Thursday, January 29, 2009

Mayor Short Sale

From the Stockton Record:

Former [Stockton] Mayor Ed Chavez, who left office in December for a home he had built in Indio, has put his Cavendish Square condominium on the market in a short sale, another in one of the nation's cities hit hardest by the foreclosure crisis...It is listed for $160,000. Chavez paid $332,000 for it in 2005.

"I guess it's kind of the ultimate in symbolism, isn't it?" former City Councilman Clem Lee said. "The mayor of Ground Zero going through the same thing."
From KCRA:


Marilyn Thiele, who lives in the Cavendish Square complex, said she and some of her neighbors feel the situation is wrong, and that Chavez' short sale is helping to bring down their property values. "I think for him to walk away basically that's what it is, he's is walking away from a commitment he made ... to buy a home and pay his dues, make his payment," Thiele said.
More at David Siders' blog.

12 comments:

Jacob said...

that Chavez' short sale is helping to bring down their property values.

How dare people sell homes for less than someone else thinks their home is worth.

That kind of price discovery is what is causing all the problems we have now.

If people would just stop selling then everyone could imagine their house is worth anything they wanted and none of that pesky realty to get in the way.

sacramentia said...

And now, many others who were pretending they weren't underwater know they are. The same thing is starting to happen in my neighborhood and many are just as upset.

My response is that the neighbors are welcome to chip in and prop up the prices, in fact, I'd be happy to sell my home to them for an inflated value to help out the comps.

Cow_tipping said...

Easy solution to this problem.
Raze all the damn condominiums. No one wants them any way. Those people then will have to buy real houses. They will then be driving up the $ and possibly not ever drop again.
Heck, that may be the cheapest solution. Condo's cost under $30 a sqft to build. Blow em up.
Cool.
Cow_tipping.

RV6Flyer said...

http://finance.yahoo.com/news/Freddie-Mac-to-rent-apf-14209112.html

WASHINGTON (AP) -- Mortgage finance company Freddie Mac said it will allow some borrowers to rent out their homes after losing them to foreclosure.

Freddie Mac also said it will allow renters to remain in their homes even if their landlord enters foreclosure.

paranoid renter said...

Where are we now in terms of home prices? Are we at 2002 yet? It looks like we are still above 2001 since I know people that bought then, and we are below 2004 since that's when I was thinking of buying.

Jacob said...

Looks like we are back to May 2001 prices in terms of median.

http://sacramentolanding.blogspot.com/2009/01/dataquick-sacramento-median-price-drops.html

Now that the higher end homes are giving ground we will have to see what that does to the median.

paranoid renter said...

Looks like we are back to May 2001 prices in terms of median.

hmmm...a condo I have my eye on is listed for well above its 2001 selling price (about 20% higher).

Anyway, I think I'll just keep renting until we see the market turn higher. Should be sometime in 2010 or 2011 or 2012 or....

Jacob said...

The indicator for me will be when job losses peak. When that happens I will get serious about looking cause the bottom in housing should follow within a year or so.

paranoid renter said...

Was just browsing homes on ziprealty this morning. Everything that looks interesting price-wise looks like it's in bad shape and is being sold "as is". I guess anything that's half decent that is available for these prices gets sold to bankers and their cronies. No chance it would show up on MLS.

Fortunately, this mess is going to go on for some time, so by the time we are done, the bankers and their cronies will be bursting at the seams from overeating, and there will be plenty of good homes available for even less. (At least that's what I'm hoping.)

Our government will of course provide unemployment checks for as long as the mess lasts to avoid the risk of social unrest.

Sunil The Fremont Realtor said...

that's pretty sad even the mayor of the town suffered this fate. It's not his fault of course, no one predicted this outcome, and the smartest minds on Wall Street, lost much more than him.

Deflationary Jane said...

"It's not his fault of course, no one predicted this outcome"

Seriously!?

You must be new here.

sacramentia said...

Yep, new and the typical Bay Area attitude. Please Mr. Smartypants from the Bay Area, educate us sacramentians.