We Had The Boom, And This Is The Bust
The Morning Sentinel reports from Maine. “Maine isn’t the kind of state where a drive through a large subdivision reveals home after home up for foreclosure sale. Instead, the foreclosure problem in Maine reflects the spread-out nature of the state, a house here, another there, a few more a couple of miles away. Nearly a quarter of Mainers with subprime mortgages are at least 60 days behind in their house payments. And nearly one in eight subprime borrowers is in foreclosure.”
“‘The idea that we would somehow avoid the problem or that it would not happen here has proven to be a fallacy,’ said William N. Lund, superintendent of the Maine Bureau of Consumer Credit Protection.”
“Caroline Wentworth’s rising mortgage bills pushed her to file for bankruptcy. ‘I’ve been through the worst nightmare in my life in the past year,’ said Wentworth, of Buxton, ‘and it’s not over yet.’”
“She said she and her husband refinanced their home four years ago. Their payments, initially $1,200 a month after refinancing, re-set to $1,500 after two years and are now jumping to $2,000 a month after another adjustment.”
“The couple’s income was pinched when her husband lost his job. Wentworth only recently made a partial payment on what she owes, the first payment she’s been able to make since October. Bills are piling up. Filing for bankruptcy has slowed things down, she said, and if the Wentworths hadn’t taken that step, ‘we would have lost it all,’ she said.”
“They explored a sale, but the home’s value has fallen from about $230,000 to $180,000, and the mortgage is for $200,000.”
“‘We tried to do everything possible to save this house and we’re still trying,’ Wentworth said. ‘I’m not walking away. I’m not giving up.’”
The Record Journal from Connecticut. “In Meriden, home sales have plummeted as lis pendens and foreclosures have skyrocketed. The ratio of sales to lis pendens was more than three to one in the city in 2006, according to the Warren Group. It dropped below two to one last year, and in January there were 56 home sales and 55 lis pendens.”
“The ratio in the state was only slightly better at one sale for every 1.4 lis pendens, and prices were off 5 percent to 14 percent for various sectors from one year earlier.”
“Samuel and Chayla Braun of Spring Valley, N.Y., spent more than $2.8 million to buy nearly 20 properties in 2004. They’ve since sold or lost most of them to foreclosure.”
“Another investor, who asked not to be named, said she and her husband bought properties on Springdale, Park and Crown streets in 2005 and 2006. The buildings needed work but there were tenants already in them paying rent, which would defray the cost of the mortgages.”
“But the arrangement quickly soured. Tenants trashed the units, she said, and moved out in the middle of the night, once even stealing a toilet that had just been installed in the bathroom.”
“‘That was the last straw,’ she said. ‘Thankfully, they turned the water off.’”
“City inspectors kept pressure on the owners to fix the units, and the costs became unbearable because of the lack of rental income. All three were foreclosed on last year.”
“Vacant houses are affecting his neighborhood, said Richard Pleines, VP of the West Side Neighborhood Association. ‘There’s already two over on South Second Street,’ said Pleines, a part-time real estate agent. ‘They’re becoming a hangout for the type of people you don’t want hanging out.’”
“Richard Pleines said it could be five or more years before the local housing market turns around. ‘We’re going to end up with a large volume of property that’s up for sale cheaply,’ he said.”
“An appraiser who works for Robert Claremont was sent to a house in Stratford and the real estate agent wouldn’t let her enter. ‘The agent told her she needed to call the lender,’ Claremont said. ‘I told her that is nonsense.’”
“The lender then called Claremont and said he had an appraiser who could put a $405,000 value on the house, and he found another one who could deliver $410,000. But if Claremont’s appraiser could bring it home at $415,000, the real estate agent would allow her into the house and she had the job.”
“Claremont was outraged. ‘This is really about your commission,’ Claremont told the lender. ‘You are conspiring.’”
“Since July, Claremont has tracked more than 100 requests asking him to violate his ethics. He plays a message still on his answering machine from a broker saying, ‘I’m looking for someone who knows how to maximize value without getting into trouble.’”
“Another lender in a home equity loan application wanted him to remove a notation stating that the home had been on the market within the last 12 months. ‘Had I caved under that pressure, I’ve committed fraud,’ Claremont said. ‘The bank could have come after me. This is out of control. The buyer has no idea this is going on.’”
