How long are you prepared to wait to make this San Clemente short sale your own? If you've got some time on your hands and have the cash, perhaps the lender will take you up on your offer...eventually.
21 Via Villena, 92673
Asking price: $425,000
Asking price/ sq ft: $247
Income requirement: $106,250
Purchase price: $608,000
Purchase date: 3/5/05
Size: 3 beds, 3 baths, 1,724 sq ft (built in 2005)
MLS: P638742 (60 days on Redfin)
ZipRealty price tracker: Price Reduced: 6/01/08 -- $519,900 to $425,000
Zillow Zestimate: $490,000
HOA dues: $308
Type: Condominium
Style: Contemporary
Stories: 2 Levels
From listing: THIS IS A VERY ATTRACTIVE UNIT. GREAT USE OF LIVING SPACE WITH TILED EATING AREA AND KITCHEN. 3 LARGE BEDROOMS UPSTAIRS WITH AN EXTRA LARGE MASTER BEDROOM. THE MASTER BATH HAS SEPARATE TUB AND SHOWER. THERE IS A LARGE WALK IN CLOSET WITH A BUILT-IN COMPUTER STATION. THERE ARE ALSO PLENTIFUL STORAGE SHELVES WHICH ARE BUILT IN. THE KITCHEN IS VERY LARGE AND OPENS TO THE VERY LARGE EATING AREA. THERE ARE STAINLESS STEEL APPLIANCES AND GRANITE COUNTER TOPS. THERE IS A DOOR LEADING TO A PERFECTLY HARDSCAPED REAR YARD WITH FIREPIT FOR NIGHT TIME RELAXING. BEAUTIFUL. SO CLOSE YET SO FAR AWAY. DO NOT WAIT. HURRY ON THIS BEAUTY. THIS IS A SHORT SALE SO PREPARE TO BE PATIENT.
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"Hurry" on this property...so you can then wait around for an answer from the bank.
The owner bought this Talega condo new from Lennar in 2005. He originally tried to sell the property for $519,900 - most likely the price that would have made all the problems go away. Now, the property has been lowered to $425,000.
It looks like a pretty low number - many of the comps are asking in the high $400s or even into the $500s, and the other one priced at $425,000 is in the accepting backup offers stage. But it's all irrelevant unless the bank agrees to take a large loss on this property.
If the property is allowed to sell for the full asking price, it would mean a loss of $208,500 including 6% sales costs or a depreciation of about 30%, not including sales costs, off the 2005 price.
Monday, July 21, 2008
30% off condo in Talega
Friday, July 18, 2008
Rollback with a view in DP
This Dana Point condo sold for more than $1 million in 2006, but now it's a rollback with lots of debt and a notice of default to its credit. As usual, there's even more to the story than meets the eye...
26042 Vista Dr, 92624
Asking price: $989,000
Asking price/ sq ft: $574
Income requirement: $247,250
Purchase price: $1,038,000
Purchase date: 3/17/06
Size: 3 beds, 3 baths, 1,723 sq ft (built in 1974)
MLS: C102235 (177 days on Redfin)
Zillow Zestimate: $679,000
HOA dues: $299
Type: Condominium
Style: Contemporary
Stories: 2 Levels
From listing: Perched on one of the most beautiful and desirable bluffs in Southern California, this Capistrano Beach residence offers stunning ocean views, magical sunsets and a bright, open and airy floor plan. Extra large terrace off living room, amazing views from the huge master suite with walk-in closet. 2-car attached SxS garage with direct entry. Complex includes Pool, Tennis, Courts & Gym. Priced to sell! First showing:
The current (out-of-town) owner bought at the peak using 90% financing from Countrywide. He then pulled out all his downpayment plus $96,200 more only three months later when he took out an additional $200,000 loan against the property in June 2006. A notice of default was filed against the property for $21,119 in April.
This isn't the only piece of the owner's crumbling mini real estate empire.
He also is massively over leveraged on another of his "investments" - 9774 San Circle in Beverly Hills - by millions of dollars. That property received its most recent notice of default on a 
$1.5 million loan in May. There also have been two other notices of default filed against the property: one in January against a $200,000 loan and a second in February on a $1.8 million loan. Yes, those are all different loans.
Assuming the subject Dana Point property can actually be sold for the full asking price - which seems unlikely considering how long it has stayed on the market with no price reductions - the lenders/bagholders would lose about $200,000, including 6% sales costs. Thanks to equity extraction, the owner would be out the door sans his credit rating but $96,200 richer.
