Here is the property -
The description -
Lincoln Park, NJ: For Sale By Owner Large 5 Bedrooms/3 Bathroom home in a great location of Lincoln Park. Quiet, family-friendly dead-end street in a desirable non-flood area. Living room with recessed lighting. Gorgeous fireplace and separate sitting area. A beautifully updated kitchen with granite counter tops, tile floor, and custom-made island. Family room has an efficient wood stove and charming slate floor with recessed lighting. Master bedroom has a private bathroom. Sliders from the newly renovated dining room to a large and lovely patio and a scenic backyard with an enjoyable above-ground pool. Perfect for your large outdoor get-together. It is public water and sewer. Approximate taxes: $ 7500
And here is the financial side of the property -
- The property was purchased in May 1999 for $234,000.
- The original mortgage from May 1999 is unavailable online.
- The owners took a HELOC out in Jan. 2003 for $25,000 with First Horizon Home Loan Corp.
- The owners took a mortgage out in Jan. 2003 for $154,000 with First Horizon Home Loan Corp.
- Yet another mortgage the next May (2004) for $148,500 again with First Horizon Home Loan Corp.
- In Sept 2004 they took a larger mortgage, this time for $344,000 in an ARM with Washington Mutual, the loan was closed Nov 2006.
- Some time went by, but in April 2006 the owners took a $170,000 HELOC with Bank of America, this was closed Nov 2006.
- In Oct 2006 the owner refinanced again for $402,500 with REMI Capital.
- Approximately 3 months later in Jan 2007 the owners took a $100,000 HELOC with Bank of America.
- Currently on sale for the reduced price of $489,000 on craigslist.
Either way these serial refinancers went from a great position to have a large net equity even with small changes. Now they are going to be lucky if they break even. We know they did not spend that $282,000 on a granite counter-tops and other kitchen enhancements. So in the 5 years in which they took seven different loans they averaged spending approximately $56,400 per year using their home equity as an ATM.