The Boston Globe from Massachusetts. “The most widely respected index of home prices reported yesterday that Boston’s real estate downturn reached 28 months in January, as prices dropped about 3.5 percent compared to the same month last year.”
“Prices now have fallen 11 percent from the peak of the local market in September 2005, according to the S&P/Case-Shiller housing price index.”
“‘We have to look back to 1990 and 1991 to see sales trends that resemble what is happening now,’ Timothy Warren, CEO of Warren Group, said in a statement.”
“The last major downturn in Boston-area housing prices stretched 43 months from July 1988 to February 1992, according to the Case-Shiller index. Another five years passed before prices reached and then surpassed the high-water mark of July 1988.”
“In other words, a person who bought a home for $200,000 in the summer of 1988 would have had to wait nine years before being able to sell it for $200,000 again. From peak to bottom, prices fell almost 17 percent.”
“Part of the problem is the growing supply of foreclosed homes being resold at discounts. About 6 percent of the homes for sale in Massachusetts at the end of February were either foreclosures or short sales - attempts to sell the property without actually foreclosing on it - according to Movoto.”
The Sun Chronicle from Massachusetts. “The dream of home ownership has shattered for unknown numbers of (Attleboro) residents caught in the throes of the sub-prime mortgage crisis, and city officials often get left picking up the pieces.”
“Homeowners who can’t make their payments pack up, move out and slip away, leaving their once prized possession to the mercy of the elements and the mischief of vandals.”
“‘We had the boom,’ Building Inspector Doug Semple said. ‘And this is the bust. I expect the numbers to go up. There are a ton of houses out there that have been foreclosed.’”
The Berkshire Eagle from Massachusetts. “A car accident. A job loss. A health problem. A legal mess. A sluggish real estate market. Such are the roots of foreclosure troubles, which are creeping upward in the Berkshires. Foreclosures in the county hit a high of 101 last year.”
“‘People need to know this can happen to a good person,’ said Donna Maree, who is facing foreclosure on her Dalton house by a local bank. ‘It can happen to someone who isn’t a deadbeat, but you never think it can happen to you.’”
“She had planned that payments on her 15-year, fixed-rate mortgage would be finished by the time her retirement began. But when her son was charged in a rape case, Maree took on a second mortgage against her house to help pay his legal expenses.”
“Foreclosure seemed imminent, and last December, she found an apartment in Lenox. Maree has opted to file for bankruptcy to wipe her financial slate clean, even though her house was her only significant debt. Her son is waiting to be retried, and she said she’s confident in his innocence.”
“‘Now it’s water under the bridge,’ Maree said of her pending foreclosure. ‘I am blessed with a good job, my son will be OK, and I have many good things in my life. I am OK with it now.’”
The Plymouth Bulletin from Massachusetts. “The greater Plymouth area in particular appears to be an exceptional case, said Dr. Michael Goodman, the director of economic and public policy research at the University of Massachusetts Donahue Institute.”
“The housing market still has further to fall, he said, and will likely take several years to recover. In the meantime, the social attitude toward defaults on loans has changed.”
“‘They’re under water, and walking away from these homes,’ he said.”
“People who bought homes with the last two years aren’t doing very well, he said. He said the home prices might be lowest at the end of 2008. He said declining prices and rising incomes should improve housing affordability over the next few years.”
“‘People who are on the outside looking in at the housing market are going to be able to have access to more affordable properties than they would have otherwise,’ he said.”
The Times Union from New York. “If you’re thinking about buying an urban condominium, you have at least 514 options to consider. That’s how many units are up for sale, according to a new survey.”
“A prior Metzger Report found buyers bought just under 600 condos in the 15 years prior to 2007. That means the 161 bought or reserved last year represents a dramatic quickening of the pace.”
“Tracy Metzger, owner of T.L. Metzger, expects the trend to continue, even if the overall market slumps. The reason? ‘Pent-up demand,’ she said.”
“Still, developers kept proposing projects in 2007, the report shows. And the prices being charged were not low: In Saratoga Springs, for example, developers at the end of the year were asking an average price of $564,808. In Glens Falls, it was $386,809.”
“Officials in most area cities, save Troy and Schenectady, approved new condo projects during the year. Officials in Cohoes led the way, approving a staggering 384 new condo units, the report says.”
