- This topic has 125 replies, 14 voices, and was last updated 15 years, 10 months ago by
paranoid.
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February 11, 2009 at 12:03 AM #344849February 11, 2009 at 7:18 AM #344307
ocrenter
Participanteach parcel at $300k, with mello roos at $6000 per year. holding cost for each parcel is $9000 on taxes and $22,000 on mortgage per year, or $31000 if they wish to hold the land and not build.
they do have the option of simply build and sell with their bottom line being low to mid $500k per home.
the ones that are facing foreclosure or already in foreclosure will just stop building, try to get rid of existing homes thru fire sales (but remember, they will NEVER advertise how much lower they are willing to go down because they don’t want to anger the phase 1 owner that paid $900k).
meanwhile, the ones that have the capital will simply finish out their lots just to break even because even that is better than holding cost of $31k a pop for who knows how many years.
February 11, 2009 at 7:18 AM #344628Participanteach parcel at $300k, with mello roos at $6000 per year. holding cost for each parcel is $9000 on taxes and $22,000 on mortgage per year, or $31000 if they wish to hold the land and not build.
they do have the option of simply build and sell with their bottom line being low to mid $500k per home.
the ones that are facing foreclosure or already in foreclosure will just stop building, try to get rid of existing homes thru fire sales (but remember, they will NEVER advertise how much lower they are willing to go down because they don’t want to anger the phase 1 owner that paid $900k).
meanwhile, the ones that have the capital will simply finish out their lots just to break even because even that is better than holding cost of $31k a pop for who knows how many years.
February 11, 2009 at 7:18 AM #344736Participanteach parcel at $300k, with mello roos at $6000 per year. holding cost for each parcel is $9000 on taxes and $22,000 on mortgage per year, or $31000 if they wish to hold the land and not build.
they do have the option of simply build and sell with their bottom line being low to mid $500k per home.
the ones that are facing foreclosure or already in foreclosure will just stop building, try to get rid of existing homes thru fire sales (but remember, they will NEVER advertise how much lower they are willing to go down because they don’t want to anger the phase 1 owner that paid $900k).
meanwhile, the ones that have the capital will simply finish out their lots just to break even because even that is better than holding cost of $31k a pop for who knows how many years.
February 11, 2009 at 7:18 AM #344767Participanteach parcel at $300k, with mello roos at $6000 per year. holding cost for each parcel is $9000 on taxes and $22,000 on mortgage per year, or $31000 if they wish to hold the land and not build.
they do have the option of simply build and sell with their bottom line being low to mid $500k per home.
the ones that are facing foreclosure or already in foreclosure will just stop building, try to get rid of existing homes thru fire sales (but remember, they will NEVER advertise how much lower they are willing to go down because they don’t want to anger the phase 1 owner that paid $900k).
meanwhile, the ones that have the capital will simply finish out their lots just to break even because even that is better than holding cost of $31k a pop for who knows how many years.
February 11, 2009 at 7:18 AM #344864Participanteach parcel at $300k, with mello roos at $6000 per year. holding cost for each parcel is $9000 on taxes and $22,000 on mortgage per year, or $31000 if they wish to hold the land and not build.
they do have the option of simply build and sell with their bottom line being low to mid $500k per home.
the ones that are facing foreclosure or already in foreclosure will just stop building, try to get rid of existing homes thru fire sales (but remember, they will NEVER advertise how much lower they are willing to go down because they don’t want to anger the phase 1 owner that paid $900k).
meanwhile, the ones that have the capital will simply finish out their lots just to break even because even that is better than holding cost of $31k a pop for who knows how many years.
February 11, 2009 at 9:54 AM #344401Veritas
ParticipantFebruary 11, 2009 at 9:54 AM #344723ParticipantFebruary 11, 2009 at 9:54 AM #344831ParticipantFebruary 11, 2009 at 9:54 AM #344862ParticipantFebruary 11, 2009 at 9:54 AM #344959ParticipantFebruary 11, 2009 at 10:43 AM #344441gn
ParticipantI agree with patientlywaiting.
After foreclosure on the builders, many of the lots in 4S will be sold at lower prices to other builders (likely to be low-cost builders).
These builders will build lower quality houses (compared to the existing houses in 4S) so that they can be sold at lower prices & still be profitable.
February 11, 2009 at 10:43 AM #344763ParticipantI agree with patientlywaiting.
After foreclosure on the builders, many of the lots in 4S will be sold at lower prices to other builders (likely to be low-cost builders).
These builders will build lower quality houses (compared to the existing houses in 4S) so that they can be sold at lower prices & still be profitable.
February 11, 2009 at 10:43 AM #344871ParticipantI agree with patientlywaiting.
After foreclosure on the builders, many of the lots in 4S will be sold at lower prices to other builders (likely to be low-cost builders).
These builders will build lower quality houses (compared to the existing houses in 4S) so that they can be sold at lower prices & still be profitable.
February 11, 2009 at 10:43 AM #344902ParticipantI agree with patientlywaiting.
After foreclosure on the builders, many of the lots in 4S will be sold at lower prices to other builders (likely to be low-cost builders).
These builders will build lower quality houses (compared to the existing houses in 4S) so that they can be sold at lower prices & still be profitable.
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