Last month I estimated that lenders lost over $1,000,000 on La Canada foreclosures and short sales.  This month, I chose to examine the lender/investor loss in the more affordable neighboring Foothill community of La Crescenta.

In August, 39% of the homes sold in La Crescenta resulted in a loss to the lender. 

Humphrey Way REO
Purchased in 2007 for $1,500,000
$1,254,030 in loans at time of foreclosure, Sold for $1,200,000, Assume 6% closing costs of 72,000
Lender’s est. loss $126,030
20% drop in value from 2007 purchase

Prospect Ave. REO
Purchased in 2006 for $800,000
799,990 in loans at time of foreclosure, Sold for $585,000, Assume 6% closing costs of $35,100
Lender’s est. loss $250,090
27% drop in value from 2006 purchase

Lauderdale Ave. REO
Purchased in 2000 for $270,000
Four refinances later and $675,000 in loans at time of foreclosure, Sold for $479,000, Assume 6% closing costs of $28,740
Lender’s est. loss $224,740
43% increase in value from 2000 purchase

Franklin St. REO
Purchased in 2000 for $253,000
$600,000 in loans at time of foreclosure, Sold for $475,000, Assume 6% closing costs of $28,500
Lender’s est. loss $153,500
47% increase in value from 2000 purchase

Brookhill St. REO
Purchased in 2006 for $660,000
$620,000 in loans at time of foreclosure, Sold for $433,000, Assume 6% closing costs of $25,980
Lender’s est. loss $345,020

2nd Ave. REO
Purchased in 2006 for $480,000
$433,100 in loans at time of foreclosure, Sold for $333,000, Assume 6% closing costs of $19,980
Lender’s est. loss $120,080

Orange Ave., Short Sale
Purchased in 1972, unknown price
$504,000 in loans at time of short sale, Sold for $420,000, assume 6% closing costs of $25,200
Lender’s est. loss $109,200

Fairmount Ave, Short Sale
Purchased in 2005 for 880,000,
$700,000 in loans at time of short sale, Sold for 645,000, assume 6% closing costs of $38,700
Lender’s est. loss $93,700

Boston Ave., Short Sale
Purchased in 2006 for $630,000
$630,000 in loans at time of short sale, Sold for $440,000, assume 6% closing costs of $26,400
Lender’s est. loss $104,360

The estimated loss for lenders/investors in August on La Crescenta short sales and foreclosures was $1,526,720.