Today's property is another example of how a bubble-era buyer could get into a pretty darn nice million-dollar property like this one in Talega - without using any of their own money. What ever could go wrong?
Now, since the market has cooled, the house is predictably headed for foreclosure. Will a last-minute buyer step in, or will this one go all the way to auction?
219 Via Marfino, 92673
Asking price: $1,030,000
Asking price/ sq ft: $287
Income requirement: $257,500
Purchase price: $1,425,000
Purchase date: 8/26/05
Size: 5 beds, 5 baths, 3,586 sq ft (built in 2000)
MLS: S503912 (242 days on Redfin)
ZipRealty price tracker: Price Reduced: 11/30/07 -- $973,143 to $945,342
Price Increased: 11/30/07 -- $945,342 to $985,032
(Price increased 3/20/08 -- $985,032 to $1,030,000)
Zillow Zestimate: $991,500
2007 property tax: $18,242
HOA dues: $149
Type: Single Family Residence
Style: Spanish
Stories: 2 Levels
Lot size: 10,600 sq ft
From listing: Best value in talega and maybe orange county!!!! This pool home is ready to move in. Backs to the golf course, custom kitchen, lots of tile. Show and sell today!!! See you in escrow. Short sale is approved, no waiting, no waiting, no waiting for this great property!!!!Sold as is!!!!!!Short sale is approved by the lender!!!!!
The buyer paid $1.425 million in mid 2005. She was able to obtain 100% financing through First Franklin in the form of a $1.14 million first loan and a $285,000 second (80/20). A notice of default on the first loan in the amount of $31,494 was posted in December, and a notice of trustee sale in the amount of $1,198,356 came in mid March.
We would be curious to know if this property saw much action when it was priced at $945,342. Was the only thing holding up a sale the lender's approval? Or, was there not sufficient interest back then and this is really a last-ditch wishing effort with no substance?
One thing is certain, though: The property hasn't appreciated any since last fall, so if buyers weren't all over the place then it seems hard to believe they would be interested now with an increased price tag - unless, of course, the allure of an approved short sale is worth the higher price.
The property is scheduled to be auctioned May 5 at 10 a.m. - that is, unless a buyer can be found before then. As you can see from the listing, the lender has approved a price of $1.03 million. Is it worth that much to a buyer, or would they prefer to wait, let the property go back to the bank and later reappear as an REO before deciding whether to go through with the purchase?
By setting an approved short sale amount, the bank has agreed to a price that would equal a loss of $456,800, including 6% sales costs. Bye bye second loan, and ouch to the first one, too - in fact, the notice of trustee sale amount is actually higher than the original loan itself, thanks to unpaid interest and fees adding up.
A sale at that price would also mean a depreciation of about 28% in less than three years, not including transaction costs.
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?
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.
Properties like the one we're profiling today have all-too-familiar sales histories: Modest appreciation from 1990-2000. A nice jump from 2000-2002. Then, the sky was virtually the limit during the bubble as this property almost doubled in value in the span of nearly three years.
