'03 luxury rollback in Coto?

Not quite, but this one - a "phenominal" property in Coto according to the listing - is darn close. We should also probably mention that this property is a preforeclosure...

4 Brumby, 92679
Asking price: $1,390,000
Asking price/ sq ft: $301
Purchase price: $1,700,000
Purchase date: 11/15/06
Size: 5 beds, 6 baths, 4,613 sq ft (built in 2001)
MLS: S545082 (19 days on Redfin)
ZipRealty price tracker: Price Reduced: 9/06/08 -- $1,500,000 to $1,390,000
Zillow Zestimate: $1,827,500
HOA dues: $240
Type: Single Family Residence
Style: Tuscan
Stories: 2 Levels
Lot size: 0.26 acres
From listing: *REDUCED $100,000* MUST SEE! This Custom Tuscan Estate is truly a Masterpiece. Located on a Small Private Street With Only Four Homes. Attention to every detail throughout the interior and exterior makes this property a phenominal buy even in today's market. The Formal Living Room & Dining Room are Great for Entertaining as well as everday living. The downstairs office has it's own private entrance. The main floor bedroom has a separate bath that is ideal for a live-in or guest room providing the ultimate in privacy. The Gourmet Kitchen with it's custom cabinetry, stainless steel appliances, viking range,built-in wine refrigerator, sub-zero refrigerator, large pantry PLUS a Great Island. Built-in Entertainment Center in the Spacious Family Room. Large Secondary Bedrooms on the Second Level. Huge Master Bedroom Suite with a Separate Sitting area & Fireplace. The Spa Like Bathroom is AMAZING! Extensive Closets & Storage.Pool,Spa,BBQ,Firepit!

Customized financial info:
Minimum Income Requirement (using 30Y Fixed): $294,000 , assumes no other debt/obligations.
Downpayment needed: $300,000
Monthly Payment on 30Y Fixed at 7.25% with property taxes and mortgage insurance estimated: $9,917.12
Minimum Income Requirement (using 5Y fixed): $264,000, assumes no other debt/obligations.
Monthly Payment on 5Y fixed at 5.80% with property taxes and mortgage insurance estimated: $8,772.04
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.

The current owners bought during the bubble in 2006 for $1.7 million. They put $170,000 down and financed the remaining $1.53 million (90%) from Axiom Financial Inc.

They have since gotten behind on the payments. A notice of default was filed in July for $26,897.

As you can see from the financial breakdown, someone looking to pick this property up would need a hefty downpayment as well as a lot of income. It's certainly doable for a select few, but the total buyer pool isn't that big. So, would this type of buyer want to deal with the hassle of trying to make this sale work when they could easily move on to other really nice properties up for sale?

Assuming a sale does take place for the current asking price, it would mean a loss of $393,400 off the 2006 price, including 6% sales costs. The owners would lose their downpayment, but the bank would suffer more.

Not including sales costs, it also would mean a depreciation of 18% from the 2006 price, and a sale only $13,500 above the 2003 sales price of $1,376,500.