A Shorty with a Story

Posted by Dave Fratello on Thursday, July 10th, 2008 at 3:35am.

MB's newest short sale raises some intriguing questions.

1410 N. Ardmore is a little cottage (3br/2ba, 1600 sq. ft.) on a busy part of Ardmore, near the intersection at 15th. It's quite close to downtown, so that's a plus. (Note: No pics on Redfin or MRMLS just yet.)

Two years ago, the property was offered for $1.1m. It went quickly for $1.2m, closing in March 2006. The new owners spiffed the place up a bit shortly thereafter and folks moved in.

The home is on the market again now at $1.5m, with this note:
Property is a Short Sale, Commission and Price subject to Lender's Approval.
Wait, short at +$300k over the 2006 price?

You might be thinking that the owners went a little HELOC-crazy. But the truth promises to be stranger.

That's because about a year after that 2006 sale, 1410 N. Ardmore sold again for $2.5m.

That's $2.5m, more than double the earlier price.

The property wasn't redeveloped in the interim – just that spiffing-up we mentioned.

So how might such a thing happen?

Your blog host dashed off to the county recorder's office one day a couple months back when this property first popped up in default.

Turns out it's a $2m loan from that Feb. 2007 sale that has now gone bad. (You can see the same thing by looking the property up on PropertyShark.com now.) So $1.5m may or may not be a great price for this home, but it's at least $500k short to begin.

A clause in the $2m loan suggests that there was some intent to develop the property. But if so, those plans didn't get very far.

There's a lot more to this story. Call this Chapter 1.
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