If you have been on Trulia for very long you would have noticed posts that warn you about the inaccuracy and incompleteness of the information provided through RealtyTrac. RealtyTrac is where all these "foreclosure listings", which are not really listings comes from. They aggregate information from the public records and then try to get you to buy a subscription so they can provide you with more inaccurate and incomplete information, only this time for a fee.
Back in November, Sunday the 8th to be exact, someone else asked about this property. At that time I provided this response:
"The complete picture on this house is as follows:
There are either 2 or 3 loans against the home (it is not clear since the records show one 1st TD, 2-2nd TDs and one 3rd TD). Original loan amounts were $3.0 million, $550k, and $400K respectively.
2 of the lenders have filed notice of default. The 1st TD on 08/10/09 and the 2nd TD on 09/08/09. Unless the 2nd TD pays the delinquencies on the 1st TD, they will be wiped out at the Trustee Auction, if it goes that far. So, if the 2nd cured the default on the 1st, and you were to buy the property at Trustee Auction for the amount owed on the 2nd (Showing $589,731 on the NOD), then you would acquire the home for $3,589,731. Buying a junior lien at auction requires that you take the property subject to all senior liens. And you might just want to add $50,970 of property taxes, cause you can bet if the owner is not paying the mortgage, they are not going to pay this year's property taxes either. This is one of those things that looks too good to be true and IS. Hope that clears things up for you. Dare to Dream." Looking back at this information, I may have been mistaken. There might actually be 4 loans against the property totaling $4.45 million, plus delinquencies. Either way, this property is definitely NOT available for $550,000.
The situation is still the same as in November. It is the still the same loan that is in default. The lender has not foreclosed, even though sufficient time has passed to allow them to do so. This would lead one to believe that either:
1. The home owner is working with the bank to cure the default, or
2. The lender determined that their is not enough equity and therefore will not foreclose. Why throw good money after bad.
This home was listed for sale, for almost a year. It was listed at $5.5 Million. It did not sell and the listing was cancelled.
There are some deals to be had out there. I am not sure that this is one of them.
Shel-lee Davis, CDPE
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty