Comments on: Pre-Foreclosure Foothill Short Sale

By: TheArcadian

TheArcadian — Thu, 24 Apr 2008 16:53:19 +0000

The place I currently live in is located about the same distance from a freeway. There is no doubt that freeway noise is always in the background (except during gridlock hours).

I can only imagine would the evenings would be like butted up against Foothill and 2 blocks away from the 210.

By: puckhead

puckhead — Thu, 24 Apr 2008 16:42:30 +0000

I was curious about this house and I drove by on the way home to take a look at it. My previous post said it’ll probably go mid to high $600’s. Probably a bit optimistic. I never realized that Foothill Blvd was so noisy, plus you have the 210 not too far away. The constant noise of traffic would drive most people nuts. The house will be a hard sell because of the busy street and fwy.

By: TheArcadian

TheArcadian — Thu, 24 Apr 2008 16:27:08 +0000

Don’t homeowners resort to a short sale in order to keep their credit intact? Otherwise, they would just go into foreclosure and not even think twice about making payments during the interim period.

Sellers may be upside down on their mortgage and have no other choice but to request approval for a short-sale. In which case, wouldn’t the seller continue their monthly payments just to get out of this deal without additional derogatory items on their credit?

By: gotforeclosure

gotforeclosure — Thu, 24 Apr 2008 16:06:55 +0000

I don’t think that makes any sense. Lenders are NOT collecting any monthly mortgage payments on short sale proeprties, because they are in default and the borrowers have long stopped making payments.

It would be in lenders’ best interest to cut their losses early, but I think they are bona fide overwhelmed by volume. Plus, they’re not working with future projections in the pre-REO stage of foreclosure, only with existing sold comps, and (to some extend) with comparable active listings.

Unfortunately, MLS Short Sale listings are at a big disadvantage right now. Read more about “Why Short Sales Don’t Work With Realtors “.

By: capbreeze

capbreeze — Wed, 23 Apr 2008 18:52:12 +0000

I think this is the house that I spoke to the realtor about. Supposedly they were seeking “back up offers”. That conversation was almost 2 months ago. So are the requests for backup offers supposed to bring out the buyer frenzy in all of us? I guess that strategy isn’t working.

By: TheArcadian

TheArcadian — Wed, 23 Apr 2008 16:20:45 +0000

I have read that lenders are just toying with distressed homeowners and letting the short-sale process drag out. This way, they get to collect a couple extra months of mortgage payments.

By: gotforeclosure

gotforeclosure — Wed, 23 Apr 2008 15:39:42 +0000

In other “bubble proof” communities such as Glendale, foreclosures are typically listed for 60 to 70% of the last selling price (if sold in 2005-2007). That is once they are bank owned and back on the market, listed by the bank.

A “short sale” asking price of $770,000 is not going to go anywhere. Short sales are taking way too long for a retail buyer. By the time the lender will give you an answer your approved loan terms and rate may not be available anymore.

Unfortunately for the current owner in foreclosure, waiting for the proeprty to come back on the market as a bank owned listing is a much better bet for a potential buyer at this point.

By: TheArcadian

TheArcadian — Tue, 22 Apr 2008 23:01:47 +0000

Look at the previous sales price of $312,500. Anyone doing their research would not have purchased this property at over double its value just 3 years prior.

This is another example that Arcadia is very far from bottoming out.

By: george8

george8 — Tue, 22 Apr 2008 17:30:03 +0000

Hell no. 60 years old structure? Knife catcher should at least wait until it is $500k.

Near the next bottom, this one probably will be valued at $2500 monthly rent and 170 GRM – $425k in 2010.