5516 MONTE CARLO LN Unit: 5516, MARGATE, FL 33068
- 3 Bed, 2.5 Bath Townhouse
- Bought in August 2005 for $265,500
- On the MLS for $215,000
- Loss before the Realtor® commission: $50,500
- Loss after the Realtor® commission: $63,400
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10 comments:
This house was flipped by the previous buyer who owned it for two months and made $89,400 before selling commission.
8/5/2005 $266,500
6/29/2005 $177,100
These cookie cutter townhouse communities were put up on nearly every empty lot available in South Florida. And, they're still building those everywhere I look. It's amazing how many were built during the boom.
I bet they're going to be really tough to sell because they are all competing with all the new construction.
At least the realtor looks like a babe. Maybe I should scheduel a showing even though I wuold never buy a home in this market.
And still no homsetead.
I am interested in what really happens when people "walk away" from these underwater properties.
A lot of people seem to have the impression that you can just "mail the keys" back to the lender and it's now their problem.
I don't think it's that easy. At the very least, you'll be on the hook for the tax bill for the "forgiveness" of debt. In other words, whatever the difference is between what you owed and what the lender disposed the property for will be counted as income and taxes as such.
Or, I assume the lender can come after you just like a credit card company would.
This makes bankruptcy the likely option for many of these people. Although, I don't think the federal tax lien would go away under bankruptcy.
Does anyone know what the typical scenario is here for people that lose their property to foreclosure and the property sells for less than what was owed?
I'm sure you'll soon be hearing some politicians propose getting rid of the "debt forgiveness" tax.
However, if that happens, I assume the banks would retaliate by choosing to hold the debts on their books like any other creditor--if for no other reason than to enforce the point to borrowers that they can't just "walk away" from their loans without consequences.
"I am interested in what really happens when people 'walk away' from these underwater properties."
I made a previous posting on a very similar issue, short sales. You can find the post here:
http://www.soflahousing.com/2007/08/do-not-trust-realtors-advice-on-short.html
You're right that these F@cked Buyers can not simply walk away.
Unless they're insolvent under IRS rules, they will be liable for the tax -- a tax that would not be excused through bankruptcy. That's assuming they file for bankruptcy AFTER the foreclosure.
On the other hand, if the F@cked Buyer files for bankruptcy BEFORE the foreclosure and includes the mortgage in the bankruptcy, then they will not be liable for the tax on debt foregiveness.
My previous post include some links that explain the process fairly well.
Still, the law surrounding foreclosure, short sales, and bankruptcy are very complex and should not be taken lightly.
That was the point of my previous post on short sale. Any F@cked Buyer that is considering "walking away" or a short sale should seek advice from a qualified CPA or attorney before they make any decisions.
It turns out that this is another 100% financing deal taken out on a property that has never been homesteaded.
She took out a $213,200 first:
http://tinyurl.com/275wt3
and a $53,300 second:
http://tinyurl.com/24dqt4
with an interest-only ARM.
She had no skin in the game and she never homesteaded the house.
These are the type of "homeowners" that Democrats in Congress want us to bail out. I bet you 90% of the people facing foreclosure are people just like this idiot.
Is this REO or a short sale?
I doubt that the seller has the
+/- 50K to hand over at the closing table to convey clear title.
How do you think that works??
It's a short sale. If look at the listing description, it says, " SHORT SALE. SUBJECT TO LENDER APPROVAL."
It's only a matter of time before this short sale turns into a foreclosure.
I always feel worse when I see children's toys in the listing photos.
I generally find myself rooting for the housing downturn. But then I feel like a bastard when I'm reminded that this mess will indirectly affect a lot of innocent people (like these f@cked buyers' kids).
If you buy now, you will find a house like the one you bought for $100K or more less than what you paid. You effectively will be catching a falling knife and become instantly underwater on your mortgage! Imagine going to the bank and asking, "I'd like to open an account for minus (-)$100K". After years of deposits adding up to $100K you will have $0 in the account. Silly isn't it? Well that is exactly what you will be doing if you bought a house right now. Maybe a little more, or a little less, but either way doesn't sound too good does it?
http://patrick.net/housing/crash.html
email me your thoughts on the south florida market to dontbuy2007@yahoo.com
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