Can Troubled REO Deal Stick?

Posted by Dave Fratello on Wednesday, February 1st, 2012 at 11:39pm.

Since we're on the subject of distress sales east of the highway...

We note that it took about 3 months to draw a bid in at 1205 23rd St. (5br/5ba, 3500 sq. ft.), but they've posted a deal as of Wednesday afternoon.

You'll recall – we hope – that this is no ordinary bank-owned property. (If there is such a thing as a normal case.) This one had been vacant for 5 years after the last buyer tried to nab it, but wound up homeless instead. (Being forced into a small, emergency rental instead of moving into the big house you contracted to buy is a form of homelessness.)

The whole sad tale is in "A Cloud Over 1205 23rd" from late December.

The cloud on title for this property, originating in litigation over an alleged phony investment scheme run by the former owner, was said to have been "fixed" before the home hit the market in late 2011. And we hope that's true. The buyers are about to find out.

As the former would-be buyer of 23rd said to MBC: "[I]f I knew half of what was behind this home when looking at it, I would have never entered escrow."

Here's hoping, again, that everything is clear, and that these buyers are going in eyes wide open with all the information they need. If they make this deal stick, they may wind up with a compelling bargain.
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