From CNBC:
Rebound In Housing Hampered By Slowdown in ‘Short Sales’
When Vasco and Mrjama Lukic’s American housing dream turned into a nightmare, they managed to escape through a long and complicated process known as a “short sale.”
The Yugoslavian-born couple and their sons built a home in West Orange, N.J., where they hoped to settle and enjoy the fruits of many hard hours of labor.
But when their son Goren was hurt in an automobile crash two years ago, he could no longer help his parents with the mortgage payments on the house. The couple quickly got behind on their mortgage—more than a year at one point.
With no other options, they turned to a short sale—in which the lender agrees to take less than the value of the mortgage to avoid the more onerous foreclosure process. For the Lukics, it was a long and emotional road that finally ended on Thursday, when they sold their home for less than half the original asking price.
“I couldn’t work anymore. They had to do everything on their own and they were struggling,” Goren Lukic said as he drove his parents to the closing on their home. “We called up the bank and said, ‘We can’t afford the house anymore, can you guys take it?’ They were like, ‘Why not?'”
Short sales, which have taken off in the past year, have become a way out for some Americans in trouble with their mortgage. But just as the concept is gaining favor, it is already running into problems—another reason why the housing recovery is taking longer than many had hoped.
Real estate industry experts say banks are becoming more reluctant to agree to short sales, in part because the change in mark-to-market accounting rules gives them less incentive to take less than the mortgage is worth. As a result, they say, banks are holding out for what Realtors say are unrealistic offers.
“Every Realtor I talk to tells the same sort of horror story making a buy offer,” says Rick Shargo, vice president of marketing at RealtyTrac, which follows housing trends. “Interminable delays of six weeks to three months are not uncommon, or banks rejecting a 20 percent discount at short-sale only to ultimately take the property back and market it at 40 or 50 percent lower.”
For their part, bankers say prospective buyers are trying to take advantage of the situation by offering prices that are too far below market value.
…
Indeed, not all of the accounts regarding short sales are horror stories.Some, like the Lukics, were just happy to be able to be able to dump the property and get on with their lives. After putting the house on the market initially at a price that would help them recoup their investment, the family finally realized they needed to change their thinking.
“They weren’t able to sell it because they wanted too much money for it,” said Joel Zeichner, an agent with Jordan Baris Realtors in West Orange, which represented the family. “We convinced them they needed to come up with a more aggressive price.”
last
“They weren’t able to sell it because they wanted too much money for it,” said Joel Zeichner
I’ll say!
The Lukics originally listed their home on Northfield Ave for $799,000.
It eventually went UC as a short sale…
…at $425,000.
After putting the house on the market initially at a price that would help them recoup their investment,
Impossible, they paid $175k for the property in 2000 and renovated. Based on the pictures in the prior listings, the remodel work was probably less than $300,000 (and I’m being very generous).
I’d love to see the mortgage history on this one.
HP 12c emulator for iPhone makes me want to ditch the Blackberry. Commodore 64 emulator is just icing on the cake.
gotta get Jumpman for that
“But when their son Goren was hurt in an automobile crash two years ago, he could no longer help his parents with the mortgage payments on the house. The couple quickly got behind on their mortgage—more than a year at one point.”
This makes me wonder. A family could prior to the boom rely on taking equity out of a home for medical emergencies, be it due to lack of insurance or denied claims. Being that the second mortgage became so widespread, how many families that have hardship due to medical costs have little to fall back on?
I know this has nothing to do with anything but you have to see this…
http://www.nypost.com/seven/04242009/news/nationalnews/yogas_granny_swami_166011.htm
Wow.. MJ dead too, eh? That’s gonna be some carpool up to heaven.
Sure it has something to do with economics.
She’s envisioning equilibrium pricing to achieve that pose.
Om… Om… Om…
Wow, I was just looking at that on the iP
I think I’m in luuuuv. It’s only 299. I’m still a cheap date after all these years.
Before its too late.
Write our POS senators and tell them NO California bailout.
http://menendez.senate.gov/contact/contact.cfm
Would love to see more threads on favorite iP apps to download.
they come in three’s:
Ed McMahon
Farrah Fawcett
Michael Jackson
MJ dead too, eh?
