Rain rain, go away

Is this Southern California or Seattle? It seems like this week is lost to the rain. Never fear, though, we're back with a new property to profile today in Ladera Ranch:

40 Lewiston Court, 92694
Asking price: $1,100,000
Previous sales price: $1,200,000
Previous sales date: 12/4/09

Beds:	5
Baths:	5.5
Sq. Ft.:	5,118
$/Sq. Ft.:	$215
Lot Size:	0.3 Acres
Property Type:	Residential, Single Family
Style:	Two Level, Traditional
Year Built:	2002
Community:	Ladera Ranch
County:	Orange
MLS#:	S601257
Source:	SoCalMLS
Status:	Active This listing is for sale and the sellers are accepting offers.
On Redfin:	7days

From listing: Need some room to grow? This Clifton Heights home has it all! 5 nice sized Bedrooms w/ 5.5 baths. Casita suite above garage and an entertainer's back yard are just a couple features which make this house a home! Dream kitchen and Master which is jaw dropping! To much to list!! Hurry as this property will not last!!

From what we can tell, this property has had a terrific seasaw ride since it was built about 8 years ago. Consider the following from Redfin:

Jun 19, 2003: $1,012,000
Mar 01, 2006: $2,200,000
Dec 04, 2009: $1,200,000 (back to the bank)

Between 2003 and 2006, the property shot up by $1,188,000. If we were to assume that the current asking price is the property's "legitimate" value today, that means it would actually be worth only $88,000 more than it sold for in mid 2003.

Call the landscaper first

How would you like to buy an unlandscaped short sale property in Ladera Ranch? Once you spend the money putting in the yard, it would cost you about what it sold for new in 2006! Sounds fishy to us...

44 Christopher St, 92694
Asking price: $900,000
Previous sales price: $1,050,500
Previous sales date: 10/5/06

Beds:	4
Baths:	3
Sq. Ft.:	-
Lot Size:	8,600 Sq. Ft.
Property Type:	Residential, Single Family
Style:	Two Level
Year Built:	2006
Community:	Ladera Ranch
County:	Orange
MLS#:	I09119715
Source:	MRMLS
Status:	Active This listing is for sale and the sellers are accepting offers.
On Redfin:	5 days

From listing: Beautiful home with many upgrades. Marble upgrades throughout, granite countertops and top quality carpet. Backyard is not landsaped. Master bedroom and laundry room are downstairs.

This listing has no business being a million-dollar listing...from the one outside photo to the uninspired listing description. We're sure there's a reason to the lack of effort (and there could be many of them) but we won't speculate.

We will, however, wonder out loud if this house in its current state has any business being price anywhere near $900k - that's about a 14% discount off the peak. How about you rent a 3,800 sq ft house also in Ladera Ranch with the same number of bedrooms and bathrooms for $4,450 a month?

You couldn't even make an honest comparison between the two, considering our subject property is currently unfit for comfortable living because of the lack of landscaping. But if we were to assume that our subject is really worth $4,450 a month to a renter, then a generous GRM of 180 yields a target value of $801,000 - assuming, of course, the house is finished and ready to roll.

Lots of lookers in Ladera

This Ladera Ranch property is one of the most-viewed OC listings on Redfin. Why? It's a "celebrity" listing, of course! You may know the saga of Tamra Barney. This is her house.

If you wanted to make an offer, you may be a bit late to the party considering it's in the backup offers stage.

3 Pointe Circle, 92694
Asking price: $1,149,000
Previous sales price: $1,320,500
Previous sales date: 9/8/05

Beds:	5
Baths:	5.5
Sq. Ft.:	4,300
$/Sq. Ft.:	$267
Lot Size:	8,937 Sq. Ft.
Property Type:	Residential, Single Family
Style:	Two Level, Tuscan
View:	Hills, Mountain
Year Built:	2005
Community:	Ladera Ranch
County:	Orange
MLS#:	S583289
Source:	CARETS
Status:	Backup Offers Accepted This listing is under contract, but the sellers are looking for additional offers in case the current offer falls through.
On Redfin:	108 days

From listing: Highly Upgraded Tuscan Home! One of the most desirable locations within the gated community of Covenant Hills. 5 bedrooms all with full bathrooms, Office with built-in bookcase, Loft, Master Bedroom retreat, Hardwood floors with custom stone inlay. Large gourmet kitchen opens to family room and is complete with granite counters, upgraded appliances, island and breakfast nook. The yard is an entertainer's dream with a saltwater pool, spa with waterfall, built-in and covered grill with prep area, bar, fireplace, firepit and incredible landscaping! You will love the details, including crown molding and rustic wood beams! This is a MUST SEE!

Thanks to a nifty new feature on Redfin, we can see that the Coto Housing Blog already talked about this property. Where is this? Right on the listing. Very cool...

We also noticed this declaration on all Redfin listings that are short sales: "This home is flagged as a short sale. We're sorry, we don't tour or write offers on short sales because of the slim chance that you'll get the home. " How very negative of them. Or truthful.

