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Hmmmmmmmmmmmmm

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Crunch Hardtack

Thread Starter
Member
Joined
May 2, 2006
Professional Status
Certified Residential Appraiser
State
Ohio
Link: http://www.bloomberg.com/apps/news?pid=20601087&sid=aHHyvvefM8ZE&refer=home

Excerpt: Home builders unable to repay their loans are contributing to deterioration among commercial borrowers, said Brian Moynihan, head of the global corporate and investment banking unit, at a New York conference today. More than half the Charlotte, North Carolina-based bank's $13.4 billion in loans to builders are considered troubled, 19 percent are not paying interest and losses are likely to mount, Moynihan said.
 

Hamlet

Elite Member
Joined
Aug 14, 2006
Professional Status
Certified Residential Appraiser
State
Ohio
I have noticed that around here the upscale building lots are sitting vacant or or left unfinished. Others are continuing to build despite the high number of foreclosures in their subdivisions. I wonder who they think will be buying these homes?

Next to fall will be the lenders who weren't so involved in the subprime lending, but heavy on the commercial end. Just like a game of dominos.
 
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Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
We have whole subdivisions with streets and utilities in that are now overgrown. I feel sorry for the ones where just a couple to a few houses were built and sold a couple years ago, but now there is no way the builder/developer is going to finish any time in the next few years and the HOA fees for the community buildings and pool are wasted because it will not be built either.
 

Austin

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Virginia
I just came in from a property inspection and passed a huge home in a cluster of about 4 high ends that was framed up to a few rafters and abandoned as evidenced by the faded wood. Been sitting for about a year I guess.

I was appraising a 10 unit apartment complex in the area. I have been doing work for this lady for years. She is 71 years old, her husband died 14 years ago and she has been running the show since. I talked with her for a long time and she knows what the hell is going on.

My next assignment is 6 new town houses. I did an appraisal from plans on this site about a year ago for a 4 unit apartment complex. I came in at about $35,000 per unit based on their projected market rent and it was costing $57,000 per unit. The site sat for about 6 months so I figures they packed it in, then construction started. This week I received the assignment to appraise the 6 town houses they built for speculation instead of the 4 unit apartments. It makes one wonder-is it me or the world? One of us has a problem. I don't think I am crazy. Do you guys think I am crazy?
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
More than half the Charlotte, North Carolina-based bank's $13.4 billion in loans to builders are considered troubled, 19 percent are not paying interest and losses are likely to mount, Moynihan said.

I'm thinking about writing a coffe table photo book...call it the "Dead Subdivisions of NW Arkansas"....It will have at least 100 pages...
 
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Big ole Boy

Elite Member
Joined
Dec 6, 2003
Professional Status
General Public
State
Tennessee
Back up cash offers

My ma is an R.E. agent in Tennesse ..... her listing has a pending contract ....... recently she got a back up offer all cash.

....... the way the world is these days ........ I am beginning to wonder if these back up cash offers are nothing more than phatom offers used to help bolster the mortgage process ...... manipulating ....... the market process to keep things from falling through ....

...my ma thought it was kinda odd ....

.... of course I could be totally off base .... a pysche exam I once took indicated that I was a very suspicious person .......

....... yawn ....
 

CCAAMO

Senior Member
Joined
Sep 17, 2007
Professional Status
Certified General Appraiser
State
California
We have whole subdivisions with streets and utilities in that are now overgrown. I feel sorry for the ones where just a couple to a few houses were built and sold a couple years ago, but now there is no way the builder/developer is going to finish any time in the next few years and the HOA fees for the community buildings and pool are wasted because it will not be built either.

Pamela,

That's the question I've been asking for some of the partially finished master planned developments in Southern Calif. If the common amenities are not built because the builder pulls out after building 75 of 600 planned homes, what a happens to the HOA fees which have been paid.

In the same case of the development where only 75 of 600 homes is built, what happens when the common amentites were built, say with a bond, an now you only have 75 home owner's to pay for it.

These are the questions the lenders need to ask when they lend in these developments.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Our Impr. Districts are suing builders for the HOA monies....I hear that some subdivisions sold the first few lots as "exclusive" and have minimums such as 100% brick or rock exterior and 2,400 SF minimums....The builders cannot get the current owners to modify the subdivision regs to 1,600 SF houses...so they are stuck w/ tons of lots and no market for big homes.
 
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