Thursday, September 21, 2006

REO In Novato

Bank owned sold in as-is condition.Single level- living rm. W/cathedral ceilings, kitchen w/breakfast area. Family rm. W/fireplace. Formal dining. Master suite w/patio access. Great patio area and dark bottom pool. Rv/boat parking along side of house. Close to shopping, transportation& schools.
This 3 br 2 ba house is in Novato. Built in 1974, 1712 sq ft. No significant upgrades that I can see. Current asking price is $649,900.

Sales history:
02/22/2002: $440,500
02/26/1998: $309,000
The loan history summary paints a pretty clear and sad picture -- the last owners of this house HELOCed out about $160,000 in equity and moved from a fixed rate conventional loan into a variable rate loan. One can only surmise that when their variable rate reset they could no longer make the payments and so they lost the house to the bank in foreclosure. The bank assumed it with a value of $585,650.

Yes, it happens even in Marin.

Sorry about not being able to find a picture of the exterior of this house.

7 comments:

Marinite said...

econ_101 -

I've seen it. I didn't want to blog it as that guy's been through enough. At least he serves as a warning and as an example of how ridiculously lax lending standards (or the lack thereof) is a bad thing. At least he is young and will be able to recover.

Anonymous said...

I still miss the Satan Chicken Coo Coo Girl...

I'm sure she could bring some clarity to this situation.

Sorry for the old reference, but I think Warren and Coo Coo should bravely post again.

Put their mouths where their money is.

Marinite... this guy's been through enough?
He is a greedy jerk who is playing the system for all it's worth.

Even now he is playing on your sympathy.
Oh he's young and will be able to recover.
Give me a break.

Anonymous said...

Yup, we're going to be seeing a lot of this over the next 18 months or so. And who in their right mind thinks a 24 yr old kid can afford 4 (or was it 5?) mortgages? He probably read Lereah's book and took its advice. The mortgage broker got his commission and looked the other way when the kid obviously overstated his income. It's all pretty gross, but I can't say I have too much sympathy for those who made such a Faustian bargain.

Anonymous said...

On a related topic, I find it interesting and timely that there is an article on sfgate.com today about foreclosures, etc. Could it be that we're actually to the point where the media will stop debating whether or not there's a bubble?...

Anonymous said...

i'm sure carol lloyd will be fine,she undoubtedly used cutting edge financing,and the advice of experts like david lereah.if worst comes to worst some kindly banker will give her a below market rate loan in recognition of her unselfish public service over the years.as far as that sac blog,the man involved admits not only to mortgage fraud,but conspiracy to commit it.a few years in club fed are appropriate,and would give him a chance for further education.and the mortgage broker belongs there as well.

Anonymous said...

Foreclosure is treated by the IRS as "forgiveness of debt/taxable income" on the balance they owed the bank, is it not?

At least that's what they told me when I was upside down in the 1996 crash and considering bailing.

Anonymous said...

Speaking as an industry insider (the law enforcement industry that is), that Sacramento kid pretty much gift-wrapped his own prosecution if the US attorney in Sac. wants to make an example of him. As far as I know mortgage fraud is not the flavor of the month at the Justice Department but if what I have been reading lately is even half true, it soon will be...