 
Renfirst
Member
Username: Renfirst
Post Number: 161
Registered: 12-2006
| | Posted on Tuesday, January 08, 2008 - 6:23 pm: |    |
The problem is that right now the appraisers don't have much to work with in terms of comps... so the property wouldn't be worth that much... Recent sales in BE have been foreclosures... and when you use those as comps, you're really not saying much for the value...
I had a client contact me about this property to get a rehab loan... it's gonna be really difficult to get an ARV (after-renovation value) on this property when there isn't anything that's sold in the last 3 months in a .5 radius that isn't a foreclosure... Lenders will do everything they can to say no to a property like this... |
Asbury
Member
Username: Asbury
Post Number: 5
Registered: 10-2007
| | Posted on Tuesday, January 08, 2008 - 6:48 pm: | |
Sad what happened to this neighborhood. Can it ever return to it's former glory? I have see in other area these big homes become condos. Could this happen here? |
Charlottepaul
Member
Username: Charlottepaul
Post Number: 2194
Registered: 10-2006
| | Posted on Tuesday, January 08, 2008 - 6:53 pm: | |
OMG that place looks like a total wreck from those images--def. more than $100k to repair... |
Softailrider
Member
Username: Softailrider
Post Number: 105
Registered: 02-2007
| | Posted on Tuesday, January 08, 2008 - 9:06 pm: | |
New Construction in certain areas of Troy can be purchased for 100.00 a square foot now . In the Shelby - Macomb area I've seen new never lived in houses for 76.00 a square foot , I don't believe you can build houses of that type for 76.00 a foot now . I would say that 1920's construction in the Boston Edison area would be a very tough sell in this market . Unless , you're almost giving the property away . |
Dougw
Member
Username: Dougw
Post Number: 2020
Registered: 11-2003
| | Posted on Tuesday, January 08, 2008 - 9:10 pm: | |
Seems like an ideal home for a do-it-yourselfer who is willing to live in the home for at least a couple years while fixing it up... hopefully that's who will buy it. As long as it doesn't have major water damage (i.e. floors/walls that need to be replaced), someone doing much of the work themselves should be able to get it to a reasonable state for less than $100K.
If I had to guess, I'd say the current city tax assessment might be more like $200-250K, doesn't look all that big for B-E. The current assessment doesn't matter all that much as you would have to protest the assessment anyway and with appeals you should be able to get it assessed for under $100K. (since the true market value is obviously a lot less than $100K right now)
Whether they would lower the assessment all the way down to $15K (or whatever the purchase price ends up being) is a good question, though. The assessed value should be the true market value, and if you buy it at a public auction, by definition you are paying the true market value for the home (well, maybe slightly less), so in theory they should lower the assessment down to $15K
(Message edited by Dougw on January 08, 2008) |
Pam
Member
Username: Pam
Post Number: 3260
Registered: 11-2005
| | Posted on Tuesday, January 08, 2008 - 9:35 pm: | |
quote:Sad what happened to this neighborhood. Can it ever return to it's former glory?
Not all the houses over there are in bad condition. Most are not. |
Defendbrooklyn
Member
Username: Defendbrooklyn
Post Number: 607
Registered: 11-2005
| | Posted on Tuesday, January 08, 2008 - 10:25 pm: | |
I wonder who owned the home in the first place...A home like that had to get passed on to another family member and so on...who was the douche who either sold it and/or bailed on it...I wonder what the circumstances were at the time that made it feasible to leave it to rot.