We like Ladera, but it always brings us back to this dilemma: If you had, say, $1.149 million to spend, and you were comparing this Ladera Ranch property to one in Newport Coast with ocean views, which one would you take? We'd still lean towards the ocean, even though you're getting significantly less space than in Ladera.

Just don't get it

There are a few things about this Ladera Ranch that leave us scratching our head. But, if Redfin says a buyer has been found and the property is in the accepting backup offers stage, we'll buy it. Figuratively, not literally.

15 Lanesboro Rd, 92694
Asking price: $675,000
Previous sales price: $560,000
Previous sales date: 5/28/03

Beds:	4
Baths:	3
Sq. Ft.:	2,768
$/Sq. Ft.:	$244
Lot Size:	5,859 Sq. Ft.
Property Type:	Residential, Single Family
Style:	Two Level, Spanish
View:	Has View
Year Built:	2003
Community:	Ladera Ranch
County:	Orange
MLS#:	S588256
Source:	CARETS
Status:	Backup Offers Accepted
On Redfin:	53 days

From listing: This Beautiful 4 Bedroom 3 Bathroom Home Is Ideally Located At The End Of A Cul-De-Sac In The Sterling Glen Tract Of Ladera Ranch. This Floor Plan Is Very Open And Has Many Windows And Doors That Offer Natural Light And Are Accented By Plantation Shutters. The Main Floor Bedroom Is Currently Being Used As An Office, However It Could Easily Be Used As The 4th Bedroom. The Large Master Suite Has A Joining Retreat Area That Could Be Converted To A 5th Bedroom If Needed. This Home Has Extensive Stone Flooring Throughout The First Level And Carpeting Up The Stairway And Into The Bedrooms. The Lush Trees And Vines In The Backyard Offer Much Privacy And Is Ideal For Entertaining Family And Friends.

We'll try to ignore the title case in the listing description if you will. At the top of this blog entry, we mentioned that a couple things with this listing confused us. In no particular order, they are:

• Who in the name of Martha Stewart leaves a trailer parked in the driveway for your MLS photo?
• Then, why would you make said photo with trailer the first image people see of the property?
• It's generally understood that South OC real estate in general - particularly a bubble-happy pocket like Ladera Ranch - is barely clinging to 2003 pricing (at best). Why would you list your short sale property for $115,000 above the previous sales price?
• As a buyer, would you jump in to buy a short sale at all?
• Would you then agree to buy said short sale for well above the 2003 price?
  

In reality, our questions mean nothing because it appears a buyer and seller have successfully come together. Just another South OC pending sale.

Slash 'n go in Ladera

Here's another example of price-cutting that has led to escrow in Ladera Ranch. Like so many others, it's priced in between the 2002 price and 2004 sales prices - call it the 2003 price?

32 Sklar Street, 92694
Asking price: $425,000
Previous sales price: $645,00
Previous sales date: 6/4/04

Beds:	3
Baths:	3
Sq. Ft.:	1,600
$/Sq. Ft.:	$266
Lot Size:	2,277 Sq. Ft.
Property Type:	Single Family Residence
Style:	Spanish
Stories:	2
Year Built:	2002
Community:	Ladera Ranch
County:	Orange
MLS#:	S582723
Source:	SoCalMLS
Status:	Backup Offers Accepted
On Redfin:	68 days

From listing: This home is light and bright with granite counter tops, upgraded maple stain cabinets, wood flooring, and plantation shutters. The floor plan features inside laundry, a large linen closet, a master bedroom balcony, fireplace, attached garage, and an enclosed yard. The kitchen, dining area, and family room come together graciously and are great for entertaining. The master bedroom has two closets and the master bath has an oversized tub, separate shower, and dual sinks. The property is close to schools, recreational facilities, and shopping

This property sold for $294,000 in 2002 and almost $650,000 in 2004. We wouldn't be surprised if this property was "valued" at up to $700,000 at the peak because of the comps.

Either way, the former owners who held the property for those two magical years made out to the tune of 45.7% appreciation per year, and made off with about $350,000 in profit before sales costs and any additional money they spent on the house. Imagine if they financed all of virtually all of the purchase price...their return would have been off the charts.

Now, we expect a loss in the range of about $240,000, assuming 6% sales costs and that the property can close for the latest asking price. Talk about a property that went from boom to bust.

Lots of Ladera pendings

We've got four pending sales in the Ladera Ranch community of Chambray - two more active listings are looking for buyers. All four of the pending sales are also short sales.

Just a few years ago, these were going for $500k+. Let's see what's going on down there...

