Friday, September 30, 2011

Now Asking $153K - 2218 Banbury Street, Charlottesville: Neg Eq Leads to Foreclosure Then Relisting At 45% Discount

After "chasing down the market" for months with small price decreases, 2218 Banbury Street, a rancher in the City, is a classic tale of negative equity leading to foreclosure--and dragging all the neighbors underwater simultaneously.  Negative Equity is a plague in Virginia, and it's increasing in Charlottesville Albemarle.   

Despite the loss of home value around it, this house is now priced at "fair market value"--meaning the mortgage is the same as what it would fetch for monthly rent ($1000-$1200).

A couple of houses on Banbury Street sold for $225-$235k in 2010/11 And a couple of houses the same size sold for $290k during the bubble.  Those buyers aren't "moving up" any time soon.

Price history:

2007 price $275k
2000 price $190k
The house was lost to foreclosure auction on August 30. 
Today's price: $153k or 45% less than 2007's price.
Today's price: 20% less than 2000's price. 

The house is available from Fannie Mae Homepath.  It may be purchased for  3% down, and if it goes under contract by Oct. 30, Fannie Mae will pay 3% in closing costs.  It's eligible for a reno-only loan, so it does need some work.

The old listing, via/copyright Trulia:

1 comment:

Anonymous said...

2230 Banbury Street MLS 492734 $259k It doesn't matter how cute the renovation is. This street is not a $259k neighborhoo. I believe this was a foreclosure.