I have only owned my home for a little less then a year and i do everything in my power to fix and maintain it. What a shame. |
Novine
Member
Username: Novine
Post Number: 324
Registered: 07-2007
| | Posted on Tuesday, January 08, 2008 - 10:38 pm: | |
Try thinking beyond your own life. Bad things happen to people and circumstances often can lead to situations like that. |
Kjwick
Member
Username: Kjwick
Post Number: 81
Registered: 11-2003
| | Posted on Tuesday, January 08, 2008 - 11:28 pm: | |
the house sold in 2003 $235,000. can one assume that there was no mortgage on the property if it is the county's hands? |
Lefty2
Member
Username: Lefty2
Post Number: 876
Registered: 07-2007
| | Posted on Wednesday, January 09, 2008 - 12:32 am: | |
Where is the profit?
from 235,000 to 155,000 to now about 22,000.
What the hell happened to this property. is this some mortgage scam? |
Renfirst
Member
Username: Renfirst
Post Number: 165
Registered: 12-2006
| | Posted on Wednesday, January 09, 2008 - 12:40 am: | |
I'd run a corelogic report.. but that's $25...
I wouldn't be surprised if the owner took cash out and then decided to bail on the property... it's happened so often... |
Defendbrooklyn
Member
Username: Defendbrooklyn
Post Number: 608
Registered: 11-2005
| | Posted on Wednesday, January 09, 2008 - 7:32 am: | |
novine
i wrote...
I wonder what the circumstances were at the time that made it feasible to leave it to rot.
renfirst...that does happen often...why do banks and/or counties allow houses to get in such bad shape...it;s their investment after all. |
Fnemecek
Member
Username: Fnemecek
Post Number: 2685
Registered: 12-2004
| | Posted on Wednesday, January 09, 2008 - 10:17 am: | |
quote:Where is the profit?
from 235,000 to 155,000 to now about 22,000.
What the hell happened to this property.
It's called a housing market collapse. There are homes near me in the Warrendale neighborhood that we're going for $100K a mere 2 years ago. Today, I'm seeing similar homes on the market for $20K. |
Livernoisyard
Member
Username: Livernoisyard
Post Number: 4789
Registered: 10-2004
| | Posted on Wednesday, January 09, 2008 - 10:40 am: | |
The term housing bubble also describes the current construction/mortgage situation. Home prices went severely out of whack some four years ago. Therefore, the market will have to eventually readjust, and home prices will become more realistic. This may take a while because the excess inventory of housing is still high and some sellers still want higher prices than the equilibrium value.
Something similar happened during the 1980s as a result of economic conditions experienced during the Carter years. Back during 1980, 87% of the nearly 4000 savings and loan institutions lost money, mostly because of home-owners defaulting on their loans on overpriced houses. |
Dougw
Member
Username: Dougw
Post Number: 2023
Registered: 11-2003
| | Posted on Wednesday, January 09, 2008 - 11:06 am: | |
Lyard is correct, except that the current housing bubble collapse is shaping up to be much, much worse than the one in the 1980s. (And it's not just Detroit.) The root cause of the vast majority of these foreclosures is the general abandonment of lending standards in 2005-2006 and the mortgage-backed securities market which enabled that. It has very little to do with the auto industry downturn or anything else. |
Kjwick
Member
Username: Kjwick
Post Number: 82
Registered: 11-2003
| | Posted on Wednesday, January 09, 2008 - 3:42 pm: | |
if the owner took cash out with a refinance or defaulted on a mortgage from the purchase in 2003, wouldn't this be foreclosed by the bank and not the county?
that brings up another question, do mortgage companies have to pay the property taxes on foreclosed homes? usually there will be an escrow account to cover some of the coming year's taxes, but now that foreclosures are on the market so much longer, there likely isn't the money to pay the taxes. |
Livernoisyard
Member
Username: Livernoisyard
Post Number: 4792
Registered: 10-2004
| | Posted on Wednesday, January 09, 2008 - 3:44 pm: | |
The current housing situation is probably a back-door approach for incorporating even more socialism. The government essentially authorized the lowering of lending standards so that more of the poor could own housing.
