Friday, February 29, 2008

$106, it's the new black

Yet another home in South Corona hits the market at $106 s/f

25087Cliffrose is a 5 bed/3bath home of 3893 sq/ft in Sycamore Creek. This one looks to be an REO that we back to the bank in Jan for $580k. This home sold new in Dec 2004 for $578k. It sold again in Nov of 2006 for $775k (if they could have stretch the sale out another month they would not have had to pay capital gains on the nearly 200k they made). The last owners only manage to keep it a year so this baby was definitely and early payment default. It's currently listed for $414k. Making this a loss of $361k in ONE YEAR. (A 47% loss).

Then there is the delusional neighbor one block over at 25285 Noble Canyon. This doofus lists his home at $700k. It's only a couple hundred feet larger than the last house. This one was purchased Feb 06 for $716k. Anyone sense a 2 year reset in this sellers future? I don't think you need to break out the crystal ball to foretell the fate of this home. Any bets on when we see it as and REO?

One last big loser. 1345 Elysia is in central Corona, high up near the Cleveland National Forrest. This one is a 5 bedroom/4 bath home of 3572 sq/ft. Nice looking home in a much more central area. This one was purchased new in Dec 2004 for $750k (seems kind high for late 2004). It went back to the bank recently for $432k. They either had a helluva 2nd or actually made a big down payment. Loosing this house for $432k just seems stupid unless there were 2nds or HELOCs. The bank has it listed for $453k. Is the bank trying to make a few bucks on this one?
If it sells at asking the loss will be $297k or 40%.


BrianH said...

Elysia had a first for 650k and a second for 100k that were originated in 2 of 2006 and closed concurrently.

I will try to find this property in my NTS list but I'm willing to bet the bank lowered the opening bid in an attempt to attract bids at the court house steps. We are starting to see that a bit more, however the opening bids just aren't low enough. Yet.

golfer_X said...

I thought that might have been the case. I've noticed a few REO's with low amounts listed as the auction amount. It does seem that more and more banks are lowering the auction price. Investors have all but vanished so there is no chance they will sell on the courthouse steps until they start selling them cheap enough to where making a profit is a no-brainer.

$127 s/f is a good price for that area of Corona (right now). It might not be such a deal in a year though.

Looking at the pics it looks like that house has lino on the floor in the kitchen and bathrooms. $750k and they get lino?

snob from morgan hill said...

Its there anything under 3000 sq.ft. house in sycamore creek? I think the reason these people get first payment default was, after paying the utilities they have nothing left.