There doesn't seem to be much chance of saving this Talega short sale from the grips of foreclosure. It's been on the MLS for about three months and is now less than two weeks away from the scheduled auction - though it's already been postponed a couple times from its original date.
This preforeclosure's asking price would make it a rollback either way, but 'twas the serial refinancing that makes this one stand out....
18 Calle Camaron, 92673
Asking price: $799,000
Asking price/ sq ft: $280
Income requirement: $199,750
Purchase price: $880,000
Purchase date: 8/13/04
Size: 4 beds, 3 baths, 2,850 sq ft (built in 2001)
MLS: L26189 (90 days on Redfin)
ZipRealty price tracker: Price Increased: 5/02/08 -- $699,000 to $799,000
Zillow Zestimate: $726,500
HOA dues: $118
Type: Single Family Residence
Style: Spanish
Stories: 2 Levels
Lot size: 6,200 sq ft
From listing: Remodeled Home, No expenise spared, So many up Grades To list, Cherry wood floors, Crown Molding & Window Casings Throughout. French doors lead out into Low maintainace yard. built-in Entertainment center. This is a Short Sale
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The current owner paid $880,000 in 2004 and financed the entire purchase price with the exception of his $1,000 downpayment. Almost exactly a year later, he refinanced into $1,080,000 worth of loans. The Kool-Aid continued to flow, and in November 2006 he re-fied into $1,250,000 worth of debt in two loans from Homecomings Financial.
We can only speculate where the money went - but it seems like it may have something to do with the fact that the listing description mentions that no "expenise" was spared in upgrading the property.
The home was in preforeclosure about a year after the last refinance. The notice of trustee sale on the first $1 million loan was filed this April in the amount of $1,067,455. The property was originally scheduled for auction in June but has been delayed since. It is next scheduled to be sold Aug. 4 at the Santa Ana courthouse.
If the property could sell right now for its full asking price, and we subtract 6% for sales costs, without any equity extraction we would have expected the loss to be $128,940.
In reality, because lenders allowed the owner to turn his $1,000 downpayment into more than $350,000 thanks to the house, they could be facing a loss of nearly $500,000 - if they were to accept the short sale for the current asking price and we assume 6% sales costs.
Friday, July 25, 2008
Refi bust in San Clemente
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9 comments:
Someone, "homeowner", should go to jail for bank robbery instead of the slap on their credit score.
Great blog. I read it every morning. Well, the owners didn't spend their refi money on property taxes. $13,400.00 owed and late fees of $179.00 accruing every month.
I wish the OC tax collector would go after the non-payers. Our former neighbors have not paid taxes on their "dream home" since they moved there in 2006.
The mood in San Clemente has become very subdued in the last year. I wondered how so many families were moving up to 1.1-1.5million dollar homes from their starter homes. I just couldn't figure out how people in their thirties without a great education or job were able to move to such expensive homes. But I wasn't aware of the refi situation, either.
Collecting money for the end of the year teacher gift at our elementary school, I was surprised this year by how many families in luxury homes and cars "just couldn't afford" to contribute. The Hummer driver did give $5.
Keep up the great work.
South OC Tracker:
Could you explain how these people get their auction dates postponed again and again? Is it because the house is listed for sale, making it appear that they are trying to "work something out"?
???
Look at that word 10 times and you'll see the subliminal message.
expenise
expenis e
ex penis e
e x penis e
Reminds me of the daily show domain mishaps... Pen Island reserved its online presence at www.penisland.com
Dang, some realtors are really in tune with their inner child.
Anon,
Most postponements come from when there are multiple mortgages in a short sale situation. The first approves it and the second sits on it for weeks or months. The first is waiting for the second, and this can happen many times. I know of someone who had their auction date postponed more than 8 months by this happening several times through several short sale offers.
Chuck Ponzi
Okay, I'm throwing in the towel. Up to now I've always thought, yea, its pretty bad how some of these "buyers" got into houses they can't afford and then get to walk away and leaving the bag to the stupid lenders. But my inane streak of conservatism always convinced me that I wouldn't want to be one of these guys or gals because their lives during the "hey day" are not real and they ultimately ended up with nothing.
No longer, I give in. If I had the hindsight, I would gladly put down $1,000 and get $500,000 back. I'd take a hit in my credit profile, but hey, that's a lot of tax free dough to live on while my credit is being repaired. Recourse loan you say? I say not. Look at how bogged down the banks are. There's no way they'd get back to me before the statute of limitation runs out. OTOH, this does argue for the loosening up of credit collection rules (of which we have plenty). The chances of recovery will be a lot better if the mob can get into this racket.
I love this blog... One stat that always jumps out at me: INCOME REQUIREMENT. Less than 5% of American households have incomes over $150K.... Even these short sales are unaffordable to the actual communities income. Cheap financing can't make that go away... you have to actually have income to pay for a house. This is only going to get worse, because the South OC economy was disproportionally dependent on housing jobs and those are GONE (gone, baby, gone!).
This makes me so mad! They need to go after these thieves that do this. Unfortunately, this is so widespread throughout CA that these thieves are going to get away with it. My husband has an employee who hasn't paid his mortgage in months but because he refied his loan this last year got money refunded back on his tax returns. We wonder how long he will get to live rent free. Even worse are these South OC posers who used their equity to buy boats, RV's , luxury cars and plastic surgery.
We bought in Talega about 6 months. Got our house about 35% off what it sold in January of 07. Killed the comp's in the entire neighborhood. Still hear comments from neighbors.
Will it go down? Sure most likely. Do I care? No, we plan on raising our children here. No fancy financing; 30yr fixed, live within our means.
People you posted about are a joke. They drive the fancy Range Rover, wife with the big fake rack and all the other toys. Karma is a bitch.
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