Wow, I didn’t see that coming. Trifecta complete.
If and when the banks get around to pursuing delinquency judgments for the deficits that inevitably arrise after the property does not bring enough to pay off the note (plus fees and expenses), I hope every once-was homemowner who had a short sale get away (or be declined) familiarizes themselves with the lender’s Duty to Mitigate Damages. The lender can’t sue for 50% after the REO closes when they turned down 75% before incurring the costs of foreclosing.
saw this posted…
Q: What’s the difference between Michael Jackson and a grocery bag?
A: One is white, made out of plastic, and dangerous for kids to play with, and the other you carry your groceries in…
chifi:
Your black box is good. Jackson died today
My wife and I were down in Burlington today and decided to stop by Ryan Homes new development Country Woods.
No sign of any activity at all.
And this sign outside the sales office. I don’t recall sales offices ever shutting down during the boom due to “overload” of work.
http://i776.photobucket.com/albums/yy44/syncmasterp/ryan1.jpg
New paradigm in business, doing so well you close your doors.
I hear all the cool companies are doing it.
apparently that video spoof of pirate-hunting cruises wasn’t a spoof after all (or the spoofhunters got punked).
http://www.ananova.com/news/story/sm_3374702.html
Reason I still think it is a spoof: Participants may still be subject to prosecution, either in their home countries (yes, you can be prosecuted for extraterritorial crimes) or later, they could be extradited to Somalia.
I have two rental properties where the mortgage exceeds market value by about $100,000 right now. I plan to upgrade my personal residence in 2 years, after which I will not care terribly about taking a credit hit.
Is there a strategy to protect my other assets (which exceed the value of the rental properties) from being accessed by the lenders if in 2 years I will stop paying the mortgage and taxes, pocket the monthly rent, and then go into foreclosure? I’m thinking time is on my side if I do things now.
I figure I’ll use my non-qualified liquid assets as a down payment, so the only assets I would keep are my whole life insurance cash value and IRA money, which are creditor protected.
I just wonder if the lender (Countrywide aka BofA) will be able to put a lien on my primary for the deficiency.
If not, I’ll just eat the $200,000 projected loss – assuming values continue to decline. Or I’ll hold onto them. But if there’s a legal means to avoid suffering the loss, then I’m all for it.
Any help would be appreciated.
[21] Noah
You are trolling for free legal advice. This is an area where you get what you pay for.
If you are attending the GTG, seek out Nom Deplume, but don’t expect a lot of free legal advice.
Anyone understand the headline of the CNBC piece?
Rebound In Housing Hampered By Slowdown in ‘Short Sales’
Perhaps an increase in accepted short sales would cause an increase (a rebound) in home sales, but it sure as heck wouldn’t case a rebound of home prices. More likely to have the opposite effect.
There were two bubbles, one in home sales, and another one in home prices. The first one peaked earlier than the second. Expect there to be two bottoms as well, one in volume and one in price. They didn’t peak at the same time, they won’t bottom at the same time either.
Noah,
Sell your properties and take you loss like a man. Anything else is asking society to pay for your bad judgement.
” bankers say prospective buyers are trying to take advantage of the situation by offering prices that are too far below market value”
Gimme a fricken break. So, when price increases outpaced fundamentals, it was just fine. Now that they are reverting to mean thereis a problem? It is quite pathetic, actually.
This website kicks holy ass. You boys rule.
Moose,
a large % of those mortgages are probably nonrecourse loans. banks cant do anything except hit their credit.
SHore
” bankers say prospective buyers are trying to take advantage of the situation by offering prices that are too far below market value”
This is what any savy businessman would do! and the banks now complain that they might get their feet help to the coals for a change????
I am dieing to see some foreclose home owners try the french method of kidnapping some of these idiots for a few days before letting them go.
landshark 20
extraterrestrial crimes????? will the martian deport me or can i request asylum?
”bankers say prospective buyers are trying to take advantage of the situation by offering prices that are too far below market value”
Wahhhh… wahhh…. fuck* you!
“will the martian deport me”
Not before the anal probe.
Stu,
ask john how it worked out when he went on that blind date to Olympus Mons
Well John?
