It's Thanksgiving Eve!

Did anyone know there was such a thing as Thanksgiving Eve? My wife and I found out a year ago today when we tried to go to Panera for dinner and found out they all closed early because of "Thanksgiving Eve."

Either way, it's important to take this time to remember how lucky we all are. I personally am thankful to still have a job (knock on wood) in this rough economy that is decimating a growing number of industries. It is certainly a season - and year - for being generous and helpful where one is able.

Here is a property in Laguna Beach that the current owner took for all it was worth (plus some). Now it's a short sale and preforeclosure. Notice the difference between the previous sales price and current asking price. The carnage is actually worse than it seems.

1235 Cerritos Dr, 92651
Asking price: $799,000
Asking price/ sq ft: $363
Purchase price: $1,280,000
Purchase date: 5/23/05
Size: 3 beds, 2 baths, 2,200 sq ft (built in 1965)
MLS: L28151 (1 day on Redfin)
Zillow Zestimate: $1,687,500
Type: Single Family Residence
Style: Other
Stories: 2
Lot size: 9,159 Sq. Ft.
From listing: **SHORT SALE** FABULOUS DEAL! LOWEST PRICE IN ALL OF TEMPLE HILLS! Fixer condition. Expansive canyon views. Open living room, large family room each with its own fireplace. Two Master Suites. Large lot. Large rear patio and large yard area. Potential for 3rd level on lower portion.


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The current owner bought the property at the peak using 94% financing from Nationpoint (an imploded lender). They put $80,000 down and financed $1.2 million.

In July 2007, there was a refinance into a $1.492 million loan from Bank of America. About six months later, the owner tacked on a $237,500 second loan, also from BofA. That second loan is the one that is now in default.

The notice of trustee sale amount on the loan is $244,327. Since this property is classified as a fixer in the listing description we assume the money didn't go into the house.

We would assume the asking price is probably artificially low to incite a bidding war. It's also likely to be below what the lender would allow a sale for.

But, if we were to pretend it sold for the current asking price and we took off 6% for sales costs, it would mean a loss of somewhere around $975,000 - all for BofA.