More home owners are getting in trouble. (appraiser, foreclosed, mortgage)

[bentlebee]

More troubled borrowers getting left behind - Mar. 20, 2008

Unfortunately I see more and more short sale and foreclosures coming soon in the Tampa area and probable in more Stated.

1 house in my street is forclosed on after never been lived in but bought by a very bad invenstor with no consious. He left the neighbor hood with a property in distress and payed zero down and took the appliances so basicly IMO he should be taken in for grand theft.
Than this week we had another foreclosure in the street. The home owner had the property for sale over 2,5 years. The first lsiting was with the biggest selling broker company in this area and the price was so high (the builder has the same floor plans for sale for thousands less, not far from here), a caravan of realtors came out and not one buyer. So the price was lowered and no open houses scheduled. After 6 months the owner relisted with another company who didn't do much. So on and on and the market went down so hardly any interest. Than a few listings later a new realtor who held some open houses but the price was still above the price of a new inventory in a community close by, so basicly too high. No buyer and the rental price (after 2 years they put it up for rent with the realtor) was $ 600.- more than the same floorplan down the street. So no interest at all so finally the home ended up being foreclosed.
In the same area we have (I don't know all the properties and their stories) more foreclosures to come. One home owner is way behind in mortgage payments and has lis pendens for almost a year and not even the home for sale, another home owner has over $ 420,000- mortgage on their home (official documents online are showing this to be true) and the tax value is under $ 300,000-. They refinanced in 2006 after being turned down by several appraisers since the home wasn't worth it, and finally find a "nice" appraiser willing to give them a appraisel so rediciculous high that I guess that will end up as a foreclosure. Mostly you start seeing the yard not maintained and soon after the rest of the trouble is coming. Specially with people who asked for it them self. The onces who lost their job or had health issues do everything to keep it nice and to keep their home.
How long do you think a couple is going to pay a mortgage over $ 420,000- on a home with a $ 290,000- value and is being sold new by the builder for $ 280,000.-. The people will be smart enough to know that this home will take years to appraise for even $ 350,000.- so basicly they are paying mortgages for a home that isn't worth it. This appraiser should be in jail and the people asking for this appraisel should be punished, the home owner leaves and will leave the rest of the neighborhood with this trouble. More homes in this area have ARM mortgages which are going to be reset in the next 8 months and next year. So for me as an investor it will become a neighbor hood with deals but I won't buy in a neighborhood that is going to be so bad. I know tht this recovery will take years and I live amongst it so 1 home is enough and since I don't have to sell, I won't lose anything and might be able to pay less property taxes in the future but I'd rather see it otherwise.
If people are stating this is almost the end of the bad market, well I have unfortunately a different view on it since I live amongst it and see what is happening to a still good looking neighborhood.