lending, and requiring substantial down payments, the stupid money will be gone. The last 2 years of the bubble were all about stupid money. It isnt coming back anytime soon.
It’s hard to define a winner, in a race to the bottom of the housing market.
What I notice a lot is, that just as MSM and REIC are always postponing their fantasy “recovery,” we are frequently postponing our fantasy free-fall phase (as in phx’s msg just above). I’m guessing the falling phase will continue for a long time but always be sticky. Just a guess.
Gargantuans are awfully top heavy…
seriously undercutting the existing ??
Exactly Ben….Those heavy discount land deals are going to come back in the form of much cheaper housing….Many of the material costs are way down (lumber) and labor has also taken a huge haircut….Combine all those together with acceptable albeit thin margins for the developer/builder and you get a new home well below the comparable resale market…
I have seen posts that the time to buy is when people say RE is a terrible investment.
In the Florida market, the time to buy is when you have a large list of unoccupied homes and the banks are motivated to sell at 1998 prices.
But due to higher taxes and insurance than comparable houses in most other states, Florida’s prices are going to have to go REALLY low.
You are correct. Prices need to fall about 25-30% over the next couple of years, but the problem is people are in denial. Those in denial are going to find out the hard way very soon!
Before October, she was working as a project manager for cell phone tower company Crown Castle U.S.A. Inc. in Sarasota, and living with her husband, a firefighter. Her base pay was $45,000, plus commissions. In a good year, she could break into six figures.
Since when are “Project Managers” paid commission? Sounds more like she was in sales.
“‘People just aren’t coming here like they used to, and we need that influx of people,’ he said. ‘We depend on them.’”
People ARE coming here like they used to. In the 1970s.
And more people gotta come to Florida than most places just to offset the naturally higher death rate.
There’s a reason Florida is called “God’s waiting room.”
*Very* good point - something that most people forget, or don’t think of in the first place. Florida naturally *has* to have a higher influx rate than most states in order to keep a steady population, due to its high attrition rate.
“For newly wed and nearly dead”
Sorry but the reputation of Florida being a “retirement haven” is so, well pardon the pun, but OLD..it hasn’t been attractive to seniors since 05..nor have they been retiring here. That boat has sailed..it is something our grandparents said..”Oh I can’t wait to retire in FL…”
Uh-oh. If seniors aren’t coming any more, then the population drop will be more rapid than expected. There’s still a lot of old people living (and dying) in FL.
What about all those illegals? Do they count?
The sate had a net growth of 89 people per day last year according to US census…..that is about the birth rate of the illegal immigrants
“Investor Julian Dominguez Jr. added that more than 95 percent of the properties for sale were being bought back by lenders.”
Denial. Any bets on how long the lenders can really hold out?
It’s gotta be getting closer to capitulation. How long can they suck up this amount of inventory without needing to offload? We are getting closer to ass-pounding time for the lenders!!!!
I agree - the moment of reckoning is near. They need capital, but if they cut the prices, they won’t get nearly enough, plus they would feed the litgation fires about fraudulent appraisals, etc. There is no way out. Anyone who can come up with a workable idea to get the lenders out will become wealthy beyond their wildest dreams.
The only entities I can think of to let the lenders out of their dilemma is already “wealthy beyond their wildest dreams” (Central Bankers).
I agree, what I don’t get is , with 240 houses per week to auction off, and more houses coming to expand days of auctions from 2 to 3 days per wk, WHO is buying these houses? Per week, that is alot of houses, and are they all selling?
nothing is selling in broward. the govt claims it is going to lose nearly 100 million dollars in tax revenue. of course (lori parrish the pig) took the property appraiser job because it was a cash cow. now she is on tv saying, “buy, buy, buy” while everyone is trying to “sell, sell, sell”. broward county commissioners are a totally waste of time and totally wasted tax money. purely corrupt!
The lenders who now own the homes put an auction reserve price equal to what the FB owed on the property. No one bids this price and the lenders end up taking the house back. Eventually they’ll have to sell; but when is the question. gordo
AI, how i have missed your “ass poundings”… sigh…
LOL…. just realized that anyone new to this blog *could* take this comment a bit differently than what I’m sure your intended meaning was
ROTFLMAO with tears in my eyes.
right on. Look at Bankrate.com and see who has the highest yeild for money markets….all the bank in trouble ie countrywide GMAC etc. They need cash.
what’s the next step
I thought banks had to get these OFF their books ???
I know someone that hasn’t made a payment for 1 year w no notice from the bank
this can’t be legal
I’m sure Bernanke and Dodd and others have already started drafting a bill to reincarnate the Resolution Trust Corporation. It will all be put on the backs of the taxpayers.
There is no law or regulation that requires depository institutions to dispose of repossessed houses.