Want to see this condo in person? The CLAW listing says there is an open house scheduled Sunday from 2-5 p.m.
Thursday, July 17, 2008
"Shouldn't be" short sale in Laguna
This Laguna Beach property is not the "bought at the peak and is now upside down" type of short sale. It's the other kind - when refinancing and mortgage equity withdrawl come home to roost.
533 Lombardy Lane, 92651
Asking price: $799,000-$849,000
Asking price/ sq ft: $695
Income requirement: $212,250
Purchase price: $494,045
Purchase date: 9/20/00
Size: 2 beds, 1 bath, 1,150 sq ft (built in 1927)
MLS: S515870 (209 days on Redfin)
ZipRealty price tracker: Price Reduced: 3/11/08 -- $899,000 to $849,000
Zillow Zestimate: $1,072,000
Type: Single Family Residence
Style: English
Stories: 2 Levels
Lot size: 1,800 sq ft
From listing: APPROVED SHORT SALE!!! LOOK AT THE PRICE ON THIS SFR IN HIGHLY SOUGHT-AFTER LAGUNA BEACH!!! The last word in style & charm this unbelievable home is tucked on a quiet street in great neighborhood. A perfect 10 in curb appeal you will fall in love with this great home from the moment you see it. Dramatic living room entrance showcases rich hardwood flooring, exposed beams, custom lighting & massive brick fireplace with elegant oversized mantle. Nifty chefs' kitchen with clean tile countertops, garden window & access to formal dining area. Main floor bedroom - a great perk! Other great features include: large office/den + enormous loft - an easy 2nd/3rd bedroom! This home will not stay on the market long - totally turnkey and priced to sell fast! WOW!
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As you can see from the purchase price, this property should not be in this situation. Shoulda, coulda, woulda right? The owner purchased this property in 2000 for $494,045 using $458,150 worth of financing in two loans. So far, so good.
But she refinanced in 2003 into a $640,000 loan. Between May 2004 and July 2005, $230,000 more worth of credit/loans were added to the property - one or both may be HELOCs and we don't know for sure if they were fully tapped.
But, it seems likely the money was pulled out since another loan for $200,000 - we think a standalone second - appeared in April 2006. Assuming all the cash was used, the total amount of loans added to the home over the course of just two and a half years could be as high as
$1,070,000.
To give you an idea of the significance of tapping the house for money: If the owner never refinanced or pulled any additional money out, and they could sell the home for $849,000, they would earn a profit of about $300,000, including 6% sales costs.
Instead, the owner is underwater and had to lobby the lender(s?) for a short sale, which we know from the listing has been approved.
The $640,000 loan also is now delinquent, and a notice of default for $26,394 was filed against the property in May. Too bad the home did "not stay on the market long" as the listing proclaimed.
Tuesday, July 15, 2008
Quasi Laguna Beach short sale
Terraces Laguna Beach is technically Laguna Beach, but its location is realistically closer to much of Aliso Viejo than it is to the heart of Laguna.
Values here seem to have held fairly well, though there seems to be a lot of properties up for sale right now. Here's one of them that is also both a short sale and a preforeclosure...
404 San Nicholas Ct, 92651
Asking price: $440,000
Asking price/ sq ft: $325
Income requirement: $110,000
Purchase price: $535,000
Purchase date: 5/26/05
Size: 2 beds, 3 baths, 1,353 sq ft (built in 1988)
MLS: S536733 (28 days on Redfin)
Zillow Zestimate: $513,000
HOA dues: $377
Type: Condominium
Style: Cape Cod
Stories: 2 Levels
From listing: Laguna Beach at this price! Charming 2 masters. Open floor plan w/1/2 bath downstairs. Kitchen has been opened up to include 'new' breakfast area with counterspace and sink. Private back yard opens to greenbelt and great privacy. Very quiet location in complex. Main beach and all the charm of downtown Laguna minutes from your front door.
We counted 11 properties for sale on the MLS in the immediate area around this property. The cheapest two-bedroom is asking right around $400,000. The most expensive three-bedroom is trying to get $625,000. There is also nearby California Cove, a single family home neighborhood that's priced a bit higher.
The current owner purchased the property for $535,000 at the peak using (gasp) 100% financing in the form of two loans. Then, the genius lender allowed him to refinance into $595,000 worth of loans a year and a half later.
