Monday, March 16, 2009

Foreclosure Auction: 4886 Dick Woods Road

One of today's foreclosure auctions, scheduled on the steps of the Albemarle County Courthouse at 3:35 pm, is 4886 Dick Woods Road. This property in Ivy is owned by a Realtor and a general contractor.

2004 Purchase - $469K
2009 Assessment - $544.4K
Mortgageholders Owe - $750K


In the comments after C-ville's Weekly's "A Tale of Two Foreclosures," which discussed the travails of local Realtor Doug McGowan, ex-CAAR President and RE/Max Broker Judy Savage said, "Many of us have seen our incomes fall 75% from just a few years ago...[he] is only one of many facing foreclosure and bankruptcy."

In the comments after The Hook article, and on this blog, readers were surprised that housing industry professionals could be in this position, expecting that those who advise others on large purchases would be financially sound. However, foreclosures occur at every price point and are due to a variety of circumstances. But if you as a buyer are concerned about this, include it as part of "interview" questions when you're searching for a buyer's agent. If the Realtor declines to answer your questions, you may wish to seek other representation.

Details on the auction are at The Hook. Foreclosure auctions are subject to change without notice. Curing the delinquency or making arrangements with the lender is an option until the "last second." A mortgage of this size cannot qualify for any modification under the Obama plan, as much more is owed than the house is "worth."

Related:
Jumbo Mortgage, Jumbo Headache - WSJ
Median Prices in Charlottesville, Albemarle, 20 Other Markets
332 Minor Ridge Road: Foreclosure

7 comments:

Anonymous said...

another question to ask: made any investments that turned out to be part of a ponzi?

RVR said...

Something is not right here (or else I'm in need of another cup of coffee; or else there's something about the bubble economy that me behind):

1. How can you owe that much more (~37%) than the purchase price?

2. Why would you default on the mortgage for your home when your company has another (spec.) house that could be sold if discounted?

sam said...

1. HELOC? aka using house as ATM?

2. or mtge is so upside down and there are so many other bills it's not worth it to keep house?


this is why i would ask my agent about fncs. there might be extenuating circumstances.

downtownenvy said...

My question is this: if there are all of these properties that are not eligible for the bailout because of the large price tag on them what happens then? It's not like it's getting any easier to get a jumbo mortgage these days either.

Are we just going to have a bunch of empty, bank-owned McMansions sitting around waiting for someone to blink?

I am certain that the neighbors aren't exactly thrilled with these types of properties lingering on the market either. I guess the spring market here in Cville will take care of a lot of them. I hear that sales are picking up and the recession is ending this year. Thank goodness. I was starting to worry a little there:)

Anonymous said...

Who the heck can afford to buy all of these $300k+ properties? I know my UVa salary is going to get me a place of my own in Cville any time soon...

Anonymous said...

The owner is well known for robbing Peter to pay Paul... except he decided to stop paying Paul all together and rob both... Another sad story of a contractor living way above his means..... he's on a first name basis with the civil judges in town... He used that house like an ATM spitting out money faster than a pez dispenser.... and when it stopped he picked it up and shook it...

Real C'ville - The Bubble Blog said...

@RVR

"1. How can you owe that much more (~37%) than the purchase price?"

One way to do this is to take a "cash out" refinancing.

Another question is, who appraised the property so much higher, and who is the mortgage officer who agreed to this, and which is the bank that approved this? Why isn't this fraud?

Oh yeah--because it was happening ALL OVER AMERICA.

Hence, the GLOBAL ECONOMIC CRISIS.

"2. Why would you default on the mortgage for your home when your company has another (spec.) house that could be sold if discounted?"

Because what you would "make" from the "sale" was already "spent" on "other things" or "projects"?

We don't know the details, so we're asking the questions--

@anonymous:
"Who the heck can afford to buy all of these $300k+ properties? I know my UVa salary is going to get me a place of my own in Cville any time soon..."

It was a lot easier to "own" a property in the bubble heydey when no money down was required, and the mortgage had a five year Option ARM--starting with a low teaser, that would then reset...hence many properties now on the market for so much more $.

It was GLORIFIED RENTING, NOT OWNING, since little to no equity was built up. HENCE the OBAMA RESCUE THAT WE'RE ALL PAYING FOR.

@downtownenvy

"Are we just going to have a bunch of empty, bank-owned McMansions sitting around waiting for someone to blink?"

Banks, who have lots more money than individuals (especially those who rec'd TARP funds) can offer the properties at lower prices after foreclosure...and then individual sellers will have to follow if they want or need to unload their property....

Blinking can take a while, though. Once it starts, though, it's usually a rapid spread.

@anonymous
"Another sad story of a contractor living way above his means....."

It does seem like there's a contractor listed in the Auction pages every week, doesn't it? And the Church Hill fellas were regulars there for a while.