Surprise! Laguna preforeclosure

This Laguna Beach mansion in Emerald Bay shows virtually no signs of being a "typical" danger property for foreclosure, if there is such a thing: Last sale well before the bubble (though it appears the previous sale was only for the land); a level of debt that's nowhere close to some of the biggest abusers out there; and the asking price is way, way enough to cover the loans we see on the property plus plenty more.

Yet, here we are. ForeclosureRadar tells us this one is in default.

541 Emerald Bay, 92651
Asking price: $6,250,000
Asking price/ sq ft: $1,250
Purchase price: $1,200,000
Purchase date: 9/29/98
Size: 4 beds, 4.5 baths, 4,999 sq ft (built in 2000)
MLS: L28980 (93 days on Redfin)
Zillow Zestimate: $3,582,500
HOA dues: $650
Type: Single Family Residence
Style: Cape Cod
Stories: 3+
Lot size: 5,300 Sq. Ft.
From listing: EMERALD BAY - 4 Bedroom - 4.5 Bath. Beautifully appointed Eastern Seaboard influenced custom residence with Fantastic White Water & Panoramic Ocean Views. Built New in 2000, street to street corner lot location with Separate Master Suite with View Terrace. Family Room plus separate Bonus Room. Not a better way to live the Emerald Bay lifestyle!

This begs the question - how much cash did the owners go through to build this property considering they can't pay off the $1.85 million first loan from Union Bank of California? According to our sources, a notice of default was filed in March for $40,946.

For the record, Foreclosureradar.com also shows a $750,000 second as well, for a total of $2.6 million.

Of course, a quick sale for a hefty amount will probably alleviate all the issues. But we'd be hard-pressed to think there are that many buyers around who are in the market to pony up $6 million plus for some coastal real estate. So far, it's been three months on the market and counting.