A Dover Nightmare

The first thing that the mortgage company should do is press charges against who ever appraised this property and the realtors who were involved in the 2006. Even at the peak the numbers do not make sense. The house is small with very little property and was over priced even at the peak. The last buyer and the bank to a huge loss on this one. Let's look at the numbers below...

• The Property was purchased in Sept. 2006 for $395,000

• The first mortgage in Sept. 2006 was for $337500 an Adjustable Rate Balloon with Mortgage Lenders Network

• The property is still listed on craigslist (posted March 13) as above for $195,000

• On March 6, 2008 the property sold for $165,000

The 2006 buyer put down (lost) a $57,500 which is a substantial deposit - approx. 14.5% of the total house price. The 2006 purchaser also lost all of the closing costs, which can be pretty substantial. The lender - or whoever bought the note - lost approx. $182,400 between the mortgage loss and the realtors fees. That does not include all the other foreclosure paperwork expenses - a lis pendens was filed in May 2007. The total loss on the property was an enormous $239,900 not including all the closing costs and lawyer fees. That is $74,900 more than the house is currently valued at!

Of course the lender in this story, Mortgage Lenders Network filed bankruptcy Feb. 2007. A business can not take hits like this and remain in business.


The 2006 buyer either was scammed himself like the $15,000 strawberry picker who purchased the $750,000 house in CA or was part of the scam himself!