sometimes i can't believe it

ronbre · #1 04/08/10, 05:04 PM

a home that we nearly bought several years ago..next door to my sisters, glad we never bought it..but it was selling then for around $200,000. Well it has bought and sold a few times since then, that was in the 70's...

it just SOLD for $26,000. It is a huge wonderful home with great features, lots of land and even a few barns and it is in a small town..

$26,000 !!!!!!!!!!!!!!!!!!!!!!!!!!!!! I wanted to cry !!!!!

that is what happens around here with all the darn forclosures !!!!

blooba · #2 04/08/10, 05:25 PM

This place in MD was worth $650k-$900k Now between $80k-$150k so yea things have changed ALOT. Glad property is so many people's retirement fund.....lol

stef · #3 04/08/10, 06:03 PM

Quote:

Originally Posted by ronbre

a home that we nearly bought several years ago..next door to my sisters, glad we never bought it..but it was selling then for around $200,000. Well it has bought and sold a few times since then, that was in the 70's...

it just SOLD for $26,000. It is a huge wonderful home with great features, lots of land and even a few barns and it is in a small town..

$26,000 !!!!!!!!!!!!!!!!!!!!!!!!!!!!! I wanted to cry !!!!!

that is what happens around here with all the darn forclosures !!!!

Wow. Unbelieveable, and yet, I do.

What a bargain for the buyer, and heartache for the seller.

stef

jill.costello · #4 04/08/10, 07:39 PM

This is what we're so excited about here in Florida; beautiful, cleared horse farms that sold in 2005 for $400k are well within our reach at $210 !!

sgl42 · #5 04/09/10, 01:03 AM

yes, the housing bust has been amazingly destructive to property values in many places. if the house was in michigan, where you currently are, it may be in large part due to the auto industry suffering for the last couple decades.

in some cases in other areas, the decline in value is due to the property not being cared for, either because the owner doesn't have the excess cash, or because after being foreclosed on, no one is around and the pipes freeze and burst and damage everything, or vandals come and strip the house.

there's also likely a few cases of fraud, since many of the foreclosing banks are too remote to manage the selling effectively, they rely on local real estate agents, who may not always be honest. i've read of homes in florida being listed in the wrong city, such that MLS searches don't find them, and after months of "no bids, no showings", the price is drastically lowered then sold to a friend. there's also "jim the realtor" in california who does youtube videos from the frontlines of the housing bust in CA, who recently did a video showing a house that sold 30% below other foreclosed houses in the same neighborhood, and hinting that it sure looks like fraud of one sort or another.

and i don't think it's over yet (emphasis added to highlight the expected 6x increase in foreclosures):

Quote:

http://www.calculatedriskblog.com/20...eclosures.html

Report: BofA to increase Foreclosures significantly in 2010

by CalculatedRisk on 4/07/2010 09:42:00 PM

Irvine Renter at the Irvine Housing Blog writes: Bank of America to Increase Foreclosure Rate by 600% in 2010
[Irvine Renter] attended a local Building Industry Association conference on Friday 26 March 2010. The west coast manager of real estate owned, Senior Vice President Ken Gaitan, stated that Bank of America, which currently forecloses on 7,500 homes a month nationally, will increase that number to 45,000 homes per month by December of 2010.

After his surprising statement, two questioners from the audience asked questions to verify the numbers.

Bank of America is projecting a 600% increase in its already large number of monthly foreclosures.

This isn't unsubstantiated rumor; this comes straight from one of the most powerful men in Bank of America's OREO department (yes, that really is what they call it). It appears they have too many properties already.
CR Note: I tried to verify these numbers with BofA without success. Irvine Renter clarified this for me today. Apparently Gaitan said that Bank of America anticipates the peak of foreclosure activity will occur in December 2010 and will top out at 45,000 units that month. Apparently BofA believes foreclosure activity will trend down in 2011. According to Irvine Renter, Gaitan said BofA expects about 300,000 total foreclosures in 2010. That is a significant increase from the current 7,500 per month pace.

Once again, BofA's media department told me they'd get back to me - but no word so far - so there numbers have not been verified.

CR note: OREO stands for "Other Real Estate Owned"

you might also want to see:
Report: Distressed Home Sales Increasing

--sgl

michiganfarmer · #6 04/09/10, 05:07 AM

Quote:

Originally Posted by ronbre

a home that we nearly bought several years ago..next door to my sisters, glad we never bought it..but it was selling then for around $200,000. Well it has bought and sold a few times since then, that was in the 70's...

it just SOLD for $26,000. It is a huge wonderful home with great features, lots of land and even a few barns and it is in a small town..

$26,000 !!!!!!!!!!!!!!!!!!!!!!!!!!!!! I wanted to cry !!!!!

that is what happens around here with all the darn forclosures !!!!

you should have grabbed it.

