|Re: Foreclosures and short sales||<– Date –> <– Thread –>|
|From: Diana Carroll (dianaecarrollgmail.com)|
|Date: Wed, 11 Feb 2015 10:40:50 -0800 (PST)|
25% out of 29 is a statistical anomaly but not statistically significant enough to demonstrate that it isn't random. But, more relevant the this discussion, I actually think there are cohousing-specific factors that come into play. Again, I don't know anything about the situation at Yulupa, so I won't speak for them...but I know a lot about our situation here at Mosaic Commons, in MA. So far, we have not had any foreclosures other than three units that the developer was unable to sell (developer foreclosures are a very different beast than owner foreclosures), but I suspect we are at above-average RISK for foreclosures for lots of reasons other than a lack of financial savvy on the part of our buyers: 1. Home prices. Our homes become ready for purchase in late 2008/early 2009...just about the time the bottom fell out of the housing market. But the cost of the homes didn't drop -- they were built for a price that made sense in 2007, and no longer did in 2009...then what? Those of us who had been involved in the project's formation had already sunk big bucks into the project and the only hope we'd EVER get our money back out was by buying the house and praying. There's no way at all outside of cohousing that I would ever have willingly purchased a house priced 50-70% above market value! But I was part of the developer org, and I and my fellow developers would have been f--ked I or others like me had bailed. The result is that I have a house that's over $100K underwater, at a higher than market mortgage rate (5.5%). Fortunately my family is doing okay and we can continue to pay for the house at the rate we budgeted for from the start. BUT...should we lose a job or myself or my husband die or whatever...we would be totally UNABLE to sell or refinance the house. Voila: foreclosure or short sale. 2. Subsidized housing. Here at Mosaic, 20% of our homes are part of our state's affordable housing program, and priced well below market rate. In order to qualify to buy these homes, buyers had to meet VERY STRICT income and asset limits. Almost by definition they don't have any "margin", because if they had, they wouldn't have qualified. All these buyers were required by the state to take special home buyer classes to qualify, so they are better educated than most...and yet still at higher risk of foreclosure simply because of how the rules work. 3. Higher than anticipated condo fees. Our initial condo fees were lower than they ought to have been, in part because we were self-developed and had to do our best as estimating them long-term...but also because our project was so financially "distressed" at the end that the contractor cut lots of corners...corners that turned out to (of course) cost us money in ways we didn't anticipate. (For example, our roads and paths are deteriorating faster than predicted, likely because the contractor used very poor materials and didn't do proper prep...and now we have to increase our condo fees to pay for repaving.) In the 6 years since we moved in, our condo fees have approximately doubled, and we sure didn't expect that. Anyway, as i said, no owner foreclosures yet (knock on wood) but I'm kind of holding my breath. :-/ Now....DEVELOPER foreclosures...that's a whole different ugly story... D On Wed, Feb 11, 2015 at 11:24 AM, R Philip Dowds <rpdowds [at] comcast.net> wrote: > > Actually, that was not my assumption. Instead, I was calling attention to > the fact that a 25% forced sale rate was five or six times the national > average during the recession. Something made this particular development a > statistical anomaly. It might have been a cancer cluster, but I don’t > think so. > > RPD > > > On Feb 11, 2015, at 10:57 AM, Diana Carroll <dianaecarroll [at] gmail.com> > wrote: > > > > I'm all in favor of homebuyer education and other measures you > > mention...but I wanted to call out your assumption that a foreclosure > ipso > > facto means someone was "unrealistic about housing costs". That's just > a > > variation on the standard stigma of poverty, that the problem lies within > > the person. > > _________________________________________________________________ > Cohousing-L mailing list -- Unsubscribe, archives and other info at: > http://www.cohousing.org/cohousing-L/ > > >
- Re: Foreclosures and short sales, (continued)
- Re: Foreclosures and short sales R Philip Dowds, February 11 2015
- Re: Foreclosures and short sales Elizabeth Magill, February 11 2015
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