Today marks the blog's 500th post. To commemorate the occasion and celebrate its unexpected yet continued longevity, we're going to show you an example of the type of financing that once used to be widespread, but now is long gone.
Here's the house - an REO in Laguna Hills' Moulton Ranch...
27142 Woodbluff Rd, 92653
Asking price: $999,000
Asking price/ sq ft: $286
Bank purchase price: $1,192,500
Purchase date: 11/25/08
Size: 4 beds, 4 baths, 3,498 sq ft (built in 1993)
MLS: S563682 (4 days on Redfin)
Zillow Zestimate: $1,146,500
HOA dues: $95
Type: Single Family Residence
Style: Other
Stories: 2
Lot size: 0.34 Acres
From listing: 4 bedroom. 4 bathroom, *BANK OWNED* in Moulton Ranch. City lights view. Property needs TLC.
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This property's last "normal" sale was for $1,140,000 on April Fool's Day 2005. Yep, the joke was on the lenders. Countrywide gave the borrower $1,026,000, and the previous owner came up with the remaining $114,000 as a downpayment.
About a year later, another lien for $399,000 was added. In September 2006, the owner refinanced into $1.36 million worth of loans from Greenpoint Mortgage Funding (Capital One's Alt-A mortgage outfit). You should know Greenpoint shut down in 2007 because of loans like these.
The owner lost his house (which is now apparently in bad condition) and credit; the bank lost a bunch of dough. Assuming the house sells for the current asking price, it would be a mere 12% off the bubble price, not including any sales costs. That's not a very big discount at all - particularly considering the property is a fixer.
Just goes to show you that not all REOs are at fire-sale prices.
Tuesday, February 17, 2009
Not anymore in Laguna Hills
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6 comments:
Just goes to show that not all REOs are likely to be sold this year.
Truly, this one is properly priced at 700K or 650K if it wants to get sold.
Instead, it will just sit.
Sad.
Chuck Ponzi
Congrats on #500!
No way this sells at $1M. I bet they will chase the market down for 18 months or more before offloading it at around $450k.
I also agree with Chuck that if they priced it at $700k, it would sell quickly right now.
But they won't. And there are very few people who can currently support a $1M mortgage at 31%DTI. And fewer still who want to.
And in 12 months, when they have finally dropped the price to $700k, as Chuck suggests, there will be even fewer people who can afford it, or want to.
FreedomCM
Congrats on #500! Thanks for all the great posts.
I enjoy your blog and look forward to #501.
Congrats on the 500th blog. I'm glad to have you covering south county.
Thank you, South OC Tracker. Really enjoy your blog.
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