As for not making payments it’s just a civil matter, not criminal. If a lender doesn’t pursue a defaulted borrower that’s simply the lender’s choice.
Ok, I want to be ready when the time DOES come.
Can anyone recommend a good source for foreclosure leads in South Fl? Palm Beach, to be exact. Thanks in advance.
I know it’s not time yet, don’t waste broadband. I just really think that there are many people here that do know the answer to this question, and I don’t.
Can anyone recommend a good source for foreclosure leads in South Fl? Palm Beach
“Google” Bank of America REO, Countrywide REO, Citibank REO, Chase REO, any other bank in Florida. 1000’s available
Thanks!! Amazing!
And to think I’ve been online since Windows 3.1 and AOL dialup at 28 kbs and still, the magic of “google” escapes me! I guess there is “no dumb question.”
Thanks again.
If anyone else has other “obvious” type answers to my question, please let me know.
(although mine own comes close)
My mil keeps mentioning that most renters made out their rent checks to the banks during the Great Depression. I guess I’m confused why it’s different this time.
I just checked a bunch of REOs in San Diego. Still ri-frickin-diculous wishing prices.
Clerk & Comptroller for Palm beach county website.
Official records listing (search engine) search on les pendens
Can also email them for a list.
Denial. Any bets on how long the lenders can really hold out?
I give them until the end of the summer.
“Zarrabi believes keeping homes close to their appraised value will help the buyer in the long run, as well as the neighborhood. ‘These houses appraised at $600,000, but even when we were building them, we knew it was going to be a soft market, so we listed them in then mid-500s.’”
“‘It wouldn’t make sense to drop the price more because it drops the values of houses all around. This way, the price stays at mid-500s, and the incentives aren’t recorded on sales records. In five years if you want to resell, it helps, he said.”
It amazes me that these builders openly point out, without even realizing it, what a complete fraud the appraised value is.
First of all Cobb County is not where people want to live especially at half a million. Cobb County already has a rep that all the “undesirables” from the downtown Atlanta area were pushed there when development started. Good luck with selling your homes!
Huh? East Cobb public schools including Walter and Lassiter are the top in the State and rank very high nationally. Also, the Vinings area has great public schools. In fact, East Cobb and Vinings are among the most desirable areas to raise a family in the Altanta Metro, and have many beautiful, quality custom homes. I do not have a family, and dont like long communtes, so its not for me. I just think the info is off. Prices are falling not because its a bad area, but because its way overbuilt and commutes have grown from 40 minutes to an hour and a half (not to mention the reasons that prices are falling in almost all areas of the US which I will not repeat). Some areas of Cobb, including Powder Springs and Mableton have some sketchy areas, but to label the entire County, which for the most part is standard upper middle class suburbia, is just wrong.
But Forsyth is were the money is and that is where people will spend a half a million on a home when there are many million dollar homes in the area…
Sorry didn’t say that I agree with the rep it has..it just has it…
No worries Ann. Im not politically correct. I just still consider East Cobb, Vinings and Smyrna (which most agents will call Vinings when they are with a client because the median prices is about 50% less in Smyrna so it sounds like a better deal, and Vinings is more prestigous) decent areas, and many of there schools are consistently top rated. Im not familar with Forsyth. I assume the commute is insane. Vinings is doable. Alpharetta and Forsyth seem like killers. Because of the serious commute issue, I heard that Alpahretta is really taking a hard hit.
“Cobb County already has a rep that all the “undesirables” from the downtown Atlanta area were pushed there when development started.”
Why don’t you just say who the “undesireables” are instead of using the cutesy air quotes? Marry your words, don’t just flirt with them.
That rep originated from rich white republicans seeing upper middle class blacks move. The horror of it all. It is the South and the home of Newt. Times are changing though. Smyrna is emerging as a vibrant mixed area of open minded ppl. It used to be labled as one of the worst suburbs in the US, and now is regarded by academia as a success story.
Tim…crime is crime..my husband grew up in a low income high crime area..and like he says poor is poor..It didn’t matter whether you were black, white, chinese, hispanic or whatever..Poor in the ghetto and crime ridden is a class all to itself..
And by the way the Rep is talked about by republicans that are from all areas of the world..Wake up Atlanta left the slaves behind a long time ago and the white owners…Have you ever been to Chamblee? the Asian restaurants and supermarkets are great!
I think Tim you are the one who needs to leave behind the sterotyping..
You are way off base. I speak from personal experience having owned two homes in Cobb County and knowing those that live there and what they say. One in Smyrna and one in Vinings. Feel free to attack ppls facts, but please do so without the inaccurate assumptions. Where is the stereotyping? I speak from first hand knowledge.
“That rep originated from rich white republicans seeing upper middle class blacks move.”
