DC Condo projects going into Foreclosure. 30-44% Loss

[patb]

the washington post reports

http://www.washingtonpost.com/wp-dyn/content/article/2007/05/15/AR2007051502163.html?hpid=sec-business

on a failed condo project, 84M loan for conversion, existing units were
being condo-ized and the whole project went to auction.

The bank bid $60M on the remnant of the project,
I figure it was a $100M project, and it’s unclear how many units sold
for how much, but mabe the clever pigginton students can shed some light
on this.

I figure with the units dropping in price,
mayybe in 12 months it will be time to buy.

[PerryChase]

I know someone in DC who is a lawyer and invested in DC condos in the last 2 years to 3 years. He was trying to get friends to invest with him. I’ve tracked his investments and they are not doing well.

He works for what else? The big black hole that is Homeland Security. The only reason I mention his job is that you’d think that professionals working in security would be the careful conservative types — not. His salary does not support the carrying cost on several properties so when the loan reset there’ll be some hindsight regrets.

I think that when all is said on done, we’ll find out that the upper-middle class gambled on housing and subprime/exotic loans even more so than the lower income folks. I would go so far as to say that the RE gambling ran across economic classes, in proportion to earnings.

[PerryChase]

I know someone in DC who is a lawyer and invested in DC condos in the last 2 years to 3 years. He was trying to get friends to invest with him. I’ve tracked his investments and they are not doing well.

He works for what else? The big black hole that is Homeland Security. The only reason I mention his job is that you’d think that professionals working in security would be the careful conservative types — not. His salary does not support the carrying cost on several properties so when the loan reset there’ll be some hindsight regrets.

I think that when all is said on done, we’ll find out that the upper-middle class gambled on housing and subprime/exotic loans even more so than the lower income folks. I would go so far as to say that the RE gambling ran across economic classes, in proportion to earnings.

[patb]

I suspect your friend will solve his problem very easily.

He will take payoffs or sell secrets to Al-Qaeda.

What I think will happen is the Middle class will suffer a massive
wipeout under this bubble implosion, and you will see
a small number of theultra-rich, a large number of asset free working poor
and a big chunk of heavily indebted working slaves.

[patb]

I suspect your friend will solve his problem very easily.

He will take payoffs or sell secrets to Al-Qaeda.

What I think will happen is the Middle class will suffer a massive
wipeout under this bubble implosion, and you will see
a small number of theultra-rich, a large number of asset free working poor
and a big chunk of heavily indebted working slaves.

[ucodegen]

If he works in national security and gets foreclosed upon.. he is going to have some real tough times with his clearance!!

[ucodegen]

If he works in national security and gets foreclosed upon.. he is going to have some real tough times with his clearance!!

[gn]

“I think that when all is said on done, we’ll find out that the upper-middle class gambled on housing and subprime/exotic loans even more so than the lower income folks. I would go so far as to say that the RE gambling ran across economic classes, in proportion to earnings”

I agree with this. I know several people who each own more than a handful of investment properties (all financed with interest-only loans). Even now, they are still in denial about the direction of home prices.

Typically, these investment properties have negative cash flow (even with the IO loans). So, it’s the upper-middle class folks who can afford the negative cash flow. They tend to be confident that, with their incomes, they can “ride it out”.

Before the mortgage payments go up, these folks can manage the negative cash flow w/o any problem. It’s when the payments start to “balloon” …

[gn]

“I think that when all is said on done, we’ll find out that the upper-middle class gambled on housing and subprime/exotic loans even more so than the lower income folks. I would go so far as to say that the RE gambling ran across economic classes, in proportion to earnings”

I agree with this. I know several people who each own more than a handful of investment properties (all financed with interest-only loans). Even now, they are still in denial about the direction of home prices.

Typically, these investment properties have negative cash flow (even with the IO loans). So, it’s the upper-middle class folks who can afford the negative cash flow. They tend to be confident that, with their incomes, they can “ride it out”.

Before the mortgage payments go up, these folks can manage the negative cash flow w/o any problem. It’s when the payments start to “balloon” …

[no_such_reality]

If he works in national security and gets foreclosed upon.. he is going to have some real tough times with his clearance!!.

He said he works for Homeland Security. That’s not national security, that’s the TSA and likes. IMHO, the bottom of the barrel, (no offense to OP’s lawyer’s friend).

Homeland Security was basically a giant fraud of an employment act and Government graft seasion for corporations and the marginally employable.

[no_such_reality]

If he works in national security and gets foreclosed upon.. he is going to have some real tough times with his clearance!!.

He said he works for Homeland Security. That’s not national security, that’s the TSA and likes. IMHO, the bottom of the barrel, (no offense to OP’s lawyer’s friend).

Homeland Security was basically a giant fraud of an employment act and Government graft seasion for corporations and the marginally employable.

[PerryChase]

I agree with you, no_such_reality. The funny thing is that Democrats are blamed for bloated government, but it’s really the Republicans who devised the largest government with the most intrusion on civil liberty and largest deficit spending ever. It’s like welfare for the robber barons. In many ways, we are really back to the gilded age of the 1920s.

[PerryChase]

I agree with you, no_such_reality. The funny thing is that Democrats are blamed for bloated government, but it’s really the Republicans who devised the largest government with the most intrusion on civil liberty and largest deficit spending ever. It’s like welfare for the robber barons. In many ways, we are really back to the gilded age of the 1920s.

[patb]

gilded era of the 1920’s?

Try the 1890’s?

When the robber barons, the oil trusts, the steel trusts
all conspired to rob and pillage the poor.

Only now it’s the financial trusts and wall street robbing the poor

[patb]

gilded era of the 1920’s?

Try the 1890’s?

When the robber barons, the oil trusts, the steel trusts
all conspired to rob and pillage the poor.

Only now it’s the financial trusts and wall street robbing the poor

[Author]

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