“Loss Of The Day”
Today I noticed what is probably the very first Notice Of Default at Valencia’s Madison at Town Center. Talk about a decrease in home value!
This owner purchased this 3 bedroom 2 bath, 1440 sq ft condo for – $502,000 back in Nov 06. Yikes.
The sales office is still trying to sell about 9 units. Due to the difficulty they are having selling them, they are offering $10,000 towards closing costs when using their lender, and HOA fees will be reduced to $200 for two years.
How can anyone of the owners, who’s value has gone straight down, compete with the sales office who has had the luxury of lowering their prices, and offering attractive incentives such as lower HOA fees and closing costs paid.
It looks like this condo, that received an notice of default, purchased with 100% financing. So, in order to sell they will have to do a short sale. With that said, NO lender will give a mortgage on this community right now (that I’m aware of) due to the community not being Fannie Mae/Freddie Mac approved (due to % of owner occupied units).
I estimate, that this unit, which was purchased for $502,000 last November 2006, is worth about $400,000 right now based on other condos and townhomes for sale in the surrounding Valencia areas. Even if this owner did list it for $400,000 right now in the MLS, and had equity in the property, and a buyer was able to buy this condo with any lender of their choice – there’s still the drawback of the enormous $394 HOA fee per month. You almost have to reduce the value of the home just because of the high HOA fee!
Interested in downloading daily Notice Of Default notices located in Santa Clarita, Los Angeles County, and the rest of Southern California? CLICK HERE!