Gee..Tim..re-read your comment..your right..I have no idea where you got your sterotyping from!
Another pedant heard from, with a cutesy aphorism no less. People can do whatever they want with their words, so STFU.
“Another pedant heard from, with a cutesy aphorism no less. People can do whatever they want with their words, so STFU.”
If you’re referring to me, I won’t STFU since I can ALSO do whatever I want with my words, including asking people to just drop their “cutesy” code language and just say what they mean. And if you agree with her sentiment, you should also man up and just say so, instead of taking on the tired role of the abused, Angry White Male, trembling in fear least the PC police attack. She can say she wants, you can say what you want, and I can say what I want–the end. Neither of you has some “right” to spout whatever BS you want without being challenged–no one does. Get it?
Interesting, aimeejd, that you appear to know that Betamax is a white male, an angry one at that and what s/he needs to do in order to “man up”. I really couldn’t divine any of that from his/her online moniker. You appear to be bringing a whole lot of baggage to this discussion. Surely you have the “right” to do so, as you explained to Betamax; you may want to reconsider, though, exposing your own preconceptions so openly. It damages your credibility.
Comment by Wine Country Dude
2008-02-07 12:11:18
Interesting, aimeejd, that you appear to know that Betamax is a white male, an angry one at that and what s/he needs to do in order to “man up”. I really couldn’t divine any of that from his/her online moniker.
____________________________________________________
I didn’t make statement on what he was–I commented on the stance he was taking. And in terms of my “credibility,” I have no problem losing it to anyone who thinks “STFU” is an okay response to an opinion you don’t like. Whatever you believe that “exposes” about me or my preconceptions, you are welcome to believe.
as I was saying…..
God bless you too, dear . . .
Undesireable..do you have a problem with that word? Or do you think it applies to you…hey that word applies to trouble..and trouble is across the board…It isnt one particular group of people..sorry you look at it that way..I think its is personal problem you need to address…
Comment by Ann
2008-02-07 12:09:05
Undesireable..do you have a problem with that word? Or do you think it applies to you…hey that word applies to trouble..and trouble is across the board…It isnt one particular group of people..sorry you look at it that way..I think its is personal problem you need to address…
____________________________________________________
Okay. So the “trouble” moved from downtown Atlanta to Cobb County? Whatever you say . . .
Depends on what part of Cobb you mean. If you’re talking Windy Hill, alright, but East Cobb?! Are you serious?
The crime ridden streets of the Paper Mill Road corridor. Better make sure your windows are bullet proof. Reminds me of a third world country. It least that’s apparently the rep these days. LOL
Vardaman..understand where you are coming from..unfortunately, people don’t always view things as a east or west thing..they just look at it as a whole picture…
Talked to many people when moving into the area and many told me to stay away from Cobb..their viewpoint was that eventually East will meet West…
This just shows how crooked the real estate industry is; builders and agents. He openly says the “incentives” are never disclosed on the sales doc! If a house is $550 list and you give $50k “incentive” then the real price is really $500 not $550. Real estate is an artificial market with no real price discovery. Makes me think if you buy always demand a discount to the list price as long as you aren’t in a bubble market.
Imagine paying real estate taxes on that car for the rest of your life!
Yes. Dumb idea agreed, but they are very scared to get a reputation for a builder that lowers prices below what previous owners paid in the same community. Im not saying they dont need to do it. Im just saying it has major reputational implications. The word of mouth would be “I had a friend that bought a Wieland home and the builder under cut him X% on the same model 1 year later.” Wieland is a big local builder in ATL. I also realize that its not necessarily the builder’s fault, but they are going down and desperate. Weiland was known in the past for planned rate increases, which is how they got advance contracts to pay for needed infrastructure (e.g., if you sign today you can avoid the a 5% bump in 30 days on all models). This throws a wrench in the works. Brave new world.
Ben, I can’t believe you missed this from yesterday’s Tampa Tribune:
The Tampa Bay area is months away from the bottom of the downturn in the single family housing market, and prices aren’t expected to fall further, a well-known Florida economist said Tuesday.
Hank Fishkind’s predictions were starkly more optimistic than those of some other economists, who have recently predicted prices won’t bottom locally until 2009.
Fishkind’s predictions were welcoming words for the roughly 180 real estate lawyers and agents gathered at the Bay Area Real Estate Council meeting at the Centre Club in Tampa. “This is what the bottom looks like,” he said, pointing to a graph charting local sales numbers and average sales prices.
“I just don’t see things falling apart the way some other economists do,” Fishkind said after his presentation.
