this neighborhood was first featured on BMIT in ’06 and again in ’08. This is the history of this particular home:

6508 Mesa Norte Dr., Carmel Valley, CA 92130
–4 beds, 4.0 baths, 4,258 sqft on 1.4 acres
–11/2005: purchased for $1.978 million
–the first owner installed a vanishing pool plus other upgrades.
–11/2006: was entertaining offers from $2.490 to $2.690 million
–06/2007: aggressively dropped his wish price and sold for $1.975 million

so it looks like the second owner in ’07 got in trouble and is going for a short sale for $1.75 million.

assuming you got $250k of upgrade in this thing, you are looking at close to $500k off peak and improvements. but the main question is, how much is the bank willing to take, and will you have a better shot at this thing if it goes to auction.