Nearly 1 year on the market in LN

This Laguna Niguel home is only a few weeks away from celebrating its one-year anniversary for sale on the MLS. We think you would agree that a lot has happened since this house was listed back in September 2007.

24364 Cielo, 92677
Asking price: $500,000-$525,000
Asking price/ sq ft: $346
Purchase price: $690,000
Purchase date: 2/16/07
Size: 3 beds, 3 baths, 1,446 sq ft (built in 1986)
MLS: S505906 (344 days on Redfin)
ZipRealty price tracker: Price Reduced: 10/13/07 -- $729,000 to $705,000
Price Reduced: 11/30/07 -- $705,000 to $625,00
Price Reduced: 01/12/08 -- $625,000 to $575,000
Price Reduced: 06/26/08 -- $575,000 to $500,000
Price Increased: 07/03/08 -- $500,000 to $585,000
Price Reduced: 08/12/08 -- $585,000 to $525,000
Price Reduced: 08/14/08 -- $525,000 to $520,000
Price Increased: 08/25/08 -- $520,000 to $525,000
Zillow Zestimate: $1,131,500 (LOL)
HOA dues: $146 + $30
Type: Single Family Residence
Style: Contemporary
Stories: 2 Levels
Lot size: 3,150 sq ft
From listing: AWESOME 3 BEDROOM 2.5 BATH...PERFECT HOME WITH GREAT BACKYARD AND PATIO..3RD BEDROOM USED AS A LOFT...ASSOCIATION TENNIS AND BASKETBALL COURTS...TILE FLOORING AND CUSTOM CARPETING.......CLEAN AND PERFECT WITH LOTS OF SUNSHINE MAKES THIS THE ONE TO OWN IN BEAUTIFUL LAGUNA NIGUEL..............

Customized financial info, assumes $500,000 price:
Minimum Income Requirement (using 30Y Fixed): $116,400, assumes no other debt/obligations.
Downpayment needed: $15,600
Monthly Payment on 30Y Fixed at 6.375% with property taxes and mortgage insurance estimated: $3,889.80
Minimum Income Requirement (using 5Y fixed): $116,400, assumes no other debt/obligations.
Monthly Payment on 5Y fixed at 5.75% with property taxes and mortgage insurance estimated: $3,686.54
Disclosure: All rates offered to the client with 1 point cost. Rate quotes assume a purchase transaction with the required minimum down payment, 720 credit score, full income qualification and required reserves. Rates are subject to fluctuation. Custom rate quotes and rate lock advice are available by visiting www.thegreatloan.com.

What do you know...another property last purchased in 2007 is already feeling the burn. What do you think we will be saying about properties purchased in 2008 a year from now?

The current owner/occupant purchased the property for $690,000 using 100% financing from our friends at Countrywide. Way to go, C'Wide.

About seven months later, he listed it for sale asking $729,000 - not surprising considering that probably would have allowed him to get out from the property scab free. The price has been progressively falling since then.

Complicating things somewhat are the notice of default on the property - filed in March - and the notice of trustee sale in the amount of $591,719 that came in June. This home is scheduled to be auctioned off Sept. 10 at the Santa Ana Courthouse, but since this is the original auction date there's a chance it could be pushed back.

Assuming a buyer can be found who is willing to pay $520,000 - the quasi-middle of the asking range - and the lender accepts, it would mean a loss of $201,200 for whomever owns the cruddy loans now. The homedebtor would suffer a ding to his credit.

A sale at that amount would also mean a depreciation of 25% - not including sales costs - in about a year and a half.