Custom built, cookie-cutter problem

Sure, this Nellie Gail mansion has all the touches you'd expect from a custom house. But it's also a short sale and in preforeclosure just like so so many others...

27462 Hidden Trail Rd, 92653
Asking price: $2,299,000
Asking price/ sq ft: $329
Purchase price: $2,600,000
Purchase date: 1/6/06
Size: 5 beds, 4.5 baths, 6,995 sq ft (built in 1988)
MLS: S571123 (11 days on Redfin)
Zillow Zestimate: $2,297,500
HOA dues: $80
Type: Single Family Residence
Style: French
Stories: 2
Lot size: 0.92 Acres
From listing: THIS BEAUTIFUL CUSTOM BUILT HOME IS SITUATED IN A PREMIER LOCATION IN THE SOUGHT AFTER NEIGHBORHOOD OF NELLIE GAIL RANCH ON ALMOST 40,000 SQFT LOT. THIS ESTATE HOME HAS A GATED ENTRY AND AN OPEN AND FLOWING FLOOR PLAN & A GRAND ENTRANCE WITH SPIRAL STAIR CASE. OVERSIZED FAMILY ROOM W/FULL BAR AREA. LARGE GOURMET KITCHEN, HUGE MASTER BEDROOM W/RETREAT & FIREPLACE. OFFICE/LIBRARY WITH BUILT-INS ON THE MAIN FLOOR. ENTERTAINER'S GROUNDS FEATURE POOL, SPA, LAWN AREA WITH MATURE TREES AND AMAZING CITY LIGHTS, SUNSET AND MOUNTAIN VIEWS. LOW HOA DUES, LOW 1.1% TAX RATE AND NO MELLO ROOS. THIS IS A SHORT SALE.

Check out the photo of the kitchen in the listing. Needs some serious updating for a $2 million+ house. Where's the granite!? Stainless steel? Shoot us now...

The current owner paid $2.6 million at the peak of the bubble. As you can see by the asking price today, they don't expect it's worth as much these days.

We're not sure what the financing was at the time of purchase (if any) but we do know there was a $1.84 million loan from Downey Savings in April 2007. That's what is now in default.

There also was a $650,000 second loan from Wells Fargo in April 2007, for a total of $2.49 million in debt. If the property can be sold for the current asking price, it would mean a loss of $438,940, including 6% sales costs.