Ugly Real Estate
September 3, 2008 | By Kelley Koehler | Filed Under Odds and Ends
I was looking at a property the other day with a mortgage history that looks like this – the original owners bought the house in 2004, cashed out in 2005 to the tune of nearly $65,000, and then the home was foreclosed in 2007:
And a history on the local MLS that looks like this – remember the foreclosure was in May 2007, and the history is read chronologically from bottom to top:
By the time they’re on their third listing in February 2007, the asking price is less than what is owed – they’re trying to negotiate a short sale by then. And they managed to snag a buyer – that’s why it changes to Active Contingent. But then the deal falls through a little less than a month later.
And then the bank takes back the house, and lists it yet again. At a higher price. Whoops.
After $50k in price reductions, the house goes pending – the bank gets an offer, maybe the buyer does inspections, but for some reason, the deal falls through three more times, and after fairly long intervals. My best guess is that each time, the buyer has walked because the bank took too long to respond. Just a guess though. I’ve actually been in this house, and while I’m not home inspector, it looks looks to be in good shape.
I wonder what happened to the $65k. Not much pretty in this story, based on these facts. No one wins.
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Unfortunately we in the real estate industry in Tucson have seen a lot of these stories. Hopefully the number of them will start to decline and then be rare to see at all, my guess is most likely the market is going to be soft for a while however I also think the worst is behind us here in Tucson.