Can a Flip Flop This Quickly?

Posted by Dave Fratello on Saturday, October 13th, 2007 at 4:30am.

Something strange is happening with 225 39th St., a recent El Porto remodel. (Click address for details.)

MBC reported in April that the home was in foreclosure:
Also coming up for auction May 4 – 225 39th St., just a door down from Highland Ave. in El Porto. No recent purchase here, but records indicate a $1.005m loan gone bad.
It seems rare that homes go to auction and go anywhere from there but back to the bank. Fast-forward a bit, though, and records show this home closed for $1.595m on June 14.

Seven weeks later, on Aug. 10, it was on the market, freshly remodeled (3br/3ba, 1600 sq. ft.), at $1.745m (+$150k).

No takers. It was re-listed to wipe out the start price, then it came down a bit, and this week, the list price came down to $1.629m. That's right, just $34k more than the June purchase price.

You'll give the buyer's agent $40k at that price, which makes the deal a loss, straight up.

The big questions are: When the remodeling was done, and by whom? That is, was the work done before or after the June sale, and by the June buyer or a previous owner? Obviously, if the current holder did the work, the losses are magnified.

The only thing that's clear is that this owner wants out. You do not often see a listing go from profit to loss like this in 60 days.
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