Purchase Price: $830,000
Purchase Date: 11/17/2006
Address: 4342 Brookside St., Irvine, CA 92604-2237
Lot Sq. Ft.: 5,623
Year Built: 1971
Type: Single Family Residence
Neighborhood: West Irvine
$/Sq. Ft.: $318
Status: Active on market
On Redfin: 5 days
From Redfin ” THIS IS A SHORT SALE. ALL TERMS, SALE PRICE, AND COMMISSION ARE SUBJECT TO LENDERS’S APPROVAL.”
This is how prices come down.
When short sales and REO’s are more the rule than the exception, prices will fall. Zillow thinks this property is worth $853,413. A sale for less than $700,000 will certainly lower the comps in this neighborhood. How many does it take before a new, lower value is established?
This knife-catcher gave up after only 6 months. Redfin shows the purchase price as $820,000, but property records show it as $830,000. Since this is probably a first payment default, I suspect fraud. The sale prior to the 11/17/2006 was on 3/15/2005 for $735,000, so it is possible the 11/17/2006 buyer was a straw buyer saving our previous flipper. As you can see, even without any commissions, the bank is going to lose $131,000. Factor in even a 3% commission, and the bank is going to lose $151,970.
PMC Bancorp “A leader in Prime and Alt-A mortgage banking” is the bagholder on this one. They have a $622,500 first mortgage and a $200,000 second. With the second mortgage being a total loss, you can see why lenders have stopped issuing them. The days of the 80/20 loan package are numbered.
I wonder who owns the Mercedes Benz in the driveway, or is my identification in error? 1. Starving Realtor? 2. Bagholding Banker? 3. Failed Straw-man Flipper? 4. Rescued Flipper?