Today's property is another example of how a bubble-era buyer could get into a pretty darn nice million-dollar property like this one in Talega - without using any of their own money. What ever could go wrong?
Now, since the market has cooled, the house is predictably headed for foreclosure. Will a last-minute buyer step in, or will this one go all the way to auction?
219 Via Marfino, 92673
Asking price: $1,030,000
Asking price/ sq ft: $287
Income requirement: $257,500
Purchase price: $1,425,000
Purchase date: 8/26/05
Size: 5 beds, 5 baths, 3,586 sq ft (built in 2000)
MLS: S503912 (242 days on Redfin)
ZipRealty price tracker: Price Reduced: 11/30/07 -- $973,143 to $945,342
Price Increased: 11/30/07 -- $945,342 to $985,032
(Price increased 3/20/08 -- $985,032 to $1,030,000)
Zillow Zestimate: $991,500
2007 property tax: $18,242
HOA dues: $149
Type: Single Family Residence
Style: Spanish
Stories: 2 Levels
Lot size: 10,600 sq ft
From listing: Best value in talega and maybe orange county!!!! This pool home is ready to move in. Backs to the golf course, custom kitchen, lots of tile. Show and sell today!!! See you in escrow. Short sale is approved, no waiting, no waiting, no waiting for this great property!!!!Sold as is!!!!!!Short sale is approved by the lender!!!!!
The buyer paid $1.425 million in mid 2005. She was able to obtain 100% financing through First Franklin in the form of a $1.14 million first loan and a $285,000 second (80/20). A notice of default on the first loan in the amount of $31,494 was posted in December, and a notice of trustee sale in the amount of $1,198,356 came in mid March.
We would be curious to know if this property saw much action when it was priced at $945,342. Was the only thing holding up a sale the lender's approval? Or, was there not sufficient interest back then and this is really a last-ditch wishing effort with no substance?
One thing is certain, though: The property hasn't appreciated any since last fall, so if buyers weren't all over the place then it seems hard to believe they would be interested now with an increased price tag - unless, of course, the allure of an approved short sale is worth the higher price.
The property is scheduled to be auctioned May 5 at 10 a.m. - that is, unless a buyer can be found before then. As you can see from the listing, the lender has approved a price of $1.03 million. Is it worth that much to a buyer, or would they prefer to wait, let the property go back to the bank and later reappear as an REO before deciding whether to go through with the purchase?
By setting an approved short sale amount, the bank has agreed to a price that would equal a loss of $456,800, including 6% sales costs. Bye bye second loan, and ouch to the first one, too - in fact, the notice of trustee sale amount is actually higher than the original loan itself, thanks to unpaid interest and fees adding up.
A sale at that price would also mean a depreciation of about 28% in less than three years, not including transaction costs.
Friday, May 02, 2008
$0 down backfires in Talega
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8 comments:
They couldn't sell it at $900,000 so they raise the price? People ask how long it will be under there is a bottom? When sellers, and banks, realize that people won't pay a million dollars for a house on a lot the size of a postage stamp. I think real estate agents, and banks underestimate the damage that has been done to the confidence of the homebuying public. Prices are gong to be have to at 2002 levels before buyers will seriously step back in. Realtors should tell their sellers that instead of prolong this misery.
These are getting easier and easier to predict.
I have a list of properties in south county that were purchased in 2004, 2005 and 2006 and I simply check off each one as it hits "distressed" status and pops up on the market.
I agree with 8:00 am anon. The sooner that sellers realize "the time to sell was yesterday", the faster we will see bottom.
Running title on 80% of the properties purchased in the last 3 to 5 years tells a scary story of people desperate to live beyind their means.
According to some foreclosure data I've seen, many, many properties in OC go to auction for a bit more than is outstanding on the loan. It doesn't get auctioned off. Bank takes it back at what's owed on the loan. Then bank turns it over to a realtor who lists it for more than is owned on the loan. It didn't sell at auction for more than the loan, what are the banks thinking when they list with a realtor? They need to start getting real.
The auctions are very misleading. There really aren't any steals; the bank is not giving anything away and the public thinks they can grab a property far under market value and with an undisclosed price they have before they will let it go the process is fruitless for most average homebuyers and investors.
$1500 a month just for property taxes, WOW! Gotta love all the trucks parked out front, on a million dollar home. Not for me.
When the price was listed at $945,000, we actually submitted an offer above that price and was in escrow for over 5 months waiting for the lender to approve the short sale only to have the lender raise the price to $1030000 as is. Needless to say we walked away and are glad we did.
House appears to be back on the market for $944,900
Property appears to be in escrow as the listing says backup offers. Curious about how much the property is being sold at.
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