We just learned that our next door neighbor's house went on foreclosure today, which was a shock to us (father worked 2 jobs). They put their house on the market almost a year ago and still no buyer yet. Last November, they moved out of their house here and went back to NY. They bought a new NY house near the beach. Now they're facing foreclosure on their NC house here. My hubby and I are wondering what's going to happen to their NY house if their NC house is in foreclosure? My husband think they are clever to buy a NY house before foreclosure in NC. Have you see or heard anything similar to that situation before?
further proof the lenders are inept.....how did he pass the debt to income ratio to afford the second house?
If they got a bridge loan to purchase the new home, they could lose them both, unless they can find some way to refinance the bridge. Otherwise it is just another example of the corrupt lending system. They shouldn't have gotten approved on the new home if they couldn't afford them both. Of course, it's possible that they CAN afford them both, which is how they got the loan, but have chosen not too, and are thus intentionally defaulting on the NC mortgage. Since they no longer have to pay tax on any loss to the mortgage company of the foreclosed home, and they've already purchased the new home while their credit was still decent, they may have decided that they have nothing to lose.
According to what I have been reading on the situation, your house may loose part of its value because of that foreclosure.
Yes your house will drop in value and all those around it. We had a foreclosure across the street. 1600 sft house with 2 acre's of land went for 117,000. We just bought our house a year early 1800 sft and 1.5 acres for 148,000. That same house sold back in 07 for 152,000. We are wanting to move to a bigger house and were not going to try and sell our house were going to rent it out. There's no way we could ever get what we put into it back.
Don't cheer to quickly! Your asking for something you don't want. I've been here, done this before. Moved to a great place with a moderate economy. The economy starts to boom, the carpet baggers move in, prices go threw the roof, when things go sour they leave like a flight of locust, and your stuck in a depressed area holding your pants up with a rope because you came here for the long haul.
1 home not a big worry, More than one near you - MAJOR Worry. Also you do not want to BUY on a street full of rentals... much the same deal - Prices/Value go down... sometime head spinningly FAST.
We bought a foreclosure, the only sale listed in the tax records is the original purchase. The original owners had a FHA loan, which may have had something to do with the other transactions not being listed. Most FHA foreclosures must have an owner/occupant for 1 year before the house can be resold, if no owner/occupant bids within a certain amount of time then it's open for all bidders (someone who might buy it and rent it out or try to resell it). But I wouldn't worry about it unless you are planning to sell your home in the near future.
This is the same problem we are facing now as well, so we are stuck, unless we are willing to take a big hit on the house.
We bought the house were in and completely gutted the inside. New hardwoods floors throughout, tile in kitchen and baths. New doors, molding, and granite counter tops. We spent about 16,000 fixing it up ourselves. There is no way well get that back out of it right now. So were just going to rent it out for awhile and then maybe try to sell it next year.
