There Goes the Neighborhood
Walnut Tree -- Keane
Do you remember our recent discussion on Financing in a Declining Market? This REO is going to obliterate the neighborhood comps. Any property the lender considers comparable to this one will not get good financing (it doesn't matter what we might think is comparable, it only matters what the lender thinks.) Remember our optimistic seller one block over on Sweetan Street? Any lender is almost certainly going to consider today's featured property to be a comparable, and with a $400,000 lower asking price, anyone looking to buy the property on Sweetan Street is going to have to come up with almost $500,000 cash to close the deal (Those sellers are pwned.) This is the first real jaw-dropping price buster we have seen here in Irvine. It is happening everywhere else, and now it is happening here as well.
Asking Price: $351,500
Income Requirement: $87,875
Downpayment Needed: $70,300
Monthly Equity Burn: $2,929
Purchase Price: $475,000
Purchase Date: 7/30/2004
Address: 5228 Walnut Ave #10, Irvine, CA 92604
Read the rest of this entry »
