Here’s an interesting case in 2019.
Wells Fargo foreclosed on this Carmel Valley home in November. It had been listed on the MLS for the previous 12 months, and it looked like the agent had been trying to process a short sale (it was marked ‘contingent’).
She had it listed for $1,500,000.
Her clients paid $1,650,000 in 2007, and financed $1,137,500 with World Savings. Times were tough for many, and these folks got their notice of default filed in August, 2010. It doesn’t look like they made any payments since.
Wells Fargo’s amount at the trustee’s sale was $1,365,016, which is typically the amount owed. So the former owners got a couple of hundred thousand dollars in relief, but waved bye-bye to their down payment of $512,500.
Wells Fargo then listed the house for sale in January for $1,499,000, and has now sent it to an online auction. The bidding started yesterday, and will remain open until Tuesday:
The interesting twist is that the house is occupied – probably by the former owners – and no one is allowed to see the house. They also have only one photo of the exterior.
I’ll help them out by providing a link to the previous listing with photos here:
Link to Previous ListingThe auction website also notes that it needs to be a cash purchase, though it’s not mentioned in the MLS listing. The buyer has to pay a 5% buyer’s premium on top of the purchase price, and I assume they want you to close escrow with the occupants inside?
What will somebody pay for the home, under those conditions?
The current bid is $1,199,920, though note sure if that is actually a real offer or just the minimum bid.
Get out the drone and video the exterior at least. This property raises so many red flags.
How fast is the court with jurisdiction of the house in processing UDs? I would think a minimum of three to four months to get the occupants out and hope there isn’t a bunch of damage.
Yes 3-4 months minimum if the occupants contest the unlawful detainer, but those are so old-fashioned.
We learned a much more effective way in the crash – pay them off.
Get out in three weeks and we’ll have a $25,000 check waiting for you.
Maybe WFB has a whole new staff on board? It’s a confident staff to think a buyer is going to cough up $1.2M+ in cash, pay the extra 5% for both agents’ commissions, be responsible for evicting the occupants, and accept that package without ever seeing the joint.
Not to be too harsh, but it is a tract house, right? Are there any issues about the construction? How is the copper plumbing holding up? Pinhole leaks? I have read some reports where entire developments have failing plumbing. No bueno.
If it is actually a 92130 zip code property and therefore the owners would have access to DMUSD and SAn Dieguito Union schools, there is a powerful, all-cash purchasing group in China that routinely acquires properties in 92130 sight unseen.. There are several brokers who advertise these properties to Mainland Chinese clients. A one bedroom one bathroom apartment at the new One Paseo rents for $2900/month. If clear title can be established, this would likely be considered a steal for some looking to get into the schools.