Prime example of foreclosures that will come in waves over the next two years.

With some more searching online, I found the contact info for the Trust company (the mortgagee of the co-op) of the inner coastal foreclosure that I have been looking at.  They actually have assigned an attorney to handle the foreclosure case now, but I wasn’t able to get him on the phone today.

Through the county clerk’s website, here’s the financial information that I found.  The owner had taken out a $200,000 mortgage to buy the house in 2002 and then in early 2005, they took out another $15,000 loan.  In June 2005, they cashed out and took out a $300,000 mortgage.  They paid off the $15,000 loan in Sept, 2005.  I am assuming that they had a large debt elsewhere to pay off because in Nov. 2005, they defaulted on their mortgage.  The owners defaulted on a $300,000 loan in less than 6 months after they took it out!!! 

The property does not have much equity in it, so there is not any urgency for the owners to salvage the property from going into foreclosure.  They have paid off (I am assuming) whatever else debt they had and now they will sit pretty and let the Trust foreclose on them and move somewhere else more affordable.  It looks like a no-deal here because there isn’t any equity to salvage.  I will find out more after I speak to the attorney.