That is where today's landlord in Morristown comes in. Instead of winding up with a huge profit, everyone involved ends up with a giant loss - especially the home buyer. Well, of course assuming everything in the deal it legit - but we will save those issues for another day.
Here is the property (yes the realtor actually put this picture up) -
Here is the property info -
- The property was purchased for $390,000 in January 2006.
- The original mortgage was an ARM for $312,000 also in January 2006 with Commonwealth United Mortgage.
- A Lis Pendens was filed October 2007.
- The property is currently for sale with a realtor for $301,000.
Although the initial investment was there the owner decided to take out an ARM - perhaps signifying that monthly payments on a 30-year-fixed would be difficult. Well the ARM ended up being difficult as well. Since within 22 months of the purchase the homeowner was in the foreclosure process.
Now the owner is out their $78,000 and the lender is out $29,060 if the property actually sells for the full asking price. The total loss on the property will be at least $107,060.
Being a landlord can be hard - tenant issues, rental issues, etc, but losses of over $107,000 is even harder.