December 9, 2010
The Sale Of 3346 Clay Closes For Less Than Half Of What Was Owed
How can a Presidio Heights house that was purchased for $800,000 in 1992 and refinanced in 2001 with a $1,350,000 note end up listed as a short sale at $2,895,000 in 2010? When it’s refinanced in 2006 with a $2,800,000 adjustable rate first mortgage and a second for $1,188,024 is added in October 2008 (neither of which are noted on PropertyShark).
As correctly surmised, the transfer in title this past February to an LLC was recorded without consideration (i.e., no money changed hands). And while the Notice of Default on 3346 Clay was filed in April with just over $53,000 past due at the time, the Notice of Trustee sale lists $3,138,115 in principal, interest and fees outstanding on the first note alone.
Last Wednesday the sale of 3346 Clay Street closed escrow with a reported contract price of $2,120,000 ($770 per square foot based on a downward revised 2,754 square feet), less than half the balance of the seller's first and second mortgages combined.
First Published: December 9, 2010 1:15 PM
Comments from "Plugged In" Readers
That is 36% down from the original list price of $3.295M and 27% down from the short sale list price of $2.895M. Multiple Ferraris down the hole for the bankster. The prior "owner" gets the last laugh, however, since he pissed away almost $3.2M in cash-outs. This seems like one of those rare cases where judicial foreclosure could have been better for the bankster, so they could get a deficiency judgment and attach assets.
Posted by: sfrenegade at December 9, 2010 1:31 PM
The approx. $3.1M figure for "principal, interest and fees outstanding on the first note alone" may seem remarkable, but once the note goes into default, the servicer starts adding on late fees, penalty fees, this fee, that fee and the other fee, in order to maximize the amount they can possibly make if the loan is either written off or paid up one way or another.
But it at least prevents this particular d-bag seller from walking away with any more money than he already cashed out of this place.
Posted by: Brahma (incensed renter) at December 9, 2010 2:01 PM
The buyer got a bargain. A whole house in Pres Hts for 2.1. Maybe the market is soft.
Posted by: Conifer at December 9, 2010 2:18 PM
Ugh, the "Down from Asking" is absurd as the "over asking". All that matters is the comp. That said, this is not a good comp. This one is on my watch list....
Posted by: eddy at December 9, 2010 4:01 PM
congrats to the new buyers. this is a savvy purchase. can't wait to see that backyard w/out the ridiculous deckage.
Posted by: anonee at December 9, 2010 4:37 PM
How about 47% down from what the bank thought it was worth in 2006, then? This is certainly a great comp and an awesome deal in this neighborhood.
The d-bag who cashed out almost $3.2M considers himself a visionary and is a local developer:
Take note that his favorite golf course is in Maui, and he is listed in the Maui phonebook on the street that our editor mentioned. I wonder how his other properties are doing.
Posted by: sfrenegade at December 10, 2010 9:54 AM