68 Garrison Loop
Last asking price: $298,500-324,567
Previous sales price: $515,000
Previous sales date: 7/21/06
Size: 3 beds, 2.5 baths, 1,417 sq ft
Listing description snippet: WHEN CAN YOU REMEMBER THE LAST OPPORTUNITY TO BUY A PROPERTY LIKE THIS? THIS IS AN EXCELLENT VALUE. 3 BEDROOMS, 2 1/2 BATHS, 2 CAR GARAGE, 2 STORY, AND IT SHOWS BEAUTIFULLY!

36 Garrison Loop
Last asking price: $335,000
Previous sales price: N/A
Previous sales date: N/A
Size: 3 beds, 2.5 baths, 1,417 sq ft
Listing description snippet: Highly upgraded unit in a great location. Tile entry with New Pergo wood flooring in Dining and Kitchen. New Carpeting in Livingroom with tiled fireplace and ceiling fan. Upgraded cabinets, Ceiling fans in all bedrooms and Plantation Shutters throughout. Master bedroom has walk-in closet in master bath and double vanity. Inside laundry.

41 Chadron Circle
Last asking price: $329,900
Previous sales price: $480,000
Previous sales date: 6/26/06
Size: 3 beds, 2.5 baths, 1,500 sq ft
Listing description snippet: Wrap-around private porch/entertainment area. Corian Counters, separate formal dining room, two separate living areas )formal living/family). Kitchen counter bar eating area. Built-in media niche & stone surround fireplace in family room. Ceiling fans throughout, encased windows. Garage cabinetry with sink. Chaparral - Highest Rated Elementary!!!Pride of Ownership...

11 Chadron Circle
Last asking price: $330,000
Previous sales price: $525,000
Previous sales date: 7/28/05
Size: 3 beds, 2.5 baths, 1,417 sq ft
Listing description snippet: This is an amazing opportunity to live in one of south OC's most sought-after neighborhood communities. Beautiful view of the canyon, rolling hills, and stunning sunsets. Nestled in a peaceful location of the tract.

1/3 off '04 price in Ladera

What would you think of a Ladera Ranch REO priced 1/3 off the 2004 sales price? Would you like to throw your hat into the ring of the "buying frenzy" we're seeing?

44 La Salle, 92694
Asking price: $529,650

Beds:	4
Baths:	3
Sq. Ft.:	2,300
$/Sq. Ft.:	$230
Lot Size:	3,496 Sq. Ft.
Property Type:	Single Family Residence
Style:	Contemporary
Stories:	2
Year Built:	2003
Community:	Ladera Ranch
County:	Orange
MLS#:	S586792
Source:	SoCalMLS
Status:	Active
On Redfin:	1 day

From listing: This property in the city of Ladera Ranch features 4 bedrooms, 3 bathrooms, a large open floor plan with a large kitchen, granite counter tops; it is located near freeways, shopping, entertainment and more. This property is priced to sell and will not last long, submit your offer today!!

What more is there to say? We've got an REO that can be sold for $230/sq ft in South OC. It's possible, of course, that the sales price will be above that. The mello roos total about $3,600 per year, or $306 per month. That's before HOA dues, property taxes and insurance.

This house went back to the bank in July for just around the asking price now. The previous "organic" sale was in 2004 for $785,000. That translates to about $341/sq ft.

Assuming the house will be sold for the full asking price - though of course it could go for higher since it's an REO and those are hot, hot hot! - it would be a decline of about $255,000, or 33% from the 2004 value.

Major short sale in Ladera

Over the weekend, we posted a quick sampling of some South OC properties in the "Backup offers accepted" stage. Here's another on in Ladera Ranch that interests us to see whether it will make it all the way to the finish considering the discount.

9 Copious Lane, 92694
Asking price: $865,000
Asking price/ sq ft: $201
Purchase price: $1,300,000
Purchase date: 5/25/07
Size: 5 beds, 5.5 baths, 4,300 sq ft (built in 2005)
MLS: S573895 (71 days on Redfin)
Original asking price: $975,000
HOA dues: $190
Type: Single Family Residence
Style: Carriage House
Stories: 2
Lot size: 5,619 Sq. Ft.
From listing: Beautiful 5 Bedrooms plus Office,Den,& Sun Room! ** Loads of upgrades! Located on a culdesac close to the park! Looks like 'Father of the Bride' home! Office has custom built-ins with wood panels and custom ceiling, crown moulding through-out. Upgraded flooring and custom window treatments, Built-in Speakers, Large Gourmet kitchen with island, granite counters, wood cabinetry, wine fridge and much more, Family room has beautiful custom wood built-in media niche and surround sound speakers. Intercom system throughout the house. Third Car garage was converted to an extra room, could easily convert back to a garage. Backyard has been professionally landscaped. This is an entertainers dream yard! Built-in BBQ & Fireplace, custom built-in Spa, Outdoor Logia and Putting Green with outdoor speakers. close to the water parks, school and club houses.

For the fiscal year ending in June 2009, the taxes on this property were $19,997. That includes more than $6,000 on mello roos alone. Of course, if the property changes hands for a lot less money, then the taxes go down. But that's still a lot of mello roos.

