Five Million Dollar Foreclosure, Anyone?

I was browsing listings and came across this home: 3227 Evergreen Point Rd Medina, WA 98039

3227 Evergreen Point Rd Medina, WA 98039

Listed at just under $5 million, it appears to be the most expensive currently-listed foreclosure in the Seattle area. Last sold as for $2.5 million as raw land in 2007, on which the buyer promptly plopped down this apparently speculative mansion. Whoops.

Of course, this mega-flop is not the most expensive foreclosure in the nation… I was curious, so I looked for any other higher-priced foreclosures in any of Redfin’s other markets. Turns out this place in Denver is on the market at $10 million: 2480 Saddle Notch Rd Loveland, CO 80537

2480 Saddle Notch Rd Loveland, CO 80537

Dang, 375 acres. That is some kind of insane retreat.

…but even that wasn’t the most expensive foreclosed home I found on the market. That title goes to this 11,000 square foot super-modern home, currently listed in La Jolla, California for $19,388,000: 9826 La Jolla Farms Way La Jolla, CA 92037

9826 La Jolla Farms Way La Jolla, CA 92037

Listed since May 2008 for a total of 1,172 days on the market, with an original asking price of $39 million. Yowza. I just thought it was interesting to note that the typical picture of a foreclosure as a run-down shack in the far-flung suburbs is not always the case. The whole nation threw a giant housing bubble party, and even the very wealthy were invited.

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About The Tim

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market. Tim also hosts the weekly improv comedy sci-fi podcast Dispatches from the Multiverse.

25 comments:

  1. 1
    redmondjp says:

    There is certainly no shortage of mega-homes that are selling for a fraction of their asking price. Take this one, for example, once owned by the late Dr. Gene Scott (late-night TV televangelist):

    http://virtualglobetrotting.com/map/dr-gene-scott-s-house-former/
    http://la.curbed.com/archives/2010/06/dr_gene_scotts_home_lives_on_in_pasadena.php

    I believe that this home finally did sell within the past year for under $10M.

  2. 2
    The Tim says:

    By redmondjp @ 1:

    I believe that this home finally did sell within the past year for under $10M.

    Yup, looks like it sold in April for $7.5M. At one point in 2006 it was listed for over three times that much. Heh.

  3. 3
    redmondjp says:

    RE: redmondjp @ 1 – OK, duh, there was a link right to the Redfin page for the house on one of the pages above, the house sold for $7.5M this past April: http://www.redfin.com/CA/Pasadena/2-Oak-Knoll-Ter-91106/home/12296241

    Only $214/sf! I’d hate to see the housekeeping bill for a 35,000 sf house though (property taxes? not even going there). The original asking price was even higher than linked above, around $24-25M (from a discussion group made up of many “ex-Scotties” that used to attend).

  4. 4
    NewHomeOwnerInFremont says:

    That La Jolla Farms house is pretty sick. I’d pay just to tour the place.

  5. 5
    David Losh says:

    I’m just talking, so there is nothing set in any type of reality, but the cost to build was paid, obviously. Some one, or a lot of some ones made money.

    The bubble years were very good for a lot of people who saw the loop hole of financing.

    These are very good examples of where banks made the mistake. banks were looking at the peper, the Note, that they had generated, then sold the Notes for a premium. Just look at the pictures. Wouldn’t you want to own the paper on that?!!!

  6. 6
    Scotsman says:

    Strategic default? Cash flow issues? The value simply isn’t there anymore? Why these?

    As a friend once remarked- “it’s easy to be broke, no matter what you make- all you have to do is spend more than what’s coming in.”

  7. 7

    RE: Scotsman @ 6 – Buying too much house? IMHO, if you have to get a mortgage for over $1M to buy a house, you should buy a less expensive house.

    A couple of the active listings over $1M though are likely businesses gone bad because the mortgages were seemingly to cover business loans.

  8. 8
    Hugh Dominic says:

    I’ll bet the previous owners did not walk out of those with empty pockets. I smell strategic defaults.

  9. 9
    Peter Witting says:

    All three of those are soulless monstrosities. I don’t like massive, endless houses, but I agree with NewHomeOwner, it would be cool to walk through the La Jolla one. But live there? No thanks.

