Once again thanks to CA Renter for tipping me off to this and the Oceanside post.
This property is in foreclosure and is for sale. Type zip code 92027 into the Foreclosure search box on the right to see this foreclosure and the rest of the growing list in San Diego.
Foreclosed Offering Price: $849,900
Purchase Price: $924,900
Loss @6% Sales Expenses: $125,394 WOW
(Does not include loss on upgrades, carry costs, etc)
Purchase Date: 10/29/2004
Purchase Details: view
Subscribe to:
Post Comments (Atom)
6 comments:
Where is the "foreclosure search box on the right"? I don't see any foreclosure search box
I subscribe to foreclosure.com, for a monthly fee.
Interesting, looks like it doesn't show up if you link directly to the blog entry. It shows up if you come to the site's home page.
I'll see what I can do to fix it up.
Wow! I remember when $125K could pay cash for a nice home in PQ.
Now somebody has lost that much in less than two years.
It's is truly pretty amazing really, the numbers in my view are huge. A 30% decline in values is a lot of money for most people. This is why a housing decline is much more painful economically than a stock market decline.
I think it's important to point out that the losses may be spread around on this one. The original owners who defaulted have lost their down payment (if any) and what they may have put into the house for landscaping, etc. Their carrying costs would be negligible since they were living there.
The holder of the first trust deed will, in all likelihood, walk away intact. Assuming the FTD was for 80% of the purchase price, they only need to realize close to $740k to be made whole. This translates to a sales price of about $790k when considering sales costs. They're currently asking $839,900. So they've got another $50k of wiggle room.
The true bag holder will be the holder of the second trust deed. How much they're out depends on the down payment and the eventual sales price.
This illustrates clearly why second trust deeds carry much higher interest rates than first trust deeds.
What do you figure their interest rates were?
Post a Comment