Some Utah Neighborhoods Hit Hard By Foreclosures
From KUTV.com:
In Utah there are five-thousand homes in foreclosure and thousands more in pre-foreclosure. (KUTV)
It’s ironic. One of the most popular parts of the Salt Lake Valley looks abandoned in some spots.
Geri Lloyd lives in Draper’s Hickory Ridge neighborhood, which has been hit hard by foreclosures. “It’s bad when you look around and see all the homes for sale”.
Jillinda Bowers, with the Salt Lake Board of Realtors says there are about five thousand foreclosures in Utah right now. Most of the now abandoned houses were purchased by investors, speculators or just people with big hopes. They paid big bucks for a property and hoped for a big return. “They’re million dollar plus homes”, says Bowers. She says Draper, Herriman and part of Utah County have been hit hard.
One house on Hickory Ridge Lane, is unfinished, with rebar and pipes exposed. The owner is asking $695,000. Bowers says a buyer would need to invest another $800,00 to finish the house. Down the street a seven thousand square foot home is empty. According to Bowers, the builder who owned the house, couldn’t afford the payments. The asking price for that house is 1.2 million dollars. Bowers says that foreclosed property, like others, will likely sell for far below the asking price “I can pretty much bet they’ll be negotiating on that price. The bank is anxious to get it sold”.
To see the biggest losses, go to the highest part of Draper, right near the new LDS Temple. A 24-thousand square foot home on Canyon View Cove sits unfinished. Other houses are in foreclosure or are in the process of a short sale. Bowers says although the foreclosure rate in Utah is not as bad as it is in other states like California or Florida, it will get worse. “Economists say we should see it reach its peak in the summer of ’09. We could see more foreclosures in Utah”, says Bowers. That can further drive down home prices. (cont.)
Entire article here
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