Property Q&A in Los Angeles>Question Details

Alex Garcia, Home Buyer in Los Angeles, CA

Why would a property sell so many times? Every year it sold.

Asked by Alex Garcia, Los Angeles, CA Sun May 17, 2009

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This question is about this property: http://www.trulia.com/homes/California/Los_Angeles/sold/2524…

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Alex:

Of course, no one can know for certain what happened on this property unless they talk to the parties in interest, however, title records show the following. The sale in 2007 was to a buyer who financed 100% of the purchase price by using a 1-year Libor with a "tickler" interest rate of 2.75%. My guess, they also bought this stated income and would have never qualified for the purchase using a legitimate, fully amortized, 30 year loan. That resulted in the "sale" in 2008, which was not really a sale but the bank taking back title through a foreclosure (trustee deed). The sale in 2009 was to a buyer who purchased using an FHA 3.5% down loan.

Unfortunately, the lending practices of 2005 through early 2007 just set people up to fail. Hopefully we will all learn from our mistakes and keep this from happening again. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
http://shel-lee.listingbook.com
0 votes Thank Flag Link Sun May 17, 2009
Hi Alex,
There are any number of reasons the property sold so many times. Legitimately, it may have been a desirable property or a valuable rental. However, in those years, it was not uncommon for groups of people to buy/sell/buy the same property over and over. By doing so, they would artificially inflate the value. By doing so, they could then pull cash out of the property and eventually defraud the bank.

If you have any other questions, please don’t hesitate to call or visit our website shown below.

Pat Palmer-Broker/Realtor
Forefront Real Estate
Forefront Mortgage

154 W. Foothill Blvd #A308
Upland, CA 91786

Phone: 909.286.1301
eFax: 909.912.8002

patpalmer@ffhomes.net
Web Reference: http://www.ffhomes.net/home
0 votes Thank Flag Link Sun May 17, 2009
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