Some have question me about finding half priced homes. I refer to those that sold recently for HALF the amount of the last sale price.
So....here is one to start with
5022 Don Pio Dr, Woodland Hills CA 91364
Here is the Sales history:
SOLD May 17, 1990 $311,000
SOLD Jun 10, 1993 $250,000
SOLD Mar 24, 1994 $190,000
SOLD Sep 30, 2003 $425,000
SOLD Dec 22, 2005 $615,000
SOLD Feb 23, 2006 $800,000
FORECLOSED May 11, 2007 $701,771
SOLD Jul 07, 2008 $410,000
So from 2006 to 2008 about two years, the house went from $800,000 to $410,000. To me that is 50% decline! or HALF PRICE.
Funny that i found that the bank once wanted $549,000 but we all see they settled at $410,000
Here is another one that is about to join the list.
5327 Don Pio Dr. Woodland Hills, CA 91364
This is a common example of how far the loan owner was able to milk his lenders.
To our congress people like Senator Dodd and Frank, it looks like the poor homeowner just lost his house to foreclosure...
However, let me show you how this "poor" home owner just scored $200,000 cash tax free and is smiling everyday when he goes to his bank....
Sold May 02, 1989 $290,000
Sold Apr 14, 1995 $185,000
Sold Jun 02, 2005 $655,500
Sold Oct 18, 2005 $746,000
Foreclosed Jun 03, 2008 $573,750
For Sale asking $459,900
Oct 14, 2008 Sold $450,000
What you don't see here is that in April 2007, the loan owner was able to get a $200,000 HELOC from City national bank.
The foreclosure occurred on his 1st mortgage was for $596,500 and Bear Stearns foreclosed for $573750.
There was also a second mortgage for about $112,000 that got wiped out completely.
Add to that National city that was wiped out of $200,000.
If this house is for sale asking $459,900 and assuming it will sell for $400,000 (like many next door comps)
Bear sterns (JP Morgan chase) will lose $196,000 (probably more after sales commission something like $210,000)
Didn't the FED agreed to guarantee $30 Billion of Bear's assets...So I guess thie $210,000 is our (tax payers money...)
2nd mortgage $112,000 loss
National city HELOC $200,000 loss.
Foreclosed loan owner gain about $200,000 from his cash out HELOC, and only god knows how many months of free rent...