Saturday, October 20, 2007

Those damn REO's

It's gotta chap your ass when your trying to sell a house and some bank repo undercuts you by $185k. People better get used to it because it's happening every where I look. Here's a fine example in South Corona (Trilogy)

8609 CAMINO LIMON RD, Corona, CA 92883 Is a 5 bed 4 bath, 3629 sq/ft home. It was purchase in 2004 for $691k. Our desperate homeowners have it listed for $675K. Already looking at a $15k loss plus another $40k in fees. They just dropped the price $20K to try and motivate one of the 2 remaining buyers in the IE.

It's probably not going to have much effect though. You see, just around the corner only 6 houses away sits 8699 HUNT CANYON RD, the same 3629 sq/ft model only this one sits on a lot almost 1000 sq/ft bigger than home #1. This home was purchased in Oct 2005 for $730. Unfortunately our homedebtors were unable to hold on to it and the bank bought it back for $646k in August. The bank does not seem interested in trying to recoup their $646k investment (finally a smart bank!) and they have listed the home for $498k. That's a loss of 33% in two years or $232K.
I don't see much difference in these two homes. Both look nice inside and seem to have similar features. Besides the dead lawn on the REO they look like they should sell for about the same amount.

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