Distress in San Clemente

This is what we're looking at right now in San Clemente in terms of properties that are in some stage of foreclosure:

And, believe it or not, it's actually worse than we're seeing here, since the view was limited to 200 of the 239 properties listed by foreclosureradar.com in this city. Green means the property is in preforeclosure; blue means scheduled for auction; red means the property is bank owned (REO).

Today's property is a luxury home that has become one of those green dots, meaning it is in preforeclosure...

13 Via Soria, San Clemente, 92673

Asking price: $1,049,000

Asking price/ sq ft: $304
Income requirement: $262,250
Purchase price: $1,321,000
Purchase date: 7/28/05
Size: 4 beds, 4 baths, 3,450 sq ft (built in 2005)

MLS: S524267 (43 days on Redfin)

Zillow Zestimate: $1,111,000
2007 property tax: $19,417
HOA dues: $181
Type: Single Family Residence

Style: Mediterranean

Stories: Two Levels
Lot size: 6,000 sq ft
From listing: Beautiful ocean view Catania home totally upgraded thru-out with granite counters, crown moulding, Travertine flooring, recessed lighting. Huge kitchen includes large island with granite counter top and boasts loads of cabinet space thru-out. Dramatic curved staircase leads to upstairs bedrooms and additional family room and computer nook. Master suite has huge balcony and awesome view all the way to the ocean.

There are plenty of 100% financing deals in South OC to talk about, but this is not one of them. The owners bought the home new in 2005 from Standard Pacific with $281,000 (21%) down. About a year later, though, an additional loan of $242,640 was added to the property. The notice of default was filed in late March on the first loan in the amount of $17,808.

Assuming the property can be sold for the full asking price, it would mean a loss of $334,940 off the new-home price in 2005, including 6% transaction costs. Considering they bought the home new, we also assume plenty of money was spent furnishing and personalizing the interior, as well as landscaping. It's anybody's guess how much cash actually went into turning this house into a home.

A sale at full asking price would also signal a rather large depreciation of 26% in less than three years, not including sales costs. It would also signal a sad end to this real estate story.