What happened to Fishkind’s “trademark brand of stand-up forecasting”? Oh wait, that was last week. Fishkind cravenly and fecklessly called a bottom last year at this time, he’s doing it again now, and I bet he gets trotted out by the realtors again next year, kind of like the seal that trainers used to summon to bark into the microphone during the old “dolphin experience” show at Busch Gardens. Has Fishkind driven by Channelside lately? Tell us when the bottom will be there.
I may start borrowing a quote from another blogger here, who hilariously wrote “cue the deer” in response to what appeared to be a staged attempt to make a neighborhood look hip and trendy. For Florida, cue the seal.
I’d pay $100 bucks for the opportunity to ask Hank a series of questions in front of a group like that - as long as I also had access to a projector and power-point, with some slides highlighting INVENTORY — not just sales and prices.
Who’s going to buy all this stuff, Hank? If we’re at the bottom, have you got YOUR checkbook out?
I reported it yesterday. These real estate nerds keep holding pep rallies and prayer breakfasts, hoping their positive thinking will overpower the FBs’ negativity, not to mention the principle of gravity. Fish Man should be held financially responsible for encouraging stupid behavior and false hopes. He is the absolutely worst Florida real estate fortune-teller in the past twenty years, yet the Press KEEPS quoting his malarkey as insider knowledge. Bloomberg.com suffers from the same problem with its endless videos of Wall Street hucksters pushing this or that investment, and claiming everything is wonderful, because they want US to buy whatever crap they’re recommending (translation: that stuff they’ve invested it, and are trying to inflate). I wish Bloomberg.com and all the regular media outlets would report the statistical accuracy of all these prognosticators, as well as their vested interests in the outcomes they predict.
FL
sfh off 30%
villa townhouse off 40%
condos off 50%
define falling apart
Fishkind’s predictions were welcoming words for the roughly 180 real estate lawyers and agents gathered at the Bay Area Real Estate Council meeting at the Centre Club in Tampa.
The real truth is that this group commisioned his study which is a total misrepresentation of the truth to the public. Fishkind was paid to provide a rosey forecast!
“Electricity to parts of the office-condo towers in The Plaza could be shut off for nonpayment at any time.”
Office Condos were the biggest joke in Fl..Builders wanted $350K for $1200 square feet of nothing but bare walls and cinder block(Plus you had to do your own build out.) My husband use to laugh when he saw he suckers lining up to buy them during the boom at $350 and $500K. Now..they are trying to unload them at $200 and no nibbles..honestly..It was cheaper to rent than to buy..you could get a virtual office for $125 dollars a month and have use of the conference room when needed and have someone answer your phones. Funny..know alot of people in FL going that way now..
In addition to the virtual office option, there are small business organizations that offer meeting space for their members. This is a very attractive benefit for members who work from home, but don’t necessarily want to meet clients there.
Atlanta homebuilder John Wieland said Wednesday he’s more ‘upbeat’ about his business now than he was feeling as 2007 drew to a close amid a flood of troubling economic news.”
“In November, his $350 million luxury condominium project across the street from the High Museum of Art suspended construction plans for at least 18 months. Just days later, John Wieland Homes and Neighborhoods confirmed that 59 company employees had been laid off in a streamlining move prompted by slow home sales.”
“‘The end of last year was the most miserable time of my life,’ Wieland said.”
“Wieland noted growing house inventories and rising foreclosures in remarks to EconSouth, the Atlanta Federal Reserve Bank’s quarterly publication, last summer. ‘I am shocked, and I don’t shock too easily,’ he said. ‘I don’t know anybody out there that is ‘doing well.’ And the bankruptcies of the builders in Atlanta are starting.’”
“A new promotion offering price discounts up to $100,000 and a lifetime structural warranty on Wieland houses produced 89 sales for the company between Jan. 25 and Feb. 3, twice the number of homes the company sold in the same period last year, according to Wieland officials.”
“That provided a welcome cash infusion of $50 million for the homebuilder, which is currently marketing 30 communities with more than 400 unsold homes around the metro area.”
“The homebuilder is so pleased with the outcome of the initial promotion that it has extended the offer for an additional two weeks, Wieland said.”
First of all what a joke..Mr. Wieland is one of the biggest advertisers with AJC..so of course they are going to try and give him some free press..Who wants to lose that advertising account when all the newspapers are feeling loss in revenue.
Second, I have gone for a peak at some of these “great sales” and let me tell you..no problem finding a spot in the parking lot of the sales office..one word..EMPTY!!
Third, just like the other builder who offered great incentives..HELLO..Did those loans close yet? Probably not..so $50 mill in Pending Sales does not equal a CASH INFUSION…The houses were contracted Jan 25-Feb 3rd..that’s not closed…So what did you do go running to the bank and say, “Hey I got pending sales can you give me more money??”
