Beat the bank in San Clemente

This property in San Clemente (Talega) has a way-too-low asking price. Not because it's impossible that the market value could have slipped that far, but because of the loans. This house is a short sale and preforeclosure that received its notice of default in October.

7 Via Zamora, 92673
Asking price: $649,000
Asking price/ sq ft: $263
Purchase price: $1,027,500
Purchase date: 12/10/04
Size: 4 beds, 3 baths, 2,463 sq ft (built in 2004)
MLS: S540625 (138 days on Redfin)
ZipRealty price tracker: Price Reduced: 08/21/08 -- $1,100,000 to $750,000
Price Reduced: 11/06/08 -- $750,000 to $649,000
Zillow Zestimate: $733,500
HOA dues: $150
Type: Single Family Residence
Style: Modern
Stories: 2
Lot size: 3,500 Sq. Ft.
From listing: Great family home in beautiful Talega. Highly upgraded. Back yard is entertainer's paradise with built in Jacuzzi, BBQ, and wet Bar.


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The short description seems to indicate the agent isn't overly motivated to put a lot of effort in trying to sell this house. The provided directions are classic - well at least classic OC: "OFF THE 5 exit Avenida Pico then use your gps."

The current, original owners bought from Standard Pacific in 2004 for $1,027,500 using 80% financing and $205,800 down. About 11 months later, two loans from Wells Fargo appeared: a $141,580 second loan and a $57,400 third from Wells Fargo. Total amount of loans assuming all the cash was taken is $1,020,700 - essentially 100% of the purchase price.

So, if we were to assume for a moment that the lenders sign off on a sale for the current asking price, it would mean a loss of $417,440, including 6% sales costs. It also would be a 37% depreciation, not including sales costs.