Foreclosed House Fetches Record Price
In five years no foreclosed house has fetched such a handsome price. In Hunting Hills a sprawling mansion has brought in $870,000 for the lender who took possession of it from one William Crick, in a foreclosure sale – a record for Roanoke region in five years. The average value of this type of property in this locality is anything between $60,000 and $100,000.
Crick is one among many why are losing palatial dwellings. Crick had taken a housing loan from Wachovia Bank on the understanding the initial payments would include only the interest. Later the rate would be adjusted. The newly built unit on 6,000 square feet had a movie room, spacious master bedroom and garages above and below ground level. Crick’s monthly payment for $909,950 property was $4,597.14. He could afford the high amount being general manager of one of the renowned companies in the automobile industry, Berglund Chevrolet. His income was $20,000 per month. But suddenly his dealership came to be terminated in early 2006 for unknown reasons. Immediately he put up the house for sale. At that time it was a seller’s market. In December 2006 he filed for bankruptcy listing debts amounting to $1.3 million more than whatever assets he had. In the end of August the bank put up the house for sale in the market. The estate was in a sorry estate with tall overgrown grass. The inside of the house was however in shipshape condition. All that was required was mowing down the grass to make it ready for the showpiece sale. Each house has a story to tell.
Foreclosures are surging through the nation with the highest waves hitting Virginia. Here it was up by 300% in July and 900% in August as compared to the same months in the previous year. Across the country the gain was 115% against 2006.
The foreclosure process consists of four steps. First the borrower goes into delinquency by being unable to pay monthly dues. The lender then sends foreclosure notice. This is followed by auction sale and repossession. There are many reasons why the borrower stumbles – unforeseen medical expenses, job loss, divorce etc.
But these cannot account for the tsunami that is surging through the country. Under the foreclosure lash houses are falling like ninepins. The accusing finger points straight at the sub-prime lending sector for this fiasco.
