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
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 daysSTUNNING 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!
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
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.]
Redfin 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.
June 2nd, 2010 at 7:43 am
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.
June 2nd, 2010 at 8:06 am
How many people submitted two offers to meet the April 30 deadline?
June 2nd, 2010 at 8:16 am
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>
June 2nd, 2010 at 8:35 am
SEA,
“Spring bounce” has kicked off in full steam. From what see, even more people are shopping now than in April.
June 2nd, 2010 at 9:19 am
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
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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.
June 2nd, 2010 at 9:32 am
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
June 2nd, 2010 at 9:58 am
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!
June 2nd, 2010 at 10:04 am
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.
June 2nd, 2010 at 5:32 pm
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.
June 2nd, 2010 at 5:39 pm
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.
June 2nd, 2010 at 5:44 pm
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.
June 2nd, 2010 at 6:07 pm
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.
June 2nd, 2010 at 6:16 pm
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.
June 2nd, 2010 at 7:18 pm
“The RE market will continue its natural course.”
NEVER, and I mean NEVER try and guess the wisdom of Congress.
June 2nd, 2010 at 9:19 pm
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.
June 2nd, 2010 at 9:29 pm
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.”
June 2nd, 2010 at 9:42 pm
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.
June 2nd, 2010 at 11:03 pm
Faux Estater’s answer to #15 is going to be predictable.
June 2nd, 2010 at 11:49 pm
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?”
June 3rd, 2010 at 12:23 am
>>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.
June 3rd, 2010 at 12:25 am
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.
June 3rd, 2010 at 12:33 am
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!
June 3rd, 2010 at 12:34 am
“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.
June 3rd, 2010 at 12:56 am
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.
June 3rd, 2010 at 12:59 am
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.
June 3rd, 2010 at 2:04 am
“folks here” as in Palo Alto? (that’s where you reside, right?)
June 3rd, 2010 at 6:30 am
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?
June 3rd, 2010 at 8:45 am
> 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.
June 3rd, 2010 at 9:55 am
Not sure if it’s another absence of mind on your part or not, because I obviously responded to the same question in #17,
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#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!
June 3rd, 2010 at 5:06 pm
Told you.
June 3rd, 2010 at 5:41 pm
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.
June 3rd, 2010 at 9:41 pm
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?
June 3rd, 2010 at 9:47 pm
Oh look, Real Estater left his computer unattended and Alex kindly posted for him!
June 3rd, 2010 at 9:55 pm
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.
June 4th, 2010 at 12:24 am
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.
June 4th, 2010 at 6:03 am
ahahhahhaaha touche!
June 4th, 2010 at 6:05 am
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.”
June 4th, 2010 at 7:43 am
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.
June 4th, 2010 at 10:13 am
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.
June 4th, 2010 at 1:29 pm
#39: PA = NY. Brilliant analysis! Much more impressive than your previous toilet-based comments. No, seriously.
June 4th, 2010 at 2:07 pm
#39: PA = NY. Brilliant analysis!
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Probably he was comparing Park Blvd @ PA with Park Ave @ NYC.
June 4th, 2010 at 4:28 pm
#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.”
June 4th, 2010 at 7:52 pm
#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.
December 23rd, 2011 at 2:44 pm
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.
December 24th, 2011 at 10:23 am
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.
December 24th, 2011 at 11:23 am
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.