After those who cannot further pay their loans and go into default, the government will see to it that they can keep their homes and force the wealthier to have more compassion and pay more taxes so that those who weren't financially able to purchase their homes in the first place can keep their homes. And on it goes... |
Dougw
Member
Username: Dougw
Post Number: 2026
Registered: 11-2003
| | Posted on Wednesday, January 09, 2008 - 4:11 pm: | |
Good points, Kjwick. This one must have been in tax foreclosure to be on the county site.
This house is probably the exception to the rule, though... at least in my neighborhood, all of the foreclosures are bank-owned mortgage foreclosures, not county-owned tax foreclosures. I notice there aren't all that many homes up for auction on the Wayne County site, compared with the thousands of bank-owned foreclosed homes out there.
Good question about mortgage companies paying property taxes also, I've wondered about that. I'd guess it is standard policy with most of them that they pay the taxes, but I don't really know. |
Novine
Member
Username: Novine
Post Number: 326
Registered: 07-2007
| | Posted on Wednesday, January 09, 2008 - 6:35 pm: | |
"The government essentially authorized the lowering of lending standards so that more of the poor could own housing."
Garbage - who forced any private companies to lower their own standards and give out risky loans? No one but greedy companies that were willing to put short-term gain over long-term prudent lending practices. |
Livernoisyard
Member
Username: Livernoisyard
Post Number: 4796
Registered: 10-2004
| | Posted on Wednesday, January 09, 2008 - 6:54 pm: | |
quote:Garbage - who forced any private companies to lower their own standards and give out risky loans? No one but greedy companies that were willing to put short-term gain over long-term prudent lending practices.
More garbage. I suppose that those in government (e.g., irresponsible legislators supposedly acting in good faith) are now also blameless when it seeks to bail out both the industry and those who didn't have the real financial means to buy homes in an otherwise normal market scenario the past few years.
Government bailouts |
Goggo
Member
Username: Goggo
Post Number: 191
Registered: 11-2003
| | Posted on Wednesday, January 09, 2008 - 7:21 pm: | |
Now that I'm in the undesirable demographic of 'over 50', I am increasingly aware of my irrelevant and impertinent ideas towards life. I still hold onto the belief that a home's monetary value places somewhere behind its value as a sanctuary, its quality of living and independence from landlords (i.e: painting my living room pink and orange, if I feel like it).
My home is first and foremost my sanctuary and its proximity to where I want to be holds sway over what its ROI is. Given the performance of real estate (as an investment) over my lifetime, I believe that a home's dollar value is something of a crapshoot if you expect it to fund your retirement.
I built my first house from the footings to the ridge shingles, including all of the mechanicals and the well and septic field, completely by myself. I had never built anything before in my life. It took me two years and many smashed thumbs, but I have never had to supplicate before a mortgage officer. My wife and I focused on having our own home and we did it all on our own. Anyone who has done this will tell you that it is a liberating feeling like no other.
Here is a classic house with good bones in a decent part of Detroit, very close to the downtown area. A project like this one in the B-E 'hood is like any other; one nail at a time and don't listen to the nay-sayers telling you that you're a fool. |
7_and_kelly_kid
Member
Username: 7_and_kelly_kid
Post Number: 46
Registered: 12-2007
| | Posted on Thursday, January 10, 2008 - 5:43 pm: | |
impertinent?.........I just turned 55 and after living in the U.P. for 15 years and having my own business ect. ect. I thought I could come back to the east side of Detroit (G.P. to be specific) and start over................whatever author said "you can't go home again" was right!.It's like I just came back from Mars.....my own fault of course. I remember working at Morang/Kelly Shell
after school (Denby) and cranking up the gas pumps to $.99.9 CENTS (they wouldn't go higher)and laughing out loud...."who would EVER pay a dollar a gallon for gas!"........sigh |
Novine
Member
Username: Novine
Post Number: 329
Registered: 07-2007
| | Posted on Thursday, January 10, 2008 - 6:20 pm: | |
"I suppose that those in government (e.g., irresponsible legislators supposedly acting in good faith) are now also blameless when it seeks to bail out both the industry and those who didn't have the real financial means to buy homes in an otherwise normal market scenario the past few years. "
Feel free to blame the government but no one in the government forced those companies to make those loans or lower their standards or do anything that got them in this mess. I don't know what your agenda is to try and get them off the hook but they have no one to blame but themselves. |
Flanders_field
Member
Username: Flanders_field
Post Number: 7
Registered: 01-2008
| | Posted on Thursday, January 10, 2008 - 7:49 pm: | |
>>...."who would EVER pay a dollar a gallon for gas!"........sigh<<
No other choice but to "shell" out for the cost per gallon for gas, but the real mind-blowing consumable is the now BILLION-dollar bottled H20 industry, how in the world did we ever do without that convenience in the past?? |
Barnesfoto
Member
Username: Barnesfoto
Post Number: 4644
Registered: 10-2003
| | Posted on Thursday, January 10, 2008 - 8:07 pm: | |
Flanders: I remember going to Europe when I was 19 and laughing at the silly people paying money for bottles of water...(especially when you come from Detroit, which has such good tap water)
Somebody asked "is this some mortgage scam?"
Probably. BE Housing was used for lots of Mortgage Scams.
Probably some Mortgage Co far away simply decided to abandon the property, as Renfirst pointed out.
WCPO seizes properties that are abandoned or involved in repeated drug violations, and sometimes in cases when owners refuse to maintain properties...I bought my last house from them.
Nice long term project house here, not something that can be fixed and resold for a quick profit...
Remember, don't install the new copper pipes until you live in the place! |
Dougw
Member
Username: Dougw
Post Number: 2031
Registered: 11-2003
| | Posted on Friday, January 11, 2008 - 4:42 pm: | |
quote:I'd run a corelogic report.. but that's $25...
Actually, you can also run a report on the wayne county deeds site for $5, which will typically give you the info you need, at least enough to determine whether it was a mortgage scam.
(Just looking at the Corelogic website... interesting: http://www.csmarketing.com/web app/CNSSelect/avmselect_info.j sp ) |
Dougw
Member
Username: Dougw
Post Number: 2032
Registered: 11-2003
| | Posted on Friday, January 11, 2008 - 5:05 pm: | |
Oh alright, I looked up the deeds to satisfy my own curiosity. As kjwick suggested above, since this is being auctioned by the county (and not a bank), it is not bank-owned mortgage foreclosure and thus probably not a mortgage scam.
There is a foreclosure (sheriff's) deed on 6/5/03 for $156K, but then there is a redemption deed after that, meaning the owner paid up. The final "order" deed to the county on 11/30/07 lists "Corporate Counsel", which makes me think that this was seized through the Nuisance Abatement Program and not tax foreclosure. (although there are some tax delinquency deeds mixed in there too) |
Lefty2
Member
Username: Lefty2
Post Number: 918
Registered: 07-2007
| | Posted on Tuesday, January 15, 2008 - 12:04 pm: | |
ah, so this house was just a nuisance 
BTW the highest bidder coughed up 25K for this grand ol' dame. I hope they come back and show After photos. |
Sknutson
Member
Username: Sknutson
Post Number: 1051
Registered: 03-2004
| | Posted on Thursday, February 07, 2008 - 6:14 pm: | |
This house is up for auction again.....I wonder what happened.
http://www.waynecounty.com/WCA uctions/Auction/default_all.as p?t=&o=S |
Charlottepaul
Member
Username: Charlottepaul
Post Number: 2298
Registered: 10-2006
| | Posted on Thursday, February 07, 2008 - 6:28 pm: | |
no one bid? |
Sknutson
Member
Username: Sknutson
Post Number: 1052
Registered: 03-2004
| | Posted on Thursday, February 07, 2008 - 6:38 pm: | |
Charlottepaul: The bidding had gotten up to 25k on the original auction.
