Saturday, July 21, 2012

Bank makes $1 Million on Foreclosure

by Calculated Risk on 7/21/2012 08:10:00 PM

It looks like Capital One Bank made $1 million on this foreclosure.

From the O.C. Register: $8.1M oceanfront home sells as foreclosure

Located at 989 Cliff Drive on the oceanfront above Laguna Beach's Shaw's Cove, the Mission style villa sold for $8.1 million in an all cash deal ... The Cliff Drive property sold to the bank for $7,006,347 December 28, 2011.
Actress Diane Keaton bought the house in 2004 for "around $7.5 million" and sold it in 2005 for $14.5 million (nice flip!).

Capital One Bank foreclosed on the home in December 2011. There were no bidders and the house went back to the bank for just over $7 million.

Of course Capital One Bank could have bid less than they were owed at auction (maybe someone can pull up the details), but with the house selling at the asking price of $8.1 million for all cash, it appears Bank One made $1.1 million minus expenses.

Update: Any extra proceeds probably go to the borrower above what the bank was owed - I'm trying to find the state law in California. (ht Shnaps)

Update2: It appears update 1 was incorrect in California. Also apparently the first was greater than $7 million (around $7.8 million with costs), and the bank wouldn't have made any money after selling expenses. But if there was some extra, it would go to the bank in California according to several sources.

Earlier:
Summary for Week Ending July 20th
Schedule for Week of July 22nd