Sorta-South OC REO

It's debatable whether this Silverado Canyon house is actually in South OC - it's technically in the city of Orange. But, it's so close to the Portola Hills area that we're going to take a flyer on this one and feature it here at South OC Tracker.

29192 Latigo Canyon Rd, 92676
Asking price: $869,900
Asking price/ sq ft: N/A
Income requirement: $217,250
Bank purchase price: $945,625
Purchase date: 6/26/08
Size: 4 beds, 4 baths (built in 1998)
MLS: M109857 (19 days on Redfin)
Zillow Zestimate: $945,000
HOA dues: $300
Type: Single Family Residence
Stories: 1 Level
Lot size: 0.28 acres
From listing: Spectacular and Fabulous single story home located in a prestigous community of Santiago Canyon Estates. This charming contemporary home was built in 1993 witha 4 bedroom, 4 bath, living room, with fireplace, family room with fireplace, patio, barbeque area and fabulous view from the backyard! A MUST SEE!

The previous owners bought the property in 2004 for $1.25 million. They put $125,000 (10%) down and financed the remaining $1.125 million. A little less than a year later, they refinanced with WaMu for $1.25 million - that effectively extracted their original downpayment.

On Christmas Eve 2007, the notice of default on the first loan was filed for $11,957. A notice of trustee sale came in March 2008 for an amount that was $114,417 higher than the original loan amount. WaMu discounted the property to try and sell it at auction, but no buyers came forward and in mid-June this home went back to the bank for $945,625.

Assuming the property can be sold for the full asking price, it would mean a depreciation of $380,100 or 30% off the 2004 price, not including sales costs or the hassle of dealing with yet another Orange County foreclosure property.