The mortgage has since gone delinquent and an $18,351 notice of default was filed on the first loan in May. Assuming the lender allows the sale to go through at the current asking price, it would mean a loss of about $155,000, not including sales costs, because of the increased debt on the property.
It would also mean a depreciation of "just" 18%.
Monday, July 07, 2008
Big rollback in Foothill Ranch
This is the first potential 2003 rollback in Foothill Ranch we've seen lately that's not a small condo - though it's only a rollback of that magnitude if you assume the price at the low end of the asking range.
Still, it's a pretty nice case study of the types of declines that are slowly starting to affect more neighborhoods in South OC.
4 E Jameson St, Lake Forest, 92610
Asking price: $519,999-$550,000
Asking price/ sq ft: $288-$304
Income requirement: About $135,000
Purchase price: $730,000
Purchase date: 3/14/06
Size: 4 beds, 2.5 baths, 1,808 sq ft (built in 1995)
MLS: U8002993 (5 days on Redfin)
Zillow Zestimate: $632,500
HOA dues: $49
Type: Single Family Residence
Style: Contemporary
Stories: 2 Levels
Lot size: 5,000 sq ft
From listing: Beautiful home, this 4 bed room 2.5 bath, a big attic, 2 car garage is completely upgraded, new carpet, new paint, new backyard with Jacuzzi, and gazebo. It s classy and modern but warm and cozy. Great area, safe, family oriented, great neighbors, located by the 241, shops, stores and restaurants walking distance from home. Great schools and parks. You can t go wrong with this house. This house was bought only 2 years ago for 730,000 and now going for this unbelievable price of 550,000. This is a short sale and the lender is willing to move fast with the right buyer. You can t go wrong with this home. Come see for yourself, you and your clients will fall in love when you walk in.
Here is one of those extreme short sales that appears to have been approved by the lender - meaning they will be accepting a huge six-figure loss to get this moved.
The current owner is not doing so well with her real estate purchase. She bought the property at the peak for $730,000 with $657,000 worth of financing and a $73,000 (10%) down payment. We are not sure if she later "liberated" any of her money from the property via a HELOC or standalone second.
If the owner did not take out any cash, and the short sale is approved at $550,000, the owner 
would lose their $73,000 downpayment and the bank would be out about $107,000. That does not take into account any sales costs. A sale at that amount would also mean a depreciation of $180,000 or 25% off the March 2006 price.
If we were to assume the best offer comes in closer to $520,000 and the sale still is allowed to go through, then the numbers are even more gnarly: That would equate to more like a $137,000 stinger for the bank. It also would mean a depreciation of $210,000, or 29% off the last sale. We also would have a 2003 rollback in the books.
This is what the foreclosure map looks like within a 1 mile radius of this property, courtesy of ForeclosureRadar.com. There are currently about 40 properties in some stage of foreclosure:
Wednesday, June 25, 2008
Near the '02 price in Laguna Hills
The OC Register is reporting that by S&P-Case/Shiller methodology the current real estate bear market has caused greater price declines in 15 months than those seen during the entire 71-month downturn in the 1990s.
Today's property is evidence of the accelerating downward trend of property values in the area. It's a short sale in Laguna Hills that is asking far closer to its June 2002 sales price than the amount "paid" in 2006.
The real estate bubble is long gone.
16 Carriage Hill Ln, 92653
Asking price: $399,000
Asking price/ sq ft: $212
Income requirement: $99,750
Purchase price: $635,000
Purchase date: 8/25/06
Size: 3 beds, 3 baths, 1,879 sq ft (built in 1982)
MLS: S520441 (142 days on Redfin)
ZipRealty price tracker: Price Reduced: 2/05/08 -- $590,000 to $535,000
Price Reduced: 3/03/08 -- $535,000 to $499,000
Price Reduced: 3/31/08 -- $499,000 to $465,000
Price Reduced: 5/04/08 -- $465,000 to $449,000
Price Reduced: 6/06/08 -- $449,000 to $399,000
Zillow Zestimate: $557,500
HOA dues: $240 + $32
Type: Single Family Residence
Style: Contemporary
Stories: 2 Levels
Lot size: 4,000 sq ft
From listing: One of the largest private lots in The Indian Creek Homes Community. This home offers a spacious floor plan with a living room and formal dining room and an abundance of light with all the windows. Peaceful backyard with a weatherproofed deck, lighting and sprinklers. Kitchen has been upgraded granite countertops and new appliances. Lowest priced home in this community...you wont be disappointed!