Frank and Bi,
Will we see you two clowns at the meet and greet tomorrow evening?
Also, I think an evening roll call is in order.
Gator and I will most certainly be there. It’s virtually in our backyard and we arranged for the little gator to hang at a friends house.
Hey, I say Johns car in the parkinglot today…
http://www.fquick.com/images/articles/19731.jpg
Look at the price reductions on these Edsels, and they are not making any more of them.
http://www.edselworld.com/Edsel.htm
Can’t make the GTG tomorrow night. Football early Sat AM.
Somebody chug a Knob Creek for me.
What was Michael Jackson’s Favorite University?
Brigham Young
Hahaha, Clot said “chug a Knob”
This is it!!!!
This is what John banged Wilt Chamberlain on the hood of, or was it the other way around I forget?
http://tinyurl.com/nsf8q2
Future GTG location.
http://www.zeppelinhall.com/
Tonight my childhood died
RIP Michael Jackson…
Eileen #42,
I feel the same. My favorite childhood birthday gift was a VCR of the Thriller video. I was 9.
Sorry for changing it up….my new favorite baseball player…..
http://scores.espn.go.com/mlb/players/profile?playerId=30105
“I feel the same. My favorite childhood birthday gift was a VCR of the Thriller video. I was 9.”
The fact that you were 9 helps make it understandable. That said, by 1980 he was not worth paying attention to.
This was one seriously disturbed, sad, and pitiful character. I wish his family strength with dealing with their loss but do we need to hear more fawning over him and his insipid yowling?
Heck, the Thriller video was the brainchild and vision or Landau, not the bleached vampire-esque clown who had sleepovers with little boys.
Clotpoll says:
June 24, 2009 at 9:37 am
tosh (39)-
I’ll know the old NYC is back when Robin Byrd is at Show World and Al Goldstein & Crazy George are on public access TV.
clot – i got to NYC area around 2000 and would be partying at my buddies place and late night we’d be watching channel TV and then, on channel 35, NUDITY! so random.
it was transfixing to drunk 20-somethings who were eating pizza at 3 am. ahhhhh, summer nights
Chifi,
Oy! Someone for whom we can all root.
From Reuters:
God help us. We turn away highly-educated people, often right after they graduate from U.S. universities and B.O. is looking for a way to legalize 12 million illegals?
bama pledges push this year for immigration reform
Thu, Jun 25 18:40 PM EDT
By Doug Palmer
WASHINGTON (Reuters) – President Barack Obama tapped a top Cabinet official on Thursday to work with Congress to speed immigration reform as senators warned another failed effort could doom chances for a generation.
“Despite our inability to get this passed over the last several years, the American people still want to see a solution,” Obama told reporters after meeting with Democratic and Republican lawmakers.
Obama said he had asked Homeland Security Secretary Janet Napolitano to meet regularly with lawmakers to systematically work through a number of controversial issues, such as how to handle the 12 million illegal immigrants already in the United States and how to prevent future illegal immigration.
snip
Sastry,
There is something very wrong with a situation where our elected officials bend ober backwards to try and appease 12 million illegal aliens who all broke federal law and yet seems to work its @$$ off to prevent educated and skilled people who follow the rules from entering this country to work and contribute in high-value industries.
Are we really that friggen stupid?
Yes.
Shore 49 YES.
Stu says:
June 25, 2009 at 10:14 pm
“Future GTG location.
http://www.zeppelinhall.com/”
Awesome. What are the odds of them filling that place nightly?
And am I the only one slightly put off by the zeppellin obsession so close to the site of the Hindenburg disaster?
Clot sorry to hear you can’t make it to the GTG. Guess I’ll just have to hang with Gary & get drunk. Staying close by with relatives never make it back to Vernon!
Vernon? Is that near Vern?
Vern?
Oh, I remember. That’s where those two kids whacked a pizza delivery guy just to watch him croak.
Shore #49,
You are, of course, free to focus on his personal issues. To me, MJ is about his music. His pedophilia and self-image issues, disturbing as they are, do not detract from the quality of his music. JMHO.
Mike-
Just watch out for when Gary starts gobbling the red pills tomorrow night. And don’t let him give you any.
