It’s not just a short sale but a “very short sale” for 2225 23rd Street #316 which has been listed at $150,000 versus the $395,000 which was paid in 2005, a purchase which was financed with a $316,000 first, a $41,000 second, and a $39,450 third. And yes, that totals $396,450 in financing to which a tax and HOA lien has been added since.
The unit below (2225 23rd Street #216) has been listed as a short sale for the past 344 days at $269,000 having been purchased for $395,000 eight months after the unit above. Any ideas what sale they might have used as a comp?
Oh, and 2225 23rd Street #116 is scheduled to hit the courthouse steps next week having been purchased for $395,000 with $355,500 in debt four months after the unit above sold. Any ideas what sale they might have used as a comp?
∙ Listing: 2225 23rd Street #216 (1/1) 602 sqft – “$269,000” (short sale) [MLS]
∙ Listing: 2225 23rd Street #316 (1/1) 602 sqft – “$150,000” (short sale) [MLS]
I went to an open house for a 3 bedroom condo complex a while back. I love the Potrero Hill area, but I didn’t like the idea of living so close by the projects. This area literally right over the hill of the good side of Potrero Hill.
Anyone live around ‘over the hill’ of Potrero Hill? Is it possible to walk your dog at night without holding your breath? Or leave your car park over night on the street without breakin?
This complex is separated from the projects by a few blocks and a hill. However, it is also near SF General.
The projects are supposed to be rebuilt into mixed income units, as other projects have in the past.
This place would be a great deal if obtainable anywhere near the $150k short sale price, but I very much doubt the bank would approve the price.
“Or leave your car park over night on the street without breakin?”
No matter where I park in SF I never leave anything inside my car if I park it on the street. I also open the glove box and all ashtrays, cupholders, and other compartments so that is is obvious to anyone even glancing inside that there is nothing worth breaking in to steal. I see too much broken glass in “good” neighborhoods & “bad”.
car break ins for me in SOMA, Pacific Heights on Franklin during the day, Hayes Valley. Have lived in the Mission and Bayview and no break ins.
From my experience in buying a short sale condo. Got to pay quite a bit to all the debt obligations. ie, tax lien gets 100%, transfer tax of course, then settle with the HOA on back dues, then negotiate with first and second banks.
May the force be with you if you choose this endeavor.
Hey. I knew this place when it was an apartment building! A friend lived in a units at the southwest corner of the building. She had an awesome view of the traffic on 101. The freeway’s right across the street.
After the headache of getting everyone to agree on the sale, how much is it going to cost? If it’s double the 150K, I wouldn’t even try it. 500/sf is not good enough deal for the effort in this location.
Of course if these 150Ks are the actual total, it’s a great instant equity. But I wouldn’t count on it.
Let the bank foreclose and catch it as REO. It will be easier and probably cheaper in the end. Plus, you can finance it!
Since this short sale price has no connection to the actual price the bank will take for the unit, why not advertise it for $5? Or $1? That will get it even more attention! “We’ve established that you want the condo. Now we’re just haggling on the price!”
With respect to unit #316, which was financed with the “$316,000 first [note], a $41,000 second, and a $39,450 third”, it seems to me that this kinda financial chicanery makes the case for co-ops over condos and/or TICs. I’ve never purchased or lived in a co-op, but from what I’ve read, the board president or her designee has to approve new buyers, and so could put a stop to shenanigans like this before they get started and financially impose on the other owners in the building.
Just because a buyer might be able to get a mortgage or three (with a resulting absurd loan-to-value ratio) does not mean that they can actually afford the unit. And in the case of a co-op, having the Board President, or a subcommittee of the board, or what have you, actually go over the finances of prospective buyers before they get into a position of being able to stick the other owners in the building with multiple years worth of HOA payments seems to be a better-than-the-alternative system of checks and balances. I’d guess you’d also have a better chance of smoking out people who’ll strategically default, too.
It’s not perfect; I suppose there are people who’ve defaulted on loans for co-ops in The City, but I’d bet that the above-described situation never would have happened if this complex were a co-op and had an actual person whose interests where aligned with defending the existing owners from deadbeats had to do actual due diligence and understand and approve the buyer and their financing approach before the closing.
Isn’t there a legal or zoning restriction that prevents more buildings from going co-op in SF?
I used to live and own in Potrero Court and have sold over a dozen properties in the complex. It should be illegal to post a “very short sale” of $150,000 on MLS. This pretty much kills sales in the complex and everyones’ values who own there. That is not anywhere near the actual price as the buyer will have to pay a tax lien, back HOA dues unpaid and a significant assessment for the exterior upgrade/new window project. The “real” price is closer to $250,000+.
I have a 1 bedroom for sale now, NOT A SHORT SALE, unit #306 for $299,000 (look for small price reduction). It rents for $1,695. The seller bought in 1999 for more than $150k – all hoa dues, taxes and the assessment are paid. It’s a great value for San Francisco, but these listed “Very Short Sales” hurt everyone involved.
They raised the price on the listing from $150K to $225K — still a bargain, if you can manage all of the complications. Also, not FHA approved really limits the potential pool of buyers.
I would hardly call it a “bargain” once the add’l money is paid to settle all the outstanding obligations (any guesses on what that additional amount is — $100k+?) — with just 600 sq feet, freeway grime and noise, and then isn’t General supposed to be putting a helicopter pad in at some point?
[Editor’s Note: Likely less than half that amount as the HOA claim appears to be $19,848.]
Lived on a steep street in Potrero for 2 years with no break-in (landlord said that his convertible roof got slashed once parking south of 20th/east of Carolina, but he just never did that again and no repeat in 10 years).
Lived on a flat street in the Mission and no break-ins but saw window glass on the walk to work at least once every two weeks.
Lived on a flat street in Nob Hill and had a window smashed across the street from the Huntington Hotel.
Invariably every smashed window had a box or bag that had been rifled through but not taken.
Lessons:
Don’t leave anything in a visible part of your car ever (like @Rillion says).
The criminals lack the coordination to smash a window on a slope.
The short sale list price for 2225 23rd Street #216 has just been reduced to $245,000. Once again, purchased for $395,000 in November 2005, eight months after 2225 23rd Street #316 sold for the same.