“By contrast, Albany approved 26 units, Saratoga Springs approved 58, and Glens Falls OK’d 15.”
“To be sure, many of those approved units are far from built. Even many of the 514 units the report says are available for purchase are condos in buildings that have not been constructed, like The Capital Grand project north of downtown Albany, a $30 million proposal.”
From MPN News in New York. “When it comes to the real estate market around here, the numbers are mixed: Single-family home sales in Ontario County dropped about 9 percent from 2005 to 2007, from 1,148 homes to 1,046, according to the New York State Association of Realtors.”
“The Locke family sold their stately 2,800-square-foot Victorian on Thrall Street in Naples recently — about two years after it first went on the market. After they had no takers in the first six months, they took down the for-sale sign and regrouped.”
“The Lockes lowered the asking price some and decided to give it another try about five months later. About nine months later, it sold, and the Lockes moved to a home about half the size in Penn Yan. They got a bit less than what they originally hoped.”
“The Lockes suspect that their longer-than-expected sale offering was because their former home is so unique, and because of tough economic times.”
“‘About five, maybe even 10 years ago, I would actually have people stop as I was mowing my lawn and say, ‘If you ever want to sell your house, we’d be interested in buying it,’ said John. ‘But when it came time to actually sell our house, we didn’t see that at all. The market had adjusted itself, but we didn’t necessarily know that.’”
‘Subway and bus riders are about to feel the impact of the slowing real estate market and Wall Street turbulence. The Metropolitan Transportation Authority has postponed a $30 million package of service improvements.’
‘The authority revealed today that the money it receives from taxes on real estate transactions had fallen significantly in February and March. Gary J. Dellaverson, the chief financial officer of the authority, called the economic outlook “gloomy” and used words like “frightening” and “dramatic” to describe the fall in real estate-related revenues.’
This is the collateral damage I was talking about.
Most of us in NYC are not Wall Streeters, and will not be laid off. And in terms of jobs, as opposed to income, the city and state are less dependent on Wall Street than in the past. But the real estate and financial bust will hit tax revenues. Higher taxes and diminished services will result, as the SOBs blew the windfall of the past few years.
my county has a dept of womens affairs and delegates overseas
chop away
Except they won’t cut those services. Instead, they’ll threaten to cut the relatively few necessary services, with the intention of cowing the sheeple into approving even more tax measures.
BTW, your new call-sign rules, flat.
RE: dept of womens affairs
Cut?
Over our dead bodies!
Signed,
Soccer Moms for Higher Property Taxes
the nyc mta- raise the fares and cancel the capital improvment projects- they are the biggest waste of money going
they cry poverty even when they have a surplus and then poof the surplus turns into a deficit the next day
The had a “surplus” while borrowing $billions. It never existed.
The MTA stopped getting city and state tax dollars for the capital budget in 1995.
The fare was $1.50 per ride in 1995, but with discounts it is around $1.20 today.
The huge pension enhancement the state pushed through in 2000 has caused retirement expenses to soar.
All this has been paid for by borrowed money. By 2013, debt service and retiree costs will account for 2/3 of total MTA revenues. They can run the transit system with the other one-third.
They can ??
Can or Can’t ??
They should build a monorail instead. It worked in North Haversbrook.
“What about us lazy slobs?”
“We’ll set you up with cushy jobs!”
Monorail…Monorail…Monorail…
I call the big one “Bitey”!
Let me try this again as my entry to the bits bucket was apparently eaten.
I don’t fully understand the following transaction at the Salem Ma registry of deeds.
451 Linebrook rd Ipswich sells for 395K in 2005. Many NOD’s later the home appears to be foreclosed on by Citi on 3/18 for 416,678. Nothing unusual so far.
On the same date Citi sells the mortgage to FEDERAL HOME LOAN MORTGAGE CORP for the same 416,678. The home has obviously lost value since 2005. It might be worth 350K? The loan to value ratio is abysmal? How can they justify this transaction?
the 416,678 is Citi’s loan amount plus accrued interest, legal fees, etc. also know as their bid amount. Bank will almost always bid full amount to make them whole after foreclosure. The transfer to FHLMC was due to a mortgage guaranty, Citi was likely the servicer, but is off the hook as lender because of the guaranty.
FHA and VA loans work that way. Citi makes a high LTV loan but has a backup plan (guarantor) to take the risk of loss.
