Tuscany Circle is a little cluster development built in 2000 or so. It contains 12 homes on 3000 SF lots, off Summit Ridge on the way up to the old Super K-Mart from 4th Street. The lots are tight, but the houses are actually pretty well done inside and are adapted well for their sites. There are some fantastic view to the south.
4350 Tuscany Circle just hit the market at $229,900. It is a 1417 SF 3/2.5 with great views and olfactory access to whatever the 4th Street Bistro is cooking up on any given night. It was purchased in July 2000 for $175,000, and has been through the ringer:
7/00 – 1st $166,250 30 year fixed.
11/02 – Refi $169,000 30 fixed.
9/04 – Refi $217,459 30 fixed.
10/04 – HELOC $10,000.
12/04 – HELOC $38,000.
3/05 – Refi $301,285 20 year fixed with a $10,000 HELOC.
5/05 – $59,000 HELOC.
9/05 – Refi $396,900. This transaction didn’t get recorded until July 2006. 8.8% for 1 year, then LIBOR + 6.99%. Also a prepayment penalty. Terrible terms – the loan was fated to die.
From here on, things started to get ugly. Personal judgements against each of the owners in the $5000 range. Reno sewer liens. HOA liens. In 9/08, the lender holding the first mortgage filed a NOD based on non-payment of the installment due November 2005. And finally, the property went TD in March 2009 for $539,000 based on the outstanding loan amount plus fees and penalties. The owner managed to hold on to the property without making a mortgage payment for 40 months before the bank finally stepped in. Sweet deal.
This is the most extreme case of foreclosure delay that I have run into, but certainly not the only one. 2615 Erminia managed to last 21 months without a mortgage payment before the eventual Trustee’s Sale. Believe it or not, the owner hadn’t finished vacating the house by the time of the TD! Another neighbor of mine stopped paying his mortgage in September 2008 after the lender would not consider a short sale, moved out a couple months ago, and went to the courthouse steps last week for the sale just to get some sense of closure. His sale was cancelled.
I wish I could figure out what the banks’ angles are in delaying foreclosures. In a declining market, it seems that it is just causing them more hurt, and costing the tax payers more in bail out funding. Any ideas or comments?
Randolph
I don’t know what causes the banks to do what they do in this situation. But I work with a guy who stopped paying his mortgage in January of last year. So far, he has received nothing from the bank except a few computer generated dunning letters. No NOD. Nothing. He’s now at 15 months living in the house mortgage free. He intends to stay in the house until the Sheriff comes to evict him.
Norton
Mike, is there any way of knowing how many foreclosed properties there currently are in Washoe County? I don’t mean REO listed on the MLS. I mean properties that have gone back to the bank through either foreclosures or deeds in lieu. Many national media outlets and blogs are describing a huge “shadow inventory” of REO properties that the banks are not even bringing to the market yet. Some have suggested that the banks are already so overwhelmed with current REOs and other already in progress foreclosures that they are simply not getting around to even starting foreclosure proceedings on defaulting owners.
That could explain to some extent why some defaulting owners are going dozens of months, or more before a NOD is even filed. Who knows?
Perry
Look for the Bank Repossessions link.
http://www.washoecounty.us/assessor/SalesRpt.htm
billddrummer
As most of you know, my lender filed an NOD in January 2007 on a loan that went past due October 2006.
The first auction, set for May 2007, was cancelled when I filed Chapter 11. The lender requested a lift-stay in June 2007, which was granted. A new NOS was posted in August 2007, and I finally moved out in September 2007.
I didn’t pay from September 2006 to September 2007. But I didn’t ‘save’ any money–just kept my child support payments current.
When I had to start paying rent in September, I fell behind in my child support. So, my ex-wife took me to court and I now pay her $200/month.
Thankfully, the kids moved in with me in July, so the clock is stopped on that one.
But the essential point here is that the bank was relatively responsive back then. Now, with the sheer number of new NODs being filed, almost none of the servicers have enough staff dedicated to handling NODs, loan modifications or anything else.
Horacio
A solution of sorts… moving on the sagebrush destroyers and reducing inventory.
http://www.latimes.com/business/la-fi-demolish5-2009may05,0,4930126.story