What housing depreciation?

User Forum Topic
Submitted by I would rather ... on September 16, 2007 - 7:40pm

http://www.ranchosantafeauction.com/Vald...

According to Zillow, this house was sold for $1.454M in March of 2007.

The seller feels that is has an estimated value of $6.5M.

If only I had the wheelbase to offer the seller $2M and therefore provide him or her a quick $500,000 profit in 6 short months.

I would therefore have $4.5M instant equity!

It looks like the decline in housing prices has now officially ended and this board is no longer relevant.

:)

‹ How to monitor foreclosure prices??? 6941 Santa Fe Canyon Pl ›
There must be some
Submitted by Ex-SD on September 17, 2007 - 4:15am.

There must be some misinformation concerning the prior sale. With that view and size of the home, that IS a $6 million dollar home in La Jolla.

The link shows it as a
Submitted by Artifact on September 17, 2007 - 7:06am.

The link shows it as a foreclosure (except of course those CAN't happen in La Jolla!) so that might be the foreclosure amount - that still seems to make it strange if the house appraised at 6 and foreclosed for 1.5 - someone with that much equity should have been able to refinance?

T

Probably a junior loan
Submitted by Russell on September 17, 2007 - 10:30am.

Probably a junior loan foreclosed and that lender is carrying the house.

Probably a junior loan
Submitted by one_muggle on September 17, 2007 - 11:55am.

Probably a junior loan foreclosed and that lender is carrying the house.

I'm no foreclosure expert, but I have seen a couple of these in the LA area, with houses foreclosing at numbers as low as $25k. However, I thought the second loan was subordinate and could not foreclose while the primary loan was holding the note...
Unless some newbie mortgage person screwed up, then I would say they would soon get fired, but they've probably already been laid off.

As I recall, this house has
Submitted by r271828 on September 17, 2007 - 12:50pm.

As I recall, this house has been on (and off) the market for quite a long time, most recently for ~59 days at an asking price of $4,500,000 - MLS #076058095. So an "estimated value" of $6,500,000 as given on the auction web site seems like a bit of a stretch, to say the least.

Looks like the bank didn't
Submitted by XBoxBoy on December 19, 2007 - 11:34pm.

Looks like the bank didn't get anywhere near the $5,500,000 that was listed as the estimated value in the auction flyer. Matter of fact, looks like they only got $3,300,000

http://www.sdlookup.com/Property-8727EF8...

I don't think this was an auction sale, but a sale after the auction, but not sure about that.

Does anyone with access to the loan databases know how much the banks ate on this one?

XBoxBoy