In the comments section of an earlier post, I mentioned that the foreclosure process seems to be taking much longer than it has in the past.
This home is a perfect example. GMAC, the mortgage holder, first filed a Lis Pendens on this homeowner on 11/6/07. It took GMAC until 7/13/07 to get a final judgment on this home. To this date, the County Clerk hasn't shown the deed transfer yet. However, since it was just listed for sale, I imagine that the deed transfer happened in the past couple days and the Clerk's website just doesn't reflect it yet.
In other words, it took around 11 months from the time of the first court filing until it was listed on the MLS. Keep in mind that the homeowner probaby missed two or three payments before the intial court filing. These sort of delays seem commonplace.
7201 10Th Ct, Plantation, FL 33313
- 3 Bed, 2 Bath SFH
- Bought in April 2005 for $351,000
- On the MLS for $300,000
- Days on the MLS: 2 Days
- Loss before the Realtor® commission: $51,000
- Loss after the Realtor® commission: $69,000
I need your help with this daily feature. Do you know of a F@cked Buyer? Just add the MLS number or the FSBO link in the comments section and I will add it to an this daily update in the future.
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12 comments:
I know a failed real estate investor who is holding several properties that are in foreclosure. According to him, the bank doesn't even want them back right now. They would rather see him try to short-sale the properties than foreclose.
Banks are afraid to see what these loans are really worth. This will slow down the foreclosure process significantly. I don't expect a bottom in home prices for years.
I'm sure you heard about the Enron-like fraud being perpetrated right now by the major banks (creating a "super-SIV", an off-balance sheet fund to hold these crappy loans). The banks are in a lot bigger trouble than they want us to know. When all these bad loans are finally marked to market, the banks will have to report huge losses. They're trying to delay that right now--but they're really just delaying the inevitable.
Mish is covering it on his site:
http://globaleconomicanalysis.blogspot.com/
pb,
Is your friend still making his mortgage payments?
No.
Thanks PB,
As always, Mish is dead on (Mish's site may be the best blogs on the Internet.)
As a CPA, I pay very close attention to FASB's reaction to the Super-SIV move and other off-balance-sheet transactions related to the housing bubble. It's simply amazing to me the that FASB isn't being more proactive about this whole issue.
Then again, the last time the FASB fell asleep at the wheel during the Enron debacle, it resulted in by far the biggest boon ever for the accounting industry (Sarbanes-Oxley).
I've tried not to let this blog become overly technical so I haven't covered this aspect of housing bubble. I've also tried to keep it local to the South Florida area, simply because no one else was really covering the local market.
However, I am absolutely fascinated (my wife says obsessed) with the whole Super-SIV move. IMHO, the Super-SIV may be the most significant development in this whole housing bubble and 99.9% of Americans have absolutely no clue.
I may stray from my local-only policy and do a Super-SIV post.
In the mean time, for those of you who are interested, below are some other good posts on SIVs and the Super-SIV:
Calculated Risk: SFAS 140: Like A Bridge Over Troubled Bong Water
WSJ: It’s Not a Bailout. It’s ‘Financial Engineering.’
CFO Magazine: Curing SIV
Salon: Super Conduit to the rescue!
SFHB,
This is pretty heady stuff for me, but I often wondered about something that you are probably familiar with.
After the Great Depression the Feds implemented some new regulations intended to separate the banks from Wall Street and investing (speculating).
About 10-15 years ago I learned of this when they lifted or relaxed those standards and permitted the banks to get involved in Wall Street investments. Shortly thereafter "investment advisor's" started appearing in all bank lobbies.
In your opinion, did this open the door for the disaster the banks are now facing?
pb,
Thanks for the info.
So it appears the banks are buying time, putting off the inevitable, hoping I guess for some saving grace.
They are no longer making money from these bad loans, and are prepared to take sizable losses on short sales, but are still trying to get above market prices for these crates.
I wonder at what point they will bite the bullet, foreclose and sell at realistic prices?
re banks: they wont sell at a realistic price as long as these realtors keep advising them ,eventually in about six months it might? get real.
good info. @ http://www.onboardnavigator.com/WebContent/OBWC_Search.aspx?AID=108
shows houses sold lhp
5/30 880k 4200 n.e.25 ave
7/31 4221 n.e. 24th ave 1.180
7/9 4300 n.e. 23rd ter 1,156,500
doesnt show anything recent tho.
melissadata.com has good info as well. worth the 15$.
Ms. Jupiter said...
7/9 4300 n.e. 23rd ter 1,156,
That house sold for $560k in 1992.
It has 104 feet on the water facing East (good) and 3900 sq ft of house.
Still seems high, they may lose equity over the next few years.
Interesting there isn't anything showing from July to October?!
Could be a good sign.
Let's face it, there are always a few uneducated buyers who pay too much. Thats one that got away from the thousand other greedy sellers out there.
4221 n.e. 24th ave 1.180
Purchased by thr Goldfarbs from Conneticut.
They are the sucker buyers ALL these homeowners are hoping to land.
They will be buried in this home for many years to come.
Even greedy Lori Parish only values this one at $700k.
She typically values these homes for more than they sell/sold for.
I know these streets and you can do WAY WAY better for $1 mil today.
Notice this house sold for $250k in 1996 and $200 in the 1980's.
I hope the goldfarbs have LOTS of gold.
found one more 8/6 4221 n.e. 24th 1,180. cyberhomes.com has crazy values but good info.couple more in the 8,s. 2340 N.E.48th st. listed for 999,000 bought for 1,100. still not a good deal in my opinion as half finished house w/no pool and architects lien as well. listed for almost year. mls#F797984.
140 wrote:
"Shortly thereafter "investment advisor's" started appearing in all bank lobbies. In your opinion, did this open the door for the disaster the banks are now facing?"
I don't think this type of deregulation had anything to do with the current mess. Keep in mind that banks have been in the business of writing mortgages and then selling on the open market long before the Great Depression.
Even securitization of collateralized debt, which receives much of the blame, has been wide-spread since the 1970s.
There is endless blame to go around, but I think we simply hit the perfect storm where multiple industries, our goverment, and consumers were simply caught up with irrational exhuberence.
It's everyone's fault: the Fed, the President and his cabinent, the credit rating industry (Moody's, Fitch, S&P), hedge funds, the mortgage industry, the Realtors®, the builders, the media (for their lack of objective coverage) and the home buyers themselves.
In the end, after much pain, the free market will take care of itself.
My biggest issues are with what's going on now, after the bubble has burst. Public companies should be required to disclose their losses. However, the Super-SIV, which is supported by Bernanke and Paulsen (and ultimately the President) is simply a strategy by the major banks to move all these massive losses off their balance sheets.
Hopefully, Wall Street will see right through it since it's too big to hide through creative accounting like much smaller companies (Enron, Tyco, and Worldcom) did in the past. Based on some of the technical press I have been reading (and posted above), I don't think this off-balance sheet move will really work.
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