I think land and home prices are just getting back to where they belong. I dont think they lost value. I think they were way over priced

brosil · #7 04/09/10, 07:16 AM

I spend time on other sites that deal with finance stuff. The posters on those sites seem to think real estate may drop another 40% by about 2014. I don't know if that includes farm land, maybe just town houses.

ronbre · #8 04/09/10, 07:36 AM

had i known it was being sold for that i might have..I know you are close by Michiganfarmer..it was in Manton, just E of state street...behind my sisters home.

She didn't even know it was going for that price or she might have bought it herself.

she didn't find out until after the sale that it had gone so low..last time it sold was for well over $200K..but that was several years ago.

It was beautifully maintained but an older home with 5 bedrooms and 3 baths..i know, cause i've been in it several times and nearly bought it when we got married cause my mom lived in the house where my sister is now.

wanted it to be close to her..but got a better deal on the home we bought..$8K in 1971

ronbre · #9 04/09/10, 07:38 AM

my other sister's daughter bought a home on 5 acres in Cadillac 2 years ago for $36K..in perfect condition too..but no outbuildings..this was by far a better quality home..

yup it is the auto industry boom that caused it here..but also the drop in housing values that is all over the country

our home itself has dropped value from well over $200K to about $60K now according to our taxes

o&itw · #10 04/09/10, 08:51 AM

Quote:

Originally Posted by ronbre

my other sister's daughter bought a home on 5 acres in Cadillac 2 years ago for $36K..in perfect condition too..but no outbuildings..this was by far a better quality home..

yup it is the auto industry boom that caused it here..but also the drop in housing values that is all over the country

our home itself has dropped value from well over $200K to about $60K now according to our taxes

They actually lowered your taxes?!!!....Here no one's taxes get automatically lowered........ one has to pay for an appraisal and then push it with the country. The appraisal cost about $350.

geo in mi · #11 04/09/10, 09:07 AM

"They actually lowered your taxes?!!!...."

But ask us about our 'rubbleized' roads and our 'no snow plowing on the weekends', and our ditches filling in.....no sheriff patrols, no new library books, and on and on.....

geo

hippygirl · #12 04/09/10, 09:19 AM

Homes here (east central AL/west central GA) are STILL starting around 100K+ and that's in town w/o any acreage...and that's for a crackerbox "cookie cutter" tract house in one of the MANY new "neighborhoods" that are springing up just about everywhere there's a strip of undeveloped land.

Same house outside town with a few acres and the price more than doubles.

Utterly amazing!

Thank God that we bought our land when and WHERE we did...right next to my parents 500 acres way out in the sticks!

Beeman · #13 04/09/10, 09:53 AM

Michigan is America's glimpse of the future, but few will look as it's unpleasnt and surely can't happen to them.

Keep buying Chinese junk and speed up the process.

mandidawn · #14 04/09/10, 12:01 PM

Gosh! I've been looking for property/home up north for years!! I would of jumped on that. If anyone in norther lower michigan comes across a deal like that, pm me!!

It's hard to find the deals, because I live down in Monroe, and it seems like all the good deals are known by locals only. Down here, the land/housing prices are still higher than I can afford. Well, that and my house can't sell for what it's worth.

sirquack · #15 04/09/10, 02:59 PM

I am glad someone talked about the topic I would like addressed. Here in Des Moines, the home prices have been dropping for actual sales, but the assessed value of homes continues to increase. I have successfully fought my last two assessments (every other year assessments) by simply showing the home sale prices of homes in my area during the rough time that the assessment represents.
This after each assessment goes up even with the home prices continuing to go down. I plan to continue to fight every assessment every time until they figure out that not everyone will "take it in the shorts" just because they are short on tax dollars due to their horrible spending habits.

I would suggest everyone do some research on home prices in your area and fight the assessment at every opportunity.

Ron

Beeman · #16 04/09/10, 03:18 PM

Quote:

Originally Posted by sirquack

I am glad someone talked about the topic I would like addressed. Here in Des Moines, the home prices have been dropping for actual sales, but the assessed value of homes continues to increase. I have successfully fought my last two assessments (every other year assessments) by simply showing the home sale prices of homes in my area during the rough time that the assessment represents.
This after each assessment goes up even with the home prices continuing to go down. I plan to continue to fight every assessment every time until they figure out that not everyone will "take it in the shorts" just because they are short on tax dollars due to their horrible spending habits.

I would suggest everyone do some research on home prices in your area and fight the assessment at every opportunity.

Ron

Ok, so they drop your assesment and raise the taxes still the same bill. It's still going to cost the same to run your local gov't no matter what the assesment is. Their horrible spending habits are usually your neighbors and relatives salaries and the services you and they use.