  10. 10
    Maple Leaf Joe says:

    Am I reading it correctly that the property taxes on the LaJolla house are a cool $161k? Am I missing a decimal somewhere? Wow. Talk about a different world…

  11. 11

    RE: Maple Leaf Joe @ 10 – I didn’t verify your $161k number, but yes, different world. What amazes me is how many people don’t realize that world exists. A good example is people thinking that someone buying a $2M house likely puts down only $400k (20%). Generally it’s much higher, and the most common (the mode) for any given month might very well be cash or the maximum conforming loan amount.

  12. 12
    David S says:

    View homes in La Jolla are like gold. They may go up and down in value but they will never be zero. Of all the places on Earth, I would venture to say La Jolla is actually special, beyond what you can imagine. Unless you have been there you will not understand.

  13. 13

    But Seattle’s Eastside is Different, There’s No Foreclocures To Speak of There

    I also heard another wild allegation about Maple Valley….the average per capita wage is like $100K. Try reality, like $30-40K.

    The bottom line is we and even the MSM sometimes invent wild eyed fairy tales about our special neighborhoods, until someone with common sense from like Seattle Bubble pulls the backup data out in writing making those wild verbal allegations complete lies.

    In Seattle’s rich, even relatively “foreclosure free” neighborhoods; we at Seattle Bubble asked some hard questions about local banksters keeping these bank owned properties off the listings, until it blows over [2020???]. God forbid we admit people from all neighborhoods get sick, laid off or die in equal proportions and their homes default in any neighborhood….like it only happens to the middle incomes on down.

  14. 14
    David S says:

    RE: Peter Witting @ 9 – Property taxes in CA are determined by the prop. 13. They are determined on the sale price of the property. If yo bought a home 20 years ago you still pay exactly what you did when you bought it. Only on resale will the taxes be re assessed.

  15. 15
    Still Anonymous says:

    That house in Medina needs a few more gables before I can start to take it seriously as a high-end home.

  16. 16
    deejayoh says:

    I’ll trade them some zillow stock for the place in Medina

  17. 17
    Scotsman says:

    I don’t care if it’s waterfront- for $5M I want more than 7 knobs on my stove top. I want it to have. . . ELEVEN so we can really get cooking!

  18. 18
    hello says:

    That last house looks like Iron Man’s house from the 1st movie where he sleeps with the news reporter.

  19. 19
    YetAnotherTim says:

    RE: Still Anonymous @ 15

    Lol. What an ugly POS house. Being speculatively rich does not equal taste. Now, the place in La Jolla… the sq. footage is beyond decadent, but the style and location is top notch.

    Since I rarely post, here’s a quick update on my search. I’ve made 4 offers. Two of them went pending within 24 hours for more than I was willing to pay (one went for $40k over asking in Olympic Manor). Two of them are still on the market with sellers who poo-poo’d my offer. One has finally dropped the asking price to near my original offer, now. The other has come back to me after 3 weeks with no activity asking if my offer is still viable. I told them I’m holding off for now.

    It just makes me want to wait longer to commit, although I’m considering offering less than my original offer(s) and let them poo-poo again just because I can. But I will buy the right place, eventually.

  20. 20
    AndySeattle says:

    How can you tell the La Jolla home is in foreclosure? It doesn’t state as such on Redfin…

  21. 21
    The Tim says:

    RE: AndySeattle @ 20 – “• Sales Restrictions: REO”

  22. 22

    RE: The Tim @ 21RE: AndySeattle @ 20 – And to be clear, REO means that it has already been foreclosed.

  23. 23
    Susan says:

    I guess when the market value falls, nobody wants to pay more than their house is worth and the higher the loan, the more homeowners have to lose financially. So even if rich folks can afford to keep up the payments, they may not want to if their homes are worth millions less than in 2006.

  24. 24
    MikefromSeatlelivinginChicago says:

    RE: Still Anonymous @ 15 – THANKS! re the the comment about the gables!!!! Bad architecture sucks.

  25. 25
    me says:

    The home is off the market. Great place to squat?!

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