Losses Outside of Irvine

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Whoa, Inglewood. Almost in my 'hood. I can tell you that at the peak of the bubble, 2/1 SFRs in my area were actually selling for *OVER* $500k. We are talking roughly 800 sqf of living space, some with only a single car garage. I would have loved to sell our place for $500k, but the little woman vetoed it, which wasn't hard since this house has a big garage I really like. This area was built out in the late '30s to early '50s, so most of these homes have been around for at least 60 years. The termite damage in every single one of them is obvious, and downright extensive in some homes. I look for new listings in my area every day, and houses are still priced in the stratosphere. There's actualy a completely trashed REO that's listed at $525 right now...and it's a 2/1 as well. I supppose the bank thinks they'll get their money back on it. I think they'll lose at least $200k.
 
It's almost nearing its 1-year anniversary on the market. And to think they were trying to get above the 2005 price when they first put the house up for sale by asking $485k.
 
Here's that ad:

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So Sorry. The address is 1 Sawgrass, 92679. It is actually a nice property.

Here is another one in the 92679, behind the gates with The Housewives.

6 Willowbend Road went back to the bank yesterday for the opening bid amount of $873,900.76. The notice of sale amount was $1,087,106.07. A query for you foreclosure experts: Is the notice of sale amount the amount that was owed on the first? Or the total amount owed? Or what?

Anyways, 6 Willowbend's last sale was May 25, 2005 for $1,175,000 according to Zillow. That is a loss of 26%, ($301,900.76), in just under two years.

The realtors in Coto like to say there are only two bank owned properties in Coto.

NOT!

There are only two bank owned properties in Coto that are presently on the market and listed as For Sale. I personally know of two others and I have not even made much effort to discover. Those I know about just fell into my lap.

3 Palomino went back to the bank for just a bit over $1,405,000. It was last listed at about $1,950,000 a month or so ago, and the last sale was for $1,800,000 on June 8, 2005. That is a drop in value of $395,000 or 22% in less than two years.

And all the Coto realtors like to explain how Coto will not decline in price like the "other" sections of Orange County. Maybe the high end is immune.

And then again, maybe not.

Thanks to Graphrix and Eva for their graciousness and willingness to share their valuable time and knowledge with a slow one.
 
awgee said:
Thanks to Graphrix and Eva for their graciousness and willingness to share their valuable time and knowledge with a slow one.
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You're quite welcome. But slow? I don't think so. You just didn't know.

IIRC, the NTS amount is the amount of principal unpaid, any interest accrued, plus fees and penalties. Although, as Graphrix noted, in some (many?) cases the opening bid has been significantly lower than the NTS amount.
 
Awgee - You may be interested to hear about 41 Muirfield (Dove Canyon) - it went back to the bank yesterday for $751,500. There were $1,012,000 worth of loans made on that place in 2006.
 
Thanks CG

What I find interesting is that according to Zillow, the last sale was in 1997 for $307,000 and the bank took it for over $700,000? Talk about a housing ATM!

And just down the street is 29 Muirfield which sold on 2/13/2008 for $706,500 and is for sale again for either $749,000. Another REO? Or please don't tell me a flipper.
 
awgee said:
And just down the street is 29 Muirfield which sold on 2/13/2008 for $706,500 and is for sale again for either $749,000. Another REO? Or please don't tell me a flipper.
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29 Muirfield is indeed an REO. The February transaction of $706,500 was it going back to the bank. Looks like they purchased in 2003 for $699k then re-fied in 2005 for $807,500 and later added a HELOC of $88k in 2006.

I also noticed 35 Muirfield is showing up as an REO as well. 100% financing on a $905k purchase in 2005. I would have assumed Dove Canyon would be holding up better than this. My bad.
 
It's so cute. The realtors in Coto de Caza all liked to point out the fact that those foreclosures will only affect the Inland Empire and some lower value portions of Orange County. And recently, they like to profess the same line, "Well, there are only two bank owned properties in Coto." But, like so much nonsense they feed, the truth is there are only two bank owned properties listed in the MLS in Coto. A few have already sold, and a few more are not listed for sale yet, but the lender does own them.

Here is the latest: (not yet on the MLS)

1 Tanglewood went back to the lender yesterday

Notice of Sale Amount was $1,037,728.59

Opening Bid Amount was $743,930.34

and Sold Amount was $743,930.34

According to Zillow the last sale was 7-28-2006 for $1,195,000 and

the sale before that was 2-21-2003 for $710,000

Total loss so far on 1 Tanglewood is $451,069.66 or 38% in under two years

Will 1 Tanglewood sell for more than it's 2003 selling price?

And are those foreclosures going to affect the Coto market? Of course not.

And remember, if you plan to live in your home for the next fifty years without selling, does it really matter when you buy?
 
We almost put an offer on 1 Tanglewood back in 2006 - but then came to our senses. It's a nice house; it would be the perfect size and layout for us. Glad we didn't go through with it. Wow, this drop is happening a lot faster than I ever thought it would happen. Scary! And it's only going to get worse. Hold on to your hats, people - we're going down!
 
CalGal - What do you think of 1 Tanglewood selling for $743,000 with no higher offers? It almost makes you want to jump in, eh? But luckily we have enough friends in here.

.

"Friends don't let friends make offers." - Trooper

At least not yet.
 
1 Tanglewood didn't really sell for $743k, it went back to the bank for that price. Lets be real people, there's a difference between the bank's re-acquistion of the assest (home) backing it's security (loan) price and the actual retail selling price of the assest (home). 1 Tanglewood will now list as an REO, lets see what it really sells for.
 
awgee said:
if you plan to live in your home for the next fifty years without selling, does it really matter when you buy?
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Absoultly Awgee, what are you thinking. Prop 13 sets you taxes according to your purchase price so the lower you get it, the less taxes you pay to the state every year. And prop 13 limits tax increases to below inflation so over 50 years the savings in property taxes can be substantial.
 
CalGal - What do you think of 1 Tanglewood selling for $743,000 with no higher offers? It almost makes you want to jump in, eh? But luckily we have enough friends in here..

“Friends don’t let friends make offers.” - Trooper

At least not yet.
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I still think it's overpriced, especially since the market is tanking so quickly. But I like Trooper's moto and you'll have to talk us out of it if we decide to jump in (at least for a few years anyway.) :-) I think we found the only realtor in Coto that told us she thought the market was going to get ugly. She actually talked us out of putting in an offer. For that - we are loyal to her. She'll get our business someday if we decide to buy in Coto.
 
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