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D.C. Region's Foreclosure Rate Soars
Posted by: trogdor! ()
Date: June 19, 2008 08:39AM

Oh Noes! But this region's housing market is recession proof! My Realtor told me!

"The Washington region now has one of the fastest-growing foreclosure rates in the nation, as 15,613 homes went into foreclosure during the one-year period ending in February, an analysis to be released today has found."

Centreville, Falls Church, Herndon and Vienna are listed as up-and-coming foreclosure black holes.

http://www.washingtonpost.com/wp-dyn/content/article/2008/06/18/AR2008061803366_pf.html



Edited 1 time(s). Last edit at 06/19/2008 08:40AM by trogdor!.

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Re: D.C. Region's Foreclosure Rate Soars
Posted by: Just givin lip-service ()
Date: June 19, 2008 09:04AM

Just received my June edition of the Town of Vienna Newsletter (propaganda). You know, the one with Mayor Jane Seeman’s picture on page 3 with the adjoining self-promoting article “We Can Do Better”. The Mayor is quick to promote that “SEVERAL YEARS AGO VIENNA WAS RATED THE FOURTH BEST PLACE TO LIVE IN AMERICA” What the Mayor failed to mention is that in 2007 MONEY MAGAZINE RATED VIENNA IN 70th PLACE OUT OF 100; A DROP OF 66 PLACES IN 3 YEARS!!! The Mayor remarks “Again, that’s quite an accomplishment” “But we can do better” A major reason for Vienna’s decline, literally and figuratively, can be laid at the feet of the “afraid-to-do-anything” Town Officials that continue to allow the Cedar Park Shopping Center and Vienna Park Apartments to fuel the decline of the neighborhoods in SE/SW Vienna. One Vienna resident was recently quoted in the press "I live in a million dollar home in the middle of a ghetto". No wonder nobody would want to move into a town that allows over-crowded apartments, uncontrolled shopping centers and flop-houses to flourish. Who in their right mind would seriously give consideration of moving their family and loved-ones into such an area?

The Mayor closes the article with “We can all do better and everyone one of us – staff, elected officials, and citizens – can resolve to make Vienna an even better place to live and do business”. Well Madam Mayor, is this comment a bunch of self-serving words for your ego, or are you, as an “elected official” actually going to do something, anything, to make the SE/SW neighborhoods “an even better place to live and do business”?

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Re: D.C. Region's Foreclosure Rate Soars
Posted by: WashingToneLocian ()
Date: June 19, 2008 10:05AM

trogdor! Wrote:
-------------------------------------------------------

>
> Centreville, Falls Church, Herndon and Vienna are
> listed as up-and-coming foreclosure black holes.


Look what's happened to all of those posers and pretenders who have to live in a $1 million house and drive a 7-series BMW while making $75K a year.

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Re: D.C. Region's Foreclosure Rate Soars
Posted by: Colin ()
Date: June 19, 2008 10:23AM

Check out the foreclosure search and heat maps section.

http://hotpads.com/main.htm

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Re: D.C. Region's Foreclosure Rate Soars
Posted by: LMAO ()
Date: June 19, 2008 10:36AM

The falling real estate values in the US and abroad are caused by the Fairfax School Board.

LMAO

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Re: D.C. Region's Foreclosure Rate Soars
Posted by: WashingToneLocian ()
Date: June 19, 2008 10:37AM

I saw some road crews putting up this sign on I-66 at the Centreville exit...

Get off Here

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Re: D.C. Region's Foreclosure Rate Soars
Posted by: quantum ()
Date: June 19, 2008 12:32PM

The foreclosures have little to do with the state of the economy - admittedly not all that good - and everything to do with the massive fraud or near frauds perpetrated in the mortgage industry the last five years.

In my own area, Herndon is particularly hit hard - which is not surprising because loans were given to people with tenuous or marginal employment, uncertain immigration status (say what you will, hardly good for one's long term mortgage paying prospects), very few assets, and with almost zero underwriting and a massive lack of the borrowers' long term capacity to pay.

Nothing made me think this is all so crazy as an article in the Post 9 or so months ago over a recent (legal) immigrant's purchase of a 550,000 dollar home in Ashburn. It was a nice new place. She made 2,400 bucks a month as a grocery store manager, and, without any other identifiable source of income, signed on to a 4000 dollar a month mortgage that was also adjustable - meaning it got worse. I didn't know who was more blameworthy for the flame-out disclosure - the idiots who originated the loan - "friends" of hers from the old country - who then passed it up the line to other idiots who felt they could ignore the relationship between risk and return through the magic of contorted securitizations, or the woman herself, who thought that she could by magic somehow could become a real estate speculator without any consequences. What an absurd world. What bank would make a loan to someone who couldn't even responsibly make the first month's payment? This isn't capitalism - it is theft.

