Canseco in foreclosure, too
I've been living in my house for quite a while and, thankfully, have built up a nice chunk of equity regardless of how the market gyrates. And gyrate it does. A friend who is a real estate appraiser told me most of his business now is foreclosures with a sprinkling of re-fi. The bulk of those foreclosures are people who bought with intentions of flipping and couldn't.
But it's not just the average Joe who has been caught in this mess. Jose Canseco's mansion in California is on that list. The former baseball star who grew up in Miami walked away because it didn't make any sense to continue payments, he said.
I want to know: what happens to these houses? what happens to these people who speculated and lost? (I'm not talking about those who were bamboozled in some cases of mortgage fraud)
I sure as heck don't want to pick up the tab.
But it's not just the average Joe who has been caught in this mess. Jose Canseco's mansion in California is on that list. The former baseball star who grew up in Miami walked away because it didn't make any sense to continue payments, he said.
I want to know: what happens to these houses? what happens to these people who speculated and lost? (I'm not talking about those who were bamboozled in some cases of mortgage fraud)
I sure as heck don't want to pick up the tab.
posted by Ana Veciana-Suarez at 8:46 AM
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5 Comments:
We're all picking up the tab. My neighbor sold his house to his mom for for a 400k profit and now he's letting her get foreclosed on and walking away with the cash. At the park I overheard about a woman who owned multiple properties and is letting them get foreclosed on but "she'll be ok with a few 100k in the bank since she's been collecting rent and not making payments for a while". Unbelievable!!
Flippers and Landlords with money in the bank that are letting homes go into foreclosure need to be arrested and jailed. Then the problem will slowly correct itself.
We all pay. The bank will take over the property and sell the house or condo at the lowest price to sell as soon as possible. We all lose because if you bought your house for $400K and prices rose to $500K or $600K now the bank wants out A.S.A.P, and sells for $325K, your house/codo in the same neighborhood/building just dropped to $325K as a comparable. Hopefully you don't have an 'interest only loan' or you'll never catch up as your property value drops. Let's face it. The super high growth in real estate prices never made any economic sense in Miami, one of the USA's poorest cities. It's time "to pay the piper". The BMWs, fancy restuarants, and flat screen TVs are no longer for the Floridians. We refinanced and refinanced and now we have no new cash stream. Oh well, it was fun while it lasted. Time for paper plates, skipping the drinks in restaurants, and generic brands in the market. Oh well. Count your blessings. We still have it better than 90% of the World's population.
I bought because I did not want to get priced out, now my mainteance is up from 500 to 1500 per month because of speculators in investors who don't pay maintenance and my condois worth 200k less because of short sales. So I don't feel sorry for people that"have equity" and bought their place for 100k.
Great, he deserves it now he can move to little havana
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