Friday, August 29, 2008
The million dollar club
Finding losses of $500k, $600k or even $700k is not that hard these days. But finding losses of a million or more on IE homes is a little unusual. Many of the high loss homes undoubtedly involve some kind of fraud. This home is probably one of those.
1062 Lowry Ranch Rd in Corona (I know the listing says it's in Riverside, it's not, it's in Corona). This is a big home in Crown Ranch. It sold new in feb 2006 for 1.255 million dollars. The next sale was very probably a fraudulent transaction. Even in the boom years tract homes did not double in price in a year. It sold again in mid 2007 for 2.2 Million bucks! Yes, you read that right, in the middle of the biggest real estate meltdown in history this guy flip a home in a year and nearly doubles his money.
I'd bet a bottle of scotch that no payments were made on that loan. The home went back to the bank a year later and now it's listed for $815K. That's a loss of $1.385 Million from the obviously fraudulent sale. However other homes in this tract were selling for about 1.5 million in that time frame. So the loss would still be impressive even if it sold at "market" price in mid 07.