Flipper in Woodbridge? 11 Laurelglen pops up again.

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Chuck_IHB

New member
I just saw a listing pop up that looked familiar. http://www.redfin.com/CA/Irvine/11-Laurelglen-92614/home/4697345



11 Laurelglen was listed at around $750,000 about 2 months ago - it was a short sale. The traffic in the open house was impressive due to the low price (for the neighborhood) - a lot of people seemed interested and the agent said they had several offers. We passed because we didn't like the floor plan. It disappeared from Redfin in about a week and I assumed it was going through the short sale process. I see now that a sale at $690,000 was recorded in late July (less than what they were asking). This is strange. And now the listing just popped up again today at $875,000. Anyone know what is up with this house? Is this a flip from whomever bought it previously, or has it been put back on the market by the bank?
 
[quote author="Chuck" date=1251177988]I just saw a listing pop up that looked familiar. http://www.redfin.com/CA/Irvine/11-Laurelglen-92614/home/4697345



11 Laurelglen was listed at around $750,000 about 2 months ago - it was a short sale. The traffic in the open house was impressive due to the low price (for the neighborhood) - a lot of people seemed interested and the agent said they had several offers. We passed because we didn't like the floor plan. It disappeared from Redfin in about a week and I assumed it was going through the short sale process. I see now that a sale at $690,000 was recorded in late July (less than what they were asking). This is strange. And now the listing just popped up again today at $875,000. Anyone know what is up with this house? Is this a flip from whomever bought it previously, or has it been put back on the market by the bank?</blockquote>
Here are the agent-to-agent comments:



"Go Direct! Combo lockbox #XXXX. Corporate owned. Owner has never lived in home. Listing Agent is the Owner. Write offers to Laurelglen Trust 11 (THE OWNER). Please provide pre-approval letter with credit scores and proof of funds with all offers. Submit all offers to johndoe@gmail.com via Mongofax or E-Fax. Due to recent acquisition 7/27/09, any FHA offers must be dated 10/28/09 or later. Seller's choice of services. MLS is updated daily. Seller to respond to all offers with 72 hours."



Looks like on 7/27/09 there was a sale via a Trustee's Deed (not a regular Grant Deed) so it looks like our friend the realtor...errr the owner...had some inside hook-up at the lender because the short sale never closed. Don't you love how the FHA offers need to be dated after 10/28/09? haha
 
[quote author="25inIrvine" date=1251189982]What is the reason for the 10/28/09 date trojan? Some new law or rule take effect? Or is there just a 3 month rule in general?</blockquote>
I think it has to due with the special rules for FHA loans that a property can not be sold twice within a 3-month period, but I'm not an FHA loan expert so don't quote me on that.
 
I wonder what safeguards the banks, as publicly owned companies, have in place to avoid corruption in the sale process. The bank has a duty to maximize profit/shareholder value. There is no way that $690K for that property was the best offer.
 
[quote author="usctrojanman29" date=1251190567][quote author="25inIrvine" date=1251189982]What is the reason for the 10/28/09 date trojan? Some new law or rule take effect? Or is there just a 3 month rule in general?</blockquote>
I think it has to due with the special rules for FHA loans that a property can not be sold twice within a 3-month period, but I'm not an FHA loan expert so don't quote me on that.</blockquote>


From the quoted agent notes, it is apparent that the property was purchased at auction by professional investor with cash. That is why it was a trustee's deed.



The requirement is that an FHA loan can't be closed within 90 days of the previous transfer, except when the property is sold by an estate or a goverment agency (Freddie/Fannie). The policy was instituted in 2003 initially to counter predatory lending and house flippers. It was temporarily lifted in 2008, to aid banks in getting rid of their foreclosures, but with such low inventories the policy has since been reinstated.



As far as safeguarding the bank... they are the ones that set the auction price. If a buyer is willing to pay cash and take it off of their hands that day, it takes the risk off of their books. Caveat Emptor.



-IR2
 
[quote author="IrvineRealtor" date=1251198613][quote author="usctrojanman29" date=1251190567][quote author="25inIrvine" date=1251189982]What is the reason for the 10/28/09 date trojan? Some new law or rule take effect? Or is there just a 3 month rule in general?</blockquote>
I think it has to due with the special rules for FHA loans that a property can not be sold twice within a 3-month period, but I'm not an FHA loan expert so don't quote me on that.</blockquote>


From the quoted agent notes, it is apparent that the property was purchased at auction by professional investor with cash. That is why it was a trustee's deed.



The requirement is that an FHA loan can't be closed within 90 days of the previous transfer, except when the property is sold by an estate or a goverment agency (Freddie/Fannie). The policy was instituted in 2003 initially to counter predatory lending and house flippers. It was temporarily lifted in 2008, to aid banks in getting rid of their foreclosures, but with such low inventories the policy has since been reinstated.