Ann, you beat me to it. I was thinking, $50 million on 89 houses is about $555K per house…doesn’t sound like a DEPOSIT.
ann
yer comments on this board really send me - will you be my concubine? I can promise you the life of a well-kept mistress with all the amenities a doublewide has to offer. youll never want for nuthin, and I mean you get all the daytime soaps, court shows, & check cashing shows a magnificent COLOR 19″ TV can offer. the microwave will never know yer hand as my live-in grandmammy will do as much cleaning as her oxygen tank tube will stretch to allow. and now for the best part:
I get the marlboros at a discount over at the seminole rez drive-thru!
apply soon. limited time offer / no S&H if you reply today . . .
(of course I almost forgot to say no need to waste money on that expensive broadband stuff. with my cheap, reliable juno acct, you can post away secure in the knowledge that those annoying chat room trolls will no longer be a concern as by the time their IM’s appear you will have given up waiting & went for a pabst refill)
Some Air Is Coming Out Of The Housing Market…
Lead Zeppelin
Reminds me of a recent episode of “Mythbusters” (on the Discovery Channel?). They wanted to see if they could make a large lead balloon float, using helium. The answer is that yes, you can make a lead balloon float, but it involves using lead foil so thin that keeping it in the air requires a continuous process of patching the holes as they appear. After a few minutes of air time to prove it could be done, they destroyed it by hitting baseballs through it. Seems appropriate to the current situation.
“I have $1,000 in the bank right now until I get a job,’ she says. ‘What am I going to do?”
Take ANY job you can get and if there are none then you should move on. $1000.00 won’t last anytime. P.S. Don’t wait for a Nanny hand out they are arguing amongst themselves as usual.
That woman has some cruel, or maybe clueless, kids. Wait ’til they’re living out of their car.
Used to be you’d call the brats in and tell them to hit hit the streets for any money making jobs they could get when times got tough. Not take lip off them.
yeah
bet those kids were spoiled rotten during the good times & now have the attitude to show it. sure seems that way by their remarks. that really makes mom feel better about her situation - what a bunch of ingrates! and my hat is off to that mother for at least trying to do SOMETHING for herself. that bush/I-275 ramp is pretty hot n humid during the saytime sun. no shade at all since the trees were ripped out to discourage the bums. in fact, I used to see the scammers/drunks/bums out there with their cardboard signs.often over the years. wonder if she had any problems w. ‘em on “their” corner !?
as a sidenote: I would often comment to my passengers while driving by that the sight of panhandlers must really make a hellova an impression to the bush garden tourists as they exit the freeway for the park. lovely image!
bet those kids were spoiled rotten during the good times & now have the attitude to show it.
____________________________________________________
I was thinking the same thing–she and her ex must have raised those kids with some set of values if they can mock the image of their mother standing in a business suit in the Florida sun handing out resumes to commuters exiting the freeway. Unfortunately, I think they’re going to learn some humility the hard way, along with a lot of other overindulged kids out there . . .
That was my thought, too. People who raise such hell-spawn have to take most of the responsibility for the way they turned out.
Car Washing, dog walking, lawn moving, snow shoveling, babysitting, delivering papers or groceries…and that’s if they’re too young to get a W-2 job. Really, if the folks need help, what is wrong with these kids. They could learn to pull together.
“‘It’s never been like this, not for as long as I can remember,’ said Barbara Brown, court operations manager for the Broward Circuit, Civil and Family courts.
“She pointed out the Broward court has been auctioning about 240 properties per week since January, up from about 30 or 40 per week the same month last year. Investor Julian Dominguez Jr. added that more than 95 percent of the properties for sale were being bought back by lenders.”
These are the “sales” cited by NAR and FAR when they claim that real estate is rebounding in Florida: cover-ups used by lenders to keep inflated, imaginary “values” on their books.
that more than 95 percent of the properties for sale were being bought back by lenders.”
and then what ?
No S*&t. These lenders are obviously over-paying for the properties. If these sales reflected market values, they wouldn’t be “snatching up” %95 of them. Why would they knowingly do this? I can only suppose it is to avoid the day of reckoning; putting off the time when they have to mark these assets to-(actual)market. In typical corporate fashion, they are hurting their long term viability (over-paying for this junk) in order to prop up this quarters numbers. No doubt, the executives will continue to collect their fat bonuses before the big crash’n'burn.
The fact that at least half the economy in Florida until a year ago was simply people buying and selling condos to each other did a lot to destroy the state.
The “property tax” problem will finish it off. We were planning, as of 2005, to build a second/retirement home in Florida on land we already own. We didn’t build in 2005 because of the bubble (we didn’t feel like paying $300 sq/ft to build a very modest home). Now builders are begging us to do the job at less than half the cost.
