The property is listed about fair market value. Subject = $358/sqft if it sells at list. Property is similar to 10976 Ivy hill dr. in SqFt and bedrooms which went for $557,000 and $355/Sq. Ft (02/21/06). I’m not an appraiser, but it doesn’t seem that far off from the other values.
On the more interesting side, it would appear this property is down about 9% from 2004, at list. This is a single data point and in no way reflects a 10% market drop. Maybe the people who purchased were taken advantage of by predators, or just made a purchase thinking that prices always go up. One way to tell if they got hosed on the purchase price would be to run comps from 2004. (any bored appraisers?)
Also this property was purchased with a 100% CLTV, $500K first and $125K second. New Century Mtg Corp holds the first, not sure about the second. It’ll be interesting to see what this sells for. Just knowing that the second lender is on the hook for 60K at list price, may promote low ball offers. Yes this is only one, but I smell blood in the water!!! (100% CLTV and motivated lenders!)
Side tracking, say the first lender holding the 500K note forecloses; do they have any legal responsibility to prevent them from dumping at 500K versus 550K to move it quickly? Effectively hosing the people holding the second?