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$75K Home Was Mortgaged for Nearly Half a Million in 2007

Posted on January 11, 2013 by The Tim

I like to keep tabs on what’s going on in my neighborhood, and when a little house a block away was listed for rent on Craigslist (screenshot) this week, I remembered seeing it as a foreclosure on the market for sale last year. I got a little curious to know some more about this home’s history, so I dug around a bit in the public records…

  • 11/1989 – Sold for $66,000
  • 08/2002 – Took out a home equity loan for $210,000
  • 10/2007 – Took out a home equity loan for $466,500
  • 01/2011 – Foreclosed for $165,000 at courthouse steps auction
  • 08/2012 – Sold by bank for $75,000
  • 01/2013 – Listed by new owner for rent at $1,100

Who in their right minds would ever agree to lend $466,500 on a 2 bedroom, 1 bathroom, 1,280 square foot home on a tiny 1,742 square foot lot in Everett? As it turns out, a company called “Financial Freedom Senior Funding Corporation” is who (what a delightfully Orwellian name). And guess what, they just so happened to be a subsidiary of Lehman Brothers.

I’ve seen a lot of insane stuff from the housing bubble in the years I’ve been running this site, but I’m fairly certain that a $466,500 loan on a home that was really only worth about $75,000 takes the cake, at least here in the Seattle area.

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December Stats Preview: Foreclosure Surge Edition
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Foreclosures Spike Up to Close 2012

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