The owner financed the entire purchase price using a $508,000 first loan and a $127,000 second. The original asking (wishing) price was $590,000. No go. Now, the property has been reduced by $191,000. It's still on the market.
Here is the sales history:
Aug 11, 1988: $195,000
May 04, 1990: $249,000
Jun 10, 2002: $375,000
Jul 24, 2002: $359,000
Sep 27, 2004: $575,000
Aug 25, 2006: $635,000
Between 1990 and 2002 (around the beginning of the 1990s downturn to the beginning of the last housing bubble) the property appreciated by $126,000. That's a total of 51% over the course of about 12 years. Not bad at all.
From 2002 to its sale at the peak of the bubble in 2006, the property sold for $635,000. That's an increase of $260,000 or 69% or in just four years. When compared to some of the other escalating property values around South OC, this is actually a relatively modest appreciation.
Assuming a sale can go through for the current asking price, the lender would lose $259,940, including 6% sales costs. It would also mean a depreciation of 37% in less than two years, not including any sales costs.
Tuesday, June 24, 2008
Lender-approved sale: New trend?
We've speculated before about whether lenders are actually approving some of the more drastic short sale properties offered on the MLS in South Orange County, because that would mean writing off hundreds of thousands of dollars in losses - per home, in some instances.
The positives: The homedebtor gets rid of the burden of owning the house and avoids foreclosure, the buyer gets a suitable property at a fair price and the bank takes the hit on the sale but does not have to deal with the property in foreclosure.
If banks are willing to let more short sale transactions go through at market prices, we could see escalating price declines and find a bottom sooner than if the banks did not allow short sales and eventually had to sell them months after completing foreclosure proceedings.
Here's some proof some lenders are in fact allowing some extreme short sales to go through - that is, if a willing buyer can be found to pay the approved price. This one is in Mission Viejo.
21145 Foxtail, 92692
Asking price: $555,000
Asking price/ sq ft: $326
Income requirement: $138,750
Purchase price: $740,000
Purchase date: 2/24/06
Size: 3 beds, 3 baths, 1,700 sq ft (built in 1987)
MLS: S519260 (151 days on Redfin)
ZipRealty price tracker: Price Reduced: 1/26/08 -- $650,000 to $620,000
Price Increased: 1/28/08 -- $620,000 to $650,000
Price Reduced: 5/08/08 -- $650,000 to $585,000
Price Reduced: 5/15/08 -- $585,000 to $580,000
Price Reduced: 6/20/08 -- $580,000 to $555,000
Zillow Zestimate: $571,000
2007 property tax: $8,621.88
HOA dues: $68 + $18
Type: Single Family Residence
Stories: 2 Levels
Lot size: 5,200 sq ft
From listing: LENDER APPROVED!! JUST GOT APPROVAL LETTER YESTERDAY!! A FULL PRICE OFFER WILL BE ACCEPTED AND MOVE IMMEDIATLY INTO ESCROW. Amazing two story located on cul-de-sac street. All the upgrades including travertine flooring, granite countertops, ceiling fans, gourmet kitchen and nook! Master bath has duel vanity, seperate stand up shower and tub, beautiful tile throughout. 2 fireplaces!!! Large backyard with huge patio. LENDER APPROVED SHORT SALE!!! HURRY WON'T LAST LONG!!
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This property has been chasing down the market since January, but now its price is lender approved, so don't be surprised if it "WON'T LAST LONG!!"
The owner used 100% financing to buy this property in 2006. First Franklin, which provided the funding, has approved a short sale at $555,000 - a stunning 25% below the previous sales price. Think about that: the lender has acknowledged the property has lost a quarter of its value in less than a year and a half.
We'll assume the real estate agent(s) will take their 6% off the sale of this price. So, if a buyer can be found the current owner will lose no money of their own in the deal since they didn't put any money down. The lender will be out $218,300. The second loan of $148,000 will be completely wiped out, and the first loan of $592,000 also will be affected.
Not a bad deal for the homedebtor; bad situation for the bank. At least it's one fewer foreclosure the courts will have to deal with later.
Oh, and potential buyers might want to make sure this property gets up to date with its 2007 property taxes, since they haven't been paid yet.
Sunday, May 25, 2008
41% off in Laguna Hills
Can you imagine paying more than $500,000 for this 1,213 sq-ft, 29-year-old Laguna Hills condo? Someone did in 2006. A relatively small percentage of people in America could have been able to afford this property using conservative (historical) lending standards.
