20% of July’s La Canada home sales resulted in a loss to the lender.  In July over $1,000,000 was lost by lender/investors in the small upscale community of La Canada:

Indiana Ave.  (Sold 2002 $435,000) REO (real estate owned/aka foreclosure)

Purchased in 2005 for $815,000

$841,000 in unpaid debt at time of foreclosure, Sold $625,500, Assume 6% closing costs of $37,530

Lender’s est. loss $177,970

23% drop in value from time of purchase

Belita Lane REO

Purchased in 2003 $729,000

$708,523 in unpaid debt at time of foreclosure, Sold $652,000, Assume 6% closing costs of $39,120

Lender’s est. loss $95,643

16% drop in value from time of purchase

Rock Castle Dr. REO

Purchased in 2004 for $775,000

$916,903 in unpaid debt at time of foreclosure, Sold $710,000, Assume 6% closing costs $42,600

Lender’s est. loss $249,503

8% drop in value from time of purchase

Viro Rd. REO

Purchased in 2003 for $750,000

$1,099,078 in unpaid debt at time of foreclosure, Sold $803,000, Assume 6% closing costs $48,180

Lender’s est. loss $344,258

7% increase in value from time of purchase

Burning Tree Dr. Short Sale

Purchased in 2004 $1,300,000

1^st & 2^nd total $1,360,000 + unknown amount of back payments, late fees, etc.

Sold $1,265,000, Assume 6% closing costs $75,900

Lender’s est. loss $170,900 + unknown amount of back payments, late fees, etc.

7% drop in value from time of purchase

These numbers are staggering: Total loss* to lenders/investors for La Canada’s five July distress sales was $1,038,274. 

*Plus unknown amount of back payments, late fees, etc.

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