Tuesday, March 11, 2008
Made you look!
Some auction properties are getting people excited when they see the extra low prices listed. Of course, these are the minimum bid amounts for the action and don't reflect what the homes will sell for.
Short sales can also trick you and get your heart pumpin' a bit. You see the prices and get excited. But will the lenders actually let the properties go when they are listed at a very low price.
Here's a couple of examples in Orangecrest.
18996 Alderbrook is in the new Centex/Fox development. This home is a 4 bedroom/2.5 bath and is 2700 sq/ft. It sold new in Nov 2006 for $480k. It's listed as a "pre-foreclosure" short sale for $190k (That's $70 sq/ft). That is a 290k loss or a 61% loss if you prefer it in percentage form.. Do you think there is any chance a bank would go for this? Of course not. They bank will take it, list it for $359k. It will sit for 6 months and they will end up selling it for $250k or less.
In the same tract there is another shorty short sale at 9372 Golden Lantern (was that a super hero? the green lantern's ex?) This 3 bedroom/3bath home is 2384 sq/ft. This one is listed for $215k ($90 sq/ft). Again, there is little chance the bank will go for this sale.
I'm really not sure what these people hope to accomplish. I have a feeling that these homes will probably end up being worth around what they are listed at. I think it will take a couple of years though and I doubt the banks will be too interested in speeding up the process.