It will be interesting to see how much the lender lets this one go for (if it indeed does complete the sale). We wouldn't be surprised if the agreed-upon price was higher than the asking price considering the discount off the 2007 price ($435,000). But if that were the sales price, and we include transaction costs, the loss would be nearly $490,000 - not including all that money spent on upgrades..

Holdin' the bag in Ladera

This Ladera Ranch property is the result of what happens when you're stuck when the real estate musical chairs ends. Oops...

24 Winslow St, 92694
Asking price: $820,000
Asking price/ sq ft: $216
Purchase price: $1,300,000
Purchase date: 6/24/04
Size: 5 beds, 4.5 baths, 3,800 sq ft (built in 2000)
MLS: S550961 (268 days on Redfin)
HOA dues: $160
Type: Single Family Residence
Style: Cape Cod
Stories: 2
Lot size: 7,034 Sq. Ft.
From listing: Award winning Wyeth plan 3. Features 5 bedrooms plus library and a bonus room/loft! Well appointed home with hardwood floors, crown molding, designer paint/carpet, granite kitchen, built-in entertainment center, plantation shutters and an outdoor fireplace with bbq. Some other highlights of the home are a separate 3rd car garage, front and rear staircases, tech center and a split level library/office. Located on a cul de sac street minutes away from shopping centers and community amenities.

As you may have noticed by the days on Redfin count, this is not a new listing by any means. In fact, it's one of those that's been around the block and gone through a number of different incarnations.

The first in October 2008 involved an asking price identical to the 2004 bubble price of $1.3 million. Later on, in January of this year, it went down to $800,000. Now, it's back up to $820,000.

The previous sales history is also interesting - $560,000 in 2000; $750,000 in 2002 and then $1.3 million in 2004. That's an increase of 132% in four years. Now, if the property can be sold for the current asking price, it would mean a decline of 37% over five years.

Look out below in Ladera

Some might say this Ladera Ranch REO represents everything that went wrong with the real estate market in previous years: an inflated price, overdone interior with granite and stainless steel in the kitchen, ceramic tile everywhere, exorbitant lender-enabled financing, and then the inevitable foreclosure.

Now, it's back on the market and looking for its next buyer.

65 Laurelhurst Dr, 92694
Asking price: $599,800
Asking price/ sq ft: $255
Bank purchase price: $546,833
Purchase date: 2/13/09
Size: 4 beds, 3 baths, 2,356 sq ft (built in 2000)
MLS: S571242 (45 days on Redfin)
ZipRealty price tracker: Price Reduced: 05/22/09 -- $612,800 to $599,800
Zillow Zestimate: $675,500
HOA dues: $175
Type: Single Family Residence
Style: Contemporary
Stories: 2
Lot size: 6,200 Sq. Ft.
From listing: This home is on a private flag lot offering additional parking and a gated driveway. Perfect for kids play area. Upgraded interior, spacious living areas. Built-in desk and entertainment unit in family room & loft. Walk to park and Oak Knoll Village clubhouse.

The bank already cut the price once by $13,000. The previous owners paid $639,500 in 2003 using 95% financing from Greenpoint Mortgage...which went belly-up in 2007. Not to worry, though, by then they already had refinanced into $924,500 worth of loans through Countrywide in 2005.

Those loans meant a total equity extraction of $285,000 - their $32,000 downpayment plus $253,000. As you can see, the house turned into an extra breadwinner. Things began crumbling a few years later, and the house went into default in 2008.

Assuming this 2003 rollback is sold for the current asking price, it would mean a depreciation of $39,700 off the sales price six years ago. The actual loss though, was so much more.

Ladera luxury, almost 30% off

First off, if you haven't had a chance to check out this post on the Irvine Housing Blog, be sure to give it a look. It's an in-depth examination of some examples of how abuse has been alive and well in Laguna Beach.

Today, we're looking at a home in Ladera Ranch that was once worth above the million-dollar mark.

87 Zinnia St, 92694
Asking price: $850,000
Asking price/ sq ft: $250
Purchase price: $1,190,000
Purchase date: 4/5/07
Size: 4 beds, 3.5 baths, 3,400 sq ft (built in 2003)
MLS: S572674 (5 days on Redfin)
HOA dues: $205
Type: Single Family Residence
Style: Cape Cod
Stories: 2
Lot size: 5,000 Sq. Ft.
From listing: A UNIQUE property and a once in a lifetime opportunity to own/operate a business from a much sought after Front Street Business District where you can both work and live in luxury. Private and separate entrance to approx. 480 sq ft front office for business activities and a dramatic two story entry to home with a convenient open floor plan including a giant bonus room, large kitchen with granite counters, gated courtyard plus three large balconies and much much more.

How would you like a live/work property with no driveway that sold for more than $1.1 million two years ago? The current owners only had to use a downpayment of $88,000 - they were able to finance the remaining $1,102,000.

The first loan of $952,000 is in trouble. A notice of default in the amount of $28,978 was file in March. As you can see, the current asking price is significantly less than the amount owed to the bank.

Assuming the property can actually be sold for the current asking price, it would mean a depreciation of $340,000, or 29% in about two years, not including any sales costs. The owners would lose their meager downpayment, and the lender would be stuck with the rest of the loss.

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.

Ladera preforeclosure's one of many

We recently drove through Ladera Ranch and again were impressed by the interesting architecture of the buildings (both residential and commercial). So, why not take another look at how one of South OC's boom-era developments is doing.

Foreclosureradar.com shows 228 properties in the 92694 ZIP code as being in some stage of foreclosure. Of those, 35 are bank owned; 71 are approaching auction; and 122 are preforeclosures. Here is one of the preforeclosures that has an interesting story to tell:

7 La Salle Ln, 92694
Asking price: $665,000
Asking price/ sq ft: $289
Purchase price: $593,000
Purchase date: 5/30/03
Size: 4 beds, 2.5 baths, 2,300 sq ft (built in 2003)
MLS: S567883 (14 days on Redfin)
ZipRealty price tracker: Price Reduced: 03/20/09 -- $780,000 to $680,000
Price Reduced: 03/25/09 -- $680,000 to $665,000
Zillow Zestimate: $653,500
HOA dues: $196
Type: Single Family Residence
Style: Cape Cod
Stories: 2
Lot size: 5,870 Sq. Ft.
From listing: Highly upgraded home on a huge lot within walking distance to Award winning Ladera Ranch Elem. and middle school. Near community library, Avendale club house, trails, park, pool, water park and tennis courts. Very central location on a quiet kid friendly culd a sac. This home is perfect. It is the end house on the street so it only has a neighbor on one side. Upgrades include plantation shutters, wood blinds, designer drapes, granite kitchen and stainless steel appliances including refrig., surround sound in family room, alarm system. Beautiful hardwood floors throughout the home, custom closets, marble in master bath, designer nuetral paint, apoxy garage flooring with built in cabinets for storage. Crown molding, raised baseboards, built in barbq and fire pit in over sized very private backyard. Home includes washer and drye. This is a must see home.



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How predictable was this situation? Very. The current owners - whose primary residence is listed as another address in Ladera Ranch - purchased this property new from the builder in 2003 for $593,000 using 80% financing. Assuming this was a fully amortizing loan, they would have been paying down the $473,700 principal for the past five years and likely wouldn't be in a short sale situation.

But they didn't keep their $119,300 downpayment trapped for long. In late 2004 they took out a $299,773 second from Countrywide. The real kicker was in March 2006, when they refinanced into two loans totaling $965,000 from Countrywide. Are you freaking serious?

That would mean Countrywide believed the property had appreciated $372,000, or 63% in less than three years to be sufficient collateral for the loans. A notice of default was filed in January against the first loan.

Redfin says the median home in Ladera right now is valued at $270 per square foot. If we assume this goes for our subject property, it should sell for $621,000. Would BofA take that? Since this is a second residence (investment property), the rules say our tax dollars shouldn't get wasted paying for this debacle.

Assuming the short sale can get completed for the current asking price, it would mean a loss in excess of $300,000 before sales costs and lost interest and fees.

Ladera-style luxury at 31% off

Today we find out that U.S. "previously owned" home sales fell to a new record low in January. This Ladera Ranch property - in the "backup offers accepted" stage - is trying its best to help the country get out of its funk.

8 Westford, 92694
Asking price: $1,100,000
Asking price/ sq ft: $268
Purchase price: $1,585,000
Purchase date: 6/13/05
Size: 5 beds, 5.5 baths, 4,100 sq ft (built in 2000)
MLS: S531831 (299 days on Redfin)
Original asking price: $1,395,000
HOA dues: $194
Type: Single Family Residence
Style: Contemporary
Stories: 2
Lot size: 10,358 Sq. Ft.
From listing: This Spectacular 5 Bedroom, 5.5 Bathroom East Coast Traditional Home is situated on a highly sought after Cul-De-Sac and Offers many rich Upgrades! Some of the fine amenities include Gorgeous hardwood floors downstairs, upgraded carpet, upgraded paint, crown molding, plantation shutters and designer window coverings, huge gated motor court with detached office, professional wood built-ins in family room and living room and surround sound. You will love the extra large gourmet kitchen with granite counters, stainless steel appliances and huge center island perfect for entertaining. The Large backyard with built-in barbeque offers plenty of grass and a huge side yard that leads to the oversized gated motor court. A home of this caliber is rarely available, hurry before this opportunity is gone!


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Let's see if the lender(s) let this short sale go through. The property has certainly done its time - it originally was listed in May 2008, and the asking price fell 21% since then.

Has the market fallen 21% since last May? Probably that and more in Ladera Ranch.

Assuming a sale goes through for the current asking price, the loss would be $551,000, including 6% sales costs. Wow - that's more than a half-million dollar bath on one property.

