Asking Price: $380,000
Purchase Date: 10/12/2006
Address: 23 Deodar, Irvine, CA 92604
Beds: 2
Baths: 2
Sq. Ft.: 1,000
Lot Sq. Ft.: 2,800
Year Built: 1976
Stories: 1
Type: Condominium
County: Orange
Neighborhood: El Camino Real
$/Sq. Ft.: $380
MLS#: S485757
Status: Active on market
On Redfin: 40 days
From Redfin, “Single story home in a corner lot overlooking a huge greenbelt. Beautifully remodeled throughout. This is an as is short sale.”
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This short sale price will probably not be approved by the lender as it is too far outside of their loss limitation guidelines. It is probably priced this low to entice bids in order to give the bank an idea of where the market will be after they take the property back in foreclosure. The bank will lose money, but they will follow their guidelines for loss mitigation which will not permit a 30% haircut after a little over 7 months.
In my opinion the real story here is probably in the sale history:
Sales History
Date Price
10/12/2006 $515,000
10/27/2005 $465,000
08/01/2000 $218,000
It appears to me the buyer on 10/12/2006 was a straw buyer bailing out the 10/27/2005 buyer. The $515,000 sales price, after a 6% commission, would net this seller $20,000 — enough for a payment to a straw buyer and/or the person who arranged the sale. This is pure speculation on my part, and the previous seller may simply have gotten lucky, but when you see a short sale after 7 months, it is probably a first-payment default fraud. This may be a flip gone flop, or it may be fraud, either way this never should have transacted at a price over $500,000, and its next transaction (after the bank buys it at a foreclosure auction) will likely be less than the 2005 price.
The sellers who will really be displeased by this whole mess are the neighbors. The above sale won’t feed their fantasy price, but then again, they probably will ignore its significance as an aberration, drink some kool aid, and deepen their denial.
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Irvine, CA 92604
Price: $565,000
Beds: 3
Baths: 2
Sq. Ft.: 1,178
Lot Sq. Ft.: 3,035
Year Built: 1976
Stories: 1
Type: Condominium
County: Orange
Neighborhood: El Camino Real
$/Sq. Ft.: $480
MLS#: P579755
Status: Active on market
On Redfin: 7 days
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Irvine, CA 92604
Price: $585,000
Beds: 3
Baths: 1.5
Sq. Ft.: 1,517
Lot Sq. Ft.: 2,112
Year Built: 1976
Stories: 2
Type: Condominium
County: Orange
Neighborhood: Orangetree
$/Sq. Ft.: $386
MLS#: P572471
Status: Active on market
On Redfin: 49 days