Thursday, May 31, 2007

Defaults: Marriages, Loans and Auctions

Anonymous said...

"I saw in the legal section of the DDT the other day that our Mayor & Husband (or ex) have defaulted on house payments! Maybe she needs a raise!"

Could be, but I doubt it. Mayor Hudson (and/ or Ex) probably suffer from the same plight as hundreds of Greenville residents... a dismal real estate market in which you literally have to "give away" property in order to move.

The recent auction of "Somoa" is a telling tale. After the owners defaulted on the mortgage, it was put up for auction by the lender. Opening bid was a mere $50,000 and the final bid brought $183,000. (Note: This is a home that once appraised for over $600,000.)

So, do we have a very happy new owner of this icon of Greenville real estate?

Well, no. It seems that the high bidder could not secure financing... even at 1/3 the appraised value. So, if you are among those property owners who still believe that they will profit, or even recoup their investment in Greenville real estate, I wish you well!

Even the pair of whales heading up river could see the end in sight... and fled back to open sea.



L.R. said...

I hate to see such a nasty tumble in price on an "expensive" property, but while I was in G'ville, I never understood how the tax collectors could justify valuing properties upward in price when it was obvious that over 400 hundred people (not including deaths which took people way) were leaving the area.

There's no "new" money coming into the Delta, so expecting to turn properties might be difficult. I used to write about the shrinking middle class and how outward migration trends with this demographic aren't getting attention.

Nice work on the blog, Fortright. I hope Delta Scoop catches back on with a couple hundred readers and a dozen regular contributors.

Anonymous said...

Slight correction - the former owner of Samoa didn't default on the mortgage. The family left Greenville after a job transfer and, consistant with their employer's policy, after the home didn't sell within an agreed period,the house was purchased and turned over to a relocation company. Ultimately, the relo company put the house up for auction.