There are a few locations in the area that, if available, would tempt me to give up the ranchero and move on into something really signature. Odd numbered addresses on Marsh or Palisade are on the bluff above the Truckee River, and anything there certainly whets my appetite. So when 1475 Palisade hit the market in January for $479,500 (MLS 80001173) I had to check it out.
The owner bought it in December 2004 for $615,000, using 80/20 financing and the $492,000 first loan was interest only for 2 years. Previous purchase price was $396,000 in January 03, so the owner didn’t get a "deal", but it wasn’t totally out of line with the run-up going on at the time. And the run up seemed to keep on going (and going), So the owner decided to take on a little remodeling project….
The house was gutted down to the studs in mid 2006 with permits (permit value of about $110,000, so figure a construction cost of at least double that), all the interior improvements got started, the new entry got framed, the exterior siding was removed, new windows installed, and the lathe for the new cement plaster was installed. And then a great silence. The money ran out. And the house has been sitting there exposed to two winters with only Tyvek and chicken wire for protection. I’m not certain, but I think the house is still being occupied, with a futon here, a refrigerator over there where there is a live outlet, and maybe a toilet somewhere that still works, based on my nose to the window inspection.
Notice of Default was filed 30 January 2008. Can you imagine what the bank’s loss mitigation officer will be feeling when they see what their collateral has become? No friggin’ chance of the proposed short sale happening on this one. Another case of "what was the agent thinking taking the listing?’.
I suspect that there are a lot more of these decor-flips out there in trouble. This one is just extreme.
So Allen Murray, can this house be saved? $250,000 offer after foreclosure?