31731 Capuchina Way
Maybe I am hanging in the wrong circles, but no one I talk with ever seems to mention what I figure must be the largest foreclosure in Coto de Caza. Is it an unmentionable? Is it embarrassing? I tend to think that it makes folks feel uncomfortable because if it could happen to them, it could happen to any one of us. And the truth is, it can, and does.
31731 Capuchina Way went back to the bank for $7,455,089 at the end of 2008. It had been for sale with an asking price of $9,999,836. My guess is that is the largest amount for a foreclosure in Coto de Caza. Just a guess, maybe you have better info. Feel free to share. It really is fun to leave a comment. Try it; you’ll see.
Another guess, and a back of a napkin calculation, tells me that the monthly payment on $7,500,000 is $45,000. Isn’t that the yearly payment for many of us? And two years worth of payments for the rest of us? So, foreclosure can happen to any of us, but foreclosure with these types of numbers does not and can not. The immediate question that comes to my mind is, “Why in the world would anybody or any institution loan someone this amount of money against their home?” If someone asks me for a loan for $7.5 mil against their home, (haven’t been asked this year), it occurs to me quickly that if they gotta ask for that much money and are willing to put their home up as collateral, they are having financial difficulties and they are not gonna pay me back. I would give it about a 1 in 20 shot that I would get my monthly payment. Doctors don’t have an income to support the nut on that loan, and about the only folks who do have that type of income, derive it from employee stock options. Once again, am I gonna make a monster loan based on income from stock options? If the stock price goes below the executable stock price, the options are worthless. And we all grew up thinking that banks did not take big chances.
About ten years ago, this was a Knickerbocker property for those of you interested in more Real Housewives drama.
nainymnabiecy
June 5th, 2009
Hi, Congratulations to the site owner for this marvelous work you’ve done. It has lots of useful and interesting data.
cdcrez
June 5th, 2009
Thank you
BDS
June 5th, 2009
when this house came on the market a while ago, it was shouting out distress situation, just 1 picture of the road leading to the house. No inside pictures, nothing of the backyard, just one glimpse of outside. My prediction when the bank decides to put on the market they will list for what they have into around 7.5mm when it sit for a month or two they will lower the price to 6.99mm. this will go on for a year until if they are lucky they will get around 3mm. Any other WAGs out there?
cdcrez
June 5th, 2009
I am sorry. I am unfamiliar with the acronym WAG, but I think you have the right idea on pricing. The one thing that may keep prices from getting too low in nominal vs. real dollars is that the cost to build may go down, but I doubt it will go down all that much in nominal dollars.
BDS
June 5th, 2009
sorry WAG = wild ass guess
Gman
July 12th, 2009
All potential buyers need to view this.
Real Estate Downfall
… the housing bubble bursts on a speculator… (YouTube video)
http://www.youtube.com/watch?v=bNmcf4Y3lGM