Distress Ends Quickly

Posted by Dave Fratello on Friday, July 29th, 2011 at 4:35am.

It turns out that July was a good month to be in distress.

Not even 3 weeks ago, we mentioned 8 MB listings that were in some form of distress – REOs, shorties and homes facing foreclosure – and we discussed 6 of those in some detail. (See "The Distress List.")

Now, of the 6 we discussed, 4 are in escrow. Only 2 East MB shorties are still available.

Taken:

456 21st St. (3br/4ba, 3325 sq. ft.) was the highest-priced distressed property listing in MB, a 3br, custom-built Caliterranean overlooking the baseball fields at Live Oak Park.

It had cut from $2.8m to start (a rescue price?) to a short-sale offering price of $2.049m before finding a buyer.

Now, can they get the lenders to approve?

3108 Walnut (pictured) (4br/4ba, 3700 sq. ft.) was listed short with an NOD against it, but also somewhat overpriced at $1.595m when we last mentioned it.

The price had been cut to $1.495m a couple of days ago – still higher than the total amount of the loans. Thursday the listing posted a deal.

1412 Wendy Way (no photo here) (4br/4ba, 3500 sq. ft.) is an East MB REO, a newer (2005) custom build that backs up to Aviation.

The home had run through on-and-off attempts to sell since early 2009, with a high ask of $1.560m in late November last year.

Last list, for a pretty dern big and newer house: $1.128m. You had to imagine that someone would like that.

860 12th Ct.
860 12th Ct. (3br/2ba, 1200 sq. ft.) is the short-sale home that once featured The Pig in the listing. It was offered at $935k.

As we noted just a few days later, a neighboring home of comparable size on a corner lot, 837 12th Ct. (3br/2ba, 1200 sq. ft.), tried to jump in front of 860 by cutting its price lower, to $925k.

Both are in escrow now, but The Pig beat the corner lot by several days.

Still out there, from the prior story:

1801 5th (2br/1ba, 800 sq. ft.) is still the cheapest troubled sale, an REO offered at $695k.

The little home on about a half lot (3825 sq. ft.) was purchased for $870k in May 2007, putting the current REO offering price 20% below the '07 value.
1750 Ruhland (5br/6ba, 4250 sq. ft.) is a short sale that hasn't changed since our last update 2 weeks ago, still up at $1.961m.

The newer home (2006 build) was last purchased for somewhat more: $2.225m a full 4 years ago, in July 2007, at the peak.

We previously noted that the sellers had raised the price $100k from the start, raising some questions as to how serious they are about finding a buyer.

But, hey, there are still a couple days left in the month, and July has been good for troubled listings, so maybe things could look up?
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