Think Global - Shop Local

Foreclosures - Not Now In My Back-Yard

This is a house that would have been listed for $200k two years ago.  It has been vacant for at least a year.

Here is a partial on the listing description:

well built 3 bedroom tri-level home located in college heights subdivision. built in 1961, taxes reflect non homestead status. will take land contract.  $134,000  The taxes are $5000.00 per year.

This house is the same age and design as my next door neighbor who advised me this weekend that he had bought a trailer and was giving his house back to the bank.   He is retired from  Chrysler and lives alone.  He said the market was killing his retirement account and he could no longer afford his mortgage.  I didn't ask, but my guess is that he used an ARM to take out home equity and put at least some of the money in the market.  He drives a 20 year old Chrysler, so that is not where the money went.   The only other home on the block that was occupied by a single male - same age, same sort of employment/retirement situation - ended up in a short sale last month.    The other two listings over the last three years:  one is off the market and rented to tenants who still do not have drapes; and the other which was a troublesome rental, was on the market for two years.  Now there is only one rental property on the block.    My unscientific survey of the neighborhood - listing prices are off 35% from what they were 2 years ago.


The municipality is close to bankruptcy and I have heard that unless you want to sue the city assessor will not adjust the real estate taxes down when a property sells for less than it is currently assessed - that is her version of employment security.


I don't know how this town is going to compete with areas of the country that have lower real estate taxes - usually RED states (Oklahoma, Texas, Arkansas).  Anyone wondering what they are going to do with the money they have left is going to buy a home where the taxes are several thousand dollars a year less.