Kenny Lane isn’t a person, or even a Beatles song. Kenny Lane is a street in San Jose, and there’s a house on it that’s the subject of today’s fascinating Guest Post.
Please give a big RBA welcome to today’s Guest Blogger, Tracy! This is quite a tragic tale, and many of these bank bastardry details cover why Burbed will never run out of horrible housing to highlight.
Why I see so much stuff in the East Valley, or The Sad Sad Story of Kenny Lane
When the owner of this house died, she was in debt. A wonderful woman by all accounts, at about age 87 she took a second on her home, which she owed a sizable chunk on the first. Well we don’t stay here forever, and in 2009 her daughters found themselves in the sad position of inheriting a debt. They decided to walk away, let the banks foreclose and cut their exposure. Because they are super nice people, they used a neighbor as their realtor.
SQ. FT.: 1,880
$/SQ. FT.: $213
LOT SIZE: 1 Acre
PROPERTY TYPE: Detached Single Family
VIEW: Bay, Green Belt, Mountains, City Lights
YEAR BUILT: 1960
COMMUNITY: Alum Rock
COUNTY: Santa Clara
STATUS: Pending Without Release
ON REDFIN: 7 days
1 ACRE LOT WITH PANORAMIC VIEW FROM MOST ROOMS AND LARGE DECK!
The house has some good features. Even though suffering from years of neglect ( the second did not go to home repairs …) and being located on a steep hill, it has the grooviness factor my husband and I were looking for. I loved the location as well. It was on the market for the price of the debts which was waay too high. We got into contract for it, and agreed that we would adjust to the level the house appraised at. We did due diligence, secured financing etc., and finally agreed to pay $580,000 for the house.
Banks were fighting over 10,000 dollars
Bank #1 did not want Bank #2 to have $20,000 on #2’s $75K debt; Bank #1 wanted all monies. So we finally made a side deal to directly pay Bank #2. Unfortunately this kicked up a HUD2, and after all money was paid, escrow papers etc. done all parties assuming the deed was done on a Friday afternoon. When I checked to see if all was closed on Monday, I got the bad news that Bank #1 refused to sell because of the money to Bank #2, and after 6 months of work, we lost the house!
Foreclosure started and we were not informed of the auction date, the bank only had a short notice, and we only found out from the heirs the day before. I was unable to get a $500,000 cashier’s check on short notice and no one bid on the house, it was returned to the bank for the opening bid of $504,000.
Now it is on the market again for $400,000, which is one of the reasons I started following Burbed; the absolute craziness of the banks and the real estate world. Where does it make sense to turn down $180,000 more? Only when bank number one is evil Occwen… AKA Countrywide.
The pictures on the house defiantly qualify as the world is tilting worthy. I have many better pictures of the problems of the house which I attach. The house is on a steep hill with no retaining wall, and no working septic system. It does have a million dollar view, and is open on Saturday July 23rd. [That’s today – ed., also tomorrow and next weekend.]
I don’t think I’ll go.