REO in Dove Canyon

What do REOs in Dove Canyon look like these days? Here's an example of yet another home in South OC that once was a million-dollar property.

22 Thorn Oak, 92679
Asking price: $838,800
Asking price/ sq ft: $242
Bank purchase price: $1,020,772
Purchase date: 2/13/09
Size: 4 beds, 3.5 baths, 3,467 sq ft (built in 1991)
MLS: S568497 (7 days on Redfin)
HOA dues: $162
Type: Single Family Residence
Style: Spanish
Stories: 2
Lot size: 6,414 Sq. Ft.
From listing: Remodeled Open Floor Plan with 25-Foot Soaring Ceilings in the Formal Living and Dining Room, Designed with Custom Stone Walls and Baseboards, and a Built-In Hutch, Raised Marble Foyer, w/ a Circular, Iron Staircase, 4 Fireplaces, Kitchen with Large Breakfast Nook, Surrounded by Tall, Beautiful Windows, and Spacious Kitchen Island, Huge, Custom Master Suite, Appointed with a Dual-Sided Fireplace to Enjoy the Luxurious Master Bath Complete with His and Hers Walk-in Showers, and Oversized Bathtub. More Designer Features in this Lovely Home Include Recessed Lighting, Custom Closet Organizers, Built-In Computer Center, Built-In Bookcases, and Leaded Windows. Enjoy Breathtaking, Panoramic Views from the Incredible Entertainer s Backyard, Designed with Outdoor Fireplace and Built-In BBQ. Exclusively Located on a Single-Loaded Street in a 24-Hour Guard-Gated Community with Country Club and Golf Course Privileges, this Amazing Home Won t Last Long!

The title case listing as it appears on Redfin is annoying to read. To sum up: This is a nice house with lots of features. It is "Amazing" and it "Wont Last Long!"

The previous owners bought in December 2005 for $1,125,000. They used 90% financing from Greenpoint Mortgage Funding, Capital One's now-defunct Alt-A specialist. So, that means they lost out on their $123,800 downpayment.

Assuming the property sells for the current asking price, it would represent a depreciation of $286,200 or 25% off the peak value.

(Another) Dove Canyon REO/rollback

Two Dove Canyon REOs in the same week? Believe it.

29 Muirfield, 92679
Asking price: $689,900
Asking price/ sq ft: $287
Income requirement: $172,475
FB purchase price: $699,000
FB purchase date: 11/24/03
Size: 4 beds, 3 baths, 2,400 sq ft (built in 1990)
MLS: U8001604 (62 days on Redfin)
ZipRealty price tracker: Price Reduced: 5/22/08 -- $714,900 to $689,900
Zillow Zestimate: $835,500
Type: Single Family Residence
Style: Cape Cod, Traditional
Stories: 2 Levels
Lot size: 6,270 sq ft
From listing: Beautiful 4 bedroom pool home with view located in Dove Canyon. Open bright floor plan, Pool Spa, Gated community!

The photos and description leave something to be desired. It will be interesting to see how low the bank will go - and how quickly it will continue the price cuts, if at all.

Either way, this is not good for two other properties on the same street: 32 Muirfield has the same number of bedrooms and bathrooms, but is larger. Asking price is $720,000, and it has been on the market for a while. And, 1 Muirfield comes in with a crazy-high price tag of $889,900, despite the fact that it's smaller and has one fewer bedroom than our subject property. Market time is about a month and a half.

After purchasing the subject property with 85% ($594,150) financing five years ago, the previous owner re-fied into an $807,500 adjustable loan in 2005.

That effectively liberated the downpayment and then some. Oops. The property eventually went back to the bank in February for $706,500 and is currently held by Deutsche Bank.

Two months on the MLS as an REO has not yet yielded a willing and able buyer, but it certainly has produced a 2003 rollback.

REO movin' through in Dove Canyon

Today's property is a bank-owned home in Dove Canyon that has been connected to a buyer and is now in the "backup offers accepted" stage. All it took was a significant discount off the peak price...

38 Golf View Drive, 92679
Asking price: $879,900
Asking price/ sq ft: $315
Income requirement: $219,975
Peak purchase price: $1,200,000
Peak purchase date: 11/1/06
Size: 4 beds, 4.5 baths, 2,789 sq ft (built in 1994)
MLS: S533615 (11 days on Redfin)
Zillow Zestimate: $993,500
HOA dues: $205
Type: Single Family Residence
Style: Contemporary
Stories: 2 Levels
From listing: This spacious 4 bedroom and 4.5 bath home with pool and spa backs to a beautiful golf course view! Located on a cul-de-sac, this home has granite counters, stainless steel appliances,and double ovens. Family room has built in wood cabinets. Double door entry to masterbed room and retreat with fireplace. Large 3 car garage with built-in storage cabinets too!

The property was purchased at the peak of the bubble in late 2006 using 100% financing (80/20) from First Franklin. Not too surprisingly, the property began the foreclosure process about a year later and eventually came back to the bank at auction in late April for $740,827.

Not a bad turnaround considering the property appears to have gone virtually straight into escrow. We're not sure exactly what price the property will sell for if it successfully completes escrow, but assuming it is sold for the full asking price, it would represent a decline of about 27% or $320,100 (not including any sales costs/fees) from the price the ill-fated owner paid in November 2006.

Nope, the heavy discounts are not only in the "lower-end" communities.