The 4 br/3.5 ba, 3,265sf house at 3291 Avenida La Cima in Carlsbad has sat vacant all year, and was being offered as a short sale, listed for $925,000.
The owner bought it new in 2003 for $694,500, and had refinanced at least three times. The latest left her with a $900,000 first mortgage, and a $100,000 second mortgage.
An all-cash offer for $900,000 was tendered, but declined by the bank. The frustrated listing agent has this in the remarks:
Second lien holder Bank of America WILL NOT release their lien unless they receive 5% of the net proceeds that the first receives. The first lien holder generously will only allow $10,000 to the second. B of A will not accept this amount and therefore is forcing foreclosure. HOME FORECLOSED ON 11/12/09.
Today’s opening bid was $739,500, and no takers – so it goes “back to bene”, and the first mortgage holder gets another REO on the books.
Three things appear to be in the works here….
1. Banks are stupid.
2. Servicers are losing patience on short sales, and foreclosing is becoming a primary option.
3. JtR has three people (Jim, Lucy and Richard) who are filming houses that are heading for the court house steps, and building quite a library for their clients!
Here is Richard’s tour: