June 2, 2010

THIS GEM IS PROOF YOU CAN PLAY HARD AT HOME DURING A FORECLOSURE

Here’s a guest post from madhaus, and it was burbed reader Herve who found this amazing listing!  Thanks, Herve!

15070 MONTEBELLO Rd Cupertino, CA 95014
$2,749,000

image

BEDS: 5
BATHS: 5
SQ. FT.: 4,580
$/SQ. FT.: $600
LOT SIZE: 8.69 Acres
PROPERTY TYPE: Attached Single Family
STYLE: Mediterranean
STORIES: 2
VIEW: Mountains, Valley, City Lights
YEAR BUILT: 1973
COMMUNITY: Cupertino
COUNTY: Santa Clara
MLS#: 81023972
SOURCE: MLSListings
STATUS: Active
ON REDFIN: 11 days

STUNNING ESTATE COMPLETELY REMODELED IN CUPERTINO FOOTHILLS WITH SPECTACULAR VIEWS AT EVERY TURN. SITUATED ON 8.69FLAT OAK STUDDED ACRES. THIS PROPERTY IS LOCATED BETWEEN RIDGE VINEYARDS AND PICCHETTI WINERY. MAIN HOUSE OF 4,580SF IS COMPLEMENTED WITH 3 GUEST HOMES WITH THE SAME HIGH-QUALITY WORKMANSHIP THROUGHOUT. THE ONLY WAY TO TRULY APPRECIATE THE TRUE SPLENDOR OF THIS ESTATE IS TO VISIT.

There are two interesting things about this luxurious Cupertino mountain listing.  First, any agent who still YELLS AT ME IN ALL-CAPS deserves to have their STUNNING ESTATE featured on burbed.  And second, it might be a multimegamillion dollar property, but TO TRULY APPRECIATE THE TRUE SPLENDOR OF THIS ESTATE, it’s also a short sale!

image Yes, it’s not every day that a 5 bedroom, 5 bath estate on 8 acres with 3 additional guest houses goes into foreclosure.  The seller is TRULY motivated, at least.  Just APPRECIATE THE TRUE SPLENDOR:

Financial Information

  • Lease Option
  • All Cash or Conventional
  • Seller May Carry 1st
  • Seller May Share Equity
  • Conventional Loan

You can lease now and think about buying later!  Or you can get a loan from the seller (yes, the same one who couldn’t keep current with his own payments)!  TRULY!  Heck, the seller needs money so badly, you can buy some of the STUNNING ESTATE if you can’t afford $2.749M.  (Although with four separate homes amidst this TRUE SPLENDOR, why don’t you simply REFINANCE ONE OF YOUR OTHER PROPERTIES AND PAY CASH?)

And this homeloaner certainly knows about creative financing!  TRULY!  When he bought the STUNNING ESTATE in 2004, he got a million dollar variable first mortgage from a bank, and an $800K fixed second mortgage from the previous sellers!  Thing is, the place cost $1.9M.  5% down?  Now that’s leverage!  So how did the owner of this TRULY STUNNING ESTATE use the leverage?  Looks like he tried to sell it early and often!

Property History for 15070 Montebello Road

Date Event Price Source
May 14,2010 Listed $2,749,000 MLSListings #81023972
Apr 10,2009 Delisted Inactive MLSListings #3
Nov 21, 2008 Price Changed $3,900,000 CupertinoHousingBlog
Oct 14, 2008 Listed Inactive MLSListings #3
Nov 13, 2006 Delisted Inactive MLSListings #2
Jul 10, 2006 Listed 14756490 (price reduced $500K)
Jun 05, 2006 Delisted Inactive MLSListings #1
Jun 01, 2006 Listed Inactive MLSListings #1
Jul 02, 2004 Sold (Public Records) $1,900,000 Public Records

When the STUNNING ESTATE was listed in 2006 (for the second time, mind you), here’s what the seller had to say:

Highlights
  • Great haven as institutional retreat, or private agricultural/recreational resort
  • Perfect as multi-family compound or vacation reunion getaway
  • Price reduced over $500,000!
  • Prime location in Silicon Valley
  • Extremely rare combination of acreage, structures, landscape, view and MOSTLY FLAT LAND!
  • Convenient option to continue current live-in caretaker services
Description

Easily one of Silicon Valley’s most unique and spectacular properties, this gem is proof that you can play hard at home, yet live in total seclusion and still be only 25 minutes driving distance from downtown San Jose. Nestled between award-winning wineries, this amazing 8.69 mostly flat acre compound is like owning your own little mountain village within a storybook forest setting.

[Read this rest here.]

imageRedfin shows a picture of the golf course (TWO holes!) but didn’t say anything about the bocce or basketball facilities, let alone a mirrored gym plus a rec center with full kitchen.  And a go-kart track!  So that’s what “Arena” meant, although most “little mountain villages” manage just fine without an arena for yodeling competitions.

So why did the seller remodel the main house and build so much on the MOSTLY FLAT LAND?  Maybe it’s because he’s a General Contractor!  And a Tile and Stone Contractor!  And just to be safe, another General Contractor!  TRULY, when all you have is a hammer and tiles and stone, everything looks like it needs a nail and more tiles and stone to get THE SAME HIGH-QUALITY WORKMANSHIP THROUGHOUT.  TRULY.

Alas, not only has the price come down since the housing market peaked, but so has the language.  In 2006, we got full sentences as well as a fully equipped rec center.  Now that this “gem” is in foreclosure, the bank won’t even let them spring for lower-case letters on Redfin.

But just one little caveat about this TRULY STUNNING ESTATE with the TRUE SPLENDOR.  Not only will you have to negotiate with the bank for “lender approval” of a short sale, it looks like you’ll also have to “negotiate possession” with the homeloaner.  With all those bedrooms on the grounds, at least your “negotiating” team can stay on-site in total seclusion while you “work out” your “differences” in the arena. TRULY.

Comments (46) -- Posted by: madhaus @ 5:02 am

46 Responses to “THIS GEM IS PROOF YOU CAN PLAY HARD AT HOME DURING A FORECLOSURE”

  1. Real Estater Says:

    The National Association of Realtors says Wednesday that its seasonally adjusted index of contracts for existing homes has risen 6 percent in April. The index came in at 110.9; economists polled by Thomson Reuters forecast 108.

  2. SEA Says:

    How many people submitted two offers to meet the April 30 deadline?

  3. Petsmart groomer Says:

    Another great find from Real Estater on finance.yahoo.com! How does it do it? :-)

    <sarcasm>Of course the tax credit that expired in April has nothing to do with that.</sarcasm>

  4. Real Estater Says:

    SEA,

    “Spring bounce” has kicked off in full steam. From what see, even more people are shopping now than in April.

  5. nomadic Says:

    SEA, it doesn’t matter how many offers people put on houses. To qualify for the tax credit, there had to be a signed contract to purchase by the deadline.

    First paragraph of the Reuters article:
    Pending home sales hit a six-month high in April but falling demand for home loans pointed to ebbing activity in the vital housing market with the expiration of a popular tax credit for buyers.

    http://abcnews.go.com/Business/wireStory?id=10805095


    As for today’s house, madhaus missed the $2,000 mechanic’s lien on the property. Now that TRULY has to be chump change for this homedebtor. The unfortunate thing about this house (to me) is the massive amount of maintenance for the “golf course,” pool and grounds. One upside could be if you leased some of the land to an adjacent winery for vineyards.

  6. Joe Says:

    Low Estimate High
    Zillow $1,569,600 $1,962,000 $2,217,060
    Eppraisal $1,406,353 $1,654,533 $1,902,712
    Cyberhomes $997,920 $1,108,800 $1,275,120

  7. madhaus Says:

    Yeah, but there’s three guest houses! You think those estimates include and extra three HOUSES? You could rent them out to vinyard workers next door!