Thank you for the explanation
Also, if a bank lets a property go for less than that bid amount, they will have a lot of trouble getting a deficiency judgment. Thus, for MA, the way to get a good deal is through the REO department at the bank. Buying at the foreclosure sale is for chumps.
Agree. I’ve stopped going to auctions, it’s a waste of time, at least in MA.
“They explored a sale, but the home’s value has fallen from about $230,000 to $180,000, and the mortgage is for $200,000.”
“‘We tried to do everything possible to save this house and we’re still trying,’ Wentworth said.
‘I’m not walking away. I’m not giving up.’”
So you will die on the vine! I will never understand these people.
Exactly, they’re neck-deep indebt, unemployed and filing for BK. They’re house is now worth less than they owe, and they’re well aware that they can *not* afford it anymore. But, God forbid, they just “let it go” and “give up”. Apparetnly, keeping current on a mortgage is more important than anything else –one’s health, sanity, general well being, etc…
At least they’re trying meet the financial obligation they took on. Not sure if they stand a chance, though.
“Samuel and Chayla Braun of Spring Valley, N.Y., spent more than $2.8 million to buy nearly 20 properties in 2004. They’ve since sold or lost most of them to foreclosure.”
So much wrong here, but what gets me the most is that these Trump wannabes “spent” more than $2.8 million. Would like to know how much of their own money they actually spent . . . my guess is they “spent” a lot of the banks’ monies, not theirs.
One of the many good things coming out of current housing bust is that banks learnt a lesson not to lend to potential deadbeats.
“Officials in most area cities, save Troy and Schenectady, approved new condo projects during the year. Officials in Cohoes led the way, approving a staggering 384 new condo units, the report says.”
Cohoes is a $hit hole. I pity those Cohoes-bags!
I drove by one of these the other day in Cohoes, amazing…and you’re right…Cohoes is absolutely still a s*hit hole.
“City inspectors kept pressure on the owners to fix the units, and the costs became unbearable because of the lack of rental income. All three were foreclosed on last year.”
Jeeze, those unreasonable rules compelling owners to make sure a place is livable for renters. That is just craziness. Don’t people know that the REtard ‘owners’ really, really, really need that money for their new Lexus, vacation cruise, and assorted boob-jobs, etc., etc?
I say let the market determine if the place is livable. If it is that much of a dump the rent should be next to nothing, and if it isn’t, rent another place there are plenty to choose from. Probably doesn’t matter much the bank will own it soon enough.
“Tracy Metzger, owner of T.L. Metzger, expects the trend to continue, even if the overall market slumps. The reason? ‘Pent-up demand,’ she said.”
“Still, developers kept proposing projects in 2007, the report shows. And the prices being charged were not low: In Saratoga Springs, for example, developers at the end of the year were asking an average price of $564,808. In Glens Falls, it was $386,809.”
Jeez… Where do you start with this one??? “Pent up demand” is the reason for the buildout of condo’s in Glens Falls at an insane asking price of 386k??? Who are the buyers when the average salary is 35k/yr?
I grew up in a small farm town right outside of Glens Falls. Prior to bubble mania you could get three single family homes with acreage for that price. This is mind-boggling.
It is a beautiful area, but a real test of determination to brave the winters.
Harsh winters encourage neighborliness, and keep the riff-raff out.
Thats an understatement Jill. 40k would get you a house and plenty of worthless land thrown in for cheap in 2001. Those days are coming back with a vengeance but the clueless are completely oblivious to it… yet.
I have two borrower clients in Maine, both with “real” houses (as distinguished from my TP [trailer park] clientele in AZ). Yesterday one of the Maine borrowers, who owes about $84K, requested from me, through an intermediary, a line of credit towards an auction purchase this Friday, on a house that is expected to go for $250K or so. I wrote back through the intermediary that I expect most real estate pyramids to crash, including that of my borrower. I don’t mind the loan she already has, because if she stumbles I would occupy the house on which she owes the $84K. If I gave her a second loan on another house, and then she stumbled, I could be stuck with two houses to occupy on one island, which is at least one too many. I told the intermediary I wouldn’t mind making other loans on the island, because I wouldn’t necessarily expect all the borrowers to stumble simultaneously; we’ll see whether I get any more requests from that conduit.
You should teach a course in prudent lending to the high-priced executives of Citi, CFC, BofA, WAMU, Wachovia etc.
Where is the auction in Maine? I have had trouble finding auction listings here.
Ah, I found it by googling Maine+House+Auction+Island
RE: I wouldn’t mind making other loans on the island
Maine will be lucky to keep it’s ferry services running for the next 5 years. The DOT can’t even afford to mow the interstate median strips anymore.
Senate to investigate Bear Sterns deal.
http://bloomberg.com/apps/news?pid=20601087&sid=aIrZCUE_y1Kg&refer=home
I wish something useful would come out of a Congressional investigation into the deal, but I very much doubt it will happen. It might supply some entertainment during an election year.
As if this election year isn’t entertaining enough.
“‘We tried to do everything possible to save this house and we’re still trying,’ Wentworth said. ‘I’m not walking away. I’m not giving up.’”
keep the faith
And keep up with those payments; The System needs the money.
Tan Man, John Stumpf and Heli-Ben all thank you for your great sacrifice. I’m sure they will be thinking of you the next time they use your good-thrown-after-bad money to buy $10K/hr hookers or jet over to Monte Carlo.
“Da workin’ man’s a sucka!”
- A Bronx Tale
From the Morning Sentinel article:
Nearly a quarter of Mainers with subprime mortgages — the type of loans extended to people with less attractive credit histories — are at least 60 days behind in their house payments. And nearly one in eight subprime borrowers is in foreclosure,
This puts the lie to the pap I’m hearing in MSM outlets, that the subprime delinquencies are an itty bitty fraction of mortgage loans outstanding.
I do credit Caroline Wentworth for not seeking a handout, well not at this stage in the game anyway. I spent the weekend with a friend who believes that her almost daughter-in-law deserves a “subsidy” because she’s a mom who chose to stay at home, and she’s having a hard time making ends meet. I happen to know this young woman is greatly overextended…she could have purchased a house in a more affordable neighborhood, but she went for the prestige zip code. And now she wants a subsidy.
I want a subsidy too - for having to listen to jackazzes whining while I’m on vacation.
Hey phillygal, how’s philly holding up?
The marginal neighborhoods are dropping quickly, from what my city source tells me. The good neighborhoods are sticky on the way down.
The TH community I live in has prices all over the map, from realistically priced to sell, to last year’s wishing prices. The people who really have to sell and don’t have to bring a lot of $$$ to the table are more willing to lower their price.
But I wouldn’t feel comfortable purchasing this year unless I got a really good deal. I get the feeling that around here not many are willing to deal - yet.
Slim’s mom and dad, who live 25 miles west of Philadelphia, report numerous “For Sale” sign-sporting houses that have gone through two or three real estate agents. Many of them are now for sale and/or for rent.
I credit Caroline too! That’s the first thing that struck me as I read the article. These Mainers are so tough they’ll split firewood on the side to keep their home. Lenders concentrated in CA, NV and FL can only wish most of their borrowers had that kind of integrity? You have to admire them.
That’s why those of us who come from the northeast would like to bop many westerners and southwest over the heads. The lack of gumption and work ethic drives us bonkers.
Me, too. Most people I’ve met here in Maine work extremely hard, often at more than one job. The women are particularly tough and self-reliant, like I remember women in Texas used to be, when I was growing up.
I want a subsidy too - for having to listen to jackazzes whining while I’m on vacation.
get in line behind bear stearns…but I gotta tell ya…that line is not open to the normal people. It’s the gusher up trickle down economics.
“She said she and her husband refinanced their home four years ago. ….and the mortgage is for $200,000.”
Another sob story. And once again, I ask the question??
Where’s the money?? What did you do with the money??
I’ll bet it was a “cash out” refi, or else why would someone re-finance 4 years ago? If the got a lower rate for less money, there would be NO problem.
That’s apparently not what they did.
Buy a bunch of nice stuff???
Was it on the Bits Bucket today that an appraiser posted about most HELOCs going to toys, not medical emergencies or children’s education?
that should come as no surprise
“Where’s the money?? What did you do with the money??”
They spent it.
This is the money that went into puffing up the economy beyond what wages could support. Now that this source of money flow has dried up the puffiness of the economy will deflate.
It’s back to the basics, folks.
