Ritz Pointe REO

Ritz Pointe in Dana Point is, quite simply, one of the most prestigious areas of South Orange County. It's close to the Ritz-Carlton and St. Regis resorts as well as the ocean. The sky is just about the limit for prices here, depending on the size of the home, its view and distance to the water.

But, as we've seen again and again, no neighborhood is perfect nor completely immune from the current real estate struggles. This is a bank-owned property that has recently come up for sale:

30 Vista Sole Street, 92629

Asking price: $1,600,000

Asking price/ sq ft: $400
Income requirement: $400,000
Bank purchase price: $1,506,246
Bank purchase date: 2/22/08
Size: 4 beds, 4 baths, 4,000 sq ft (built in 2000)

MLS: P632216 (9 days on Redfin)

Zillow Zestimate: $2,336,500
2007 property tax: $13,542
HOA dues: $95 + $75
Type: Single Family Residence

Style: Tuscan

Stories: Two Levels
Lot size: 5,500 sq ft
From listing: Beautiful Ritz Pointe home with exceptional quality. Plantation shutters, bay window in living room, French doors in dining room and family room. Kitchen has Viking appliances including built-in refrigerator, center island and granite counters. Fireplaces in LR, FR and MBR. Tumbled tile floors throughout downstairs. Dramatic dark wood staircase and upstairs bonus room + exercise or office area. Recessed lighting, wide baseboards. Huge family room with built-in desk area, fireplace and media niche. Dramatic master bath features Roman tub, triple head shower, dressing table and huge closet. Master bedroom features fireplace, bar area and sliding door to balcony. Exclusive guard-gated complex has pathway directly to beach.

The property went back to the bank in February. The loan that proved to be the killer was for $1,303,250 in 2004 by First Federal. Three additional lines of credit tied to this property also popped up in 2005 and 2007, but we're not sure if those were fully tapped or not. The fact that there were three lines is certainly a hint, though.

The closest recent sale is probably 4 Los Monteros - a property in Monarch Beach that is a bit closer to the ocean, but is smaller and not as new. That home sold for $1.595 million back in October.

If our subject property were to sell for the full asking price, it would mean the property still would have appreciated 9.2% every year since it was built in 2000. What housing bust?