Ladera Ranch came up in the LA Times' new foreclosure widget as being the area in Orange County with the worst rate of households per foreclosure (15.58 - but, the number is likely off since the number of homes in the area seems to be understated). So, today we're featuring a foreclosure property in Ladera's Covenant Hills that is selling for a huge markdown off the 2006 price.
14 Drackert Lane, 92694
Asking price: $879,900
Asking price/ sq ft: $251
Income requirement: $219,975
Buyer purchase price: $1,500,000
Buyer purchase date: 8/28/06
Size: 4 beds, 4 baths, 3,500 sq ft (built in 2005)
Income requirement: $219,975
Buyer purchase price: $1,500,000
Buyer purchase date: 8/28/06
Size: 4 beds, 4 baths, 3,500 sq ft (built in 2005)
Zillow Zestimate: $1,235,000
2007 property tax: $23,920.54 (2006 taxes of $22,129.58 unpaid)
HOA dues: $404
Type: Single Family Residence
2007 property tax: $23,920.54 (2006 taxes of $22,129.58 unpaid)
HOA dues: $404
Type: Single Family Residence
Style: Mediterranean
Stories: Two LevelsLot size: 6,500 sq ft
From listing: Beautiful home in desired gated community of Covenant Hills. Cul-de-Sac location with landscaped front. Backyard landscaped needs completed. Main floor Master bedroom and bath/spa including jacuzzi tub. His and her closets with double sinks. Custom paint, crown moulding, through out home. Travertine floors downstairs. Kitchen with island and granite counter tops.
The original owner walked away with a cool $455k in sales proceeds after holding the property for about a year and selling it to our greater fool in 2006 for $1.5 million. The progression from there is not hard to predict:8/28/06: GF puts $75,950 down and finances $1,424,050 via a $1,199,200 1st mortgage and a $224,850 2nd from First Franklin.
9/24/07: Notice of default filed in the amount of $32,236.
2/1/08: Notice of trustee sale filed, amount is $1,271,924.
3/18/08: Home scheduled to be auctioned. Opening bid of $1,202,574.95.
Now, the vacant property is on the market. Assuming a sale at the full asking price, the loss would be $672,894 off the previous sales price, including 6% sales costs. Not including transaction costs, that would also be a depreciation of 41% off the previous sales price.
Think about that: 41% off in less than two years. In a luxury neighborhood. Of course, there is always the possibility that the price is artificially low to attract multiple bids. We will know for sure when this property sells.
The latest home stats came out Friday, and there's still not really much of an improvement on the South OC numbers - if anything, the retreat continues. Here are the DataQuick stats for the 22 business days ending April 8, as reported by the OC Register:
11 comments:
I never understood the attraction of Ladera Ranch - the property taxes are like making an extra mortgage payment each month. The houses are nice but it's too far from the beach to command the exorbitant prices. It's full of young families and I don't see how they can possibly afford to live there. No one's got any equity left so I think we'll see a lot of walkaways here.
I don't get that neighborhood either. It's so planned that it feels creepy. Reminds me of the Stepford Wives, or Pleasantville. I truly feel weirded out by that place.
The Mello Roos factor is huge. Plus the HOA's. I'm amazed that people can afford an extra 20% on their mortgages. I guess it's compensating for the price/sq. foot discount they get relative to the beach cities.
Have to agree with the "I don't get it" comments about Ladera Ranch. Can't imagine why people would want to live there!
The LA Times lists Ladera as having 592 residences which throws off the foreclosure per residence ratio. Ladera is in trouble, but not 1 foreclosure per 15 residences. Probably a data entry error.
"Probably a data entry error." Agreed.
Where is your post for today??? I am getting addicted!
Ladera is a nice place. but it does have a Stepford kinda vibe. i was there on Saturday, prowling the community garage sales, but i only encountered one guy who i was certain is going to lose his house (nice house, too). he was selling off too much stuff for it to have just been a simple garage sale. my cohort to the garage sales is looking to buy a house, but she's ruled out Ladera for all of the reasons mentioned here.
Ahh good ol Fraudera Ranch at its best.
http://bubbletracking.blogspot.com/2007/02/fraudera-ranch-its-family-affair.html
"The original owner walked away with a cool $455k in sales proceeds after holding the property for about a year and selling it to our greater fool in 2006 for $1.5 million."
The so called "fool" is not such a fool when he is the original buyers friend. This was a tag-team transaction from the begining.Check similar names with original buyers transactions. This family was operating a similar system as papa gayo! This family has several transactions in the area- all sold to friends and/or associates for a high profit. Follow the family name to-broker to-re agents-to- fraud...
Why anyone what want to live within 5 feet from their neighbors is beyond me. You cant even walk outside, and fart without your neighbors hearing it.
Geeessshhhh...
southOC just found your blog great work and info. where I worry the most being a broker in the OC are the exotics the neg-ams are going to crush this place even further. They are going to be like RSM in the last bust.
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