  8. Insecure Techie Says:

    The National Association of Realtors says Wednesday that its seasonally adjusted index of contracts for existing homes has risen 6 percent in April.
    —-

    Useless aggregate data.

  9. SEA Says:

    nomadic-

    “SEA, it doesn’t matter how many offers people put on houses. To qualify for the tax credit, there had to be a signed contract to purchase by the deadline.”

    Normally this would be 100% correct, but in the very unique expiration of the tax credit, buyers were putting multiple offers out. I know a guy who put two offers out on April 30, and both were accepted. Both went pending on April 30, and he sorted out which one he wanted in May.

  10. nomadic Says:

    Sounds like they were acting in bad faith then, SEA. Usually when you make an offer, it is only rescinded if one of the contingencies has a valid reason for canceling it – although I guess they might have put a condition regarding the tax credit in there.

  11. SEA Says:

    He expected one to be accepted, so in that regard, he wasn’t just making offers for the fun of it. Remember it’s under very usual conditions.

    His attorney suggested low escrow and be prepared to cancel early and just give the escrow to the seller. The total liability of the buyer, acting in a reasonable manner given the conditions, is the escrow, at least according to his attorney.

    How much damage is done when the buyer walks really early?

    On the other hand, I do not doubt that the other place may have had a backup offer that was accepted in April… …or at least that’s what the documents say.

  12. bob Says:

    RE,
    I’m going to go ahead and prepare you for your future disappointment when the coming months shows a contraction in home sales due to no more government incentives. The RE market will continue its natural course.

  13. nomadic Says:

    How much damage is done when the buyer walks really early?

    Not much, especially if it’s done quickly – assuming other offers aren’t turned down. You’re right that the maximum liability is the deposit made with the offer. The documents usually have language saying that the amount of any liquidated damages for not following through will equal the deposit. I imagine there were discussions among the realtards regarding the tax credit when things got down to the wire.

    bob – would you really characterize the housing market as being on any course even remotely “natural” over the last couple of years? The gov’t will probably find some new way to meddle. The tax credit certainly wasn’t their first stab at it.

  14. SEA Says:

    “The RE market will continue its natural course.”

    NEVER, and I mean NEVER try and guess the wisdom of Congress.

  15. A. Lewis Says:

    What this home shows is what a bad value everything under an acre, and under 5,000 sqft, is in Palo Alto. At least you actually get a gigantic multi-property estate for your millions here. What a waste to spend $1.5M or $2M on an ordinary 3-4 bedroom home on a 1/4-acre lot by comparison.

    RE will look stupid, once again, when the housing numbers turn down after this temporary boost from the tax credit passes. He will conveniently forget what he said, avoid hard questions, and rewrite history to suit his continuing quest to establish that not only is now a great time to buy, but if you don’t buy now, you’ll be worse off later!

    He’s exactly wrong on both counts. Now is a great time to be on the sidelines not having your equity wiped out. I would strongly recommend anyone with a decent property in the RBA to consider selling now, while they can still get a massively inflated price for their homes, even if it is 30% off the peak. The peak was very high.

    Really, y’all should consider selling and renting.

  16. Alex Says:

    Faux Estater,

    Even the National Association of Realtards admit that those numbers were inflated by the tax credits and that they may be in for rough times ahead.

    http://www.cnbc.com/id/37469420

    “There could be a sizable number of homebuyers who responded to tax credit incentives, but may encounter problems meeting the settlement deadline by June 30.”

  17. Real Estater Says:

    Bob says,
    >>I’m going to go ahead and prepare you for your future disappointment when the coming months shows a contraction in home sales due to no more government incentives.

    How many people really get to use those incentives anyways? The overriding factor is low interest rates.