However, the millage is 1850. If the appraiser decides to “value” our house+land at a million dollars and we can’t fight that, then our property tax alone will be $18,500/year. On top of that are assesments for school, fire, etc.
We can simply rent a house for 6 months/year for that price and have no worries about anything.
NOBODY will ever get a second home in Florida again with the new property tax “ammendment” that gives inflation-protection to existing owners, but no such guarantee to new owners, or to second residences.
Florida is doomed.
Wrong. It does give inflation protection to new owners, provided they claim homestead exemption (i.e., they live on the property). Their property taxes cannot be raised more than 3% a year, which has been the law for a long time. However, the new amendment extends protections to non-homesteaded properties by restricting tax increases on these to no more than 10% a year, a VAST improvement over the previous system, which had no limits on tax increases on non-homesteaded and commercial properties (such as apartment buildings).
Everyone who buys a house in Florida has to accept the fact that taxes are initially based on the selling price, and then increase every year from there. Nobody complained till the bubble inflated prices, and people suddenly realized they couldn’t afford their tax bills. Thank the speculators and equity locusts for that. The new law allows existing homeowners to take their “tax” value from one property to a new one of equal or lesser appraised value, but if the new property has a tax appraisal higher than the former, they’re still going to have to pay full rate on the difference.
Wrong. It does give inflation protection to new owners, provided they claim homestead exemption (i.e., they live on the property).
So it’s no protection for a second home, a traditional big attraction for Florida
A 10% tax increase cap on second homes is far better than no cap before. Once prices fall back to Earth, the problem should be solved. ANY legislation that inhibits property tax increases is a good thing, so I don’t understand why you oppose it. Without it, nobody but millionaires could buy property in Florida.
Those who oppose Save Our Homes seem to think that if it didn’t exist, the tax rates would be lowered across the board. No, they won’t. Instead, everyone’s taxes will shoot up. Save Our Homes has nothing to do with the idiotic prices sellers want for their houses, and it doesn’t harm anyone. It doesn’t go far enough (the exemption should be way higher), but it sure beats having ones property reappraised every year and taxed according to shifting sands. Without it, tens of thousands of residents in the past few years would have had to sell their homes to investors because they could not have paid the taxes on imaginary valuations.
A 10% annual cap on non-homestead property. BFD! Florida properties will not go up by 10% a year again in any of our lifetimes.
Florida properties will not go up by 10% a year again in any of our lifetimes.
You’re at the mercy of what some county assessor says your home is worth. So they can raise it 10%/year
It is totally bogus when you have two identical houses getting the sames crappy services paying totally different amounts in taxes just because they bought at different times. In Maryland everybody pays based on what the house is worth not when you bought. Last person left in Florida please turn all the lights out.
So do you want everyone to be screwed, instead of just new buyers? When YOU buy a house here, SOH will kick in, and you will be infinitely grateful in the future. When the next generation buys, it will kick in for them. Everyone behind someone else will complain, but can you come up with a better plan? Without SOH, the tax appraiser can do anything he wants, and there’s nothing you can do to stop him.
Notice the name “Save Our Homes.” That’s exactly what it does. A house is not a home.
By the way, those homeowners getting breaks on the fake evaluations of their homes have owned them for decades, so why should they have to live in terror of Yankee and California specuvestors driving up neighborhood prices? They’ve already paid a fortune in taxes, no matter how trivial the assessed value, and you treat them like newcomers. They aren’t. Most of those with the biggest exemptions bought decades ago, before Florida was trendy, and are the people responsible for making it so desirable to outsiders.
Locals should not be treated like everyone else; this is THEIR home, and outsiders are invading it.
My father’s home is appraised at a million plus, but his taxes are not 25 thousand a year: They are about 7 thousand. But, when he bought it decades ago, nobody wanted to live in that neighborhood, and old houses were unstylish. When my parents redid it, they were the FIRST people in Tampa to makeover an old house (late 1960s), and thousands later followed their example (after This Old House became trendy on PBS). Why should my father be punished because of greedy realtors and developers cashing in on this? He isn’t a millionaire, and he doesn’t kowtow to fads.
If people stopped following the leader, and behaved in way that indicated some originality, we wouldn’t be in this mess. The inability of the masses to do anything buy copy irks me to no end.
You’ve said how much you like the sleazy side of Florida: a Yankee import, I assure you. Most of the locals never asked people up North to come here, but I find it shocking that those Northerners who do think we should accomodate them, and not vice versa, and pay higher property taxes so they supposedly can “afford” stuff, and futther trash the place up.
Carpetbagging gets really tiresome after nearly a century and a half.
Most of those with the biggest exemptions bought decades ago, before Florida was trendy, and are the people responsible for making it so desirable to outsiders.
Locals should not be treated like everyone else; this is THEIR home, and outsiders are invading it.
