Monday, March 31, 2008

REDC Breakdown

Real Estate Disposition Corporation (REDC) sells real estate assets through the utilization of the auction marketing process. On April 12 in Del Mar over 200 properties (mostly foreclosures) will be auctioned off to the highest bidder.

You might be wondering if you can get in a home cheap? Let's take a closer look:

This property was sold new for $734,500 in Feb 2005. It is currently owned by Countrywide Bank and was sold at auction in Jan 2007 for $540,454.63 and was recently listed for on the MLS for $549,900 as of 1/30/2008.

With no buyer insight Countywide has turned to REDC to sell this property at auction.

How much is it worth?

There are currently 4 properties in near proximity that are currently being listed:

1090 MOUNT WHITNEY RD, 2950 sq ft, 5Br, 3Ba for $514,900

1069 MOUNT WHITNEY RD, 2860 sq ft, 5Br, 3Ba for $525,000

1074 MOUNT WHITNEY RD, 2860 sq ft, 5Br, 3Ba for $494,780

1445 AUTUMN HILLS DR, 2950 sq ft, 5Br, 3Ba for $450,000

So that about $170 /per sq ft on average or $457,000 for the house.

So just because the starting bid is $249,000 I would venture to say that Countrywide will not accept more than a 100K hit on this home. IMHO, I would venture that Countrywide will happily dump this money pit off their books for $450-475K.