This estate was purchased in 1998 for $2,225,000, refied in 2002 for $2,200,000, refied in 2003 for $3,500,000, and refied in early 2006 for $4,590,000. There is a $350,000 HELOC in 2007 (which may or may not still exist) and another HELOC for $500,000 this January. Current listing price is $6,850,000, and the wording makes it look like a short sale offering. I can’t find documentation of the extra indebtedness that would make this a short, but it may be out there.
The refi in 2006 was a 110% Option ARM with a $15,731 minimum payment, and a $32,487 fully amortized option for the first year. That’s a bit over $200,000 negative amortization possible in the first year. I’ve never seen this before, but the annual reset was capped at 7.5% over the existing payment. In any case, it looks like the Option ARM topped out or the owner just quit sending in those monthly checks, and a NOD was filed July 12th.
This property does have some forward looking development possibilities. It also has the most butt ugly carpeting I have ever seen outside a double-wide. But where else can you find a floating dining room with bonsai?
Hey, it’s been a rough week for all of us. Thought you campers could use some comic relief, though this seller certainly isn’t laughing right about now. This is the Trash Talk Weekend Posting, so use it as springboard to bring up anything you want to talk about. Still, be kind.