And, it won't be close to the only one before this is all said and done.

OCR: Ladera "loses some luster"

There's an interesting story today in the OC Register: Ladera loses some luster in mortgage crisis. Early on, we read:

"As the housing market has dived, so, too, has Ladera's luster. Its status as one of the county's newest, most desirable places to buy has been replaced by its standing as one of the hardest hit by the market's meltdown."

We're then introduced to three sets of owners on Bedstraw Loop - a street we last mentioned in August when one of the properties that sold for $870,000 in 2005 went back to the bank. Here's a sample of what they had to say:

Homeowner No. 1:
"Sheila suspects that Ladera home prices inflated more than other local ZIP codes. In some cases, she says, homes purchased for $600,000 in 2004 were valued at $1 million by 2006.

'People borrowed on fake equity,' said Sheila.

Andy adds that he knew Ladera homeowners who kept trading up for bigger, more expensive homes and flipping homes as prices continued to inflate."

Homeowner No. 2:
"Gibson recalls having conversations with her husband about ballooning home prices.

'I can't imagine that this can last,' Gibson said she remembered thinking.

Homeowner No. 3:
"Howard said he thinks some Ladera homeowners may have gotten caught up with trying to keep up with the Joneses.

He explains that some of his neighbors are so busy working that he only sees them as they pull in and out of their garages for work.

'A lot of people live paycheck to paycheck,' he said.
Side note: This couple, a nurse and a life coach, were able to buy a $784,000 house in 2004. One would conservatively need to be making $196,000 per year to legitimately afford that.

Thanks to the beauty of hindsight, all these homeowners can claim they knew better, or that they were the ones questioning soaring prices at the time. So then why did they get caught up in the mania?

Bank's lost it in Ladera?

Is the bank off its rocker? That's what this REO listing in Ladera Ranch is leading you to believe...but of course we know it's not really true. A bank is the opposite of crazy - in fact, it is very calculating when setting prices, particularly compared to an owner-occupant who is much more emotionally attached to his or her house.

Considering the buyer hunger for foreclosures, we would assume this one will go before too long, unless there are major things wrong that we don't see.

43 Sheridan Ln, 92694
Asking price: $429,900
Asking price/ sq ft: $244
Purchase price: $457,500
Purchase date: 8/12/08
Size: 3 beds, 3 baths, 1,761 sq ft (built in 2005)
MLS: P657897 (49 days on Redfin)
ZipRealty price tracker: Price Reduced: 10/29/08 -- $439,900 to $429,900
Zillow Zestimate: $433,835
HOA dues: $367
Type: Condominium
Style: Contemporary
Stories: 3+
From listing: Bank's Gone Crazy...They Need to Sell Today...Make them an Offer They Can't Refuse! Looking for an Incredible Investment Opportunity? Look No Further as Bank's Priced this Ladera Ranch Condo to Steal & They Mean Business!!! This Home Offers Spacious Rooms & Walls of Windows in approximately 1,761 sq. ft. in Desirable Open Floor Plan that is RARELY ON THE MARKET! Bring Your Paint Brush & Create Your Custom Home as Your Expansive Gourmet Kitchen with Large Center Island featuring Granite Counters & Stainless Steel Appliances. Opens to Breakfast Nook & Large Family Room...Perfect for Entertaining. Home is LIGHT & BRIGHT with Vaulted Ceilings & Fireplace. Adjourn Upstairs & You'll Enjoy the Large Bedrooms w/Serene Views, Ample Closet Space & Private Bathrooms. You'll Enjoy Being Close to Shopping Centers, Restaurants, Theatres, Golf, Pools, Parks, BBQ's, Walking & Bike Trails, & Some of the Best Schools in the OC. YOU MUST ACT FAST...ONLY ONE at this PRICE! HURRY, THIS HOME WON'T LAST!!!

"Only one at this price." Is this a used car lot or what?

We are constantly amazed by the level of mello roos in Ladera Ranch. The OC tax Web site says they total $2,986.11 per year for this property. That amounts to about $248.84 per month. Add that to the HOA dues and you're looking at around $616 per month before your mortgage payment.

Countrywide financed all but $516 of the 2005 sales price of $572,500. It doesn't appear the previous owners paid off much principal - if any - considering the notice of trustee sale amount was $47,876 more than the original loan that had slipped into default.

Assuming the property can be sold for the full current asking price, it would equal a decline in value of 25% since its peak sale in 2005, not including any sales costs.

Star-powered real estate coup?

Yesterday, the OC Register's Jon Lansner showed us that Real Housewives of O.C. "celebrity" Tamara Barney and her husband have placed their home for sale, with an asking price of $1.599 million.

See, they paid $1.320 million in 2005. There are no pictures yet on the Redfin listing, which has been active for a little less than two weeks.

