West Orange Comp Killer!
It was purchased in December of 2005 for $699,000. It was recently listed for sale, and sold:
GSMLS# 2441306
List Date: 09/05/07
Original List Price: $699,000
Reduced to: $649,000
Sale Date: 11/15/07
Sale Price: $655,000
In Summary:
Purchased: 12/23/2005
Purchase Price: $699,000
Sold: 11/15/2007
Sale Price: $655,000
Commission: 5%
Post commission: $623,000
Estimated Loss ~11% (nominal)
Morris Plains Comp Killer!
It was purchased in February of 2005 for $660,000. It was recently listed for sale, and sold:
GSMLS# 2376549
List Date: 02/18/2007
Original List Price: $739,000
Reduced to: $665,000
Sale Date: 11/15/07
Sale Price: $630,190
In Summary:
Purchased: 2/18/2005
Purchase Price: $660,000
Sold: 11/15/2007
Sale Price: $630,190
Commission: 5%
Post commission: $599,000
Estimated Loss ~9% (nominal)
* Note: Not all properties featured in Comp Killer would be used as comps in the case of a formal appraisal. Short-sales and foreclosures, because of their pressured nature, are not typically used as comp sales for an appraisal. In typical mark-to-make believe fashion, appraisers don’t consider ‘forced’ sales to be representative of the market.
What kind of house is that supposed to be? Upwardly mobile cape?
Morris Plains Comp Killer
Purchased: 2/18/2005
Purchase Price: $660,000
MLS# 2376549 – 9 Parker
Sale Date: 11/15/2007
Sale Price: $630,190 (Reduced from $739,000)
Hillsdale
SLD 63 WESTDALE DR $1,150,000 5/19/2006
ACT 63 WESTDALE DR $1,129,000 11/15/2007
Englewood Cliffs
SLD 55 ELM ST $865,000 10/28/2005
ACT 55 ELM ST $1,025,000 4/19/2006
Seven price reductions and a few extensions
PCH 55 ELM ST $849,000 11/15/2007
From Bloomberg:
Freddie Mac Joins Fannie in Raising Mortgage Fees
Freddie Mac, the second-largest source of money for U.S. home loans, joined Fannie Mae in introducing or raising fees on mortgages the company buys from lenders because of the increased risks in slumping housing and mortgage markets.
Freddie Mac is primarily setting new fees for mortgages made to borrowers with credit scores below 680, whose loans exceed 70 percent of their property’s value. The new charges range from 0.75 percent to 2 percent depending on credit scores, according to a bulletin by the company. The changes take effect March 1.
…
Freddie Mac’s changes are “in response to continuing volatility and turmoil in the mortgage market, including the deteriorating performance of higher-risk mortgage products,” the McLean, Virginia-based company said in a letter on its Web site.
It also said mortgages from markets with falling prices must now have loan-to-value ratios at least five percentage points below normal requirements for mortgages with the same attributes.
…
Under Freddie Mac’s new fee system, a lender selling a mortgage to the company from a borrower with a credit score of 675 who made less than a 30 percent down payment for the purchase of a $300,000 home will forfeit $2,250 in charges. The lender, which would typically make less than $3,000 on the sale, could get paid more by raising the interest rate on the loan.
Many residents in the US state of Michigan are struggling to make ends meet as the economy slows.
http://news.bbc.co.uk/player/nol/newsid_7090000/newsid_7096500/7096597.stm?bw=bb&mp=wm&asb=1&news=1
Some news from Jersey City based Franklin Credit..
Franklin Credit Management to Delay Filing of Third Quarter 2007 Operating Results
Franklin Credit Management Corporation , a specialty consumer finance company primarily engaged in the acquisition, origination, servicing and resolution of performing, reperforming and nonperforming residential mortgage loans, today announced a delay in the reporting of its operating results for the third quarter and nine months of 2007. Franklin also announced the suspension of funding for new loan acquisition and origination activities by its lead lender bank (the “bank”), for the period of such delay. The bank is under no obligation to resume funding the Company’s loan originations and acquisitions after operating results are reported. As a result, the Company announced that it has suspended the acquisition and origination of new loans.
Due to the rapidly deteriorating real estate and mortgage origination credit market and resulting industry-wide increase in delinquencies involving mortgages originated in the years 2005 and 2006, particularly for second-lien loans, Franklin is in the process of reviewing and assessing the reserves for its portfolio of acquired loans, particularly second-lien mortgage loans acquired in those years. The Company currently anticipates that it will complete its review, release its quarterly results and file its Form 10-Q for the third quarter prior to December 31, 2007.