“It’s back to the basics, folks”
For many, it’s far beyond that. Some folks will be living below their means for years just to catch back up to the “basics”.
Great point Blue Skye. Many people aren’t starting from zero and going forward at a more reasonable lifestyle. They are starting from some Crazy Negative Number, and then trying to pay for that plus interest and still the normal living expenses. How do you think they will make out even if their income manages to hold steady? They couldn’t survive on their income before taking on debt. What are the odds that they can now pay off the debt, interest and live within their income? Not good, and these millions of people are the people that have kept the economy going by borrowing and spending. Now that they can’t borrow any longer what happens to our economy?
The Bankruptcy rates will definately be going up to get millions of these people back to zero, so that they can try to learn to live within their means.
It ain’t going to be pretty.
Remember that clown in Rockland CA who spent $100K in equity to build a backyard BBQ/Pool/Entertainment Center ? Imagine buying that in foreclosure for pennies on the dollar.
Yes, I can imagine buying that in foreclosure and spending a couple thousand dollars to tear out what that clown spent $100K to put in.
Maine’s housing market was touched on briefly in this podcast I listened to yesterday that interviewed Jim Schlagheck (who’s from Maine). He wrote a book recenty called Cash-Rich Retirement.
He talked about the need for further house price reductions among sellers, about boomer demographics and the need to get away from “flip” investing. I was surprised at his support of annuities.
–
“…but you never think it can happen to you.”
That is because “you never think”! You simply wish and believe.
“It” can happen to anyone due to myriad of circumstances that are normal part of life and why do you think that you immune to these occurrences?
Jas
My mortgage broker friend here in Tampa is trying to rent out about 8 houses that she is underwater on. One of the houses she leased out for $1500 a month. They didn’t have enough for first, last, and security so she just took the first and last. They were about 3 months behind when they finally moved out overnight. She said the place is a disaster. Holes in the wall, one door looked shredded from being slammed. In the kitchen some of the pull out drawers have fallen apart and are missing fronts. The house is dirty, and the carpets have stains. She says she even needs to repaint and the yard needs a lot of landscaping. She estimates it’s about $5 grand worth of work plus the 3 months of missed rent. The $1500 a month isn’t even enough to cover the mortgage much less the taxes, HOA’s, or insurance. She is seriously depressed and though she knew what she was doing.
By refusing to take a loss, it’s about to put her into Bankruptcy.
She isn’t getting paid in sunshine? I don’t understand…
So much for getting rich by renting out houses.
She will make it up in volume just like high tech.
They didn’t have enough for first, last, and security so she just took the first and last.
This is when the tenants knew they had the landlady by the shorts. You don’t back down on your security deposit, for criminy sake. Here’s the renter’s thought process:
“Hmmm…I didn’t have to come up with the third month security when she asked for it, maybe I don’t have to pay any rent at all!
Wheee!!!!”
RE: She said the place is a disaster.
Ah, the joys of being a landlord in a society of pigs.
It would take a heart of stone not to laugh at this greedhead landlady.
Tom,
A few buckets of paint costs about $100, or does your mortgage broker friend have nice nails? I’m not denying the $5 grand in damage, but doing most of the jobs yourself doesn’t sound that difficult, unless you’re Casey Serin.
She won’t do it herself. She says in some spots the carpet needs patched. In others it needs to just be cleaned. She said the walls have dirt and sweat smears from kids handprints on it. Some holes in the walls.
I don’t think $5 grand but she uses some company and that is what they quoted her. They also have to fix some of the cabinets in the kitchen and the shredded door. Oh, she has some cracked tile too.
Sheesh.
If a person can’t do those kinds of basic repairs, they really were asleep at the ‘Rental-Mogul’ seminar they paid for.
But isn’t this typical? One thing I noticed immediately on many of these “flip” programs was how many people didn’t/COULDN’T to do any of the work themselves–they just hired a variety of subs and then called themselves “general contractors,” and complained about the work not getting done, or its shoddy quality. If you know nothing about construction or basic home maintenance, why would you think “flipping” a house or being a landlord is a good idea for a career?
I watched a flip this house episode with a hair dresser “business woman” decided her talents of fixing hair would easily transfer to fixing a house she bought sight unseen.
I’m not criticising the talents of a hair dresser - I can’t do what they do - but the level of cluelessness is astounding. It would be like me thinking that just because I can fix a house I should be able to do some minor brain surgury.
