Pugh facing foreclosure on Brush Park Condo

[Novine]

If he paid $385,000 in 2005 and the units are now worth $80,000 - $100,000, in what world can there be any possibility of him being able to make that work?

[Kevgoblue]

If he paid $385,000 in 2005 and the units are now worth $80,000 - $100,000, in what world can there be any possibility of him being able to make that work?

All he has to do is put up the For Sale sign. When he eventually gets someone to buy it [[say in the $85K range), he just needs to go to closing with a check for $300,000.
Problem solved!

[antongast]

All he has to do is put up the For Sale sign. When he eventually gets someone to buy it [[say in the $85K range), he just needs to go to closing with a check for $300,000.
Problem solved!

Who would benefit from that, other than Bank of America?

[1953]

Who would benefit? -The millions of people who own Bank of America shares or are impacted by their profitability on a daily basis?

BOA may be a company, but its money belongs to and is relied on by real people.

[antongast]

The millions of people who own Bank of America shares or are impacted by their profitability on a daily basis?

It's on Charles Pugh to take a personal hit to his finances so Bank of America's shareholders don't have to?

[kathy2trips]

Thank you. Indeed, businesses ARE people. It's not just a bumper sticker. Amazing how many forget to consider that.

[Bham1982]

If he paid $385,000 in 2005 and the units are now worth $80,000 - $100,000, in what world can there be any possibility of him being able to make that work?

I can't really be too disappointed in him walking away. He doesn't really have options.

I am amazed, however, that folks were paying 400k for cheap looking suburban-style townhouses back in 2005.

80k sounds about right for one of those. Maybe even a little on the high side.

[Neilr]

I can't really be too disappointed in him walking away. He doesn't really have options.I am amazed, however, that folks were paying 400k for cheap looking suburban-style townhouses back in 2005. 80k sounds about right for one of those. Maybe even a little on the high side.

IIRC, Pugh bought one of the restored/renovated townhouses on John R. These are some of the most unique, nicest [[IMO) townhouses in metro Detroit. And, when they came on the market, seemed to be worth the price.

[JenniferL]

IIRC, Pugh bought one of the restored/renovated townhouses on John R. These are some of the most unique, nicest [[IMO) townhouses in metro Detroit. And, when they came on the market, seemed to be worth the price.

I remember walking by that building one day while taking an unusual [[for me) detour from WSU to downtown. There were people fixing it up at the time and the whole neighborhood was starting to look really nice. It's so sad that it didn't last and now these condos are worth so much less than what people originally paid for them.

[DJ Tom T]

Pugh's competence [[or lack thereof) aside...

His situation illustrates the BIGGEST problem in America right now. Homeowners far and wide are taking a HUGE bath on their investments. Nothing is worth a dime until you sell it, and there is absolutely no market for home sales right now. We see it even worse in Detroit because of the crushed economy here, and the rampant mortgage fraud in this market. My condo that I paid a modest $75,000 for in 2000 would be lucky to fetch $30,000 today. That story is all over the place in America.

Until the housing market rights itself, don't believe any of the hype about "economic recovery" that the media is pushing. A house is the biggest investment for a vast majority of Americans. Until housing values come back [[if they ever do), no amount of stimulus or whatever else is going to help.

I've been advised time and time again by many people with greater financial expertise than mine to walk away from my place. At the end of the day, I need my credit so I choose to stay and pay. But if I didn't...I'd be gone from here in a second.

[Eric_c]

My two cents: the whole concept of a house as an 'investment' never made any sense to me. First and foremost, a house is a HOME! A place to hang your hat and sleep warmly. If anything, buying a house is an 'investment' in a community.

If the house value goes up or down, people should be choosing to buy based on the fact that they need a safe, comfortable place to live. The whole idea of 'staying' somewhere for a few years and then moving always seemed silly.

When I bought my house, I picked a place where I knew I'd feel comfortable for the rest of my life, not a place I felt was going to make me a ton of money!