  18. Insecure Techie Says:

    Faux Estater’s answer to #15 is going to be predictable.

    – A Lewis lives in East Bay. How is he going to know anything about RBA?
    – I explained everything in past. Just ask Pralay to give the link to my non-existent post where I explained everything.
    – A rentard like A Lewis does not have qualification to criticize a RBA homeowner like me even if I sound stupid.
    – Just look at the result.
    – I am right all along.

  19. SEA Says:

    Real Estater- “How many people really get to use those incentives anyways? The overriding factor is low interest rates.”

    Uh, low interest rates are not one of “those incentives?”

  20. Real Estater Says:

    >>Uh, low interest rates are not one of “those incentives?”

    Interest rate is lower now than it was back in April. In other words, the party continues because the mortgage market is providing a natural stimulus that follows the government incentives.

  21. Real Estater Says:

    Pralay,

    Not sure if it’s another absence of mind on your part or not, because I obviously responded to the same question in #17, and it’s none of those things you mentioned.

  22. Petsmart groomer Says:

    I’m going to bed now. Can’t wait for tomorrow morning’s finance.yahoo.com headline posted by Real Estater… Our of the 5 or 6 headlines, which one is he going to pick? The excitement is building!

  23. SEA Says:

    “Interest rate is lower now than it was back in April. In other words, the party continues because the mortgage market is providing a natural stimulus that follows the government incentives.”

    You mean the government incentives are lingering into the mortgage market.

    As far as the party continuing, I can think of a few that don’t seem to end:

    1. Foreclosure party
    2. Short-sale party
    3. The “now is the right time to buy” chant party.

    Yes, the party continues.

  24. Real Estater Says:

    SEA,

    You really need to get a grip. I had a chat with my mortgage broker today, and she said the Bay Area house market is very hot right now.

  25. Real Estater Says:

    Petsmart groomer,

    Maybe that’s the point. The writings are on the wall, and yet folks here are oblivious to what’s going on. I don’t get where does all the pessimism here come from.

  26. DreamT Says:

    “folks here” as in Palo Alto? (that’s where you reside, right?)

  27. SEA Says:

    Real Estater- “You really need to get a grip. I had a chat with my mortgage broker today, and she said the Bay Area house market is very hot right now.”

    Very hot = Fire sale?

  28. Petsmart groomer Says:

    > The writings are on the wall, and yet folks here are oblivious to what’s going on.

    My turn to post a link to something everybody already read about.

  29. Insecure Techie Says:

    Not sure if it’s another absence of mind on your part or not, because I obviously responded to the same question in #17,
    —-

    #17 is an answer to #12. Not #15.

    —–
    and it’s none of those things you mentioned.
    —–

    Oh boy, Faux Estater said a different thing. He no longer sounds like broken record. Time to celebrate! :)

  30. A. Lewis Says:

    Told you.

  31. bob Says:

    How many people really get to use those incentives anyways? The overriding factor is low interest rates.

    A LOT of people did. Even the Mainstream Media mentions that the numbers are basically propped up by never-ending incentives. Basically most Americans are pretty bad with money and even though $8,000 doesn’t seem like much to perhaps you and me, its just enough for some shlep to squeeze into a house. On top of that California had their own tax incentive program that was worth $10,000. Thus a buyer in California had a total possible set of incentives worth $18,000. That’s practically a down payment.

    So yeah- I think the US housing market, and especially the California housing market has been propped up because of government meddling that keeps the last wobbly leg under the stool from falling.

    Lastly, it helps to realize that the housing recovery has been negligible simply because prices have not been allowed to fall to levels they will need to in order to restore a healthy market. Wages are completely flat. You throw in that the status quo is weak at best with interest rates at near-zero and you can easily conclude that any sort of hike will cause the house of cards to fall. Simple as that.

    Bottom line- there is no wiggle room and the housing market will likely see more cuts. At the very best perhaps a prolonged period of flatlining. If you are counting on your house for wealth then you’re going to be a pauper for life.

