More Ladera pricing pressure

We're going back to the 92694 - Ladera Ranch - today for a deeper look into some of the distressed properties there.

We eyeballed the list of properties either in or in danger of becoming foreclosures from Foreclosureradar.com, and we found three streets that each have five properties in some stage of foreclosure, and a handful of others with four. Not surprisingly, these tend to contain less expensive properties.

Here is one of those streets: La Salle. Two of the five distressed properties are currently for sale. The first, we profiled yesterday. Here is the second, which has been for sale for a year.

36 La Salle Ln, 92694
Asking price: $599,950
Asking price/ sq ft: $261
Purchase price: $825,000
Purchase date: 6/6/05
Size: 4 beds, 2.5 baths, 2,300 sq ft (built in 2003)
MLS: P630403 (364 days on Redfin)
ZipRealty price tracker: Price Reduced: 05/14/08 -- $679,950 to $649,950
Price Reduced: 09/05/08 -- $649,950 to $639,950
Price Reduced: 01/08/09 -- $639,950 to $599,950
Zillow Zestimate: $639,500
HOA dues: $192
Type: Single Family Residence
Style: Colonial
Stories: 2
Lot size: 5,000 Sq. Ft.
From listing: Great Location in Ladera Ranch! Walking distance to Award Winning Schools, Parks, Library, Club House, Tennis and Hiking trials. With a view of the Mountains and great shopping and restaurants near by. Bery beautiful Colonial Style single family residence on the Corner w/Fully fenced (Brick/Block) yard for privacy. Landscaping, Brick patios, Front Porch/Entrance set this home apart! Huge walk-in closet & master bath in master bedroom, Plantation shutters throughout, Very large Kitchen w/Granite counters, lots of cabinetry, and a square island with storage in center of work space area - inlcuding tile flooring. Save on utility cost with Ceiling fans throughout! Won't last long!!


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"Won't last long!!" Belated April Fools? From 2008? The previous owner bought the property new from the builder in 2003, and turned around and likely reaped a huge profit by selling it to the current owner in 2005 for $825,000.

To purchase the property, the current owner used an 80% first loan and a 10% second (90% total financing) from Metrocities Mortgage - now Prospect Mortgage. Less than two months later, they opened what appears to be a HELOC for $60,250.

A notice of default was filed in May 2008 against the first loan, and the notice of trustees sale for $689,196 was filed in August. That was for more than $20,000 above the original balance of the first loan.

Assuming the property (finally) sells for the current asking price, it would mean a loss of $261,047, including 6% sales costs. Not including transaction costs, it would mean a depreciation of 27% off the peak price.