Saturday, May 16, 2009

Another Foreclosure Moratorium Unintended Consequence: Free City Utilities

While perusing the distressed inventory listings, I've begun to notice an increasing number of delinquent utility bills being added to the direct levy portion of the property tax owed. Of course, the banks are bringing these bills current when they repo the houses, so in effect, not only are the foreclosure moratoriums allowing people to remain in houses mortgage-free, they're also getting free city utilities! Here are but two of what must be hundreds of examples:

5051 Karbet Way
Sacramento, CA 95822
Total Loss: $305,000Percent Loss: 52.1%
Asking Price: $280,000
Bedrooms:4    Baths: 2    Sq. feet:2025

Listing History:
Down 18.4% from $343,000 On 2008-08-30
Down 15.2% from $330,000 On 2008-11-15
Down 6.7% from $300,000 On 2009-02-21

Days on market: 716
# of Times Listed: 2

Previous Sales:
Sold on 2007-05-31 for $585,000

MLS# 80087037      Google Maps
Property Tax Bill

8112 Sacramento St
Fair Oaks, CA 95628
Total Loss: $579,223Percent Loss: 49.1%
Asking Price: $599,777
Bedrooms:4    Baths: 3    Sq. feet:3535
Days on market: 892
# of Times Listed: 1

Previous Sales:
Sold on 2006-12-06 for $1,179,000

MLS# 90037658      Google Maps
Property Tax Bill

Just another example of how well-intended legislation actually hurts everyone involved. Local media: this is a great story if you can get statistics from the assessor. Note: Unpaid utility bills cut PG&E's earnings by 2 cents a share this quarter. I'm still waiting on SMUD's slower-than-molasses website to get their data.

1 comment :

Deflationary Jane said...

on a related note after reading this, anyone else seeing Dead HOAs Walking?

In my tiny house development, the residents are starting to talk about community watches and such. We're bordered by the road and open fields on 3 sides and a large homesteaded to the east. The farm is beginning to sprout trailers. Apparently we're too close to the river and vagrants are utilizing the waterways for travel. One neighbor called it the Rio Linda effect but he didn't clarify what that meant.