Purchased for $717,000 in February 2008 with a first mortgage for $417,000, a second for $264,150, and $35,850 (5 percent) down, this past April a Notice of Default (NOD) was filed on 425 1st Street #1308 with $14,809 past due.
Postponed last month, in an hour the 755 square foot One Rincon Hill one-bedroom is scheduled to hit the courthouse steps with a published opening bid of $437,793, call it $161,207 (27 percent) less than the current list price of $599,000 for 425 1st Street #808 which was purchased for $616,264 in February 2008 as well.
Three months ago, the Realtor owned 425 1st Street #1408 resold for $605,000 having been purchased for $655,319 in March 2008. Having not been officially listed since October of last year, however, the most recent sale price for #1408 wasn’t required to have been reported on the MLS and it wasn’t.
∙ Listing: 425 1st Street #808 (1/1) 755 sqft – $599,000 [MLS]
∙ Four More One Rincon Hill ‘04’s Headed For Foreclosure [SocketSite]
are they not sold out yet?
Let me guess, the realtor that decided it was better to dump 1408 at a loss is now marketing ORH as a great investment to others?
But wait.. just yesterday I got two “you’ll never have this opportunity again in your lifetime” email from a pair of realtors.
Something doesn’t add up here… hmmm.
Did #1308 sell at the courthouse auction?
UPDATE: 425 1st Street #1308 sold for $460,000 on the courthouse steps.
Ouch. I bet it shows up on MLS quickly.
Is the buyer on the steps now liable for any previously unpaid HOA dues or did the bank square that up already?
MOD, the junior lien (by the HOA) is wiped out by the foreclosure. The HOA has recourse to go after the former owner, but that is all.
Thanks EBGuy. So then almost every foreclosure in a condo building results in a shortfall of HOA receipts. And that shortfall then becomes a liability to the current and future owners.
That situation could either avalanche (if the HOA fees are immediately racheted up to account for the shortfall, resulting in more bankruptcies) or become a time bomb (if the shortfall is kicked down the road) depending on how the HOA manages its treasury. If the developer is still a major owner in this building then they will steer the HOA management towards the “time bomb” scenario in hopes that they will divest their ownership before the clock counts down to zero.
The HOA can technically sue the former borrowers, unlike the bank in many cases… Some strategic defaulters still pay the HOA fee.
So, 1308 is down about 35% since 2/2008? Sounds about right for this eyesore of a building that basically sits on a freeway on-ramp.
Look at the bright side for other owners (esp #1408). Their can show this sale and reduce their property taxes for the next year. That’s more money in the pocket. So, more to spend and support this economy (70% of GDP is consumer spending).
“Their can show this sale and reduce their property taxes for the next year. That’s more money in the pocket. So, more to spend and support this economy”
Assuming they aren’t paying PMI and hoping to stop some day.
What bright side?
The bright side that said if they had waited a few months, they would have saved about $100K?
The bright side that says their entire down payment has just been flushed down the toilet in a matter of months?
I’m sure they are jumping for joy.
Hello, I was wondering if anyone here could help me. I am looking to possibly buy a condo in this building. Can anyone tell me the circumstances in which condos are auctioned off, or how to participate in such an auction? Thanks in advance.
Joe,
I can’t help with advice on participating in an auction, but I can give you the generic but still applicable advice about doing your due diligence. Having lived at One Rincon for a year, I believe it is particularly appropriate for would-be buyers. I regret that I didn’t do enough before I moved in and I quickly regreted it.
My own issues were poor construction, noise from the freeway and neighboring apartments and an unresponsive management office. Others may have had good experiences at One Rincon (cheers to them). But please look before you leap, so that you don’t repeat the mistake I made in being simply attracted to a nice view.
FWIW, the ORH HOA has filed suit against the previous owners for just over $18k in claimed damages. The owners responded with their denial of claims last week.
all the gory details are here:
http://webaccess.sftc.org/Scripts/Magic94/mgrqispi94.dll?APPNAME=IJS&PRGNAME=ROA22&ARGUMENTS=-ACGC11516188