UPDATE: Yes, a failed flip in Laguna Niguel

We posted in late February about 24171 La Hermosa, a property in Laguna Niguel that looked like it was a flip heading for failure. To recap:

Asking price: $575,000 (now $550,000)
Asking price/ sq ft: $353 (now $338)
Purchase price: $750,000
Purchase date: 11/13/06
Size: 4 beds, 2 baths, 1,628 sq ft (built in 1966)
MLS: S503764 (178 days on Redfin) - now 232 days
ZipRealty price tracker: Price Reduced: 09/17/07 -- $899,900 to $839,900
Price Reduced: 09/25/07 -- $839,900 to $829,900
Price Reduced: 10/18/07 -- $829,900 to $799,900
Price Reduced: 11/13/07 -- $799,900 to $650,000
Price Reduced: 12/21/07 -- $650,000 to $599,900
Price Reduced: 02/25/08 -- $599,900 to $575,000
Now: Price Reduced: 04/08/08 -- $575,000 to $550,000
Description: This property has been completely remodeled.Granite counter top in the kitchen with a serving bar.Office area or eating area opens to the backyard.Beautiful tile flooring throughout.Newly painted,cozy fire place in the family room with french doors opening to the back yard.Newly painted interior,crown molding throughout.New cabinetry in the kitchen.Both bathrooms have been redone with new flooring and fixtures. Move in condition very light and bright.Close to the freeway,shops,park and restaurants.

Here are the details behind the transaction. It's easy to see how things went wrong.

11/13/06: Purchased for $750,000 with 95% financing from Greenpoint Mortgage Funding.
12/5/07: Notice of default filed on $600,000 1st mortgage, delinquent amount of $21,343 (property had been on the market for a little more than three months at this point)
3/13/08: Notice of trustee sale filed, sale amount established at $635,818. Property is scheduled for auction May 16.

It also looks like there may be some issues with unpaid property taxes, too.

Assuming the property is able to be sold for the full asking price, the loss would be $233,000, including 6% sales costs. And, remember, we don't know how much additional money was spent rehabbing the property.