Photo credit: LA TimesThe recent listing price was $429,000 (obviously, way too low to be a regular sale, even REO), with the following in the description:
'Property To Be Sold At Public Auction Event March 15Th At The Pomona Fairplex. List Price Is The Starting Bid For This Home, Subject To A Reserve Price And Lender Confirmation. You May Bid At The Auction, Or Via Live Internet Web Cast, Or Via Absentee Bid ( Written Offer ) Submitted In Advance Of The Auction. No Offers Will Be Accepted Prior To Auction. Homes Open For Inspection From 10Am To 4Pm On Sat And Sun March 8Th And 9Th. For Property And Auction Information Contact Listing Broker'
Peter Viles of the LA Times' excellent L.A. Land blog posted on the fate of this property today. Some snippets:
"Because the opening bid was so low, there was a spirited bidding war for the home. ...
Here's what happened: The winning bid for this home came in at $705,000. Remember, the bidder agrees to pay an additional 5% premium to the auction companies. So the total bid was $740,000 -- a 38% discount from the peak sales price of $1.2 million. However, the bank or lender that owns the home reserves the right to reject the high bid as too low, and that is what happened here."
To recap, the auction established that a buyer was willing to pay a total of $740,000 for the property. The bank said no.
In fact, it looks like the bank may already be trying to get more for the property. It's showing up in Redfin with a new asking price of $915,000.
*There is also an interesting LA Times video Viles did on the auction, specifically on the Ladera Ranch property. See it here.
2 comments:
I'm working on a story for the L.A. Times on the use of California Props. 60 and 90, which allow homeowners over age 55 a one-time opportunity to transfer their existing property tax base to a new property of the same or lesser value, and I'm looking for people to interview.
In the case of Prop. 60, the law covers property within the same county. In the case of Prop. 90, although the law in theory allows homeowners to transfer their existing tax base to another California county, since each county gets to choose if they want to participate, only a few actually do so (including several in Southern California).
But for those who want to use this law to move to the counties of Riverside (i.e., Palm Springs) or San Bernardino (i.e., the High Desert) or most of the Bay Area and Central California, they're out of luck. Consequently, I'm looking for people who would consider moving to these areas but haven't because they don't want their property taxes to rise exponentially.
Finally, Prop. 110 is similar to Prop. 60 but allows severely disabled people of any age to use this one-time opportunity to transfer their existing tax base within the same county, and I'll also be including that in the story.
If you'd like to get an idea of my writing style and how I cover subjects, click here for a story I wrote on reverse mortgages last month.
Please send any potential interview subjects to me directly at psduffy@sbcglobal.net.
This is going on all over the west coast. These auctions are a scam. Don't waste your time at all going to them or bidding on these houses. It's a marketing tool. The Sacramento Landing blog went over this already. Just stay away from these unethical scam artists.
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