This Wells Fargo bank owned property is in heart of Santa Monica California. This area, once thought to be immune to the housing crash is now seeing Bank owned homes popping up in some of the most prime real estate in Los Angeles County.

The Foreclosure wave which started in the Inland Empire and washed its way westward across the valley, has now reached the costal enclaves of Southern California, Santa Monica.

This 3 bed room 2 bath Condo solid in March 2007 for $1,054,000. That is not a typo. I did not add an extra zero. This Flip, now turned flop, went back to the bank. The asking price for this REO is $684,900? This is a rollback to 2005 pricing or a loss of 35% since March 2007. Ouch.

Home details:

924 5TH St #10 SANTA MONICA, CA 90403
3 beds
2.0 bath
1,283 sqft
Lot 2,200 sqft
Built in 1961

Listing Description:
“Bank owned penhouse in prime location of Santa Monica. large decks and patio area with amazing views of the Santa Monica mountains.indoor and outdoor flow.One kind of property. Kitchen need appliances, the building does not have an elevator. this building is a Torca conversion.there is 2 private garage on the front. The building security is gated.Buyer to be prequalify by a Wells Fargo home mortgage before presenting the offer.Hurry will not last long.”

Before and after pictures:

<Flip:

And Now the

Flop!

Listing found here and here:

Search for Foreclosures and Short Sales

Related posts:

1. 924 5TH St #2 SANTA MONICA, CA 90403 Short Sale 924 5TH St #10 SANTA MONICA, CA 90403 a Wells...
2. Santa Monica Foreclosure This house sold for $1,100,000 at the height of the...
3. 3349 Oakhurst Ave Los Angeles, CA 90034 Property Status: Bank Owned REO Housing Detail: 2 bed...

We featured this REO property on October 9th 2008, one month ago. It was originally listed at $534,900.

Checking up on the property today, I noticed there was a significant price drop. It’s now listed for $509,900. So, in one month the home has been reduced $25,000.

Quick Sales History:
July-00 $325,000 Sale (fixed)
February-02 $395,000 22% Sale (variable)
July-03 $391,200 -1% Trustee sale
March-04 $485,000 24% Sale (variable)
May-06 $699,277 44% Refinance
August-08 $549,066 -21% Bank Buy Back

The bank bought this house back $549,066 in August 2008. It would not surprise me if this home stays on the market for a couple more months and is finally sold for about $350,000.

Get more info at Redfin.com

View on Google Maps

Bottom line: the Real Estate bubble is over and the markets are now returning to sound economic principles. This drastic pricing will only further the downward pressure on all home prices in Los Angeles, California and beyond.

Related posts:

1. 3349 Oakhurst Ave Los Angeles, CA 90034 Property Status: Bank Owned REO Housing Detail: 2 bed...
2. 916 GRANVILLE Ave LOS ANGELES, CA 90049 REO Make no doubt about it, times are tough. We...
3. 8718 Cadillac Ave Los Angeles CA 90034 Why I don’t think this place will sell any...

Property Status: Bank Owned REO

Housing Detail:
2 bed Room and 1 bath
Year Built 1940

Neighborhood:
Cheviot Hills
View on Google Maps

Listing Price: $534,900

List Date: 9/24/08

Sales History:
(Watch this 49% run up in price in just 8 years!)

Sale Date Loan Amount % change Transaction Type
July-00                 $325,000                                                  Sale (fixed)
February-02         $395,000                22%                        Sale (variable)
July-03                 $391,200                -1%                           Trustee sale
March-04             $485,000                24%                        Sale (variable)
May-06                $699,277                44%                              Refinance
August-08           $549,066               -21%                      Bank Buy Back

What happened?
July 2000 was a normal sale for $325,000. It was then sold in February 2002, with a 22% price increase. July 2003 it looks like the house is passed to a Trust at a -1%house value change.

March 2004
The house is sold from the Trust to an individual for $485,000. From July 2000 to March 2004 the home price has almost gone up 49%. At this point the housing bubble is in full swing.

May 2006
It looks like the homeowner refinances the home for $699,277!! It appears the loan is an adjustable rate mortgage. In six years the house price went up a whopping 115%

2007 the housing bubble starts to implode.

August 2008
The owner defaults with an unpaid debt of $699,277
The bank buys back the home for $549,066

October 2008
The house is a REO listed for $534,900. (Really, you gotta be kidding me.) The bank has priced the house between the 2004 and 2006 valuation.  The height of the bubble!! This house will not move at this price. The market is saturated with properties, lenders are not giving out credit unless you have A+ credit and 20% down and not to mention the economy is tanking.
The median household income for this neighborhood is $44,894. No one with that income and less than half down can afford that house.

The bank should list this home at the 2000 valuation and be done with it.

Get more info at Redfin.com

Related posts:

1. 3349 Oakhurst Ave Los Angeles, CA 90034 Update PRICE UPDATE: We featured this REO property on October 9th...
2. 8718 Cadillac Ave Los Angeles CA 90034 Why I don’t think this place will sell any...
3. 916 GRANVILLE Ave LOS ANGELES, CA 90049 REO Make no doubt about it, times are tough. We...