This two-bedroom house at 1857 Prospect St. in Sarasota, bought for $453,900 in 2007, was just resold for $523,900. But the deal was a deed in lieu of foreclosure and no money changed hands. So why would a bank pay nearly $3,700 in stamp taxes?
The Herald Tribune has the story:
C&M had defaulted on a $408,500 mortgage, and Bank of Commerce was claiming its collateral. No money actually changed hands, according to Charles Murphy, the bank's chief executive.
Then why did the bank bother paying nearly $3,700 in documentary stamp taxes to make it look like the property had been sold for $523,900?
...
"The loan balance is the main consideration," Dart said. "That and any unpaid interest."
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Any questions?
18 comments:
Gotta find that greater fool!
This is more intelligent housing behavior than many exhibits on this board.
Rob,
Have you checked your email?
Excellent find. I'm trying to find the real costs of the WAV right now.
The taxable value was only 100K in 2000. Even then the bubble had started. Right now a realistic price is sub 80K. Just ~30 miles south in my neck of the woods you can get a nice 3/2/2 for 80K. If you are handy and don't mind work 50-60K.
And I have coworkers who think the market is going to bounce back...
Chris
Don't worry, CR says that when (if??) the FED stops buying MBS, mortgage rates will be about unchanged so I am sure this fine home will come all the way back.
Some here might be interested in this . . . which I found through a google ad.
http://cpsnotes.com/interestrates.php
The stock (CPSS) is trading at about 1/2 book value.
"I am such a little ray of sunshine sometimes. Sorry. Thing is we've had everything in housing happen save one; capitulation. We need a capitulation event. Best for all would be an inventory explosion and parallel price implosion. Won't happen. This is all about the banks and the banks could not stand price discovery."
Rob,
I hardly ever cruise the comments anymore at CR but this jumped out at me.
2 events in two days.
Yesterday I looked at a house. While looking a broker showed up. He had someone looking. After we were done we all started talking. The broker walks away and comes back with a stack of paper. Single space,neatly typed adresses. 30? to a page. A stack of,75-100 pages? I can't be sure. He wouldn't tell me a firm number except to say "A lot".
These are foreclosed homes. That have NEVER been listed for sale. Charlotte,southern Sarasota and just the north edge of Lee Counties.
He mentioned he was not affialiated with anyone but had been doing foreclosures only for the last 20+ years.
This morning my coworkers wife,a realtor for 25+ years,called and said she had a meeting Wednesday with BofA,Suntrust and one other bank. 4K homes coming from three banks after the first. She mentioned one other county added to the above list.
I asked if she knew the broker I met and she did. She said that her list was entirely seperate from his.
Yowsa.
What did the broker and the agent say...
Wait till the middle of next year to buy. Better yet Christmas 2010.
I think we will see some banks getting serious next year.
The broker has moved ~175 fc's in the last year. The guy looking? Owns ~50 rentals. He flips homes for "beer money". The home I looked at had potential but it was way to much work for me. Almost 3K sq/ft. I want a garage that big,not a home. Rental guy was going to offer 30K cash.
It needs about 15K to be FHA/VA sellable. Three offers at 40K fell through when people couldn't get financed...
Both guys drove unassuming,older,well used pickups. :).
Almost forgot. Some of these homes have been empty 2+ years. The lists don't include anything from the last few months.
Chris
One last thing...
All three agreed we are years away from any kind of bottom...
Chris
Florida -- leading the nation in real estate fraud for over 100 years. Care to buy some swamp land?
Wait till the middle of next year to buy. Better yet Christmas 2010.
I think we will see some banks getting serious next year.
Word.
The "game" has devolved to one of asymetrical information. We know better this time.
Prosperity returns to the U.S. middle class when the Boomers are gone from leadership positions.
What a disgrace they've been, from top to bottom.
More homes are poised to hit the market
A supply of 1.7 million homes headed for sale because of foreclosure or delinquency looms over the nation's housing market, which could dampen progress toward recovery should the Obama administration fail in its efforts to aid struggling homeowners, researchers said.
A variety of measures to keep discounted bank-owned properties off the market -- including moratoriums on foreclosures by major lenders and federal initiatives aimed at keeping people in their homes with mortgage payments they can afford -- has helped increase a backlog of so-called shadow inventory 55% in the year ended Sept. 30.
http://tinyurl.com/yf44tgd
Dawg, La Loma was pulled.
Cobradriver,
30K for 3000sf? $10psf?!?
Geez, and here I was just reading JtR's blog and (like him) was flabbergasted at the ridiculous prices people have been paying just this month in North County San Diego.
Twilight zone doesn't begin to describe it.
The Walrus has once again let his blog go to pot.
Time to close up shop here, you bloated pinniped.
Didn't it just snow at Wrightwood? RD is probably practicing his wedln at Mountain High.
Merry Christmas.
Merry Christmas, Rob. And here's to 2010. Let's all hope it's better than the past two suck-ass years.
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