The new third place in the Ancient Listings of Santa Monica is 813 Pier, a 1 bed/1 bath, second lot east of Lincoln, now reduced to $800K. It features a view of a side alley and Big O Tires across Pier (also a short walk to the Starbucks across Lincoln).
According to the County it last sold 2/23/2006 for $800K. It was listed July 2006 for $979K, then reduced four times, now from $879K to $800K. Such a deal: "SHORT SALE. Zoned SMR2YY. Back portion of house was built wihtout permit and is yellow tagged. BUILDERS OPPORTUNITY. Lender approval required. Easy to show ... HURRY...."
Tuesday, May 29, 2007
Short sale on Pier
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So it's ugly and in a marginal location. What is the lot size?
In case you missed this news: Bernanke Warned by Real Estate Analysts: Housing Collapse Is Much Worse Than You Say
http://www.larouchepub.com/pr/2007/070522warn_bernanke.html
-THG
Definitely a marginal location, Anon. The house to the east looks even worse.
Zillow calls it 5,676 SF. The County Parcel Viewer shows a trapezoid, narrower in the front, angled along the alley on the west. That looks like you could build 3 condos on it, at 1 unit per 1,500 SF in Santa Monica's R2 zone.
(Thanks, THG, but is Larouche a credible source?)
813 Pier
FIRST MORTGAGE
Recorded Date: 2/23/2006
Lender: BNC MORTGAGE INC
Type of Mortgage: FANNIE MAE/FREDDIE MAC; ADJUSTABLE RATE
Loan Amount: $ 640,000
Rate: 7.95 %
Term: 3/1/2036
Title Company: NEW CENTURY TITLE
SECOND MORTGAGE
Recording Date: 2/23/2006
Mortgage Type: NON-PURCHASE MONEY
Lender: LEHMAN BROTHERS BANK FSB
Lender Type: BANK
Loan Amount: $ 160,000
Loan Type: STAND ALONE SECOND
So of course, Santa Monica and the westside areas are not different...$0 down, 100% financing...throw in a bit of subprime spice and you get short sales and foreclosures...
Speaking of foreclosures, it looks like this place may have been foreclosed on back in 1998.
Sale Date: 3/20/1998
Buyer: THE FRANKLIN GROUP (Beneficiary); FEDERAL HOME LOAN MTG CORP (Beneficiary)
Sale Price: $ 193,933 (Full Amount)
So this place went up in value by 4x over less than 10 years. Its all about the cycles...from foreclosure to foreclosure...real estate does not always go up.
Thanks, Craig, just what I was wondering!
So the "short sale" must be on the second from Lehman?
Yea, the second mortgage (Lehman)will take the loss here...but I'm still somewhat confused to how it all works because I doubt that Lehman actually owns the loan...they just originate and then repackage and collect fees along the way. The loss will be taken by one of the lower tiers of a larger pool of mortgage backed securities. If banks were actually forced to keep their own loans and were on the hook for defaults there is no way that half of the loans made today and over the past few years would have been made. I don't think that lending has tightened up much so far because not enough pain has been felt by a large enough number of bond investors. Tick tock, can't wait for this to hurry up and unfold...its like watching paint dry...
have you guys seen the wonderful redfin?
EZ to see flipping activity like this INCREDIBEL condo in the 'bu.
http://redfin.com/stingray/do/printable-listing?listing-id=419679
notice all the flips!!!
its a 250k condo according to values from 1989 to 1998.
sorry here is tinyurl
http://tinyurl.com/2pxxpe
lookit sales history. alll there for the public to see!! GO REDFIN GO!
"Easy to show ... HURRY...."
Hurry before it's a REO.
Here is a meltdown I stumbled upon...
1105 IDAHO AVE #209
SANTA MONICA, CA 90403
1/1 condo currently asking $535K per redfin
Sales History
10/03/2005 $559,000 17.0%/yr
11/09/2000 $259,500 17.4%/yr
03/06/1998 $169,000 -2.5%/yr
02/28/1990 $207,500 --
Again, look at how the cycles work. The person who bought in 1990 bought at the top of the cycle and sold 8 years later...and STILL took a loss!
Asking $535K for a 1 bedroom?? Looks like this is still overpriced by $200-300K...
Oh yea, and the financing?
HOW ABOUT 100% financing!!! (who could have guessed?)
Recorded Date: 10/3/2005
Lender: INDYMAC BANK FSB
Loan Amount: $ 447,200
Recording Date: 10/3/2005
Mortgage Type: NON-PURCHASE MONEY
Lender: INDYMAC BANK FSB
Loan Amount: $ 111,800
Loan Type: STAND ALONE SECOND
Remember MC Hammer from the 90s?? ...yea, its Hammer time all over again
I am not sure this is actually evidence of a bubble... it seems like the previous price may have been out of line given the problems with the property. The lot shape/location and the unpermitted addition should have been pretty big hits on the value in 2006. I suspect that the owner bought it as a development property, but underestimated the value of the development (or its cost).
i could be wrong or seller realtors are not telling the truth but it seems that the bidding wars are starting up again. at least with any homes that is under 800k on the westside that is not a complete teardown.
California has really been hit hard by the drop in home values. Short sales have become very common in areas like southern California.
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