A Glimpse Into the East Boston Mortgage Crisis

A bank-owned two-family located at 91 Leyden Street on a very large 6,695 square foot lot was placed on the market on March 13 for $199,900. There was an accepted offer only 11 days later—most bank owned properties sell close to their asking price.

The mortgage history of this property gives us a terrifying glimpse of the East Boston mortgage crisis. The last owners purchased this two-family plus in-law in 1997 for $147,000. Their down payment was less than $7,000; their original mortgage was only $140,082. They refinanced the property six additional times: in March 2001 for $183,750; in September 2002 for $260,000; in November 2003 for $267,000; in May 2004 for $316,000; in June 2005 for $325,000. Lastly, two mortgages were obtained in January 2006 totaling $409,500. The property was foreclosed upon in September 2008.

Many East Boston homeowners borrowed consistently and extensively on their homes over the last decade. Ironically, even as a 2009 bank-owned foreclosed property, 91 Leyden Street will probably sell at a price higher than it did in 1997. This makes us wonder if housing prices in our neighborhood have “collapsed” or are just returning to their “normal levels” of the late 1990s.

Please check back as we continue to update you on East Boston real estate happenings. To see all our listings, or to search MLS properties, head to the Tony’s Realty Website.

Email Tony with your questions or comments.

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