I am a local and rent cuz the price boom was insane in o4 when I wanted to buy. I was born here and will pay more in taxes for the rest of my florida life if I buy a house. And people do not make florida…the weather water and land make it desirable and the the less people the better. Every great place invaded by people gets destroyed….look at the FL keys for one great example. Just my opinion but why am I being financially punished to give tax breaks to FBs?
Well, Reuven, that’s a bit of hyperbole.
It’s like being “priced out forever”.
We just need to see some adjustments in valuations that are slowly happening now. Way too much ‘leverage’ caused ridiculous valuations.
If you House + Land was valued at, say $200k, you would have no problem with the taxes and insurance.
That’s how things were before 2000-2005 here in Florida. You could buy a second home for $100-$150k just about anywhere.
LOWER PRICES will solve all problems, except for those who depend on “equity extractions” for income.
reuven: We can simply rent a house for 6 months/year for that price and have no worries about anything.
brother-in-law just bought in Cape Coral, he could have just rented and had no worries at all
I travel to Florida about once a month from California. I do work in hospitals and imaging centers from St. Lucie to Miami. In talking to one of the Techs, he stated his insurance and taxes are more than his bank note. In talking with others, they always seem concerned how California is going to weather the current housing crisis and well as their own.
What do you mean “second home”??? Try first home! The place I currently rent in Miami costs my landlord $12K/year in taxes and insurance @ $1200.- rent a month. The property tax AND the insurance rates will cause the market to drop at least another 50% from where it is today.
I would like to make a forward-looking suggestion: look to litigation which is exploding. People are not only not paying bills and defaulting on contracts left and right, they’re fighting tooth-and-nail for everything in court. The dockets in NOVA are absolutely packed to the point where trials are being bumped (which NEVER happens in Fairfax) because there aren’t enough judges (Fairfax had, at last count, 15 Circuit Court judges plus a stable of retired judges who could be substitutes). The people will not go quietly into that good night…
If our twisted system of tort law were to fall apart, i’d shed no tears for it’s demise.
I agree. Arbitration is a much better system.
/Sarcasm off
I know there’s not a lot of love out there for trial lawyers, but it seems to me all this litigation will stay in the defendants’ minds and may just put the brake on any other RE mania that tries to materialize in the near future.
Sometimes it does take a fat juicy lawsuit, with all the time and money required to address the issue, to get a perp’s attention.
At this point it is all about the money. Lenders are loathe to expose themselves to Florida markets. Who would want to be here? I see goofy going over the cliff and hooohoooing all the way down.
Local banks are doing just fine, eh?
“The Sarasota-based bank holding company revealed last month that it had boosted its total reserve for loan losses by 55 percent to a record $7.6 million. Of its residential portfolio, $5.6 million in loans, or 10.4 percent, are impaired, the bank said. Impaired commercial loans rose to $13.1 million, or about 8.54 percent of total commercial loans.”
“Builder-developer Nader Zarrabi knew that he’d have to offer something more than a fair market price for a new home.”
Nonsense. If you really want to sell something, all you have to offer it for fair market value–period.
“So how flexible is he on this Highlander and Lot 13? Flexible enough to move it to one of the other lots. Probably flexible enough to figure out a way to just reduce the price of the house.”
Reduce the price? **gasp** Now that’s just crazy talk!
Welcome to a new phenomenon, America…
The newly homeless ex-middle class.
“A sweat stain has worked its way through a royal blue silk blouse and past the top polyester threads of 34-year-old Brandie McGowan-Fitzgerald’s black business jacket. Fortunately, Wednesday morning’s rush hour traffic buzzing past her left and right is moving too quickly to notice.”
Somehow I doubt that anybody is going to hire a woman who’s marketing herself on a street corner. Unless she’s wearing fishnet stockings, that is. Say, is that you, Suzanne?
Shouldn’t the banner say: “This car comes with a 30-year mortgage!!!” instead?
Or maybe: “Add 30k to your ongoing property tax assessment now! Ask me how!”
Reminds me — did the IRS ever come out and make it clear that the basis for capitol gains needs to be reduced for non-home sales components in the future? Of course, the “gain” part of the equation makes this a moot point for a while, I think.
Some Air Is Coming Out Of The Housing Market
I suppose the image is supposed to be a slowly deflating baloon, but in this case the market seems more like baloon meeting a pin. In real terms, the market is crashing at a record rate and shows every sign of continuing to do so,
I sold my home in Sarasota F!l The Realtor originally suggested asking 335.00 ( i knew that was pie in the sky) I ended up getting 290.000 and the couple that are buying put down 50,000 in cash My home is nice close to siesta key built in 2000 at around 2100 sq feet in a tuckaway neighborhood. Now I will rent in Florida. Thats the fun part. There was an overall air of desperation on the part of the renting agents that I encountered. I settled on a large 1700 sq foot townhouse with garage for 1200 a month. There are no amenities and I have to pay all the utilities but the condo is great ( i move in Mar 15th). Wow I got out of this mess! Thanks to all of you on this blog for your insight!