Here is the listing description:

Tuscan Beauty! This very desirable plan 3 sits on a pie shaped lot at the end of a long cul-de-sac with only 4 houses on the street. 5 bedrooms all with full bathrooms. down stairs office with built in bookcase.loft, master bedroom retreat, hardwood floors with custom stone inlay. Large kitchen with granite center island. rustic wood beams, crown molding, Iron staircase. Entertainers DREAM yard. Wrap around yard has everything. Saltwater pool and spa w/ waterfalls, fireplace, fire pit, built in grill with prep area, 2 refrigerators, built in covered bar, lush landscaping and so much more. A MUST SEE

At least they didn't throw on the cheesy "celebrity owned" tag. 'Cause that would be over the top.

We also got this from the story: "Tamra says the couple 'isn’t upside down, like a lot of people' with their housing financing – public records say the home was bought in 2005 for $1.3 million. And 'if it sells, it sells. If it doesn’t, that fine, too.'"

One commenter on the story said public records show total debt of $1,317,500 on the property. Another mentioned that a larger home in Covenant Hills sold recently for $1.15 million. Is this property theoretically worth about $450,000 more?

In an interesting twist, today the Register reports that home values in Ladera are down 34.5% year-over-year, at least according to DataQuick's math. From the story: "The sharp decline has forced homeowners to make hard choices as to whether they should short sell or foreclose on a property that's worth far less than the value of the mortgage."

In this case though, it appears the Barneys are simply testing the market with a wishing price. Would you as a buyer really be motivated to invest your time negotiating with them considering their "we don't need to sell" attitude?

$190/sf in Ladera

This Ladera Ranch condo - as big as many single family homes at more than 2,000 square feet - is asking less than $200 per square foot. Perhaps its competitors don't take the asking price seriously, considering they are priced significantly higher...

16 Orange Blossom Circle, 92694
Asking price: $399,000
Asking price/ sq ft: $190
Purchase price: n/a
Purchase date: n/a
Size: 3 beds, 3 baths, 2,100 sq ft (built in 2004)
MLS: S538286 (93 days on Redfin)
Zillow Zestimate: $446,500
HOA dues: $391
Type: Condominium
Style: Townhouse
Stories: 2 Levels
From listing: Absolutely Spotless Light and Bright Ladera Ranch home. Lovely Hardwood Floors throughout the downstairs, Neutral Carpeting Upstairs. Beautiful Granite counters in the Kitchen with Island and Walk in Pantry, open to Separate Family Room to entertain. Wonderful Bright Living Room with Fireplace is a comfortable place to relax. 3 Very Large Bedrooms, Secondary bathroom has double sinks. Master Suite with large Master Bath with separate tub and shower. Quiet Sunny End Location, Walk to Park, Pool and School.

Customized financial info:
Minimum Income Requirement (using 30Y Fixed): $90,000, assumes no other debt/obligations.
Downpayment needed: $13,965
Monthly Payment on 30Y Fixed at 6.25% with property taxes and mortgage insurance estimated: $3,097.16
Minimum Income Requirement (using 5Y fixed): A client wouldn’t take an ARM under this scenario as FHA Jumbo Financing is being used and the ARM rates are above Fixed rates because of the severe credit market disruptions. Investors have little appetite for high loan to value ARMs.
Disclosure: All rates offered to the client with 1 point cost. Rate quotes assume a purchase transaction with the required minimum down payment, 720 credit score, full income qualification and required reserves. Rates are subject to fluctuation. Custom rate quotes and rate lock advice are available by visiting www.thegreatloan.com.


We're not sure of the specific financials behind this property, but we do know properties on this street were selling for more than $600,000 in 2006.

And, we also know that 19 Orange Blossom is asking $500,000 for the same model now. There's also 58 Orange Blossom up for sale for $500,000. ForeclosureRadar shows 83 Orange Blossom as an REO.

If the subject property could sell for the current asking price, it would mean that values on this street would probably be down roughly 33% off the peak.

Collapse in Ladera Ranch

In recognition of the OC Register's San Clemente high-end foreclosure tour, we're going to post today on a luxury Ladera Ranch foreclosure property.

19 Dennis Lane, 92694
Asking price: $1,600,000
Asking price/ sq ft: $350
Bank purchase price: $2,002,160
Purchase date: 6/27/07
Size: 5 beds, 5.5 baths, 4,576 sq ft (built in 2005)
MRMLS: C08062676 (127 days on Redfin)
ZipRealty price tracker: Price Reduced: 5/15/08 -- $1,875,000 to $1,600,000
Zillow Zestimate: $1,631,500
HOA dues: $400
Type: Single Family Residence
Stories: 3+ Levels
From listing: SHERBORNW PLAN 3 TOTALLY UPGRADED!BEAUTIFUL GRAND ENTRY WITH HARDWOOD FLOORS, HANGING CHANELIER, OVERSIZED GREAT ROOM LEADS TO MORNING ROOM WITH A BAR, AND CUSTOM KITCHEN COMPLETE WITH WINE REFRIGERATOR ALL THERMODORE APLLIANCES, CUSTOM CROWN MOLDING AND GRANITE TOPPED ISLAND. FORMAL DINING TOOM WITH CUSTOM CANBINETRY LEADING TO FOUNTAIN AND ATRIUM. BACKYARD WITH VIEW, WITH WATER FOUNTAIN, SALT WATER POOL/SPA. FIREPLACE, BBQ ALSO 4 HOLE PUTTING GREEN. OVERSIZED BONUS ROOM !!!

