What not to do

Depending on one's point of view, this can be either a sad tale of things gone awry, or a biting case of poetic justice.

26432 San Ramon Way, which is a 4-bedroom, 3-bath house in Mission Viejo, is up for sale with an asking price of $699,000.
Here's the listing description: GREAT COMMUNITY, SINGLE LOADED, CUL-DE-SAC STREET. SPACIOUS FLOORPLAN. HIGH CATHEDRAL CEILING ENTRY OPENS TO LUXURY LIVING AND DINING ROOM. FROM ENTERTAINING FAMILY ROOM WALK INTO BREAKFAST AREA & GOURMET KITCHEN. CUSTOM SHUTTER WINDOWS THROUGHOUT. MAIN FLOOR BEDROOM CONVERTED TO OFFICE WITH BUILT-IN DESK & CABINETS. FULL BATHROOM DOWNSTAIR. COZY BACK YARD W/ MANY FRUIT TREES & ROSES. NEAR BY SIERRA & MONTENOSO RECREATION CENTERS.

Reader mja considers this property to be "a better-than-average home, and (it's) priced 15-20% below all the other homes in the area." The property has been on Redfin for 93 days now and the listing is still active.

You guessed it: There's more to the story.
Original list price: $989,000
WTH? On the surface, this seems insane. Did the owners really think their property had increased in value by $350,000 since they purchased it in 2003 for $639,000 - particularly since many other Mission Viejo properties are asking below 2004 prices at this point?

Well, no and yes. No, probably, because this was obviously a wishing price and had no basis in reality. Yes, because they were wishing for a bailout. Why?

Mja was wondering why this place wasn't already sold, and did a little digging. Here's what they found: "I called the agent, and she said that they have a number of offers and it's up to the bank to approve it. I asked why it is a short sale, being that they have received offers above the purchase price in '03 for $635k... well is turns out that the seller has over $1 million in loans on this property."

Another victim of the debt monster. Telltale signs in the photos include the flat-screen TV and all stainless steel appliances. Props to the owners, though, who managed to rack up debt to the tune of at least about $500k more than the purchase price of their home in a matter of four short years.