I'm curious as to why the deal did not close. It has always been a fantasy of mine to take a house like that and restore it. And perhaps get on HGTV!
(Message edited by sknutson on February 07, 2008) |
Lefty2
Member
Username: Lefty2
Post Number: 1100
Registered: 07-2007
| | Posted on Thursday, February 07, 2008 - 8:40 pm: | |
I think they got wind that Roadmaster49 was going to be blasting into town and figured he'd definitely want this one.
So you can bid on a tax property, put NOTHING down and back out without any penalty whatsoever.
Another reason why the city loses money. |
Dougw
Member
Username: Dougw
Post Number: 2052
Registered: 11-2003
| | Posted on Friday, February 08, 2008 - 4:50 pm: | |
quote:So you can bid on a tax property, put NOTHING down and back out without any penalty whatsoever.
If true, that is pretty ridiculous. They should at least have a token $100 non-refundable deposit. As a neighbor I'd be pretty pissed off if the same house kept coming up for auction again and again because of people backing out.
Although I know that in some cases, the bank decides that the high bid is not high enough, and they back out of the deal. That happened with an auction in Indian Village last year. Hopefully by now the banks are realizing how bad the market is (and not just in Detroit), so that shouldn't be happening as much. |
Sknutson
Member
Username: Sknutson
Post Number: 1056
Registered: 03-2004
| | Posted on Friday, February 08, 2008 - 4:59 pm: | |
We should all pitch in and make this the DYes Clubhouse! |
Barnesfoto
Member
Username: Barnesfoto
Post Number: 4719
Registered: 10-2003
| | Posted on Friday, February 08, 2008 - 5:12 pm: | |
"So you can bid on a tax property, put NOTHING down and back out without any penalty whatsoever.
Another reason why the city loses money."
Lefty, Please spare us your baseless speculation about real estate auctions (as well as about Britney Spears' sister's reproductive system)
from WCPO (COUNTY)Auction website:
Q: How do I register to bid on a property?
Go to the registration tab to complete the registration process. A credit card account is required to which a $250 non-refundable fee will be charged to all winning bidders. If the winning bidder fails to sign a purchase agreement and bring the required deposit within three (3) business days, the $250 fee will be forfeited. If the winning bidder signs a purchase agreement and brings the required deposit within three (3) business days, the $250 fee will be applied to the purchase price at closing."
What else is due with the executed sales agreement?
A non-refundable deposit, equal to ten percent (10%) of the purchase price of the property, that will be applied to the purchase price at closing. |
Dougw
Member
Username: Dougw
Post Number: 2053
Registered: 11-2003
| | Posted on Friday, February 08, 2008 - 5:31 pm: | |
Good to know. (Fortunately I qualified my earlier response with "if true ...". ) |
Cub
Member
Username: Cub
Post Number: 115
Registered: 02-2007
| | Posted on Friday, February 08, 2008 - 6:45 pm: | |
Barnesfoto,
Thats what it says but not enforced. I know on one occasion that the highest bidder (someone I know) on a property on Marquette backed out and wasn't charged a dime. As a matter of fact, I dont remember having to give credit card info when I registered. |
Barnesfoto
Member
Username: Barnesfoto
Post Number: 4725
Registered: 10-2003
| | Posted on Saturday, February 09, 2008 - 11:22 am: | |
Hmm, well I do.
The bidding part is really exciting...
But waking up and knowing that you just bought a project that will take years to complete can be very sobering, so no surprise that some folks back out...
That house on Marquette was interesting, but
the Bank building on Grand River was REALLY interesting.
Still remember the first morning that I woke up in my second "project", and thinking "Oh no, what have I done?" |
Roadmaster49
Member
Username: Roadmaster49
Post Number: 11
Registered: 01-2008
| | Posted on Saturday, February 09, 2008 - 11:49 am: | |
Hey Lefty, I resemble that remark! I'm coming February 21-24 but realistically I doubt I put an offer on a BE home. I need a mortgage just to escrow taxes, and nobody wants to lend me $15,000 (or less) just so I can escrow. They all say "Get a personal loan"
Well, I'm not a rich man trust me but I could probably swing one of the lower priced BE (non-mansions) homes, and that would suit me just fine.
