Topic: Yo Andy!

[Jack Morris]

Million Dollar Homes in Foreclosure
By Rick Shurga
November 16, 2006
As previous downturns in the real estate cycle have proven, foreclosure can reclaim a home no matter where it is located, what price range it falls into, or the income bracket of the owner. Although it may be hard to believe, even celebrities are not immune from defaulting on loans.

Over the past five years, home prices have appreciated at double-digit rates and many homebuyers have taken on more risky loans just to enter the market. The activity level in the housing market was a key economic driver during that time as well.

The housing market surged to such a crescendo, in fact, that it overheated the economy and the Federal Reserve had to step in - raising short-term interest rates for 17 consecutive months beginning in June 2004. It took until August of this year before the Fed put the brakes on further rate increases. Taking a wait and see stance on further increases - due in large part to a "cooling of the housing market" - Fed Chairman Ben Bernanke is taking his time to observe and analyze the outcome of his agency's actions.

In the meantime, as inflation continues to be a worrisome consideration in the future actions of the Fed, homeowners who took out so-called "exotic" adjustable-rate mortgages such as interest-only and option loans are running for cover, looking to refinance to some other loan product - be it fixed-rate or otherwise - in hopes of avoiding foreclosure as interest rates reset on up to an estimated $1 trillion of such loans over the next couple of years. For homeowners who may be stuck paying up to 50 percent more on their mortgage payments when their interest rate resets, foreclosure may be the only alternative available, whether the home is a million-dollar property or not.

Now with the housing market slowing and interest rates rising, many homeowners are paying higher monthly payments for a house that is not appreciating rapidly and could take a long time to sell given the large inventory of homes for sale. Those market conditions mean it's easier than ever to locate bargains - even on high-end homes. RealtyTrac's national database includes many homes worth a million dollars or more that are in some stage of foreclosure and could be excellent purchase opportunities for both real estate investors and potential homebuyers looking for the American dream of homeownership at a more affordable price.



http://promo.realestate.yahoo.com/

Ten Seconds to love...... 

[Sirgod]

IT might be awhile before he reads this Jack. Dracho and the missus I think went on a cruise for the holidays, so He'll be absent for awhile.

Stephen

[Dracho]

I'll post a few pictures sometime of the one we're working on now.. it'll make you puke.     It was such a sweet deal we sold our own house to buy it and we're living in it until we decide to sell.

It's 4900 Sq feet on Lake Keystone.  Site on a penninsula in the middle of the lake, surrounded by Corps of Engineer land on 3 sides, but is approved for a boat dock.  Bought it for less than $200K (about $40 per square foot!), but it needed A WHOLE FRIKKIN LOT of work (first thing I did was put 20 piers under it).

It just appraised for $400K, and I'm not finished  with it yet.

I'm not a greedy guy.  If I could do about $100K in a year, I'd pay off every debt I have and move the wife to Anchorage and look for work.