  32. Real Estater Says:

    A Lewis says,
    >>What this home shows is what a bad value everything under an acre, and under 5,000 sqft, is in Palo Alto.

    Mr. A, when you go take a dump in the morning, do you think of Palo Alto also?

  33. madhaus Says:

    Oh look, Real Estater left his computer unattended and Alex kindly posted for him!

  34. Alex Says:

    whoa! how could you mistake me for Faux Estater? At least I think I have a little bit of wit. Not much, but a glimmer here and there. But Estater? He’s just a twit.

  35. madhaus Says:

    Of course you do, Alex, but seriously, when is the last time you heard Real Estater ask anyone about taking a dump? Far more likely that he’d be taking a dump and ring up A Lewis to ask when he’s going to finally buy something.

    Now in your case, I wouldn’t be surprised if you brought it out to the cottage to show it off. In your jockstrap. Because the toilet is clogged, yo.

  36. Alex Says:

    ahahhahhaaha touche!

  37. Alex Says:

    actually, I’d just leave it there and tell the landlady the toilet is clogged. “Go fix it, yo, while I go get me a redhead to make me a sammich.” :)

  38. Sio2 Says:

    A. Lewis, I’d rather live in the Palo Alto 2.7m house than this place. Because of convenience. The nearest store is 15 minute drive away. Add in time every day for commuting. Plus as was mentioned, the cost of maintaining the grounds. I’m sure this is nice, and the view is good, but the convenience of daily living means a lot too.

  39. Real Estater Says:

    A has problem distinguishing between apples and oranges. Palo Alto is urban living, more like New York, and is priced accordingly. The above property is more like the Hamptons. You’d expect to get more surface area for the same money.

  40. A. Lewis Says:

    #39: PA = NY. Brilliant analysis! Much more impressive than your previous toilet-based comments. No, seriously.

  41. Insecure Techie Says:

    #39: PA = NY. Brilliant analysis!
    —–

    Probably he was comparing Park Blvd @ PA with Park Ave @ NYC.

  42. madhaus Says:

    #39: PA = NY. Brilliant analysis! Much more impressive than your previous toilet-based comments. No, seriously.

    So, A Lewis, you are saying that what Real Estater really meant was, “A has problem distinguishing between horseapples and outages. Palo Alto is urban living, more like New York, and is priced accordingly for indoor water closets. The above property is more like the Hamptons. You’d expect to get outhousing for the same money.”

  43. Alex Says:

    #39: Palo Alto is urban living, more like New York, and is priced accordingly.

    Are you friggin kidding me? Palo Alto is as urban as my poop is gold.

  44. biglots Says:

    15070 Montebello Road–This property still has not sold; the land has restrictions that were agreed to with the Mid Peninsula Open Space Regional District. This may be part of the challenge.

  45. madhaus Says:

    According to Redfin it got foreclosed on in July. According to Zillow, the bank listed it for $2M, then cut the price to $1.8M before delisting it. It was also pending early this year but obviously the sale didn’t go through.

  46. SEA Says:

    Note that the asking price went from $3.9M to $1.8M, yet the former sale in 2004 was $1.9M. You know, the so-called over bidding will bring the price right where it needs to be.

    Now REO, the former owner probably thought this was in the RBA. So sorry, buddy, but this is not how the RBA works.

    Measuring from 2004, this place is down in value.

    Just so we are clear:

    2004: Borrow and purchase at $1.9M

    Pay property taxes, insurance, maintenance (more than just light bulbs and Drano, since this is outside of the RBA, as established above)

    2008: List for $3.9M (a little over a price double in about 4 years)

    2011: Foreclosure at $1.8M (under purchase price).

    I’m not sure when the golf holes were put in, and all the other goodies, but I’m guessing that the former owner had plenty of pride of ownership in maintaining those–another indication that this is, and always has been, outside of the RBA.


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