Big discount in Laguna Hills

This Laguna Hills "POOL HOME" is an REO testing the $700,000+ market in South Orange County. It's been up for sale for about three weeks so far...

24811 Solano Ct, 92653
Asking price: $729,500
Asking price/ sq ft: $266
Income requirement: $182,375
Bank purchase price: $750,000
Bank purchase date: 4/18/08
Size: 4 beds, 3 baths, 2,470 sq ft (built in 1979)
MLS: S540097 (24 days on Redfin)
Zillow Zestimate: $740,500
Type: Single Family Residence
Stories: 2 Levels
Lot size: 7,000 sq ft
From listing: POOL HOME..4 Bedrooms..Cul De Sac, 3 Fireplaces, New carpet....Fresh Paint....Open Kitchen..Family room with Fireplace.....Formal Dining Room....Large Master bedroom with fireplace, Built in BBQ on Patio . Nice curb appeal.


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The story on this property is likely familiar to you by this point: The former owner purchased the home during the bubble for $920,000 using 100% financing from Fremont Investment & Loan. They quickly defaulted and received a notice of default in June 2007.

The notice of trustee sale was delivered in March 2008 and demonstrated that the $736,000 first loan was now being strangled by $846,884 worth of unpaid principal, interest and fees.

The home went back to the bank at the foreclosure auction in April when no bidders stepped forward to take the property for $750,000.

Assuming the lender unloads this property for the full asking price, it would mean a depreciation of $190,500, or 21% off the peak sales price, not including any sales costs.