That couple on 60 Minutes in Coronado District...Update (Phoenix: for sale, 2014)

[beerpromotion]

Another thread about the historic districts reminded me of that segment of 60 Minutes which aired May 9, 2010. They had paid 387,000 for a bungalow at 2014 N. Mitchell St, in the Coronado District. They purchased on 12-29-2006. It had previously sold for 103,000 on May 28, 2003. They stated on the show that it was currently worth 85,000. There was a good thread on C-D about it that went on for 10 pages+. Here is what happened: It was sold at foreclosure auction on 12-27-2011 for 127,700. Exactly 30 days later, it was listed for 190,000. It sold for full price, with a quick close on 2-10-2012. The new owner from CT had it listed for rent for 1400 on 2-08-2012. Maybe he decided being an out of town LL wasn't so great....He listed for sale on 12-11-2012, for 199K, and re-listed in Spring of 2013 for 199K, and was unsuccessful. So many winners and losers on one house in a 10 year period. It also appears that taxes were close to 2000 in 2010, but are now a much more reasonable <800.

That was the second couple. Would anyone like to tell us what happened to the first couple?
Mortgages: Walking Away - 60 Minutes Videos - CBS News

[Valley Native]

I never saw this "60 Minutes" report when it first aired, but I just watched it ... and I will say without any doubts that both couples are in the wrong. One can't help but feel bad for the ones who bought homes during the "bubble" because of how many homes became devalued when the bubble burst. At the same time, simply walking away from mortgages not only has a major negative impact on a credit rating, it is shirking responsibility, and it hurts the economy as a whole.

That first couple irritated me the most. The man who was interviewed had what I thought was a smug attitude about his situation ... unfortunate as it was, but he had no guilt about simply walking away from his mortgage. This despite the fact that he admitted he could afford to stay in the house & make the payments. He chose to neglect his responsibility as a home buyer because it's the "in thing to do". So long as he can have enough savings to buy another house in a few years, he doesn't care about being the deadbeat which he is. Oh, and he had a little kid too. What kind of example is he setting as a parent??? I'd like to give him a good hard kick in the ass!

[beerpromotion]

yeah, and 265K for a first house? In Phoenix? They also mentioned he worked at a local college, and we all know how legitimate
some of them are....would like to see what happened to their specific property. I did even more research on the second couple, an he had bought a nice house near 3rd ave. and Osborne for 115K in 2001. Actually used an 80/20 two loans to buy. Then borrowed an extra 97K on it theday they bought on N Mitchell. They had two mortgages for five months, but did get 269K for the other one. He got married in 2003ish. So many economic lessons in just their case....should be required study at ASU. They had refied the first one for 10 years in 2005, so they could have had that first one paid for, with payments much less than rent. It does appear that they like the area. LOL.

Here is a song for the wife:
https://www.youtube.com/watch?v=DNSUOFgj97M

[Bummer]

Unfortunately, Valley Native . . . far too many foreclosures had absolutely nothing to do with a hardship, financial or otherwise.

Personally, I know of a few foreclosures in my area where the "deadbeat" owners decided rather than take responsibility for their greed driven stupidity, they chose to "stick it" to the Lending Institution and blame someone else . . . anyone but themselves.

Bottom line . . . we all paid for these greedy arrogant get rich quick decisions and a mere "Kick In The Ass" is definitely not enough.

[chaparrito]

So many losers in the bubble, but none of them were bankers. At the height of the insanity here in the Verde Valley values were literally going up daily. BMWs and Benzes with out of state plates prowled the land. Builders of spec houses got offered outrageous cash before they'd finished the framing on new homes. If you needed a tradesman to do work on your existing home you were SOL because everybody was doing easy and quick work on new construction.
At the peak, I ran into a mortgage broker I knew at our post office. Asked her how business was. She went into a hard press sales pitch on why we should refinance and pull our equity out, seeing as how our property would double in value in a year. She said she was writing loans like a madwoman. "I'm helping people who could NEVER afford these places before get loans and I LOVE it" she said.

Then it all fell apart. At the bottom I ran into that broker again. She said business was booming. "I'm helping people who are stuck in bad loans get out of them and I LOVE IT" she said.