What fun the bubble was. Want a $700,000 property but don't have much money to put down? No problem. Still short on case? Pull out some money now, ask question later.
This REO in a RSM golf course community is a perfect demonstration of what happens when "later" comes knocking...
27 Via Caseta, 92688
Asking price: $599,900
Asking price/ sq ft: $278
Income requirement: $149,975
Bank purchase price: $612,722
Bank purchase date: 6/17/08
Size: 3 beds, 3 baths, 2,160 sq ft (built in 1994)
MLS: S542163 (7 days on Redfin)
Zillow Zestimate: $612,000
HOA dues: $100
Type: Single Family Residence
Style: Mediterranean
Stories: 2 Levels
Lot size: 2,950 sq ft
From listing: Corner home in the golf course community of Villavante. Upstairs features a large loft, Master Bedroom with walkin closet, and two other bedrooms. Bedroom downstairs has been converted into a office, full bath downstairs. Walk to parks, schools, hiking, pool, and golf course.
The previous owners purchased the home for $700,000 in 2005. They put $100 down and First Franklin threw in the remaining $699,900. In August 2006 they decided it wasn't worth keeping their cash tied up in the investment any longer, so they refinanced into $795,000 worth of loans from Nationpoint.
Then they stopped paying the $636,000 first mortgage. A notice of default was filed in January 2008, and the final notice of trustee sale followed in May in the amount of $678,462. The bank discounted the opening bid on the property to $522,130 at auction, but there were no bidders and it went back to the bank for that price.
If the home sells for the current asking price, it would mean a decline of $100,100, or 14% off the peak price - not including any sales costs. Remember, though, thanks to the magic of refinancing, the actual loss to the lender would be significantly more.
Wednesday, August 06, 2008
REO on the links
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4 comments:
Ok I have to ask a question here for two reasons: one because I'm curious and second maybe I learn something new here. Why did no one at the auction bid for this home @ $522K?? Was everyone smart and knew that its too much $'s in todays (and for the next few future yrs) market OR noone bid because the final liability will be bid price (522K + other loans (260K+), which definitly is too much for anyone with a brain. I don't know if my latter reason is correct factually or not because some part of me says if 1st lein is foreclosing don't the other secondary leins get wiped out automatically. The question still remains, why did no knife catcher bid @ the auction if they could pick this house up @ $240/sqft (522K)? Am I missing something...
Tarun,
How many people do you know with $522K in cash?
Again, those people you know with $522K in cash, how many of them can walk into a bank and get a cashiers' check for it?
Again, of those people, how many do you know that can't get a 10% return on their money in the next 90 days?
If you know anyone like this, I can guarantee a 10% return in the next 90 days and I'll take 50% of everything over that. Please contact me by email at socalb at gmail.
Chuck Ponzi
PS. I'm not kidding, if you have this much money, I can guarantee you a $52K return in 90 days.
Wow!
Taking "Live Free" to a whole different level. LOL
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