Saturday, July 26, 2008
The Biggest Loser
There are a lot of homes in the IE that have lost 50% or more in the last couple of years. Most of those though are "only" losing $300K to $400K. It's not every day you find a 50% loss that is nearly a million dollars.
Well, here's one in Corona. 1015 Lowry Ranch Rd is a large estate home up in Crown Ranch. According the the description this was a model home. It is 5400 sq/ft and has 5 bedrooms and 5.5 bathrooms. The home was purchased new in May 2006 for 1.83 million. It does not say that this is a REO on the listing but I will assume it is as it shows a sale in June for 1.49 million. It is currently listed for $875K. That is a loss of 53% or $955K! If it sells at that price the total losses after all the fees are paid should be well over a million.
If you are thinking this home is going to be "snapped up" you might want to take note that there are quite a few REO properties in this tract and some are priced very close to this one. In fact there is a model match at 960 Randall Ranch Rd. This home is identical except for the "model home" upgrades. It cost quite a bit less so the loss is not nearly as impressive but even so the loss is considerable. It was bought new in June 2006 for $1.475M. The lender took it back in Nov 2007. Since then they have been chasing the market down. After 6 price reductions they are down to $878K. The loss on this one is "only" 41%, assuming they can get it sold at that price the loss is going to be around $600k plus fees..