M sent me a listing awhile back, and I just have to share it. The home is located in Scottsdale, AZ. Here’s the picture: [MLS #4002657 for everyone with access.]
Nice looking place, isn’t it? Here’s what it says in the remarks though about this property that is listed for $3 million:
Any Buyer wishing to make an offer on this home must indemnify owners/brokers against all latent construction defects. 150+ item list of latent defects on record via a construction CORRECTIVE ACTION ORDER issued against contractor by the Registrar of Contractors. WAMU,now Chase Bank, has been notified, and has a written list of all defects that must be disclosed to all potential buyers upon accepted offer. Negative AM loan is now over $3,000,000 owed, listed at loan amount, must get bank approval to accept offer. also include MOLD disclosure addendum with all offers.
This is what M had to say about this property–
This one listing seems to pretty much sum up the Phoenix housing bust with:
1. Faulty construction
2. Speculation
3. "Owner/Agent"
4. WaMu
5. Mold
6. Bigger is better [8,283 sq. ft.]
7. Neg-Am loanAm I missing anything?
I think the only thing he missed is that it is not a REO. Yet.
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This is not an anomaly, you’ve only scratched the surface on the issue of shoddy construction.
It’s not a pretty picture.
Something tells me that construction defect lawyers are going to get a lot of business. If they aren’t already.
arizonaslim, your note thinking straight:
1. builder bankrupt
2. owner bankrupt
3. agent in foreclosure/owner.
no business at all for a construction defect lawyer, there is nobody left standing with any $$.
8. Designed to look good without being good.
9. There’s a big, nasty, expensive mess… but it’s not our fault and we won’t be held responsible for ANY of it!
150+ known defects AND mold all for only $362/sf? Wow, what a deal – that one should get snapped up quick :/
Look at the bright side, it will make a good flipper for someone.
But does it have granite?
The Ole Arizona Housing Bubble/Bust. Ah, nostalgia for the present. I came across this article mentioning the likelihood of false recovery in Phoenix and elsewhere.
Jay Butler, Housing Bear? Greg Swann, Making Sense? What is next? Cats and dogs getting along?
“The drop is misleading and temporary, argues Jay Butler, director of realty studies in the Morrison School of Management and Agribusiness at Arizona State University.
Foreclosures were put on hold earlier this year while lenders waited to see the impact of various government-mandated loan-modification and financing programs. Prof. Butler said that hiatus is ending, and most homeowners in Phoenix don’t qualify for these programs anyway because the market has sunk too far for banks to bother with loan modifications.
Mr. Swann pointed out that thousands of homeowners will likely walk away from their houses because they owe far more on their mortgages than the properties are worth.”
http://tinyurl.com/n8o9yp