The carpet is shot, even with stain resistant carpet you can’t get everything out. Replacing carpeting is a major expense hence the high quote. You can’t just “patch” carpet either.
Mo Money,
Maybe those carpets that come in squares would work best for high-risk rentals.
Maybe you should just tile the whole house and forget about it. If installed correctly, ceramic tile is actually very difficult to crack.
Carpet may be the cheapest of all floor coverings, but it’s also the filthiest and stinkiest.
Too bad the landlord can’t just strip it down to the concrete and install a drain in the kitchen. When the tenant leaves, just spray the whole place down with disinfectant and rinse.
I’ve seen entire houses with ceramic tile in warm climates, it makes a lot of sense.
I hate ceramic tile. I like the concrete and drain idea, and all the walls and major appliances should be painted in blackboard paint so tenants can write on them with colored chalk.
Like a magic carpet?
Flor - Modular Carpet Tile.
Would I want it? Dunno. Could prove useful to solve the problem of “patching” a whole carpet. But would a flipper landlord think of it? Nah.
“The pressure on appraisers to omit information, make fraudulent claims or set higher values has prompted state Rep. John Harkins, R-Stratford, to sponsor a bill penalizing appraisers who allow themselves to be influenced by anyone who benefits from a real estate transaction.”
This is a good start. But from that article, I think the bigger issue is the pressure put on appraisers by other parties to hit targets. Penalties on those parties should be much higher with tough enforcement. Widespread fraud needs to be purged from the system and this is a good place to start. Getting valuations correct is a very necessary part of that process.
Maybe they should start by getting two independent appraisals as part of the disclosure process, paid for ahead of time by an escrow account, of course. Any lender or broker caught putting pressure on an appraiser while processing a loan should be subject to heavy sanctions and penalties…such as only being allowed to use court appointed appraisers.
John Harkins, R-Stratford, to sponsor a bill penalizing appraisers who allow themselves to be influenced by anyone who benefits from a real estate transaction.”
Ho-hum…
Like any of the number hitter hacks have been adhering to the myriad of Appraisal Standards Board reporting laws already on the books.
Harkins is a day late and a dollar short. These political chumps haven’t a clue.
The denial and greed run deep in Bawstin. My co-worker bought his small townhouse 30 minutes south of Boston years ago for 95K. He is ready to retire but is HELOC to his eyeballs. Needed 240K to pay everything off. This price was last seen over 2 years ago. But he insists he will wait to get this price. He got an offer of 200K a couple of days ago. He said he felt so insulted he won’t even counter. The greed is unbelievable considering the last sale was a bank foreclosed unit for 190K.
He said he felt so insulted he won’t even counter.
Is there any chance you can persuade him to quickly get over being offended and take the offer, already? That 200k is going to look mighty good pretty soon. He probably can get more than 200k from this buyer, too, if his counter offer isn’t as ridiculous as his wishing price.
Actually, I’d recommend encouraging him *not* to take the $200k offer. Your friend is a greedy idiot and deserves what he has coming to him. Let him be “insulted”.
I’ve seen a lot of this attitude from sellers. I would try to convince him that the amount he is paying in interest more than compensates for the loss he is taking on the principal. If he makes the mistake of moving to another property, then he will risk losing everything if he gets sick or cannot earn enough to pay for two mortgages (you mentioned he is retirement age).
I’d stay out of it and let this greedhead suffer the consequences of his own pig-headedness. Not your problem. Let the market school him, instead.
Nah, tell him to stick to his guns, those buyers are trying to ream him. That way he can’t retire and he’ll have to keep working and paying taxes. Dumbsh*t.
The realtors still believe there’s no bubble:
http://www.boston-condos-for-sale.com/2008/02/28/no-real-estate-crisis-in-boston/
It’s not as bad in the city yet but it’s coming.
Yeah he will.
In 2019.
Looks like the government is trying to add a few minor regulations to Wall Street before the gangsters get blasted with real regulations. Hey, if you act responsibly there is little reason for regulation. If you don’t, you brought it all down on yourself. It’s called accountability.
“Another investor, who asked not to be named, said she and her husband bought properties on Springdale, Park and Crown streets in 2005 and 2006. The buildings needed work but there were tenants already in them paying rent, which would defray the cost of the mortgages.