Minimum Income Requirement (using 30Y Fixed): $318,000, assumes no other debt/obligations.
Downpayment needed: $320,000
Monthly Payment on 30Y Fixed at 7.25% with property taxes and mortgage insurance estimated: $10,481.86
Minimum Income Requirement (using 5Y fixed): $282,000, assumes no other debt/obligations.
Monthly Payment on 5Y fixed at 5.80% with property taxes and mortgage insurance estimated: $9,260.44
Disclosure: All rates offered to the client with 1 point cost. Rate quotes assume a purchase transaction with the required minimum down payment, 720 credit score, full income qualification and required reserves. Rates are subject to fluctuation. Custom rate quotes and rate lock advice are available by visiting www.thegreatloan.com.

Does this property look familiar to you? Perhaps you saw it before on BMIT when ocrenter profiled it in March 2007. At that point, a notice of default had been filed. This post is worth a look because you can see what kind of re-fi madness we're dealing with.

It looks like the property eventually went back to the bank despite the fact that it was up for sale in 2007 for $2.9 million at one point.

See how many typos and misspellings you can spot in the listing description. Unbelievable...

Two other properties are in trouble on this street: 23 Dennis Lane (an REO that is past the point of help) and 2 Dennis Lane, a preforeclosure.

Suffice to say, the lenders' losses on this property are staggering. It will be interesting to see what this one ends up selling for, but as you can see by the income and downpayment requirements, only an exclusive group can legitimately gain entry to this level of home.

Going, going, gone!

The same headline as the title of this post showed up on ESPN.com moments after the L.A. Dodgers traded for slugger Manny Ramirez. It's also an appropriate label for this property in Ladera Ranch, which was hoping for a sale an on the market but is now "gone" since it went back to the bank at a foreclosure auction yesterday.

Another REO that will eventually be adding to the local inventory...

43 Bedstraw Loop, 92694
Last asking price: $699,000
Last asking price/ sq ft: $233
Income requirement: $174,750
FB purchase price: $870,000
FB purchase date: 4/29/05
Size: 4 beds, 3 baths, 3,000 sq ft (built in 2004)
MLS: S536445 (48 days on Redfin)
ZipRealty price tracker: Price Reduced: 7/01/08 -- $849,000 to $799,000
Price Reduced: 7/14/08 -- $799,000 to $699,000
Zillow Zestimate: $845,028
2007 property tax: $14,019
HOA dues: $205
Type: Single Family Residence
Style: Mediterranean
Stories: 3+ Levels
From listing: Lovely home in Ladera Ranch Claibourne 'green' community, largest model with upgrades galore. Spacious open floorplan includes formal living room with french doors leading to private courtyard. Formal dining room has butler's pantry which leads to gourmet kitchen with center island & breakfast nook and open to family room accented with french doors also leading to entertainer's courtyard. Second floor includes bonus room and master suite which opens to luxurious bath including soaking tub, separate shower and large walk-in closet. Third floor bonus room can be used as a bedroom and includes a balcony overlooking dramatic area view. Features including marble flooring, upgraded carpet, 2 car direct access garage, A/C unit with 3 floors of zoning and solar panels add to the energency efficiency of this 'green' home, upgraded Multi-Locks. Fabulous home that must be seen to appreciate!

The property is still showing up on Redfin as active, which is why we have a link to the property summary. Wonder how long it will take to come down...

The (now) previous owner purchased the home at the peak in 2005 using 100% financing. He didn't stop there.

A little less than a year later, he re-financed into $1,050,000 of debt thanks to the good folks at Fremont Investment & Loan.

A notice of default was filed against the first loan on the property in April 2008, but nevertheless the property went up for sale in June asking $849,000. That would have been a bad enough loss. Unfortunately, no buyer appreciated the home enough to make a deal that satisfied both the owner and, more importantly, the lender.

The last asking price on this property was $699,000. If we assume the property had actually sold, the shortfall for the lender would have been around $350,000. The "owner" would have turned nothing (the lack of a downpayment) into a $180,000 windfall.

The notice of trustee sale came in mid-July in the amount of $904,233. The original loan amount had been $868,000. Despite the fact that unpaid interest and other fees had pushed the NTS amount well above the original loan balance, the minimum bid at auction was $507,000 - a 44% discount off the NTS amount.

No takers.

Here is the ForeclosureRadar map of Ladera Ranch. This image is only displaying 200 of the 285 hits: