by Bill McBride on 4/13/2012 08:35:00 PM
Friday, April 13, 2012
Earlier I posted some thoughts and details on BofA suing BofA in a foreclosure case in Florida.
Here are some more details.
The condo was purchased in April 2005 for $210,000. The first was for $192,691.20. This was probably a 90% loan with costs rolled in (ht Z).
The HELOC was authorized in September 2006 for $150,000, although the borrower only used $75,000.
This suggests the property value increased by 60% to 70% in just over one year! Or BofA was giving out HELOCs with LTVs much greater than 100%. Either way, it makes me wonder ...
It does appear prices in Florida were still rising quickly during that period. According to Case-Shiller, prices in Miami increased 24% from April 2005 through September 2006, but that isn't close to 70%!
Maybe it was the name. This is a water front condo in buildings called "Wilshire East" and "Wilshire West". As I noted a few years ago, you could almost guess which projects would get in trouble by the name such as "Manhattan West" in Las Vegas and "Central Park West" in Irvine, California.
Here is a google map of the Florida building.
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