The Company expects that this credit review will result in a substantial increase in the provision for loan losses for the quarter ended September 30, 2007 due to increased delinquencies and the expectation of increased defaults and ultimate losses inherent in the portfolio as of September 30, 2007, particularly for its portfolio of second-lien loans. The Company expects that this increase will result in substantial negative stockholder’s equity as of September 30, 2007.
Vernon Comp Killer
19 Valley View, Vernon NJ
Prior Purchase: 06/28/04
Purchase Price: $280,000
Currently active, listed:
MLS# 2461900
List Price: $269,900 (Reduced from $369,900)
Both of the houses are worth no more than $300K, so suckers overpaid by $300K+
“Exactly a year ago, I was summoned to ABN Amro Holding NV’s London headquarters for a dressing-down. I had sinned by comparing the bank’s glossy new derivatives, dubbed constant proportion debt obligations, to a Nigerian banking scam.”
“One of the ABN CPDOs, called Chess III, went on sale in July priced at 100 percent of face value with that golden Aaa rating. This week, it was worth about 41.5 percent of face value, according to ABN prices.”
“Put another way, the investors who bought the 100 million euros ($147 million) of notes lost 58.5 million euros in just four months. That beats any Nigerian scam.”
http://www.bloomberg.com/apps/news?pid=20601039&sid=axp4iWGbwMb4&refer=home
As bi would say, who cares if you loose couple of 100 grand. The pride of home ownership is worth any cost !
Grim A comp in Vernon!As our market fortells
the trends working towards NYC, this is indicative of downturns coming for the metro area.Believe me there are more I do not have info to post.Lets face it, few are interested.But in context as we go so do the rest, maybe more acute ,it is still a good bartometer of things to come.
Hat tip to the person who posted this link over at Calculated Risk.
Insight into the mind of the NAR Chief Economist (Larry Yun)
http://www.realtor.org/Research.nsf/files/07AnnualResForum.pdf/$FILE/07AnnualResForum.pdf
13
lol
my favorite slide is “Wichita Strong Job Growth – Assures Good Market”
interesting read from downstairs:
http://bigpicture.typepad.com/comments/2007/11/why-thain-over-.html
chicagofinance Says:
November 15th, 2007 at 5:51 pm
I think that basically the vibe on this blog is that no one gives a $hit. We have a shared interest and also an appreciation for stimulating discourse.
Very succintly said. And so true. I’d really like to have a drinks and dinner conversation with so many fellow posters on this blog…… there is so much to learn, share, respect and admire. It’s been an unbelievable education the past 2 years. There is the occasional arrogant prick, but life is too short to exchange banter with them.
what dream said…
#13 What a bunch of crock !.
My knows more about the economy that this quack. He makes David Liareah, Richard and bi look intelligent.
Bi, you ought to apply for the job of the Chief bull-shitter at the NAR. Atleast some of your posts crack me up.
Here’s a MarketWatch link to Chameleon Yun saying something at the conference about first time buyers…they are declining pretty fast.
http://tinyurl.com/2u57b2
Probable flipper under water in Oradell
NJMLS 2729462
Purchased Aug 2006 $560,000
Now listed at $539,000
Went to see it at an open house last year before it sold. Pretty roomy for a Cape, but absolutely no backyard. Looks like they did some work in the master bedroom and bath, other than that pretty much the same old house.
David Liereah & Lier Yun two sides of the same coin.
We have a shared interest and also an appreciation for stimulating discourse.
Aint that the truth colossal-cranium!
Anyone have a vision yet of what a comp killer in February will look like? Damn. It’s going to be rough.
I surmise that’s when we’ll see comp killer regularly selling for -20%.
Also … ‘upwardly mobile cape’ is a great phrase.
so when was the last meet up? another one in the near future??? i imagine it would an interesting evening of discussion
you have got to be kidding me with the Liar Yun slide deck, I thought it was a joke at first. I can’t believe it’s real.
I would’ve loved to hear what he actually said to support his slide on Wichita job growth. It’s one thing to cheerlead, it’s another to manipulate statistics. There had to be some people in the audience that just laughed out loud.
grim are you playing with the format or is my connection messed up?
Both of the houses are worth no more than $300K, so suckers overpaid by $300K+
The 2nd house is in Morris Plains.
Storage sheds go for $300k in that town.
#27 Not nay more they don’t.