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An Information Guide to Duck Key in the Florida Keys



 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

Price Declines - Buy High, Sell Low -

posted in November 2007 and additions and revisions made in January 2008, further revisions 3/2008

 

Listed below are some properties sold or selling for less than the purchase price.

Villa 7043 purchased for $1,200,000 on 8/2005, sold for $799,000 on 11/15/2007 - Loss of $ $401,000

Villa 7076 purchased for $835,000 on 3/2005 later sold for $757,000 July 2006 - Loss of $78,000

Villa 7046 purchased for $695,000 in October 2004, later sold for $617,500. - Loss of $77,500.

Villa 6006 purchased for $713,000 in July 2004 later sold for $425.000 - Loss of $288,000

Villa 5113 purchased for $713,00 in July 2004 later sold for $510,000 - Loss of $203,000

147 Indies South - sold for $425,000 on 11/15/07 - previously sold for $810,000 on 7/26/2005

A review of recent sale's prices in November revealed 5 Hawk's Cay Village properties selling for less than the prior purchase price. Also several homes on the residential island that are now bank/lender owned are selling for less than their prior purchase price.

 

Address Date Purchased Price Paid Currently Offered For Potential Loss
7018 July 2004 $687,000 $595,000 $92,000
5075 May 2005 $575,000 $445,000 $130,000
5082 June 2004 $565,000 $499,000 $66,000
188 S. Indies Feb 2006 $1,700,000

$1,350,000

not listed 10/2007

$550,000
In December 2007 residence at 188 S. Indies was bought for $1,150,000. and relisted for $1,650,000.
157 S. indies Jan 2006 $940,000 $689,000 $251,000
6012 Jan 2006 $950,000 $890,000 $60,000
2007 April 2005 $1,005,000 $999,000 $6,000

7046*

January 2007

$617,500

$542,900

$74,600, - this villa sold for $695,000 in 2004

         

 

* Note - This property also sold in 2004 for $695,000 and later was sold for $617,500. That represents a decline from $695,000 to the current asking price of $525,000.

On top of the loss in value add to this the cost of selling a property at 6%. On a $600,000 villa, that's an additional $36,000 lost.

 

KEY WEST FOR LESS

To check out Key West properties selling for less than what buyers purchased them for go to Flippers in Key West Losing Their Guayaberas

CALIFORNIA FOR LESS

To see Sacramento properties selling for less go to FLIPPERS IN TROUBLE

 

TAX IMPLICATIONS FOR DEBT FORGIVENESS

Should the bank foreclose and take a big loss, the IRS considers that loss to be a gift to the abandoning homeowner, subject to income tax. And that tax is not easily forgiven.

A bank usually sends out a Notice of Default or a foreclosure notice when you miss several payments.

This starts the process for the sale of your home. In Florida it may take months before the house is auctioned on the Court House steps. During that time homeowner's indebtedness increases due to unpaid mortgage payments, and add ons such as bank fees, late fees, legal fees, inspection fees, etc.
The end result , the balance of your mortgage could have expanded by tens of thousands of dollars.

Should the auction price be lower than the amount of indebtedness the bank can try and recoup the difference by getting a “deficiency judgment” against you. Such deficiency judgements are usually good for 20 years and can be renewed. The bank can seize assets.

If they are unable to seize assetts the new bankruptcy law allows the bank to write the deficiency off on their taxes.

IRS

The IRS considers the money the bank is writing off ( the debt you owed and did not pay), to be income to you, and expect you to pay taxes on it at the next year tax return.

The only way you will not have to pay is if your liabilities exceed your assets.

 

 


 
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