Real estate reality check (Baltimore, Perry Hall: for sale, 2010, foreclosures)

[barante]

Billig is only one of Baltimore's auction houses. But I found this link instructive in that it gives the final auction price for the properties. The ads (accessible from right side) detail their attributes, some containing pictures.
A.J. Billig and Co., Auctioneers, Baltimore, Maryland - Auctions in commercial real estate, homes, equipment, land and more. - Auction Results
Here's Alex Cooper who handles both upscale and inner-citya sales:
http://realestate.alexcooper.com/sold-real-estate/#

[Woodlands]

NOT THE VIP LOUNGE AT 1833 W. PRATT STREET IN CARROLLTON RIDGE!!!! Say it aint so... where am I going to go to bellyup to the bar now and it sold for $12k at that...wonder if it still had its liquor license and if that transfers with that sale?

Seriously, even though prices are down.. some of these properties in the $150k and up range do not seem to be bad deals and may be affordable to some and in some decent neighborhoods.

[carthell]

Originally Posted by Woodlands

NOT THE VIP LOUNGE AT 1833 W. PRATT STREET IN CARROLLTON RIDGE!!!! Say it aint so... where am I going to go to bellyup to the bar now and it sold for $12k at that...wonder if it still had its liquor license and if that transfers with that sale?

From what I understand a bar owner has to qualify to get a license, so that would be a separate process.

The former owner must have had some troubles with the bar; if bars typically sold so cheaply, I'd have entered the business a long time ago if I were inclined.

[trickymost]

Very interesting information, great find!

Interesting is the scant number of properties for auction in the better areas of the county. I suspect that will change dramatically beginning in 2010 as the wave of alt-a prime mortgages begin to adjust.

[Tallybalt]

You may find some foreclosures, but incomes are also higher in the better areas of the country. These people generally didn't have to stretch as much to afford a house, and have larger disposable incomes that can go to higher mortgage payments if necessary. It is also easier to sell a house in higher income neighborhoods in the county than lower income neighborhoods, particularly in the city.

You are much more likely to find foreclosures in lower-income areas than in higher-income areas.

Originally Posted by trickymost

Very interesting information, great find!

Interesting is the scant number of properties for auction in the better areas of the county. I suspect that will change dramatically beginning in 2010 as the wave of alt-a prime mortgages begin to adjust.

[KennyP]

A lot of those prices don't show you the taxes etc that are all backed up. A $12,000 bar can run you 10 times that to get it open.

I've been shopping for a spot to put in a vitamin/supplement store. That or running shoes. Can't turn a corner w/o dodging a jogger in this city.

[trickymost]

Originally Posted by Tallybalt

You may find some foreclosures, but incomes are also higher in the better areas of the country. These people generally didn't have to stretch as much to afford a house, and have larger disposable incomes that can go to higher mortgage payments if necessary. It is also easier to sell a house in higher income neighborhoods in the county than lower income neighborhoods, particularly in the city.

You are much more likely to find foreclosures in lower-income areas than in higher-income areas.

People in the suburbs did have to stretch to buy homes. In fact, they tended to stretch further than the subprime borrowers did. Just look at Perry Hall new construction since 2002. There's a number of reasons why this wave of problems haven't hit yet, but they are coming.

The Anticipated Prime Mortgage Problem Has Arrived -- Seeking Alpha

Mortgage Delinquencies Rise as U.S. Home Prices Fall (Update2) - Bloomberg.com

All those folks who are underwater in the suburbs but able to make payments are facing adjusting ARMs and problems refinancing. It's naive to believe people in the middle class are somehow wiser, more financially responsible, or more insulated from the problems we've seen to date.

And it's no easier to sell a home in the county than in the city. As always, the key is price. If you paid $750k for a home in 2003 which your neighbor just had a short sale for $400k or the builder sold remaining inventory for $350-400k, how do you reckon that homeowner gets out from under their problems without foreclosure or draining their life savings?

BC7135690 on FranklyMLS.com 9414 RYANS WAY, PERRY HALL MD for $525,000 in HONEYGO FALLS Home For Sale
BC7045745 on FranklyMLS.com 9826 KRAFT HILL RD, PERRY HALL MD for $629,900 in PERRY HALL Home For Sale

[Woodlands]

Originally Posted by trickymost

People in the suburbs did have to stretch to buy homes. In fact, they tended to stretch further than the subprime borrowers did. Just look at Perry Hall new construction since 2002. There's a number of reasons why this wave of problems haven't hit yet, but they are coming.

The Anticipated Prime Mortgage Problem Has Arrived -- Seeking Alpha

Mortgage Delinquencies Rise as U.S. Home Prices Fall (Update2) - Bloomberg.com

All those folks who are underwater in the suburbs but able to make payments are facing adjusting ARMs and problems refinancing. It's naive to believe people in the middle class are somehow wiser, more financially responsible, or more insulated from the problems we've seen to date.

And it's no easier to sell a home in the county than in the city. As always, the key is price. If you paid $750k for a home in 2003 which your neighbor just had a short sale for $400k or the builder sold remaining inventory for $350-400k, how do you reckon that homeowner gets out from under their problems without foreclosure or draining their life savings?

BC7135690 on FranklyMLS.com 9414 RYANS WAY, PERRY HALL MD for $525,000 in HONEYGO FALLS Home For Sale
BC7045745 on FranklyMLS.com 9826 KRAFT HILL RD, PERRY HALL MD for $629,900 in PERRY HALL Home For Sale

Yeah.. I heard of people who just walk away from their homes that are that far upside down. There was an article in THE SUN that talked about people with good jobs and credit simply walking away from their homes and taking the credit report hit. I mean if you bought your home for $700k and now they are selling for $300k or $400k... throw in an ARM that may be getting ready to reset. You could simply walk away and go rent someplace for half if not more than half of what you are paying now.. save the rest for a hefty down payment on a future property.. though maybe a fews years down the road. I am not advocating that people do it, but it appears that some have clearly taken this way out at the expense of their neighbors....

[samstersmom]

Originally Posted by Woodlands

Yeah.. I heard of people who just walk away from their homes that are that far upside down. There was an article in THE SUN that talked about people with good jobs and credit simply walking away from their homes and taking the credit report hit. I mean if you bought your home for $700k and now they are selling for $300k or $400k... throw in an ARM that may be getting ready to reset. You could simply walk away and go rent someplace for half if not more than half of what you are paying now.. save the rest for a hefty down payment on a future property.. though maybe a fews years down the road. I am not advocating that people do it, but it appears that some have clearly taken this way out at the expense of their neighbors....

But renters will look at the applicant's credit report too so I don't know how far they would get.

[SmokeyLisa]

They do but usually you can provide a larger downpayment and worst case scenario get a co-signer. The business news channels were reporting that more and more higher income people will start doing that because they are so upside down on their loans. Also, most people are securing housing through a rental or purchase prior to stopping their payments. The scary thing is the amount of FHA loans that are happening today, I think it is ~50% in our area, people are only putting 3% down so if the market continues to go down, these people make walk a way as well.