Clot yes, they were from my lake.
MJ was a cipher. His most successful persona was an invention of Quincy Jones.
In heavens name why not. I prefer the blue ones , no complaints from the blue ones, now where did I hear that.
mike (58)-
Tough neighborhood.
Clot ever hear anything from that gal doing the research/appraisal study in Sussex. Dieing to get a peak at it.
Clot 56 no it is not, leave keys in the car open when you go to bed for next day. Just some really bad outliers.
49: Sounds like we’ll have 12 million new Treasury Dept prospects.
21: What state are the properties in?
24: So there’s no misunderstanding, I’m not advocating anyone walk away. However, it’s the system and if it’s legal and bailouts are flying, build your ark Noah.
relo 65 I agree.
#49 Shore Guy,
Yes, we are this stupid.
Safe you in tomorrow?
Maybe. Are you Mike?
Going to try, bring nephew to Nutley , been by me this week. Then go & crash at SIL’s house couple of miles away.
Sounds like a plan.
“. To me, MJ is about his music… the quality of his music”
His music was over-produced, drum-machined, and formula-driven. There are many artists whom I do not like but I respect them for their creativity. Jackson was a puppet, and I seriously doubt anyone will be singing his music on the Moonwalk one morning 30 years from now.
His music may have been satisfying in a sense, but it was a transitory satisfaction at best (much like a burp may be satisfying) and it dpes not deserve the orgy of praise and examination we will no doubt havethrust upon us this week, and gosh knows howlong after that.
Heck, we are all entitled to our own buffoons. I, after all, am an Ozzy fan, so I know of pathetic characters. That said, when they go, let’s let them go.
By the way First 3 Bedroom for under 100k hit the GSMLS in Vernon today , tick tick tick. Mind you I bought a 4bd with 2 full bathes with 3200 in taxes in 98.
And by moonwalk, I mean that structure between Jackson Square and the Mississippi River, not the clown’s little dance step.
44: MJ’s favorite?
http://en.wikipedia.org/wiki/Pete_LaCock
Mike,
Whatever happened to Great Gorge?
Shore want a summer place check Vernon out.
I was thinking the same thing a moment ago. If there were a decent place on a nice lake with some acreage, it might be an interesting prospect.
Vernon Valley Great Gorge , now Mountain Creek ski area & in summer water park.
76: It’s a water park now. Kids love it but the previously referenced “Great Adventure” crowd (only smaller) took some getting used to.
The thing that concerns me is the prospects of serious tax increases necessitated by Trenton’s mismanagement of all things fiscal. Thank goodness for Albany, it is the only crew capable of making trenton looking like they have their act together.
Shore no sweat get my email from Grim , would be happy to show you around. I know where & where not to buy. Kettle has had the tour already.
I remember the bunnies.
Mike,
Thanks. I will plan to e-mail you. I can’t tonight. Thanks again.
relo 79 can go for free & I do not, you don’t want to take your kids there. The sking time of year is fine.
Shore taxes on the high end under 8. but lake front with a lot of land , well that could be a problem. Get as many houses around the lake as you can you know. But that depends on your budget. By the way Play Boy Club is a run down dump.
Does it still exist as such? Last time I was there I think Ford was president, or was it Nixon?
I dislocated my shoulder at that stupid water park.
Is vernon the town that sends its kids to high school in NY?
Given the below, what is “below market value” when market value is over 50% off?
======
For the Lukics, it was a long and emotional road that finally ended on Thursday, when they sold their home for less than half the original asking price.
…
For their part, bankers say prospective buyers are trying to take advantage of the situation by offering prices that are too far below market value.
Immigration reform containing amnesty will be the spark that sets off the powder keg for most of the south. Then let the games begin.
I cant wait to see the Liberals running to O for help when a crowd of angry, well armed Texans start their geurilla war.
.4 acre, taxes under 4k, Saddle River address…$749,000.
mls 2927189
Hey, have you seen this news article?
New details about Michael Jackson’s Death Emerge
I was wondering if you were going to blog about this…
92 the link is not linking
Hi, Excellent post, some really useful foreclosure information here.
Thanks
Cool post, just subscribed.