$100k off last sale on Capital Hill: pre-foreclosure

[Puget Sounder]

http://www.redfin.com/stingray/do/print ... -id=581063



MLS#: 27040951

[mike2]

That's really unusual around here to see a preforeclosure on the MLS with the price reduced that much. I don't think, I've seen anything listed THAT far below the previous sale price. Plenty of houses that go to auction sell for 20%+ off, but to see it on the open market? Odd.

Looks like the second mortgage holder got hosed and the first isn't doing too well either. Just the first lien holder is losing around $100K. The balance on the first mortgage at the time of default was $479K. This place probably appraised for $550-$600K when the owner refinanced in August.

Good find.

[deejayoh]

I have been following the foreclosure/preforeclosure numbers at foreclosure.com. What I have noticed is that while foreclosures are going up, preforeclosures are pretty steady - and now the ratio of foreclosures:preforeclosures is at ~42%

I always thought banks did about everything they could to avoid taking back a house. Perhaps in today's environment where Seattle is the last man standing - they are being aggressive about taking properties REO so they can get back on the market ASAP?

Still, it doesn't explain why this one has been sitting for two months at below last sale price. Something is fishy. Probably sliding off of the foundation or something.