Sunday, May 24, 2009

Update to December Example

Today with the holiday and warm weather we will just doing an update of an example post from December. The property finally sold - but the owner took a very heavy loss. Let's revisit a snippet of the post -

Here is the property -
Front of the house.

Here are the financials -

  • The property was purchased for $675,332.32 in September 2004 directly from the builder.
  • The original mortgage at time of purchase was for $440,000 using an ARM with K Hovnanian American Mortgage.
  • A Lis Pendens was filed against the property in December 2006.
  • After an apparent divorce one of the owners was deeded the property in July 2007.
  • On the same day as the new deed a new mortgage was taken for $500,000 using a balloon payment with Nationstar Mortgage.
  • A private mortgage with a 2-year term (which looks to be interest free) with an apparent family member was also taken in July 2007.
  • The property is currently for sale with a realtor for $625,000.

A property with a messy history.

Well, the property finally sold - for $550,000. It looks like through a realtor. So the homeowner lost $158,332.32 on the property - as well as suffered credit damage from the Lis Pendens and whatever separation took place during ownership. Probably glad to be rid of the place and move on - just a shame that there was so much suffering on so many levels in order to leave the property.

Good luck to the old owner on their new ventures. And hopefully the new owner's time will be work out better...


Anonymous said...

Unfortubnately the new homeowners think they got a deal. Too bad for them. They will be underwater a bunch in the next 18 months.
Prices are going to collapse in the NY/NJ region.

NJHH said...

You are probably right about that!