Friday, March 28, 2008

REO Fun in Fontucky 57% off!

Like many other parts of the IE Fontana (lovingly referred to as Fontuky by every one that doesn't live there) is tanking hard.

Here's a few REO properties in the Sierra Lakes development that are putting some serious hurt on the poor FB's that are trying to sell their houses.

16498 Medinah St is a 4 bedroom, 2.5 bath home, 2462 sq/ft on a smallish 5000 s/f lot. This home was last purchased in Aug 2005 for a whopping $570k. The bank now owns this Medinah cottage and has just listed it for $318k. Thats a loss of $252k plus fees, if they get asking (that's a 45% drop from the 05 sale price)

6229 Eaglemont is not quite as an impressive loss as the last home but it's still got a chance to fall further. The home is the same floorplan as the medinah house. It was last purchased in Aug 2005 also but this one "only" cost $490k. It's listed by the bank for $336K. It's been listed for a few months now ans has already had 3 price reductions. It looks like it's gonna need a few more!

Now for the Price Leader, 5751 Ventana Dr, is just a wee bit smaller than the first two. It's a 4 bed, 2.5 bath home that is 2325 sq/ft but this one is on a larger 7100 sq/ft lot. This one has sold an amazing 4 times since being built in 2001, 5 times if you count the bank (the latest owner). The last real sale was very near the peak in Feb 2007 when it fetched an astonishing $640k. That's $275 sq/ft for a tract home in's Fontana! Well now the bank has it and wants to unload this thing before people actually realize "it's in FONTANA". They have it listed for $279,900.

That is a loss of FIFTY SEVEN PERCENT in one year!
A loss of $360k!!


Anonymous said...


Anonymous said...

The bank now owns this Medinah cottage and has just listed it for $318k. Thats a loss of $252k plus fees, if they get asking (that's a 45% drop from the 05 sale price)


It is really nice to view your web site. I really like to see the bubble burst.

I have a quick question here:

The bank listed the property for $318 K. Are they sure to accept my offer of $318K. Do I have chance to get the house if I offer them, for example, $10K less?

Thank you in advance.Have a nice weekend and find more deep discount houses please.

exrealtard said...

Whether or not you can buy that property at the $318k listing depends on if there is anyone else that wants to buy it. If no one else submits an offer then, yes, you can buy it and they might even accept less. If other buyers are interested then you might have to pay more. There are currently several homes in high 200s, low 300s in that tract. Most of them are recent listings. There is a good chance they will sell since they are the lowest priced homes. When they do sell it will lower the comps for the area making it that much harder for the higher priced homes to sell. Consequently, they will have to come down in price. My gut feeling is that those homes will end up in the low 200s. They could go lower if the economy gets nasty. There so many foreclosures coming in the next year that the price declines will be continuing for quite a while. Don't get too excited just yet.

snob from morgan hill said...

I used to work in Fontana, its a nice place for warehouses. Not for residential houses.

Anonymous said...

I have a few coworkers that bought in Sierra Lakes a few years back. I feel sorry for them.

Briar said...

I went to college in eastern Kentucky. Fontana is nothing like Kentucky! Kentucky is way better.