Here’s a find from comments, from Burbed reader San Matean, San Matean wants to know what kind of games the bank is playing with this short sale in Palo Alto. We know that a short sale means “selling shortly,” but going pending the same day it’s listed sounds more like an inside job.
SQ. FT.: 1,500
$/SQ. FT.: $553
LOT SIZE: 5,600 Sq. Ft.
PROPERTY TYPE: Detached Single Family
YEAR BUILT: 1930
COUNTY: Santa Clara
STATUS: Pending With Release
ON REDFIN: 1 day
NEW LISTING (24 HOURS)
Location! Location! Location! The following was remodeled in 1997 Kitchen; Master Bathroom; 2nd Bath; Hardwood Floors underneath carpeting. Newly Landscaped rear yard. Large Kitchen great for gathering. Enclosed front with beautiful park like setting.
Wow, they were in such a hurry to “list” this property they didn’t even bother including any photos. It isn’t any different on the agent’s own site, so let’s take a peek at the Googlecam.
Not bad, although this is an 80 year old house. It may need new light bulbs and Drano.
It also looks like some other building has preempted the back yard. The property lines suggest that this house and its next-door-neighbor have gone halvesies on their own meth lab:
Back to San Matean’s concern: this property was listed and went pending the same day. That’s not the real puzzler, though. This house is in 94301, a Really Special Place, yet not only didn’t it double in ten years, it actually may have lost value. Unless, of course, the bank decided that the overbidding would take this house right where it needed to be.
And the reason this house is
now essentially owned by the bank, instead of the couple who bought it with a $706.5K conventional variable mortgage, is they refinanced it in 2005 for $962.5K (also variable). They must have liked the extra cash so much that they did it again a year later. In 2006, the purported owners became FBs when they refinanced with a variable first mortgage of $990K, and a variable second mortgage of $198K, or $1,188,000 total. That is, coincidentally, just $17,500 more than this place’s current Zestimate.
So, our question for you, Burbed readers: How much do you think this house sold for? We have so many fun factors in the mix: Busy street, around the corner from an even busier street (Embarcadero), bank owned property, mystery structure eating up a couple back yards, asking price a whopping 30% below the Zestimate, and a transaction that not only doesn’t look arms’ length, it suggests someone has a banker by the balls.