HELOC Heaven in Roxbury NJ

Another fine example of someone taking out every penny of their home. But don't worry - it's only empty because they have already bought a newer - much more expensive home. Here are the details - commentary to follow.




Features:

• 5 Bedrooms, 2.5 Baths
• Beautiful Hardwood Floors
• Formal Living Room and Dining Room
• Brick Wood Burning Fireplace in Family Room
• Granite Counters & Back Splash in Kitchen
• Finished Lower Level

Remarks:
Welcome to this Gorgeous Colonial with Distinctive Finishes, Crown Moldings, Glazed Maple Cabinetry, Granite Counter tops and Back splash in the Kitchen. Picture Frame Molding and Medallion Ceiling in the Formal Dining Room. Beautiful hardwood floors throughout the home, and Marble Tile in the Foyer and Kitchen. Eat-in-Kitchen open to the Family Room offers Stainless Steel appliances, Pantry and sliders to a very large deck. There is a large Finished Basement and much more!!!


All this for the asking price of $589,900. Here is the purchase history -

• The property was Purchased in Oct. 2005 for $597,000
• The first Mortgage was in Nov. 2005 with a $478,000 ARM
• Just refinanced with a second Mortgage in Jan 2008 for $92,000
• Currently for sale at $589,900
  

So if the sell the house for the full asking price the owner stands to lose approx. $42,500 in 2-1/2 years with $35,394 going to the realtor if there is the standard 6% fee. In total they have financed $570,000 of the house. What is surprising is that they originally put $119,000 into this purchase - but I suspect that the money was form a roll-over of another property and not savings. This does not look like a starter home.

Since the owner has already moved on without moving this house I would not be surprised if they either went underwater keeping up both mortgages or allowed this one to eventually foreclose. Some times I wonder why people keep sinking more money into a property wanting to sell it for a certain price rather just letting it go cheap ASAP. There are alot of other costs in carrying a property - especially one that is still on the market - than just mortgage payments. They also have to pay taxes and utilities and up-keep on the property. All of this adds up. While when they purchased in 2005 the turn around was very fast - the market is much slower now and those carrying costs can really add up.

I would not be surprised if the owners were eventually featured on the show Please Buy My House. I think there has only been one episode so far - there will probably be more. With all of the people who are on TV proudly talking about letting the house foreclose - there will be another group documenting the struggle of actually selling a property in the down market.