Preforeclosure in Laguna Beach

The marketer behind this Laguna Beach ocean-view property is trying to turn some sizable negatives (possible future foreclosure; remodeling incomplete) into positives (blank slate to make your own).

Will the plan succeed? Is the property priced well enough relative to its value to save itself from the foreclosure auction?

928 Quivera, 92651
Asking price: $1,050,000
Asking price/ sq ft: $503
Income requirement: $262,500
Purchase price: $1,300,000
Purchase date: 9/14/06
Size: 2 beds, 2 baths, 2,087 sq ft (built in 1988)
MLS: L26869 (28 days on Redfin)
ZipRealty price tracker: Price Reduced: 8/04/08 -- $1,150,000 to $1,050,000
Type: Single Family Residence
Style: Contemporary
Stories: 3+ Levels
Lot size: 2,500 sq ft
From listing: NOTICE OF DEFAULT,BEAT THE BANK. Home was in the process of being remodeled. This is a blank slate for the new owner design their dream kitchen and master bedroom most of the plumbing and electrical work has been done The home has great ocean views from upper balcony and a very private rear terrace. Home could have 3 bedrooms. This is a great opportunity for your investor and creative buyers.


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As you may have noticed from the sales history on the Redfin listing, this property has changed hands a number of times over the past few years. The current owners put $140,000 down and financed the remaining 87% with the help of First Franklin.

They are now in severe danger of losing the downpayment, but the lender also will feel the burn. The property first went up for sale in mid-July asking $1,150,000 - this was about a month after a notice of default had been filed on the property for $21,195.

The price was lowered to the current amount a few days ago.

Assuming the property can successfully be sold for the current asking price, it would mean a loss of $313,000, including 6% sales costs. The downpayment would be history, and the lender would be out around $173,000.

Laguna Beach is holding up well, but it's far from perfect...