As far as safeguarding the bank... they are the ones that set the auction price. If a buyer is willing to pay cash and take it off of their hands that day, it takes the risk off of their books. Caveat Emptor.



-IR2</blockquote>
Did it really go to a courthouse auction and not just sold directly to an investor by the bank? I'm sure Graph would have pointed out that an investor picked it up at a bargain price.
 
I actually got a call back from the agent/owner yesterday. He said the short sale "never happenned" and that his company was able to buy it at a trustee sale. Sounds strange to me - why would the bank or trustee take $690,000 vs. the $750,000+ that they could have fetched by selling to one of the many potential buyers who went to the open house?



Anyway, he said they had put in new carpet and paint and that they were trying to get the outside of the house painted (this needs HOA approval), but other than that it was basically in the same condition as when it was shown at the open house. Quite a mark-up for such a little amount of work, but given the location (Landings 2) in Woodbridge it will probably sell and this flipper will make a very nice profit.....
 
I toured the property while it was being painted. The painters gave me their card. They said they were hired by the bank..............interesting.
 
[quote author="Mcdonna1980" date=1251277568]Who was the lender? This reminds me of the fraudulent NWII sales. We could have a new trivia game. Who stole this house?</blockquote>
Mortgageit Inc was the lender with a first mortgage of $900k and a second mortgage of $100k.



I actually spoke with the listing agent/owner-investor about 30 minutes ago...really nice guy and a straight shooter. Him and his some group of folks have a nice little model and have done 10 property sales since last year and they made some nice profits on 8 of the 10 properties.
 
[quote author="irvineparent" date=1251284485]The last owner bought the house for $720,000. How could a first have been $900,000?</blockquote>
Cash-out refis my friend...the owner was living the American Dream...errr...using their home like an ATM. A $280k tax-free gain on the home via equity extraction, not too bad.
 
[quote author="IrvineRealtor" date=1251198613][quote author="usctrojanman29" date=1251190567][quote author="25inIrvine" date=1251189982]What is the reason for the 10/28/09 date trojan? Some new law or rule take effect? Or is there just a 3 month rule in general?</blockquote>
I think it has to due with the special rules for FHA loans that a property can not be sold twice within a 3-month period, but I'm not an FHA loan expert so don't quote me on that.</blockquote>


From the quoted agent notes, it is apparent that the property was purchased at auction by professional investor with cash. That is why it was a trustee's deed.



The requirement is that an FHA loan can't be closed within 90 days of the previous transfer, except when the property is sold by an estate or a goverment agency (Freddie/Fannie). The policy was instituted in 2003 initially to counter predatory lending and house flippers. It was temporarily lifted in 2008, to aid banks in getting rid of their foreclosures, but with such low inventories the policy has since been reinstated.



As far as safeguarding the bank... they are the ones that set the auction price. If a buyer is willing to pay cash and take it off of their hands that day, it takes the risk off of their books. Caveat Emptor.



-IR2</blockquote>


I never understood that rule, since it doesn't prevent flipping at all. All the flipper does is sit on the property for the required three months before relisting it, possibly rehabbing it during that time if needed.
 
[quote author="Chuck" date=1251248093]He said the short sale "never happenned" and that his company was able to buy it at a trustee sale</blockquote>Are "trustee sales" by definition always on the courthouse steps, no matter what ?
 
[quote author="xoneinax" date=1251341386][quote author="Chuck" date=1251248093]He said the short sale "never happenned" and that his company was able to buy it at a trustee sale</blockquote>Are "trustee sales" by definition always on the courthouse steps, no matter what ?</blockquote>
I believe they are.
 
Well, one of my buyers had me put an offer in on this baby on Friday. Got the counter offer back today...let's just say the price doesn't seem very flexible at the home. My buyer will pass for now.
 
[quote author="usctrojanman29" date=1251799681][quote author="xoneinax" date=1251341386][quote author="Chuck" date=1251248093]He said the short sale "never happenned" and that his company was able to buy it at a trustee sale</blockquote>Are "trustee sales" by definition always on the courthouse steps, no matter what ?</blockquote>
I believe they are.</blockquote>


They only are on the courthouse steps of Santa Ana, but they are not at courthouse steps in Orange, Placentia, or the Anaheim Hills locations. They just have to be a public location that is publicly announced. I believe it could happen in front of a McDonalds if they would allow it.
 
I looked the house.



It is in bad shape.



On the outer wall of kitchen,

you can see bottom of wood beam has been replaced because of termite damage.



On the child room, there are at least 40 naked nails.

In the same room, the fan pose major risk to child sleep on upper level.



Water heater , duct in garage also a mess.



The kitchen is in its original tiles with 20 years history
 
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