Thursday, February 7, 2008

Free Fall Friday - 47% off


Here's a shocking short sale that I ran across recently.

This house sold for $422k on 5/22/06, and then it sold again for $565k on 9/01/06. It was 100% financed, and according to the listing it still needs work!

I can't imagine who would pay $565k for this 1660 2224 sq ft. house in this neighborhood, so I'm wondering if some sort of fraud was committed, especially to get 100% financing.

It's now bank owned, and the bank is trying to sell it for $299k, which means someone took a bath on this one.

This listing is here:

http://www.johnlscott.com/propertydetail.aspx?GroupID=58567666&ListingID=31403742&Sort=0

17 comments:

rares said...

Not that it helps much, but the tax records put the sq. footage at 2,244, plus an additional 1,000 or so in the basement.

Nevertheless, $565K in that neighborhood, whether 2,200 or 3,200 sq. ft., it still raises an eyebrow.

elneal said...

Good grief- it looks like it's a good time to wait and see where we will be in the next 6-12 (months).
I guess this means more waiting and renting as the only smart options?

Ian said...

rares... thanks for the note, i fixed the sq footage. not sure where i came up with 1600.

eneal, i'd say there is no danger in waiting at the moment if you're a buyer, and there will be good deals for the patient. i wouldn't offer full price for anything right now, but i still wouldn't buy if you're planning on moving in less than 3 years.

skeptictank said...

There's never been a better time to put off buying a home. These days procrastination pays.

Ian said...

welcome skeptictank! i wish procrastination paid, i'd be a rich man!

skeptictank said...

Hey, ian, just saw this posted over on the portlandhousingblog.

Looks like MGIC one of the biggest mortgage insurers (as in private mortgage insurance) has put PDX on it's restricted list meaning 20% down will be the new requirement.

kirk coburn said...

I have a new idea for your website! "Overpriced home of the week!" What do you think?!

bearlee said...

What drives me crazy about determining square footage is the 'finished attic space', ie, this house. Can you really can't all that as square footage when you'd have to be 4 feet tall to use most of it?!?!

Anonymous said...

I've seen ads that call an unfinished basement a "floor" as in "this home has two floors".

Ian said...

bearlee... being over 6' tall i also need to inspect a bungalow before deciding if it's livable for anyone other than our daughter (2'4")!

Ian said...

kirk, i like it!

send me houses or listing you see that you think are overpriced and i'll post them up. i saw a few doozies last summer, and i'm seeing more price reductions, but i only follow a limited part of the market.

Anonymous said...

I see that Zillow lists this as sold in Jan for $314. How did you get data for previous sales? Does Zillow list that too?

bearlee said...

If it's got a Portland address try

www.portlandmaps.com

you can also check permits and taxes via this site

Ian said...

anonymous said... "I see that Zillow lists this as sold in Jan for $314. How did you get data for previous sales? Does Zillow list that too?"

I found some info on PortlandMaps, but I also got some info from RealtyTrac. You need a subscription to access that, but it shows bank owned properties and foreclosures, which is where I saw this property.

EthanPDX said...

I can shed a little light on this one, as it's a few doors from my house. I think your suspicions about fraud are right on. Some local real-estate operator bought the house from a retired minister a couple of years ago. He then turned around and sold it to a young guy from Seattle, who worked tirelessly for a couple of months to spruce it up. But here's where it gets weird. We (on the street) were all stunned that this guy had purchased the house for 422k (un-remodeled) as a fix/turn investment. That price was much higher than any home on our street had ever commanded (ones in much better shape I might add). And he was expecting to turn it quickly, with the help of the very guy who had sold it to him.

So he finishes his improvements, which were largely cosmetic. He gets a new (I suspect sweetheart) appraisal and someone from out of town buys the old house for $565k (yet another stunning figure). The house is soon rented and the renters send off there rent checks. Fast forward many months, the renters are being evicted as the house is foreclosed . . . apparently the buyer pocketed their rent money but never paid a payment on the mortgage. That is the story as I have heard it.

We're all hoping that with the price more in line with reality, we'll get some nice new neighbors. It is actually a very nice house, though it has some floor plan quirks. Woodlawn is really getting to be nice, especially with the re-birth of our little commercial district on Dekum.
Ethan

PDXOutsider said...

ethan, thanks for the inside scoop! very interesting. it really is a cute house, which is why it caught my eye.

EthanPDX said...

I am happy to report that a nice couple bought the house last year and moved in last fall. The new owner indicated that the bank was not really willing to budge on the price much . . . she seemed surprised but I am not sure if she knows the history.