Ghetto REO Gap-Down

Address: 1931 22nd - 90404

Details: 3 bed/2 bath 1,282 sq ft house, 6,974 sq ft lot, Zoned R2, foreclosure

Description:  Fantastic Opportunity to own in Santa Monica. Zoned SMR2YY. Single family home, 3+2 on appx. 7,000 sf lot. Well kept, ight and bright home less than a block away from Virginia Park.


Previous Purchase: 9/30/05 - $880,000


Zillow shows this thing being listed multiple times, with the first instance back in 2008 for $990,000.


Bank "buyback": 1/7/10 - $713,700

REO Listing History: 3/22/10 - $722,900
Reduced down to - $624,900


SOLD: 10/19/10 - $612,500


This sale price is a decrease of over 30% from the late 2005 price. That is a big drop. HOWEVER, don't get too excited. This location is...not where any reader of this blog wants to live I'm guessing.

Even though this location is not good, I think it is interesting to look at these types of situations. The original buyer paid way too much money and then tried to sell for almost a million dollars. They chased the market down, never being able to afford to actually sell it at a market price. The bank then foreclosed and actually had to reduce a good amount (reduced almost $100k before going into escrow).

Regular readers know I like to see foreclosures like this go through. We need to purge the system before we get back to normal. I still think it will take a while.