More inventory coming our way

35 new foreclosures have been started since December first, ’09. They are, without exception, all underwater, so they aren’t going to sell without difficulty but sell they will, eventually. Some are in the $7 millions (owed), others far less, but there’s a wide variety of prices and locations to start choosing from.

24 Comments

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24 responses to “More inventory coming our way

  1. Riverside

    Where can you find this info?

  2. Stanwich

    Yes, but this might not mean a new bottom falling out of housing prices here in Greenwich. Think of it this way, there are enough buyer trying to get in to Greenwich that once a house hits a competitive market price, it will come off the market. I believe we saw this in the fall with a relative uptick in sales, I think you will see this again as buyers decide to jump in this spring after even more price drops.

    What are your buyers finding? Not much, right? That’s because the best stuff that is even remotely competitively priced gets picked up fairly quickly. Other stuff languishes because it is either less desirable or not competitively priced or both. Your perspective seems to always be that prices are going lower, will continue to go lower so no need to move now but you can only hold out for so long.

    I guess your position implies that you will have to call a bottom. If you haven’t already seen it, when do you think you will?

    • christopherfountain

      I agree with you Stan that competitively houses are moving quickly, because there are so few of them, and if prices drop, we’ll find nio shortgage of buyers, but I worry, alittle, that we have so many hiuses underwater that they’re going to clutter the market for the next two years as their loans get worked out.
      Bottom? Hell, if I were that good, I’d be rich. But i really don’t see us levelling off this year.

  3. Greenwich Ex-Pat

    Wow, that’s a LOT of foreclosures for Greenwich, in such a short space of time, who’d a thunk it?

  4. JVJ

    As the Euro keeps falling, the foreign buyer disappears as well. Does anyone get a good sense on pent up demand for homes in Greenwich? In other words, are there sneaky buyers out there?

  5. Glug Glug in Greenwich

    A lot of these ‘foreclosures’ will not result in foreclosures..most should get worked out between owners and lenders who do NOT want to foreclose.

    • christopherfountain

      I agree that the banks don’t want to own houses but they won’t modify the loans or reduce the principal owed, and then there’s the problem of the second and third loans. There is no – NO – equity in these homes. I think the foreclosures will go forward, just from inertia, he banks will end up owning tons of houses and after holding them while they hope the market improves, all panic at once (God bless herd instinct) and crash the market. That’s what I think – we’ll see.

  6. Grumpy

    35 foreclosures in process hardly heralds the demise of the real estate values here. In a town of over 60,000 people, there are bound to be a few. This is not Florida or Nevada for cryin’ out loud.

    • christopherfountain

      Grumpy, that’s 35 filed just since December. We’re approaching 200 in process. Current inventory of single family homes for sale is around 535, so 200 (some are included in that 535 figure, some are not) is a big chunk of inventory.

  7. Grumpy

    I only ask for a bit of perspective. How many households are in Greenwich? Maybe 15,000? So as a percentage of that total, 200 foreclosures is not exactly the end of the world. It may be a new experience for Greenwich but certainly not a fatal one.

  8. foobar

    according to foreclosures.com, 38 have gone into pre foreclosure since 12/1/09. 4 or 5 greater than 5 million loan balances, two over 20 million. most are under 1mm. go to the website and see for yourself. Without showing the source I have a problem believing the figures being quoted here.

    total count is 126 in preforeclosure, all zips in Gwich

    This is much ado over nothing, as usual. Like the folks at zero hedge, you risk fretting about why the sky refuses to fall while the deals are there for the taking. Oh and yes, the markets are set to rally strongly through May, not crash as the doomsayers will have it.

    Today’s deal – 700G for a bank owned 4000 sq ft colonial in a gold coast town. Similar properties sold in the 6 month for over a million, literally next door. Bank has of course made a mess of it, as usual. 5o G to fix it and I am on the market in 45 days at 995. Bank will lend me 50% of PP. Yeeha.

  9. 14er Girl

    CF….I politely disagree based on the recent two foreclosure transactions which were not listed on the GMLS…they only listed on GFCLMS. The banks unloaded these properties with multiple bids…the one on Tomac Lane I believe was listed around 1.8 and closed for 2.1 with multiple offers. 309 Stanwich came on for 1.6 and had four offers…my buyers lost out to a cash buyer. The process was fast, fair and to the point…WaMu got the deal done in a week. Foreclosures listed by banks seem much easier to deal with than short sales and the banks seem to finally get what it take to get the deal done. Now how these new comps will effect our market…that’s another story.

  10. ff

    The facts behind the foreclosures in Greenwich is that banks are loathe to actually pull the trigger and start proceedings. In my experience, Greenwich borrowers don’t get served until they are at least 9 months or more without paying (as opposed to 3 in Stamford). There are a number of factors governing this including the large, large losses per loan, the appraisal discrepancies, and the second mortgages. One Tomac, for example, wasn’t foreclosed on until TWO YEARS after the initial lis pendens, and with no defenses provided. Reason was: How does the bank justify and account for lending $3.2 million against that house – plus a second and a third mortgage. Why? Because they know it sells for $2.1 million (netting $1.9 million after broker, taxes, repairs)

    No jobs, no mortgage payments, and a $10,000 monthly nut needs a big paycheck behind it.

  11. foobar

    309 stanwich at 1.6? typo? That is an incredible steal. please confirm?

  12. foobar

    I concur, CF, I had addresses mixed up. 309 Stanwich sold in 2004 for 1.735. So this sale brings it to the 2003 level, where most of the market seems to live. The stated sq ft of 4700 sounds high, also.

    I had my eye on 15 (?) Barnstable Lane, that beat up grey colonial, thinking it was bound to drop significantly from its 1.9 ask – did it go to contract?

    • christopherfountain

      Barnstable’s too far underwater to cut its price. Have to work out a deal with the bank. That’s something Fudrucker and I have been quite successful at, should you be interested.

  13. foobar

    My interest is probably way too low against current price – 1.2ish, but i will keep my eye on it.

    • christopherfountain

      Actually, Foobar, we’ve had better success making pre-emptive runs at houses in this situation. By the time, say, the bank owns it, you’re dealing with a different cast of characters.

  14. foobar

    By the looks of it the bank will own it eventually as it looks severely underwater.

  15. christopherfountain

    Which is why the time to cut a deal with the work out people is now, not later. You get consent of the owner, then work the bank. If they want to get the loan off their books, they deal. If not, not but you don’t know if you don’t ask.

  16. JoeKnows

    What ever happened to 16 Barnstable? No longer listed as far as I can see. Did it sell?