First Example - Madison NJ Townhouse

This first example is not an example of excess. It is a somewhat sad example since the owner will lose the 60K they used to purchase the house if they get their full asking price. Hopefullyle they can negotiate with the bank for a short sale rather than having to lose even more money. The current asking price is a negotiable $585,000 - and since its not FOSB we can assume the standard 6% realtor's fees. Since it is negotiable right in the listing it stands to reason that the owner is not in good shape.

This bright 2100 sq. ft. Condominium with beautiful hardwood floors boasts an inviting living room with gas burning fireplace, formal dining room, and eat-in-kitchen. The second floor has three bedrooms, laundry room, master bath and main bath.

So here is the breakdown:

• The townhouse was purchased November 2002 for $460,000
• Original Mortgage was in November 2002 for $400,000
• The owner put an impressive $60,000 down for an approx. 13% down payment
• In March 2005 the owner took out a Home Equity Loan for $150,000 - and the sellers do not list any renovations.
• Listed for sale currently at a negotiable $585,000
  

The owners could have made approx $90,000 after closing expenses - but now will be lucky if they break even. Since the original mortgage was not an ARM they probably have a couple thousand dollars more to play with - but not much more.