Wednesday, October 17, 2007

When will the banks get serious?

Enough history lessons, back to our regularly scheduled program.....

With all the competition these days and the mushrooming numbers of foreclosures you would think that the banks would price aggressively. Not always the case, in fact in many cases the banks are trying to make a few bucks by listing the properties for more than was owed.

I found this Countrywide REO in the Dos Lagos area of Corona. I'm not sure why Dos Lagos is as spendy as it is. The golf course sucks and the homes are on the worse side of the 15 fwy. The west side of the fwy is much nicer and so are the golf courses.

3041 ANDANA ST, Corona, CA 92883 is a 4 bed/3 bath 3414 sq/ft home. This is our REO. Countrywide took this back for $689k in July. Now the have it listed for $850k. I'm guessing there is a 2nd on this place and they are trying to get a few bucks for them. btw, this has been on the market for 2 weeks and still no pictures. What, the realtor is too busy? P-leeeze!

Problem 1 for them is....

2937 VERDINO CIR, Corona, CA 92883 this is the same 3413 sq/ft home. This one also backs up to the golf course. It does not indicate that this is a REO or short sale but this home was purchased in May of this year for $1.2M and is now listed for $800K. That my friends is a 33% drop in FIVE MONTHS! After fees this house is going to lose $448K in 5 months, assuming it sells at this price. That's going to be a hard nut because of what's behind door number 3.

Behind door #3 we have the former 3414 sq/ft model home from this development.

4467 CABOT DR Corona, CA 92883 This is the highly upgraded model home. It also backs up to the golf course. This home was purchased in Dec of 2005 for $1.045M. Our desperate seller says all offers considered, must sell in the next 30 days (a foreclosure in his future possibly). He has this bad boy listed for $739k. If he gets his asking price (better chance of me winning the US Open) he stands to lose $306k or approx 30% but at least he did it over 2 years.

For the life of me I can't understand why this Dos Lagos development is priced this high. Just because it's behind a gate?? Driving through the gate, are you sent through a spacial rift into Laguna Niguel? WTF, the area used to be a gravel pit, it's still surrounded by quarries with trucks going up and down the main roads all day. it looks like this tract is seeing a 30% drop in prices in only 6 months. How long before 50% or that 65% than Leo Nordine has predicted?


Anonymous said...

I'm working with Leo right now just for that reason!

Anonymous said...

Those homes are way overpriced for what you get. You can go up the freeway a mile or two and get a similar sized home in another new development for half those prices. And even those are overpriced!! Those homes are worth $400 thou max (and I actually want to say $300 thou). A granite countertop and a fancy gate does not add 400 thou to the value of your home. The banks are going to take an ass pounding on those homes once all the owners decide to just walk away.

Angela said...

It's coming. Banks are starting to call the agents on short sales (not the other way around). I know in my area (zip 92508 - Orangecrest in Riv), DQ states that the average price drop was almost 25% from last year. WOW! Glad I waited to buy again even though everyone thought we were crazy!

Good work on the blog. We needed one for the IE.