How is that possible?--1221 Sherman St, Alameda, CA
Everybody probably knows about the enormous house on a giant lot at 1221 Sherman, which recently dropped its price by almost $1M all at once.
Turns out it's a short sale, at least according to Redfin.
What really has me scratching my head is this:
Bought 17 years ago, this house should be half paid off. Back then, loan underwriting still followed some standards, by and large, so let's assume a classic 80% LTV mortgage, rounding up to a $600,000 loan. 17 years later, the owners might owe $400,000. Yet here we are with a short sale listed at $1,569,000, which suggests about $1.2M or more has been added to the loan balance. I shudder to think that the initial list price ($2,488,905) was actually the current balance.
So I ask, how is that possible??!
Turns out it's a short sale, at least according to Redfin.
What really has me scratching my head is this:
Property History for 1221 Sherman St
| Date | Event | Price |
|---|---|---|
| Jul 16, 2009 | Price Changed | $1,569,000 |
| Jul 07, 2009 | Listed | $2,488,905 |
| Mar 20, 1992 | Sold | $739,000 |
Bought 17 years ago, this house should be half paid off. Back then, loan underwriting still followed some standards, by and large, so let's assume a classic 80% LTV mortgage, rounding up to a $600,000 loan. 17 years later, the owners might owe $400,000. Yet here we are with a short sale listed at $1,569,000, which suggests about $1.2M or more has been added to the loan balance. I shudder to think that the initial list price ($2,488,905) was actually the current balance.
So I ask, how is that possible??!
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