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Re: D.C. Region's Foreclosure Rate Soars
Posted by: WashingToneLocian ()
Date: June 19, 2008 01:00PM

I agree with quantum.

The problem was people over-leveraged themselves to get into houses that they couldn't afford with the idea they could sell the property if they got into trouble. At the same time, the stupid banks figured they would have an asset if there was a foreclosure. Unfortunately the banks were too f-ing stupid to realize that if everybody was doing it, you would end up with a glut of depreciating properties on the market.

As for the illegal immigrant thing, I saw this all of the time in 2005. People working as gardeners were getting loans for $600K houses. All of the major mortgage companies were putting out brochures in Spanish.

In contrast, I am now seeing homes in Clifton that used to sell for $1.6 million going into foreclosure and going back on the market in the $900K range or less. Too many greedy white people getting in over their heads as well with the same mindset. If I can't afford the payments, I'll just sell.

Dumbasses.

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Re: D.C. Region's Foreclosure Rate Soars
Posted by: word ()
Date: June 19, 2008 01:04PM

... and let's not forget the governments active and passive role in all of this. Actively, encouraging lenders to make more loans available to low-income, minority borrowers, and passively looking the other way in terms of market regulation.

Who didn't know this was coming?

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Re: D.C. Region's Foreclosure Rate Soars
Posted by: taxpayer ()
Date: June 19, 2008 01:36PM

I saw a link to this site of Hispanic realtors:

http://www.nahrep.org/Legislative/Legislative.aspx?Position=Immigration_Reform

Loudoun's plan on foreclosed properties:

http://www.loudoun.gov/controls/speerio/resources/RenderContent.aspx?data=afe7b06e0b86485080b4bc33b61c2e4b&optimize=100&tabid=312&fmpath=%2FBusiness+Meeting+Packets%2F2008%2F06-03-08+packet

p 10 Workforce Housing/Home Foreclosure Initiative

How do the loudoun and prince william proposals compare with Connelly and Fairfax?

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Re: D.C. Region's Foreclosure Rate Soars
Posted by: coffin ()
Date: June 19, 2008 04:44PM

I feel sorry for some of them.

I was personally involved with one foreclosure. In late '05. I sold my recently deceased father's house in Annandale to this Spanish woman (legal status unknown, but likely illegal). Anyway she paid me my outrageous price of $550K.

To do this, she got two, no money down, subprime "liar" loans...an 80% first mortgage at 8.5% and a 20% second at 12.5% (!). The combined monthly payments were over 5 grand a month! To do this she rented out the basement to 6 or more construction workers.

Her goal was NOT to sell the place but to eventually refinance into a "normal" mortgage. She just wanted her piece of the American dream, a home of her own.

Anyway, when the bottom dropped out of the construction biz, her tenants moved on leaving her holding the bag. Foreclosure followed in a few months. The house was just resold by the bank for $310K.

I know all this because I have stayed in touch with some of the neighbors, one of whom speaks Spanish and chatted with her regularly. I estimate the woman made about $120k in mortgage payments in the 2 years she lived there. She could have rented a MUCH nicer house for that kind of money.

This is just one house I'm talking about, but there were likely many other similar foreclosure stories.

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Re: D.C. Region's Foreclosure Rate Soars
Posted by: 70chip ()
Date: June 19, 2008 05:02PM

Listen, these illegals were hustling from the very beginning. Basically what caused the artificial price spike in 2005 was a very widespread scam that permeated every latino community from coast to coast. It usually involved a crooked buyer, agent, loan officer, and appraiser. The only victims are the U.S.
taxpayer (suckers).

Basically, an agent would scout for a colluding buyer, and when one was found they would buy a house usually from the first cycle of scammers. ie: a 2 bedroom hovel in the hood for 500K. The buyer would egregiously forge the loan app with BS income numbers. The deal would close w/ a 120% LTV subprime note from some fly by night lender, that would then in turn dump the toxic paper off their books quickly to wall street, who would then pawn it off into a huge book of loans to some pension fund in the form of a CDO, SIV. At this point, Wall Street, the loan officer, appraiser, agent, and seller who usually was an earlier co-conspirating buyer is paid. The money is always divided different ways depending on the hierarchy of the group. The buyer would then perform on the loan making the 1% neg-am minimum payment during the 6 month "seasoning period", at which point they would bring the crooked appraiser back out and reappraise the flop house for another 100K skyward. Obviously extract out the max, grease everyone palms, and reset.

After awhile the buyer would eventually want out, and the hustle would find another "buyer" or willing participant. Usually in the end, the buyer gets kicked out on the street with ruined credit, but with loads of money in their pocket and not one red cent invested in the whole deal.. On their way back to El Salvador a rich man/woman. Remember the hustle is based on using OPM! Other Peoples Money! TAXPAYERS! Don't hate the player, hate the game!