But, more people can afford this place at its current - and much lower - price. The question is whether or not anyone wants it now, or if they are waiting for it to drop further.
22512 Caminito Costa #9, 92653
Asking price: $299,000
Asking price/ sq ft: $246
Income requirement: $74,750
Purchase price: $510,000
Purchase date: 5/1/06
Size: 3 beds, 2 baths, 1,213 sq ft (built in 1979)
MLS: S529863 (32 days on Redfin)
Zillow Zestimate: $391,500
2007 property tax: $4,736
HOA dues: $340
Type: Condominium
Style: Colonial
Stories: 2 Levels
From listing: Condo situated near the Irvine Spectrum in the community of Laguna Village. Master bedroom has access to green belt situated in the back of the property. Two car enclosed attached garage. Kitchen has granite counter top. Inside laundry & good size living room. Property close to the 405 & 5 Freeways. Complex has pool, spa, tennis and basketball courts.
This condo is affordable to a household making around the median income in Orange County. Do you think this is the type of home that a median income warrants (don't forget to factor the granite countertops into your decision)?
This looks like the least-expensive property in the Laguna Village complex. Others include 23235 Caminito Andreta #48, which sold at the peak for $475,000 but went back to the bank for $196,989 and is for sale asking $309,900 (35% discount).
At least two properties nearby are for rent: 23422 Caminito Flecha is asking $1,995 per month, and 23395 Caminito Juanico #298 is asking $2,150. If we assume our subject would rent for $2,000 per month, this property would be valued at $320,000 to an owner-occupant, using a target GRM of 160. Rental parity shows itself again!
Assuming our subject property can actually be sold for the full asking price (remember, this is a short sale that has been significantly discounted), the loss would be $228,940, including 6% sales costs. Not including sales costs, it would equate to a depreciation of 41%.
Saturday, May 24, 2008
"Easy money" no more in San Clemente
This Forster Ranch preforeclosure has been on the market for an eternity and a half (since November 2006). The home has been reduced by a total of $475,000 since its original listing and a suitable buyer has not yet been located.
2529 Costero Magestuoso, 92673
Asking price: $1,350,000
Asking price/ sq ft: $329
Income requirement: $337,500
Purchase price: $1,063,000
Purchase date: 8/26/03
Size: 6 beds, 6 baths, 4,100 sq ft (built in 2003)
MLS: S465723 (561 days on Redfin)
ZipRealty price tracker: Price Reduced: 1/05/07 -- $1,825,000 to $1,799,000
Price Reduced: 3/31/07 -- $1,799,000 to $1,798,900
Price Reduced: 5/12/07 -- $1,798,900 to $1,795,000
Price Reduced: 6/01/07 -- $1,795,000 to $1,775,000
Price Reduced: 6/20/07 -- $1,775,000 to $1,699,000
Price Reduced: 8/20/07 -- $1,699,000 to $1,500,000
Price Reduced: 5/15/08 -- $1,465,000 to $1,350,000
Zillow Zestimate: $1,080,500
2007 property tax: $12,841
HOA dues: $248
Type: Single Family Residence
Style: Craftsman
Stories: 2 Levels
Lot size: 9,000 sq ft
From listing: Spectacular Resort Style Home, In A Private Gated Ocean View Community!Exceptional Finishes & Appointments Thru Out This Designer Perfect Home!Sprawling 6 BD with a Gourmet Kitchen Featuring Stainless Steel Appliances & Granite Counters,Travertine Flooring,Crown Molding,Custom Closets, Desginer Paint & The Ever Popular 4 Car Garage!Entertain Or Relax in the Pool/Jacuzzi and Cozy Fireplace! Quiet & Private Interior Location!Come Feel The Luxury Of This Home, You Won't Believe It! Bank Approved Short Sale!!!
Our seller bought the property in 2003 for $1,063,000, putting down just $53,358. But, as with any new house, they also needed some more cash to do things like decorate and put in landscaping. In 2004, they took out two loans from Countrywide totaling $1,408,000 - liberating their downpayment and some extra cash as well.
A re-fi occurred in July 2005 for $1,408,000, and another loan was added to the property for $138,300 in September 2005. That means the total amount of debt on this property was $1,546,300 - about $560,000 more than the original amount financed.
