Way short in LN

Escrow dreams really do come true - even in crazy short sale situations like this one in Laguna Niguel...
7 Pacific Crest, 92677
Asking price: $1,499,000
Previous sales price: $2,065,000
Previous sales date: 5/19/06

Beds:	4
Baths:	4
Sq. Ft.:	3,300
$/Sq. Ft.:	$454
Lot Size:	8,000 Sq. Ft.
Property Type:	Single Family Residence
Style:	Contemporary
Stories:	2
View:	Ocean, Treetop, Trees/Woods, Has View
Year Built:	1994
Community:	Laguna Niguel South, South of Crown Valley, West of Niguel
County:	Orange
MLS#:	S576702
Source:	SoCalMLS
Status:	Backup Offers Accepted
On Redfin:	118 days

From listing: Highly upgraded custom home in Bear Brand Ridge. Gorgeous 24'' polished Travertine carries you throughout the first level of this designer home. Incredible attention to detail creates interest at every turn. Customized AV system wired throughout the home for almost any electronic configuration. Bathrooms finished with tumbled travertine. Spacious bonus room features hardwood floors, detailed built-ins, an arched picturesque window and connects to the massage room (4th bedroom). Sensational master suite complete with vaulted ceiling, spa-like master bath, oversized travertine shower with Hansgrohe showerheads & jet tub. Master balcony showcases ocean views. Backyard designed and maintained by Roger's Gardens. An array of backyard amenities includes a built-in Viking barbeque, 3 tranquility fountains, fire pit, covered patio with speakers and recessed lighting. Meandering path connects the front and backyard. Seller would like to sell furnishings.

The Redfin property history shows this place changing hands every year between 2001 and 2006, except for 2005. We're not sure those are actually sales, but it would make sense if we were looking at a rash of refinances - up until $2 million worth in 2006.

If that's the case, and the debt against this property is hovering somewhere around the $2 million mark today, it means the lender is going to take a $500,000 bath if and when this property makes it all the way to closing.