Congrats, assuming you have closed and successfully cashed the check.
got my mom out in late 05
renting now 1400sq ft for $1200 w utilities on a golf course- if she shopped it may have been $1100
the place cost $335k……………
Congrats! I sold mine in May 2007. Agent told us we should put it up for sale at 395. We reduced the price twice and finally sold it for 355! And mine was older and further away from the Gulf than yours. Looks like things have really come down since then. Be happy you got out when you did. I have a feeling that by years end that home can’t sell for more than 220.
Just saying? That’d be cool.
Holy crap that’s hilarious. Nice selling point!
FWIW - virtually the entire state of Florida has views of rocket launches of Cape Canaveral - I used to watch the fire trail of space shuttle night launches from Boynton Beach - about 200 miles down south. Really cool thing to see - but definitely not something worth calling a selling point.
saw a few contrails from launches way over on the west coast. ouf course it has to be a clear blue sky, no clouds, but it’s pretty cool seeing that vertical trail going straight up.
saw the challenger one also, listened to AM radio during the launch . .. matter of fact has to pull-over off I-75 in shock at what happened.
It would be…..if was 1960 again. I doubt we’ll be doing much space travel for decades. The next flag to be planted on the moon will be red with yellow stars.
Bingo!
“And more people gotta come to Florida than most places just to offset the naturally higher death rate. There’s a reason Florida is called ‘God’s waiting room.’”
Interesting point about Florida. The question has always been will people sell at market? Or will they eat monthly costs for years waiting for inflation to turn their real loss into a nominal break-even?
To the foreclosed, the builders, the flippers, the suddenly employed, divorced, or ill, add the dead with children living elsewhere to those who won’t hold out long.
“‘Some air, shall we say, is coming out of the housing market in Atlanta,’ Wieland said. ‘But that’s good for customers and it’s good for the housing market.’”
Whenever some air comes out of someone’s a$$, it’s usually bad for the people in the same room!
Hi Doug, how are things up there, in one of the prettiest places in the US? I don`t hear much about the real estate in that area and there has been a lot of development.
Take care,
Lane
Lane, to use Boost Mobile’s tag line, “Where you at?”
In our neck of the woods, the REIC says sales were down 10% in 2007 compared to 2006. No median price comparison. The small local builders here apparently haven’t gotten the word, as spec houses are still going up while their completed ones just sit.
Hey Bill, I`m 3 miles from charlotte, just across the state line, fort mill s.c. I have been going to the mountains all of my 42 years and love it up there.
Take care,
Lane
Lane, we’re west of Greenville, close to one of the lakes. We moved here from Sarasota in 2005, and we’re lovin’ it.
Nothin’ can be finer than to be in Carolina…
Yea nice area!!
Lane
The Herald Tribune from Florida. “A new study shows that ‘occupancy rates are falling and the rate of rental growth is slowing’ throughout the state of Florida. The Sarasota-Bradenton metropolitan statistical area ranked as one of the worst performers during the last year in terms of both rental growth and average occupancy.”
Occupancy rates are falling because more empty flipper houses are coming online for rent. Not too complicated there.
“Others are not so sure, noting that 2008 is likely to be another year marked by more mortgage problems. Southwest Florida is experiencing record foreclosures as a result of the speculative buying spree of 2004-2006, particularly in North Port, and that is adding to inventory of unsold homes.”
It’s still working on a totally new economic model.
“When they line up for the light at Busch Boulevard and Interstate 275 she walks car to car, dressed in full business attire, and shows her sign: ‘Single Mom Needs Work. Take a Resume.’”
I’ve seen lots of transactions on street corners, but I’ve never seen someone handing out resumes. Lots of comments have been made about her situation and what she might do, but it is an interesting way to raise the profile of her job search. Now is not the time for standard approaches.
Maybe she’s just looking for a median income job?
Maybe she’s just looking for a median income job?
brilliant !
I recall some woman putting up a billboard sign in Denver. Freshly minted MBA from some local school IIRC. She landed a job.
“He said he paid $795,000 in 2005 for his two-bedroom, two-bathroom unit, which has western views, including the nightly fireworks at Walt Disney World in the distance.
$800,000 buys about 7 years of stays at the Grand Floridian, and the fireworks view is much better there.
Not to mention “no interest payments” on the latter.
Wow, people are stunningly stupid. Or stunningly smart gambling with other peoples’ moneys.
again
testing