Posted on 05/29/2011 5:14:57 PM PDT by Jim 726
There's a three-year inventory of homes in foreclosure for sale, and that's devastating home prices.
Las Vegas has so many foreclosures that 53% of all the homes sold in Nevada are in some stage of foreclosure, according to a report from RealtyTrac, the online marketer of foreclosed properties.
Foreclosures represent 45% of sales in California and Arizona, and 28% of all existing home sales during the first three months of 2011.
"This is very bad for the economy," said Rick Sharga, a spokesman for RealtyTrac.
What's more, the homes are selling at steep discounts, especially so-called REOs, bank-owned homes that have been taken in foreclosure procedures.
The average REO cost on average about 35% less than comparable properties, according to RealtyTrac.
(Excerpt) Read more at finance.yahoo.com ...
chinese have plenty... and have been buying them up
They’ll move in with each other, have their kids on food stamps, and go to the E.R. for “Free” healthcare, and plead their case for benefits like unemployment, long, long before that. I’m from Vegas, and I do not believe for half a second that an Illegal will pack up, unless they already have their mansion built with tax free dollars they were sending home (Which is to say the more industrious will move back, the biggest moochers will stay).
“the price is so low that the tax value won’t cover the costs of the City services “
Yeah, but if the house is empyt it’s even worse.
Federal policies to cushion the housing collapse are hurting localities.
Localities are going to have to turn to personal property, sales, income taxes and fees for more of their taxes.
But if the banks won’t sell their REOs for realistic prices even that won’t work
Contrary to the “buyers market” propaganda, it really isn’t in this area. Not as horrible as it was 4-5 years ago, but not very good either. Lots of inventory, but most all are dogs with at least one serious problem. Unrealistic prices being one. The would be sellers of the nice homes seem spooked. Perhaps for good reason.
Why don’t banks pay property tax on foreclosures?
Yes, around Washington dc, and you are paying twice for those.
I’m holding out for free or better.
Maybe their paying the taxes on what it’s actually worth, which is a mere fraction of what they’re trying to claim it is./sarc
(I don’t honestly know.)
My understanding is, however, that there is a federal bailout deal in which if they (the banks) foreclose, and then let it go to auction, they (the banks) are reimbursed (by the Fed Gov) for the difference between the auction prices and 85% of the NOTE value (Meaning they pay however much it takes to make the FedGov bailout contribution, plus the auction price, minus principle paid, total 85% of what the home was claimed to be worth on the foreclosed mortgage, not current value). The get us coming and going.
They do.
Home prices were far too high to begin with. About time they fell. Now, if only the rest of our property taxes would follow suit.
I just got home this morning from house hunting in the San Diego area, we looked at several foreclosures and a couple more investor owned ex-foreclosures.
As far as I was concerned three of the five needed to be bulldozed immediately, the other two might been salvageable, but at potentially prohibitive cost.
First House: Detached garage flooded, pool cabana burned down, signs of a recent attempt at marijuana growing, obvious electrical problems.
Second House: Mould everywhere, buckled hard wood floors, exterior windows replaced with junk, tons of cheap cosmetic repairs covering up god knows what else.
Third House: Kitchen and master bathroom completely gutted, only left the cabinets. Some interior doors and light fixtures also missing, septic system destroyed (probably by whoever stole everything and parked their truck on the lawn)
Fourth House: Completely invested with vermin, worried I might have contracted hantavirus just looking at it. Rodent droppings everywhere, stench of urine. Dead dog or coyote made it smell even worse.
Fifth House: Every wall had been kicked in and cheaply plastered and painted over, previous owners appeared to have been using the dining room as an annex to their garage. (I can’t think of any other plausible explanation for the stains) and there appeared to have been a hidden camera setup in the bathroom and bedroom in the apartment in the basement!
2 and 5 were the investor owned properties.
I think I will just build new,
Like all dem (them) public employees...
This Obama Recovery is great. I saw it on the news.
Lesson on how Obama will turn the USA in to North Haiti.
Here’s what happened to me, and I have found out I am not the only one with similar circumstances. In 2006 I entered into a contract to have a home built for me on 6 acres in No. Calif. The total cost was $ 445,000. When it was finish, it was appraised at $ 600,000. I put 100,000 down on it. In 2009, my job with a major company ( WF ) eliminated my position and left me without a job. There were no jobs available in my area for my occupation. I could move, but that meant selling my house. I looked into that, and found out my home was worth less than I had paid for it. Surprise . I decided to cash in my savings and retirement and start up my own business and compete with my prior employer. Today I am doing ok, in the next year, I should be back to where I was before this crap started, but in the meantime, I went through all the HAMP and other programs and was declined. So I went through the short sale process. It is now in escrow for $ 262,000. Which I could now afford to make payments on, but the bank would rather sell it to someone else instead of me. Go figure, but now I can take advantage of purchasing someone else’s problem. What a country !
I’ve been looking at foreclosures in Washington State as well and most of the time they make you sick to think that heathens were able to buy a house and trash it like that.
I’m looking now at getting one of those EcoCottages and have it put somewhere. They are small but quite nice and affordable.
http://nationwide-homes.com//ecocottages/main.cfm?pagename=ecoCottages
I’ve also noticed that Fannie Mae is paying much more for these homes than they are trying to sell them for. Taxpayers are losing big time.
You’re exactly right, and we are already seeing exactly what you describe here in SW Washington. Our property taxes have gone consistently up while the assessed value of our home has plummeted. The City has a $10 Million deficit, they have already closed one fire station, and are talking about streetlight fees, street maintenance fees, leaf collection fees, enforcing dog licensing, etc, etc, etc.
There is no truth in Pravda, there is no news in Tass.
Some cities have gotten really tough on the banks that were letting the properties sit empty with yards not maintained. Passed ordinaces apply hefty daily fines. The banks go wise to that and hired maintenance crews to come out and clean up the yards.
If you live in a city where foreclosures are dragging down the neighborhood because the banks are not keeping them up, get after your local rep in your city. After the city sees how much it can cash in from the banks on this, they will put it in place in a hurry.
The house are already selling at half the cost it would take to build them. That is way under a normal selling price.
And if they drop any more they will be free. Housing prices here are way, way, way down. Prices are now below what they were before the housing boom even started, lower than they were 15 years ago.
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