How can this house sell for $50,000.?

Asked by Ed Woolley, Carlsbad, CA Tue Sep 8, 2009

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This question is about this property: http://www.trulia.com/foreclosure/2006161425--Hemlock-Ave-Ca…

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Tony Cannon, Agent, Carlsbad, CA
Tue Sep 8, 2009
There was a trustees deed executed on 6/1/09 for $50,000 at the property 355 Hemlock and appears to be a junior lien holder that foreclosed. The new owner does not appear to be a bank, so the property is not REO as Trulia/Realty Trac imply.

Since this was not a market sale, the recorded transfer amount of $50,000 is not really relevant in determing market value, or to say "gosh, why couldn't I have bought it at that price".

An example of when a low priced transfer like this can be recorded is when a second lien holder or an HOA forecloses. The amount owed to them may be small, but they are assuming any senior liens which will need to be paid off if the property is sold, or mortgage payments continued if the property is kept. If the senior liens are much less than the market value of the property, they got a "deal", if they are more, then they probably shouldn't have foreclosed. I see the other liens on 355 Hemlock were originally $674,132.
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Seth Chalnic…, Agent, Cardiff, CA
Tue Sep 8, 2009
It can't. Note the fine print... "This is the final step in the foreclosure process." Basically, everytime you see a RealtyTrac "listing" it is pretty safe to assume it is one of these. They do this to attract members to sign up on their website. Lame but true.
Web Reference:  http://www.SethChalnick.com
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