More on Ladera Ranch foreclosure at auction

The L.A. Land Blog is back with another update on 3 Magnolia Drive, a Ladera Ranch foreclosure property that was "sold" at auction, only to have the lender demand more money to complete the sale. The winning bidders balked, and, as we reported, the home was quickly back on the MLS for sale.

The blogger posted a link to the property details from the lender's Web site (coincidentally, as he points out, American Home Mortgage itself is headed for bankruptcy). It's showing an asking price of $885,000. The Redfin posting still has a price of $915,000.

Peter Viles of L.A. Land talked to the winning bidder last night. Here is what the bidder said:

"We just said, 'forget it,' " (George) Sarantos said tonight. "It's not worth it to us." ...

Because auction buyers agree to pay a 5% premium to the auctioneer, the true cost of the Sarantoses' bid was about $740,000. Because they felt they would have to put up even more money for some repairs and maintenance, they didn't want to pay much more than that.ecause auction buyers agree to pay a 5% premium to the auctioneer, the true cost of the Sarantoses' bid was about $740,000. Because they felt they would have to put up even more money for some repairs and maintenance, they didn't want to pay much more than that.

"The house needs work, and by the time we pay all the closing costs, it's over $800,000, and it's just not worth it," Sarantos said. "This isn't going to be the last house out there for us. We didn't lose any sleep over it."

Props to the Sarantoses...they walked away from the deal without reservations when it was clear the situation was not in their best interest.