Friday, February 19, 2010

Hittin' the ATM




Nice place. Been owned so long that zillow has no sales history. The tax data support this. They are paying a whopping $1492 per year in property taxes. That puts the purchase most likely in the mid 1980s for less than $100,000. Sweet deal eh? Slapping down a $600 mortgage and $80-$120 taxes for 25 years and looking at a balance of ~$25,000. And in 5 years even that car payment sized mortgage goes away. Right? Wrong. Opening bid at auction tomorrow (Feb 19th, 2010): $675,000.
Realtytrac listing.
Zillow for what it's worth(less).

What in the world were these people thinking?

5 comments:

Northern Renter said...

Murst at last!
Murst at last!
Thank God almighty, murst at last!

NR

Mike said...

>What in the world were these people thinking?

They were thinkin' bling, bling, yo! You know we gots to get that new Hummer. And some more ice for the bitches. Don't forget the Cristal and caviar!

Sorry, don't know where that came from. My guess is that the equity extraction pretty much completely occurred in the mid 2000's. Ya know, when everyone in SoCal was a millionaire. I have zero sympathy for people who are losing everything due to this type of circumstance. Am I a bad person if it even makes me smile a bit?

Rob Dawg said...

Am I a bad person if it even makes me smile a bit?

Yes, a very bad person. Now do the right thing. Get out there and bid up some house prices!

Gator Fan said...

apparently they were reading this garbage:
http://www.foundmoneymanagement.org/UsingHomeEquity/

lol

NoVa Sideliner said...

They might have been reading one of the popular finance magazines. "Smart" Money, or Kiplinger.

Back about 2006 or 2007, I was reading one of those, and a California couple wrote for advice. Their house was mostly paid for, and they asked it it was wise to cash out by selling it and renting until he retired in a few years; then they'd move to Arizona.

The retarded financial writer said NO! The advice was this: Don't sell! You'll lose further appreciation. Get a second mortgage for about half the value of your house, and put the money in "good stock mutual funds".

Recipe for total disaster, I thought at the time, especially 2 or 3 years before retirement. I was gobsmacked. I remember flipping the magazine over to see if this was the April Fool's issue. Seriously. Sadly, this was no joke.

Given what we've seen in the last two or three years, anyone who followed that magazine's advice is in the same dire situation as what you see here. There could be a lot of them.