“But the arrangement quickly soured. Tenants trashed the units”
There is more to this story than that, there has to be. Tenants don’t trash units “just ’cause.” They were pissed about something. My guess? A huge rent increase breaking existing contracts and refusal to do basic maintenance. The unnamed investors bought too high, attempted to wring out a profit where the was none and fucked themselves.
arteclectic
I believe you are correct on this one.
Top editors at MSM outlets defend their past coverage of the mortgage/debt crisis, say they warned folks about the dangers, but were drowned out by the “real estate always goes up” chorus. You decide:
http://tinyurl.com/2qmhgc
Seems that a 2005/2006 mention was enough for these guys to plead a case. Of course, I’d like to see their ad revenue from RE sources: What went up is now getting pounded.
The New York Times was cheerleading all the way deep into 2006, if not later.
A few articles pointing out how real estate might be like dotcoms or how renting might be a better deal hardly cut it, especially since “pro” articles were more common.
Locally, I know one large city newspaper that COMPLETELY ignored the negatives of a housing / lending bubble, doing so year after year after year:
The one and only San Francisco Chronicle.
Also known as the Lamest major city Newspaper in All of America (LNAA).
Blogs are the MSMs of the future.
Well run blogs (such as this blog) are subject to a form of peer review. Nobody can post BS without the risk of being called out. Also, nobody has to answer to an editor bought-and-paid-for by a sponsor.
Thus the ever-elusive Truth gets hammered out and made available to those who need/desire to remain informed.
Blogs are a lot more Darwinian. Those that earn a reputation for cogent insights and valuable information, not to mention entertainment value, will achieve large readerships and loyal followings. The vast majority will sink into well-deserved obscurity. But at least they won’t be as morally compromised and beholden to their Wall Street owners and Madison Avenue truth-makers like the MSM is.
Naples, Penn Yan, we don’t get mention on the HBB very often!
A 2600 ft2 Victorian isn’t quite a unique property, it’s the norm in in all these little post industrial downtowns. Big lots and centry old maple trees. Not for the faint of wallet though.
“I’m not walking away,” she said. “I’m not giving up.”
hmmmm. how does her husband feel about this….. “where’s Suzanne?”
suzanne is working for the emperors club didn’t ya hear!
I think she was the one yesterday who said she was tired of lowering the price and not getting anything meaningful out of it. Suzanne’s few $k/hr for minmal effort days are behind her.
“Samuel and Chayla Braun of Spring Valley, N.Y., spent more than $2.8 million to buy nearly 20 properties in 2004. They’ve since sold or lost most of them to foreclosure.”
You know, there is a BIG difference between selling a house and losing it to foreclosure. You’d think this reporter would separate this little detail but I guess not. Did they sell 1 and lose 17 or sell 17 and lose 1?
If I have to hear “Jamie Dimon” one more time!…
The comments about Plymouth are interesting. I was trying to find a link to an article about zoning in Plymouth that was in the Globe a few months back.
Essentially Plymouth has decided that young families with school children are too expensive, so new houses can not have more than three bedrooms.
I found an article about nearby Canton, and it captures some of the same sentiment, local officials crowing about how wonderful it will be for seniors to be able to stay in the area because of the new, smaller townhomes that are planned. http://tinyurl.com/2y357d
My friend bought a house in neighboring Marshfield in 2006. She had to sign a permission slip allowing the school nurse to administer iodine tablets in case the nearby nuclear power plant goes kablooey.
Talk about a bad idea at the wrong time:
http://www.variety.com/VR1117982907.html
Thanks but I’ll stick with my $1.50 rentals at the redbox at Safeway.
$35 for a movie ticket
$14 for a small sushi dish (kind of grotesque if you ask me, sitting next to a person who is eating a meal!)
$14 for a glass of wine
Total: $63 to see a movie…okay I guess.whatever
Cinch
This is goofy. They’ve had drinks and appetizer service in theaters in Germany for 20 years, but they don’t charge extra for the movie tickets.
I lived in Plymouth. It’s geographically larger than Boston but has a tenth of the population. Bussing those kids around gets expensive!!!
They also forbid new businesses. Not just corporations but supermarkets and malls. What they have is what you get and you may have to some driving to get to Home Depot or whatever it is you want. The gas prices must be killing the residents there.