Tuesday, August 5, 2008
Knife Catcher Alert
Don't let this be YOU!
1474 Harness Ln in Norco was a leader. It was a leader in the foreclosure wave! Purchased in late 2004 for $600k by a Mr. Isidro Silva. This home is 3895 sq/ft with 4 bedrooms and 3.5 baths. It sits on a 1/2 acre horse lot. Poor Isidro lost the home to foreclosure in June of 2007. It looks like the bank got her back for $755k. I might be wrong but I bet Isidro has a new Denali and a a few other cool toys with that extra $150K. I suppose it could also be a Option ARM gone bad but those were not so popular in 2004 so it's more likely a HELOC or Cash out Refi that got the loan balance up.
Anyway back to the story. After the Trustee sale the home sells to a "bargain hunter" or possibly a shrewd investor back in Feb 2008 for $620k. Hmm fast forward 4 months and reality has set in, the fog has cleared, the light bulb has been turned on. Our buyer has realized he screwed the pooch and wants out. He has listed the home for $620k. The same as he paid. If this sells, after fees and holding costs he is looking at a loss of at least $50k (38K commision plus 5 months holding costs). in addition he probably paid 10k in closing costs when he bought the thing. OUCH!
But is he going to get his $620K? I doubt it. Why, well there are several model match homes in the same tract for sale for far less. There is 1211 Thouroughbred Ln. Same home listed for $532k. Interestingly enough, this home was also listed when our knife catcher bought 1474 Harness. But it was listed for $785K. I'm sure that helped convince the knife catcher he was snapping up a bargain. And if that's not bad enough there is 1504 Harness Ln. A mere 2 houses away this model match REO property hit the market only 3 short months after he closed, it is currently listed for $540k.
Being a knife catcher SUCKS!