Foreclosures

It’s a little sad to prowl though sites like Realtytrac.com and see foreclosures on mortgage amounts that, judging just from address and type and size of the house, seem destined to wipe out any equity the owner has. There’s a $650,000 foreclosure coming on a house in Havemeyer, for instance, on a 1200 sq.ft. house. That’s about the full value for a house that size these days, and my guess is we’ll see it bank owned soon. Similarly, a house on Reynwood Road, $2.5 million mortgage debt, is, judging from its tax card description, worth no more than the land it sits on. What’s a 4 acre building site worth these days? Probably $2.5 million. And there are more to come.

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4 responses to “Foreclosures

  1. anonymous

    Emotions about prices are ultimately the enemy of any investor or trader or advisor

  2. Cos Cobber

    Somewhat off topic, has 2 river road in Cos Cob been relisted for $1.1mm after selling for 900g just a couple months ago, or less?

    I receive an automated listing search daily which included the property…perhaps its a mistake.

  3. xyzzy

    I noticed the listing on Nawthorne in Old Greenwich. I don’t subscribe to the service so I’m not sure what the exact address is that needs $2 million but I figured its probably the people trying to sell off the spare lot for 3.8 million.

  4. Stanwich

    Word of caution about Realtytrac and other foreclosure sites: They use the broad term “pre-foreclosure” for a the vast majority of loans past due for the total amount of the loan extended, not necessarily the balance of the loan. For example, I know of one couple who carried out renovations on their home. They have no mortgage and only a small line of credit ($180,000 line on a house worth about $2m of which the outstanding balance drawn was around $45,000). A disgruntled sub-contractor filed a mechanic’s lien in the amount of $12,000 and Realtytrac reports the entire loan as past due and in “pre-foreclosure”. In reality, only a lis pendens was filed and Realtytrac assumed it was for the home equity line. This house is now listed among the many in town as being in trouble. By the way, I know the couple very well and they had no idea the lien was filed. It frightened them to say the least but it goes to show that the numbers reported could be widely off from reality.