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Originally Posted by mb
Too many people getting in way over their heads are now being forced to sell...
This 3 bed/2.5 bath 2,482 sqft property in San Elijo Hills, a master planned community in San Marcos, North County San Diego, was purchased June 2005 for $750,000. After 10 months of subsiding on frozen burritos and watching TV from the 13 inch set back from the college dorm years, this proud homeowner finally started missing her payments and a notice of default was issued on 3/2006. Of course, the loan was a zero down, 80/20 loan with the 1st being $600,000 and the 2nd at $150,000.
This property is currently on sale for $779,750, listed since 4/10/06. FYI, the original owners bought this home in 11/2001 for $387,000 and sold it for a 90% profit over a 3.5 years of holding time. Apparently past performances do not guarantee future earnings and sometimes it is a bit too late to get into real estate. |
interesting. i hope the prior owners did not carry the 2nd DT. if they did they did not get 90% profit, and unless they they traded up or did tax deferred exhange they might not have done very well at all.
very risky for sellers to do OWC with highly leveraged buyers.