The big news is obviously tomorrow's unveiling of a subprime ARM rate freeze plan. If you're one of those who will eventually benefit - we wish you the best. If you're one of the many who are mad about the plan's moral implications...well, we feel your pain there.
To change gears a bit, let's check out a property from a different part of the county - La Habra. This city is pretty much about as northeast as you can get while still remaining in Orange County. It's got a population of about 62,500. Median household income at the time of the 2000 census was $47,652.
La Habra also has its share of short sales and foreclosures. Here's one of them:
2121 E Hodson, 90631
Asking price: $455,000
Asking price/ sq ft: $325
Income requirement: $113,750
Purchase price: $600,000
Purchase date: 9/30/2005
Size: 4 beds, 1.75 baths, 1,398 sq ft (built in 1959)
Income requirement: $113,750
Purchase price: $600,000
Purchase date: 9/30/2005
Size: 4 beds, 1.75 baths, 1,398 sq ft (built in 1959)
ZipRealty price tracker: Price Reduced: 10/06/07 -- $520,000 to $455,000
2006 property tax: $6,422
Type: Single Family Residence
From listing: SHORT SALE! Lots of extras, Impressive home, Tastefully decorated, Inviting tiled front porch with double door entry with leaded glass, Huge dining area, upgraded master bath, Totally refinished garage could be used as a rumpus room with cabinets galore, large concrete Driveway, Space for R/V parking, Dog Run.2006 property tax: $6,422
Type: Single Family Residence
Functional obsolescence alert: A four-bedroom house nowadays should have more than one full bathroom (in case you're wondering, .75 of a bathroom typically means there is a shower).The listing mentions that this is a short sale. No kidding. Love the use of the word "rumpus room." First time I've seen that word used in a little while. Guess that's how they do things up north.
As you can see, the property has been reduced once from the original wishing price of $520,000. The house is still sitting on the market more than three months after first coming on the market and is now little more than a statistic: It's just one more property for which no suitable buyer can be found.
If we assume a sale at this price (and the lender approves), the loss would be $172,300 in a little more than two years (assuming 6% sales costs). That equates to a decline of 24%, not including transaction costs.
