2003 rollbacks: Here they come

A few examples don't make for a solid trend, but we've noticed a handful of 2003 rollbacks have recently come on to the market.

Once a rare phenomenon confined to small condos in "lower-end" pockets, the 2003 rollback - a property up for sale with an asking price below the price it was sold for five years ago - is slowly becoming more and more common in more parts of South Orange County.

Here are some examples of properties that have hit the MLS in the past couple weeks that fit the pattern.

9 Tanglewood, Aliso Viejo, 92656
Asking price: $629,900
2003 purchase price: $641,500
Size: 4 beds, 3 baths, 2,163 sq ft (built in 1990)
Comment: This REO came up for sale in mid-February for $650,000. Its price attracted plenty of interest, and the property went pending in March. Unfortunately, it could not be saved from foreclosure and went back to the bank in April for $580,000.

21182 Chestnut #209, Mission Viejo, 92691
Asking price: $325,900
2003 purchase price: $362,000
Size: 3 beds. 3 baths, 2,519 sq ft (built in 1986)
Comment: The current owner used 89% financing to purchase the home. We're not sure if any money was pulled out of the property later. If it sells at the current asking price, it would mean a loss of $55,654, including 6% sales costs. Note: The photo is of another unit in the complex.

21436 Firwood, Lake Forest, 92630
Asking price: $325,000
2003 purchase price: $375,000
Size: 3 beds, 2 baths, 1,746 sq ft (built in 1983)
Comment: This property is in "good overall shape" - whatever that means. The current owner paid $519,000 in 2005 and used 90% financing from World Savings Bank. If the property sells at the current price (they actually started out by listing at $225,000 before raising the price by $100,000) the loss would be $213,500, including sales costs.

3 Redbud #126, RSM, 92688
Asking price: $264,900
2003 purchase price: $275,00
Size: 2 beds, 2 baths, 1,002 sq ft (built in 1987)
Comment: This now-REO went for $385,000 at the peak in 2006. The previous owner used 100% financing and couldn't keep the condo for too long. It went back to the bank in April, but it appears the lender is putting in new carpet and paint to try and help get this place sold.