Pugh facing foreclosure on Brush Park Condo

[kraig]

Addressing the issue of a home that isn't worth what you owe, anymore...if one bails out on their commitment, won't they ultimately lose money anyway in the form of higher interest rates when and if they try to get a mortgage in the future?

I suppose in ridiculous exceptions, I could see it - paying $300k for a home that's now worth less than $100k or something, but even then...sometimes you just need to ride out the storm.

Not necessarily, if the market has gone down that much. That person is now buying a home that once sold for $385,000.00 [[for the sake of comparison) at a much lower price of $100,000.00. Even at a higher interest rate, the monthly note is still less than half of what they were paying for the other $385,000.00 house. Even after Pugh's house is foreclosed on, it's never going to sell for that much money again. And that's the point that the banks and mortgage companies have to accept. While not receiving as much as they would have gotten, they probably still would receive more money from the current homeowner than they will from a new owner once the home is foreclosed on.

[evergreen]

Not at all a Pugh fan, but he's so far underwater on that property it would be stupid to hold on to it. I question the wisdom of anyone putting that kind of money in Detroit since the fundamentals - public schools and public safety - have been ugly and getting uglier for the past several decades.

I don't blame him for getting out of it, I just don't think it was good idea to pay that much for property in Detroit. [[Not to mention the wisdom of taking a 2/3 pay cut.)

And yes, I live in Detroit.

[Zacha341]

Yeah having to live on fixed 'salary' without the benefit of the 'friends and family' auxiliary cash flow must be a hardship indeed.......

To be fair, when Charles was first 'pitched' on the career-change by the Big Diamond [[somewhere on the DownLow), the secret side benefits for being on Council were both more lucrative and secure...so the pay cut wouldn't have been too severe.

Pugh's been getting squeezed by all of this oversight, keeps the alternative income streams dry. And makes one drive better, too.


Cheers!
John

[compn]

btw, fuck BOA. and its shareholders.

i had read how badly it was managed before the housing crisis, so when it bought out my bank [[lasalle) i took my money out and closed the account.

after the housing crisis, you've seen just how EXTREMELY badly BOA has been managed. not to mention being bailed out. if you still have an account with BoA, you are a sucker.

2011 Stock-Price Change:
Bank of America [[NYSE: BAC ) -58.3%

http://www.salon.com/2012/01/12/salo...ica/singleton/

[MikeyinBrooklyn]

I am a considering buying in Brush Park. They are so remarkably undervalued right now. I was orginally going to rent for several more years, but the prices are so tempting.

[DownriverGRap]

I think I saw something on FOX2 many years ago showcasing Pugh's home [[not sure if it was this specific home). He had an entire room dedicated to his fancy clothes, shoes, etc....maybe if he spent less on the "extras" and more on the "essentials" he might be in a better financial place. I am not faulting him for the housing market, but I think that this was just another bad decision by someone who has a history of making bad decisions.

[kathy2trips]

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