Cobblestone – Oak Creek 2006 Flop – UPDATE #1

Originally posted October 25, 2006

Address: 126 Cherrybrook Lane, Irvine, CA 92618 (Oak Creek)
Plan: 1200 sq ft – 2/2.5
MLS: S463666 DOM: 2
Sale History: 6/16/2006: $615,000
4/18/2003: $390,000
10/8/1999: $220,000
Current Price: $612,000-$639,000

This is a detached (I believe) Plan 1 condo in the Cobblestone tract built by John Laing. It was purchased this summer with 0% down (ok ok, they actually put a whopping $300 down). I’m not sure what the flippers have been doing for the last few months but they just put it on the market a couple days ago. It’s listed using range pricing of $612k-$639k. After 6% in selling costs, these sellers will lose anywhere from $14,000 – $40,000 if they get a price in the asking range. To get rid of the home, I think they will have to bring that much money to the table since they don’t have any equity in the house.

UPDATE #1 – January 3, 2007

Price Reduced: 12/15/06 — $639,000 to $603,000

If sold at $603,000, the seller (or lender in this case) is facing a loss of over $48,000 (assuming 6% selling costs). I don’t think it will sell anytime soon because there is some competition just down the street:

  • 146 Cherrybrook Lane – 1200 sq ft – 2/2.5

    • Listed on 12/06/2006 at $607,500
    • Price Reduced: 12/15/06 — $607,500 to $605,000
    • Price Reduced: 12/19/06 — $605,000 to $603,000
    • Price Reduced: 12/29/06 — $603,000 to $580,000
    • Current Price: $580,000

146 Cherrybrook was purchased on 1/16/2004 for $445,000. The seller is relocating (according to the MLS comments) and I’d imagine that would be some motivation to get this sold soon. They’ll still make out with a nice profit. But it looks like our flipper at 126 Cherrybrook will be even more in the hole.

12 thoughts on “Cobblestone – Oak Creek 2006 Flop – UPDATE #1

  1. Anonymous

    Quick question guys?

    How do you find out how much down payment is placed on a home during purchase?

    Or how much HELOC is taking out by the owner on a home?

    Thanks in advance!
    —–

  2. anony

    these are great units, but i can’t afford 600k. maybe 300k, since they’re still considered condos.

    i think there are some of these models in foothill ranch, anybody know how those are going?

  3. NanoWest

    Now that I see that this house has a newly painted garage door, I understand why someone would pay so much money. With a painted door this place must be worth at least 3/4 of a million dollars. I bet there is a line of highly qualified buyers bidding this one up !!!!!!!

  4. anonymouse

    This is fast-track to REO-land. Nobody will be stupid enough to bid at the foreclosure auction, and judging from the down payment, there isn’t a whole lot of wiggle room on the part of the FB.

    $300 down? Have we no shame? Has the FB even made one payment on this one? I have my doubts.

  5. Jerry

    The worst case scenarios is losing $300, but the upside is unlimited, if it already rented out, it already generates income for the FB.

  6. zovall

    Anonymous, the title companies have loan information regarding all properties. When someone purchases a home, it lists the purchase price and the loans taken out. I simply add the loans numbers up and subtract from the purchase price. It’s scary how often you come across homes that are 100% financed.

    I’m not sure but RealtyTrac might have even more detailed information on loans. But perhaps it is only for properties in the foreclosure process. OC_FlipTrack would know more.

  7. oc_fliptrack

    Realtytrac has info on foreclosures and REO’s, but little else. Their site is actually kind of disorganized and crappy. I wonder if foreclosures.com is any better.

  8. anon-e-mouse

    As someone who used to work at RealtyTrac, I can wholeheartedly say that it is disorganized and crappy.

  9. oc_fliptrack

    Foreclosures.com wasn’t any better. I cancelled.

    I wonder if foreclosure.com (minus the “S”) is any better.

  10. New OC

    I live nearby and rode by today to see what was cooking in this neighborhood. Much to my surprise, I found a SOLD sign out in front of this flop.

    This was especially surprising as I counted 5 other homes in this neighborhood for sale and 2 others for Rent.

    Most of the competition was listed around 599K. (One guy thinks he can still get 699K).

    At any rate, it will be interesting to see #1 if this sale goes through and #2 if so, what the final price was.

    If anyone knows, please post it.

  11. zovall

    MLS shows that they are currently accepting Backup Offers and the price is at $603,000. We’ll have to wait until it actually closes for the final price.

    146 Cherrybrook is also accepting Backup Offers and the price listed is $590,000.

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