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Seal Beach Foreclosure - A telling story...

By
Mortgage and Lending with thefundingshop.com

After I sold my place in Belmont Shore we moved a hop skip and jump to Seal Beach.  We got settled in by Thanksgiving of 2006 and headed off to Baja for our annual kitesurfing and Pacifo binge over the Christmas holidays. 

We returned from Baja January 6th and noticed that the house three doors down from us was now vacant.  There was no for-rent sign, no for-sale sign, no indication as to what or why the owners had up and left.  Then the weeds started piling up.  I knew something was amiss.  Nothing really happened on the property between January and March, but a few days ago a for-sale sign went up on the front lawn.  I quickly checked title records and sure enough, the property is now owned by US National Bank - Credit Suisse First Boston CSFB.  The property had been purchased July 18, 2005 on 80/20 financing - a $920,000 and a $230,000 2nd.  That's $1.150 million smackers with no equitable interest on the part of the buyer.

I found out from the real estate agent who'd picked up the REO listing that the buyer had been a 'straw-buyer' who never intended to live in the property.  He'd helped a relative get the financing.  The relative had been living in the house for about a year.  They'd tried to flip the house in ‘05 and ‘06 but had no takers at their inflated asking price of $1.4M.  They'd made no material improvements to the property.  They did lower the price on the home numerous times - all the way down to $1.1M, which was not even enough to cover their exit costs but still, no takers. 

Sometime in 2006 the buyer (or whoever was in that property) quit making payments to the lender.  The amount foreclosed in public records shows as $963,164 and the lender took possession on 3/29/2007.  The sign went up a few days later.  The property is listed for $1.05M and judging by the amount in arrears ($43,164) on the 1st, the borrower stopped making payments sometime around mid to late 2006.

On a side note, I want you to pay attention to something I found very interesting.  Look at the land value versus improvement value under Assessment and Tax Information.  I wonder if land-to-value ratios are going to be a point of contention between homeowners and tax assessors as property values decline and property tax re-assessments become a hot topic?  I think I'll keep an eye on that.

Seal Beach Foreclosure

Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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Feb 06, 2018 09:44 PM