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I saw this listing today. I assume this is for people who feel insecure without a garage under them at any point.
Wednesday, November 23, 2011
Northern Virginia Bits Bucket 11/23/2011
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10 comments:
http://www.burbed.com/2011/11/19/fico-now-predicting-mortgage-walkaway-likelihood/?source=patrick.net
Fico and Strategic Default
Owe more than your house is worth? Is your credit otherwise good? Do you have few credit cards but pay them on time?
Congrats. You’re a likely candidate for strategic default, according to FICO (formerly Fair, Isaac), the company synonymous with credit scoring. And now Moody’s took a look at the mortgage market and said the most likely homeloaner to default is sitting on an upside down jumbo mortgage. Why? Because the subprime mortgages already shook out the people who couldn’t pay, the prime market has some risk of strategic default, but the Jumbo pool lost the highest quality mortgages due to refinancing. Most mortgages left didn’t refinance because they couldn’t. And this is spooking the PrimeX, the index fund of prime RMBS (Residential Mortgage Backed Securities).
Pat,
Here's a strategic default candidate for you:
Adams Morgan condo
It appears to be a cool, big condo investment property bought by a doctor on staff at the Georgetown Hospital, who probably isn't hurting for money but may be pretty badly upside down. But he bought it for $2.3 mill. in late 2006, wanted to sell it for $2.8 mill. 3 years ago, and now it's listed and active as a short for <$1.5 mill. He's not getting the homestead deduction so he's not (now) living in it, but why would anyone think buying this property to rent it would make any financial sense?
From the map, it appears to be in a very noisy area near the Madam's Organ night club. But I can't account for why the big price drop (or, why he so grossly overpaid for it in 2006). Bet there's an interesting back story there.
Ace
Anon believes there will never be a strategic defaulter in Immunington
First time buyer
http://ycharts.com/indicators/case_shiller_home_price_index_washington_dc#zoom=10
here's the raw data, now, do you think the bubble has more air to release?
pat,
You've turned the tables. After worrying this whole thing to death and placing bids over the past year or so; you bought! But, not only did you buy; you bought at the bottom of your neighborhood.
WHY would other areas of the region (that are attractive and have demand - your "immunozones") be on the precipace (sp?) of a fall? Why, why, why?
Look, get off of the Arlington train of doom; at least until there is some sign, any sign, that things will be "different". Many argued for years that the immunozones were not different and now here you are arguing that they will be different - it's just a matter of time. Do you see the irony?
http://www.washingtonpost.com/wall-street-downsized-from-largess-to-loss/2011/11/21/gIQAvXGizN_story.html
"His mood changed when he was sitting in the home office, looking at the value of his holdings.
“My Fidelity account looks like my bar tab from just a week ago,” Brady said."
http://franklymls.com/AR7712533
bought for 502K in 2005, they have been trying to sell for 369K, now it's trying for a short sale at
350K.
Now perhaps, it's not really immunington because it's south of 50, but somebody lost their 20% down and now they are trying to short it.
If the bank moves to foreclose, perhaps we will see this back on market at 320K.
http://franklymls.com/AR7630238
interesting, the owner has had it since 1996, and bought it at a cost basis of 96K.
now it's a short sale.
for $300K.
Talk about HELOC abuse.
But we know that never happens in Arlington.
http://franklymls.com/AR7725874
The couple buys in 05 for 430K, then it's just him, in 2010, and it's foreclosure in 2011.
BoNY/Mellon now is tryng to sell at 390,
looks sad really. The buyer looks like he wrecked his marriage and his deposit on this.
Ace - yep, that's right in the heart of Adams Morgan, above Left Bank (a restaurant/club formerly known as Cities in the 80's).
Fun part of town, but, yeah - plenty of noise and rat issues there.
Of course, any high-priced condo bought in the summer of 2006 is a pretty good candidate for haircut-ville.
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