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Re: D.C. Region's Foreclosure Rate Soars
Posted by: taxpayer ()
Date: June 19, 2008 05:24PM

70chip Wrote:
-------------------------------------------------------
> Listen, these illegals were hustling from the very
> beginning. Basically what caused the artificial
> price spike in 2005 was a very widespread scam
> that permeated every latino community from coast
> to coast. It usually involved a crooked buyer,
> agent, loan officer, and appraiser. The only
> victims are the U.S.
> taxpayer (suckers).
>
> Basically, an agent would scout for a colluding
> buyer, and when one was found they would buy a
> house usually from the first cycle of scammers.
> ie: a 2 bedroom hovel in the hood for 500K. The
> buyer would egregiously forge the loan app with BS
> income numbers. The deal would close w/ a 120%
> LTV subprime note from some fly by night lender,
> that would then in turn dump the toxic paper off
> their books quickly to wall street, who would then
> pawn it off into a huge book of loans to some
> pension fund in the form of a CDO, SIV. At this
> point, Wall Street, the loan officer, appraiser,
> agent, and seller who usually was an earlier
> co-conspirating buyer is paid. The money is
> always divided different ways depending on the
> hierarchy of the group. The buyer would then
> perform on the loan making the 1% neg-am minimum
> payment during the 6 month "seasoning period", at
> which point they would bring the crooked appraiser
> back out and reappraise the flop house for another
> 100K skyward. Obviously extract out the max,
> grease everyone palms, and reset.
>
> After awhile the buyer would eventually want out,
> and the hustle would find another "buyer" or
> willing participant. Usually in the end, the
> buyer gets kicked out on the street with ruined
> credit, but with loads of money in their pocket
> and not one red cent invested in the whole deal..
> On their way back to El Salvador a rich man/woman.
> Remember the hustle is based on using OPM! Other
> Peoples Money! TAXPAYERS! Don't hate the player,
> hate the game!

There are nice [used to be] neighborhoods in Herndon with houses from the 1960's through 1980's. I was on a real estate website and had a window open on the FX tax page. there were properties that were sold - then resold - refinanced - maybe 1 to 2 years ago - then in foreclosure. Even multiple refinacings. So I assume those situations might be what you are referring to.

It's odd that someone would have bought the 550 house when there were other houses cheaper. 1-2 "tenants " would be better than 6 in your basement.

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Re: D.C. Region's Foreclosure Rate Soars
Posted by: tbats ()
Date: June 20, 2008 07:22AM

I'm not in real estate, but I think it's a great time to buy properties inside the Beltway especially. Prince William County will look like Chernobyl soon, as huge numbers of homes are already foreclosed/empty and it will become even far less attractive because of higher commute costs.

Arlington, Falls Church City, Alexandria City will for the most part be untouched. Some of the areas near Metro I believe are really good bets if you can get in, Dunn Loring, Huntington, East Falls Church/Seven Corners etc. Suddenly areas like Culmore and Landmark will appeal to people who once chose Ashburn and Bristow for residency and now drop close to $100 a week in gas..

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Re: D.C. Region's Foreclosure Rate Soars
Posted by: driver8 ()
Date: June 22, 2008 12:24PM

tbats Wrote:
-------------------------------------------------------
> I'm not in real estate, but I think it's a great
> time to buy properties inside the Beltway
-------------------------------------------------------
Second that. As long as the neighborhood isn't a slum, foreclosure prices are absolute steals. The only foreclosed house in my neighborhood was going for $315K, and sold after about 3 weeks. This is a house that would have sold for about $430K with a normal 30-year fixed (ie. no monkey business) before the bust.

It's logical for buyers to be cautious right now, but some deals are just no-brainers. No SFH inside the Beltway in a nice neighborhood is ever going to be worth less than $350K in real money.

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Re: D.C. Region's Foreclosure Rate Soars
Posted by: tbats ()
Date: June 22, 2008 12:54PM

Huntington,Pimmit Hills,Baileys Xroads are GREAT places to buy. Even Annandale because of it's approximatey to the Beltway..

It's not going to go up 50% a year like it did, but property values will surely go back up as transportation costs rise..


There is going to be a lot of "Jewish lightening" (ie insurance fraud arson) striking homes in the outlying areas....

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Re: D.C. Region's Foreclosure Rate Soars
Posted by: WashingToneLocian ()
Date: June 22, 2008 03:36PM

tbats Wrote:
-------------------------------------------------------

>
> There is going to be a lot of "Jewish lightening"
> (ie insurance fraud arson) striking homes in the
> outlying areas....



Some people have tried the arson approach. What most people don't understand is that the house is insured and the lot isn't. Most of the appreciation has been to the land, not the house. If you bought a house in 2005 for $500K, odds are the insurance will only cover about $200K to $250K (to replace the structure on the lot). Anybody who burns down their house expecting to get our of a foreclosure is an idiot. All you will end up with is a burnt up lot that you still owe $250K to $300K on and can't get rid of. Oh...a most likely jail time.

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