The lender/bagholder (Countrywide) is going to get burned on this one. The homedebtor isn't going to feel much pain at all. Since this listing is an approved short sale, that means there is theoretically a green light to pull the trigger on a sale at this price, assuming a buyer can be found.
If that takes place and the property closes for the full asking price, the "gain" over the previous sales price would be $287,000. But, as we've seen, the amount of debt on this property would actually cause a loss of more than $200,000.
Wednesday, May 21, 2008
Will they or won't they?
There has been a slew of "good news" recently about the local real estate market:
- County home sales totaled more than 2,000 for the first time since the credit crunch
- "Market time" falls more, under 6 months
- Foreclosures hit a record high in April; don't appear to be slowing down
- The % of distressed inventory is up 8.8% countywide
Here are some notable short sales in the "backup offers accepted" phase we wonder will actually make it to closing considering the large disparity between the last asking price and the purchase price. Remember, from what we have seen, an exceedingly large percentage of properties purchased during the bubble were done with large amounts of financing. Most people could never really afford the rising prices; they were just allowed to finance more.
All also are in the $400k asking price range:
24731 Embajadores Ln, MV, 92691Asking price: $474,900
Previous purchase price: $786,000
Date: 11/15/05
Size: 4 beds, 2 baths, 1,700 sq ft
Potential loss*: $339,594
% decline (not incl sales costs): 40%
24351 Registry Ct, LN, 92677
Asking price: $439,900
Previous purchase price: $583,000
Date: 8/31/05
Size: 3 beds, 3 baths, 1,509 sq ft
Potential loss: $169,494
% decline: 25%
29 Jasmine Creek Ln, LH, 92653Asking price: $417,000
Previous purchase price: $660,000
Date: 3/30/07
Size: 3 beds, 3 baths, 1,593 sq ft
Potential loss: $268,020
% decline: 37%
76 Paseo Vis, SC, 92673
Asking price: $485,000
Previous purchase price: $585,000
Date: 5/19/05
Size: 3 beds, 2 baths, 1,300 sq ft
Potential loss: $129,100
% decline: 17%
17 Monticello Ln, RSM, 92688Asking price: $499,000
Previous purchase price: $620,000
Date: 12/01/05
Size: 4 beds, 3 baths, 1,600 sq ft
Potential loss: $150,940
% decline: 20%
The other pattern we've noticed is that properties headed for escrow also include a handful of foreclosures, as well as a bunch with owners cashing out who have held their properties for a very long time.
* - "Best-case" scenario that assumes the possibility of a completed sale for the full asking price, minus 6% sales costs.
Friday, April 18, 2008
Distress in San Clemente
This is what we're looking at right now in San Clemente in terms of properties that are in some stage of foreclosure:
And, believe it or not, it's actually worse than we're seeing here, since the view was limited to 200 of the 239 properties listed by foreclosureradar.com in this city. Green means the property is in preforeclosure; blue means scheduled for auction; red means the property is bank owned (REO).
Today's property is a luxury home that has become one of those green dots, meaning it is in preforeclosure...
13 Via Soria, San Clemente, 92673
Income requirement: $262,250
Purchase price: $1,321,000
Purchase date: 7/28/05
Size: 4 beds, 4 baths, 3,450 sq ft (built in 2005)
2007 property tax: $19,417
HOA dues: $181
Type: Single Family Residence
Lot size: 6,000 sq ft
From listing: Beautiful ocean view Catania home totally upgraded thru-out with granite counters, crown moulding, Travertine flooring, recessed lighting. Huge kitchen includes large island with granite counter top and boasts loads of cabinet space thru-out. Dramatic curved staircase leads to upstairs bedrooms and additional family room and computer nook. Master suite has huge balcony and awesome view all the way to the ocean.
There are plenty of 100% financing deals in South OC to talk about, but this is not one of them. The owners bought the home new in 2005 from Standard Pacific with $281,000 (21%) down. About a year later, though, an additional loan of $242,640 was added to the property. The notice of default was filed in late March on the first loan in the amount of $17,808.Assuming the property can be sold for the full asking price, it would mean a loss of $334,940 off the new-home price in 2005, including 6% transaction costs. Considering they bought the home new, we also assume plenty of money was spent furnishing and personalizing the interior, as well as landscaping. It's anybody's guess how much cash actually went into turning this house into a home.
A sale at full asking price would also signal a rather large depreciation of 26% in less than three years, not including sales costs. It would also signal a sad end to this real estate story.
