The decorations in the photo of this San Juan home scream "holidays" - and their presence is strangely appropriate. The borrowers who are holding today's subject property have been the beneficiaries of some very generous giving from their lenders. That's lenders with an "s."
26435 N Woodcrest Lane, 92675
Asking price: $370,000-$395,000
Asking price/ sq ft: $235-$251
Income requirement: $98,750
Purchase price: $510,000
Purchase date: 7/20/04
Size: 4 beds, 2 baths, 1,572 sq ft (built in 1972)
MLS: S525924 (49 days on Redfin)
ZipRealty price tracker: Price Reduced: 4/04/08 -- $450,000 to $400,000
Price Reduced: 4/15/08 -- $400,000 to $395,000
Zillow Zestimate: $478,000
2007 property tax: $5,393
HOA dues: $100
Type: Single Family Residence
Stories: 2 Levels
Lot size: 3,050 sq ft
From listing: Cozy Single Family Attached Home in San Juan Village with lots of upgrades. Well maintained. One of the best homes for sale in the neighborhood. This is a short sale. Foreclosure. Short sale subject to lender's approval.
View Larger Map
There are no interior photos with the listing, so we're settling for the Google street view. Here is the timeline for this property:
7/20/04: Purchased for $510,000 using 100% financing (a $408,000 first loan and a $102,000 second).
8/24/05: Re-fi for a total of $544,500 using two loans.
12/6/06: Another re-fi, this time also using two loans totaling $630,000.
1/16/08: Notice of default filed in the amount of $13,211.
3/19/08: Property listed for sale with an asking price of $450,000.
It seems unlikely the lender would quickly agree to a short sale, considering the first loan on this property that was made in 2006 was in the amount of $504,000 - about the entire 2004 purchase price. The second loan of $126,000 stands to be completely wiped out.
As you can see, it appears the years of free gifts for our owners appear to be numbered. Is there any reason to feel sorry for them? They "bought" the house using none of their own money, pulled cash out more than once and will walk away losing nothing except a few points on their credit score. This is clearly the case of the lender left holding the bag.
Assuming a short sale can somehow be arranged and the lender accepts for the top current asking price, the loss would be $138,700, including 6% sales costs, off the previous sales price. It would also be a depreciation of about 23%, not including transaction costs.
But, as we showed you, the loss for the lender would in reality be closer to $259,000, considering how much debt is actually on the property.
Thursday, May 08, 2008
No jolly holiday in San Juan
Subscribe to:
Post Comments (Atom)
4 comments:
Pretty outrageous that they won't get any tax consequences considering they received nearly $120K in their pocket.
Technically (and I did not mention this in the post) the lender could go after them since the re-fi made it a recourse loan.
But considering the pattern of cashing out, it seems hard to believe there is much of anything for the lender to get.
darn, i was hoping this was a detached SFR. oh well, still a long way to go...
As a hard working homeowner who did put 20% down and makes my payments every month, I have a really hard time feeling sorry for either the banks or the owners of homes like this. Just let the prices keep falling and then young couples and people with income and a downpayment can become homeowners. I really hope our tax dollars are not used to bail out people like the owners of this property.
Post a Comment