For never having been to Detroit, I am in love with the city already. I am pumped to visit some landmarks seen on the TourDetroit link.
I just wish I had a guide. I lived in Houston Texas for four years, and saw and went to some very depressed areas. Shotgun homes, framed wood, that hadn't been painted in years. My car was broken into while I worked downtown - probably 3 times in 2 1/2 years, because I didn't want to pay the extra cost of parking in a garage.
B-E is a treasure and Detroit should embrace it, period. Buy a home, heck I would buy a home as a cooperative with others, I'll give you $5,000 right now - and just let me live in it when I come to town.
I'll help remodel and restore it. I'll help pay the taxes and fight for the reevaluation/reassessment - I just can't afford that 1st year of taxes by myself.
But hey, my crazy idea of asking for a couch for two nights in exchange for some nice dining was basically scoffed at, some of you Detroiters are a sceptical bunch. Where's the optimism? Where's the think-outside-the-box attitude that made Detroit Number 1 years ago? |
Lefty2
Member
Username: Lefty2
Post Number: 1109
Registered: 07-2007
| | Posted on Saturday, February 09, 2008 - 11:52 am: | |
Roadmaster - I didn't mean you put an offer on the house, I meant someone else put an offer on it and backed out. They put it back up because you might want it (joking of course). Sorry for any confusion.
"We should all pitch in and make this the DYes Clubhouse!" Now that IS a seriously good idea. ClubYES.
(Message edited by lefty2 on February 09, 2008) |
Roadmaster49
Member
Username: Roadmaster49
Post Number: 12
Registered: 01-2008
| | Posted on Saturday, February 09, 2008 - 12:00 pm: | |
I got no problem with that. Renfirst and others, just forget these wayne County auction home offerings and access the Historic Boston-Edison Association website. There, they have BE houses for sale, not auctions, bank owned properties more or less.
Some of you forumererers probably already know that website but there you will find nice homes being given away just to avoid paying the taxes.
The one I really want was just reduced to $5,900. but the taxes are like $5000 a year. For now. Many many more are being offered for $5,000 to $50,000.
Anybody else in? That's newsworthy. DetroitYes forum members buy a house and restore it. We'd be famous!
Hey by the way I'm up to 12 posts. Does that make me Legit yet? |
Roadmaster49
Member
Username: Roadmaster49
Post Number: 13
Registered: 01-2008
| | Posted on Saturday, February 09, 2008 - 12:01 pm: | |
I knew you were joking Lefty! |
Lefty2
Member
Username: Lefty2
Post Number: 1110
Registered: 07-2007
| | Posted on Saturday, February 09, 2008 - 12:10 pm: | |
Barnfesto-
So What you are saying is the Wayne County website is misrepresenting the proper auction payment method on thier listings?
You are right though about the registration page.
Which says a different method from the Auction page.
Quote - from the page of the 1520 BE auction.
http://www.waynecounty.com/WCa uctions/Auction/default_all.as p?t=&o=S
"THE WINNING BIDDER MUST MAKE AN APPOINTMENT TO SIGN THE PURCHASE AGREEMENT AND PROVIDE THE REQUIRED DEPOSIT WITHIN THREE BUSINESS DAYS OF THE AUCTION END DATE. THE CLOSING MUST BE COMPLETED WITHIN 30 DAYS OF THE AUCTION END DATE.
Please Call (313)967-3100 immediately after the auction ends to schedule the appointment. "
Also, $250.00 is peanuts to tie up a property for over 30 days.
BTW - I stand by my remarks the she is an "media attention whore" like her sister. Regardless of her actions.
(Message edited by lefty2 on February 09, 2008) |
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