Today's must-read story of the day, in case you haven't seen it yet: OC Register reporter John Gittelsohn uncovers some WaMu-enabled real estate fraud.
Our must-see property of the day: this luxury preforeclosure in San Juan. Want futher evidence of why we are in the financial mess we're in now? Look no further than this example.
28171 Calle San Remo, 92675
Asking price: $749,000
Asking price/ sq ft: $246
Purchase price: $1,010,000
Purchase date: 6/22/06
Size: 4 beds, 3 baths, 3,050 sq ft (built in 1978)
Price Reduced: 06/24/08 -- $950,000 to $875,000
Price Reduced: 06/24/08 -- $875,000 to $849,900
Price Reduced: 06/28/08 -- $849,900 to $799,000
Price Reduced: 07/01/08 -- $799,000 to $724,900
Price Reduced: 08/21/08 -- $789,000 to $779,000
Price Reduced: 09/05/08 -- $779,000 to $775,000
Zillow Zestimate: $811,000
Type: Single Family Residence
Style: Hacienda
Stories: 2 Levels
Lot size: 10,112 Sq. Ft.
From listing: Unique and awesome Spanish Hacienda home... Remodeled by an Interior Decorator in 2006. Gourmet Granite Kitchen & countertops, solid maple cabintry. Extended family room w/ surround sound & entertainment system. Master suite is a private wing with an oversize master bathroom and retreat. Beautiful romantic evenings w/ master bedroom outdoor living space. Newly custom crafted ceiling fans and light fixtures throughout home. Simply a gorgeous home that will go quickly at this price!! NOTE: This home is already lender approved and can close in 21 days!!!
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It has now been a few weeks since the previous discount - is the asking price now low enough to attract a buyer considering this property is "already lender approved and can close in 21 days!!!" The property has now been reduced seven times for a total reduction of $220,000 off the original asking price of $995,000.This home - once a million-dollar property - is about as much of a bubble posterchild as you're going to find. Redfin records say this home sold for $662,500 in 2003. In 2006, it changed hands and was sold to a new owner (non-occupant) for $1,010,000. That equates to an increase of 52% in three years.
The new owner utilized 99.8% financing...putting $2,000 down and financing the remaining $1,008,000. About seven months later - in January 2007 - he refinanced into $1,068,750
worth of loans from First Guaranty Financial Corp. Essentially, that means complete downpayment extraction plus $56,750 extra. This happens to be around the time when property values began to plummet.The property went up for sale in early February. The $900,000 first loan went into default in March, and a notice of trustee sale in the amount of $942,317 was filed in June.
Assuming the property sells for the current asking price, the real loss would be about $365,000, including 6% sales costs. Not including sales costs, it would mean a depreciation of 26%.
2 comments:
wow, that looks like a nice house. It actually has a yard! The entering neighborhood at the bottom of the hill is older, and hit and miss between houses. I remember looking at homes there are few years ago (before we came to our senses and decided to wait this thing out).
Have you checked out Talega lately. Some of those neighborhoods look like a bomb went off in there. For sale houses at every turn. I wonder what's going to happen to their Mello Roos base with all those foreclosures. It's got to hurt...
This home was added on to in the last 10 years. That is what gives it the added sq. ft.
It was for sale in the low $700s two months ago.
Now it mysticaly rises again at an inflated price.
Yet no N.O.T.?
Hmm?
All of these track homes are well above the $200 per. sq. price that should prevail at inflation adjusted mean average prices for the last 120 years.
Bear in the house.
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