The loss is for the bank because that’s a short sale. They owe about $500,000. How that place ever sold for $455k in 2004 is beyond me. You could have bought a 70’s built house in La Costa for that price or a little more back then and it would be worth about the same today.
I did a search of that ‘hood and looked at 2004 sales. There were over 20 and of those abut 95% were hispanic (I’ll venture their mortgage brokers were as well) with no money down or less than 5%. About 3/4’s of those have refi’d for more than they inflated sold price of 2004 so that area is a ticking timebomb. Several NOD’s and a couple already foreclosed.
If a college student is interested in writing a thesis about the subprime lending bubble that would be a perfect area for research.
