High-profile loss in Wagon Wheel

UPDATE: Looks like the OC Register got wind of the story. Nice job IHB!

Props to the IHB forums for uncovering this interesting item. A certain high-profile real estate cheerleader's investment property is in default. It also is on the MLS advertised as a short sale, and is in escrow.

Here are the details:

21 Apache Dr, RSM 92679
Asking price: $599,900
Asking price/ sq ft: $249
Purchase price: $769,000
Purchase date: 7/29/05
Size: 5 beds, 2.5 baths, 2,410 sq ft (built in 1996)
MLS: S560729
From listing: This property will take your breath away! Great location backing to the wilderness and nature conservation area for supreme privacy. Once inside, you will experience travertine-like flooring, custom baseboards, plantation shutters,granite kitchen counter tops, custom window casings and custom decor paint. This model has 4 bedrooms plus a additional bonus room/den with custom built-ins. Add a separate inside laundry, a three car garage with storage area, a low tax rate of 1.0043% (includes Mello-Roos), plus low association dues and you have it all!

Normally, we don't refer to specific people because they are irrelevant to the story. This case, however, is an exception because he is a public figure. He repeatedly sought out publicity for his prognostications and scoffed at real estate bears who disagreed. It's obvious now things are much different.

When this property sold in 2005, it represented 67% appreciation over about three years. How much higher did he think this property would go? The current owner used 90% financing - a $615,000 negative-amortization first loan, and a $76,800 HELOC to take the house. A notice of default was filed in February for $16,435.

As graphrix of the IHB points out, since this is not a primary residence, it should not qualify for TARP bailout money. It would be interesting to know the details of the impending sale are.

Assuming a successful sale for the full asking price, the shortfall would be $187,097, including 3% sales costs (we cut our usual estimation in half since the owner is acting as the agent).

A loss is in the bag.