Tag Archives: redfin

How to lose $620,000 in 5 years

It’s really simple, just buy this place in the middle of a massive cheap money binge:

10085 Lesterford Ave Downey, CA 90240

Date Event Price Source
Oct 27, 2010 Listed $350,000 MRMLS #M10113549
Aug 27, 2010 Sold (Public Records) 
This home was foreclosed and bank-owned.
$847,667 Public Records
Sep 15, 2005 Sold (Public Records) $970,000 Public Records
Aug 06, 2004 Sold (Public Records) $715,000 Public Records

Someone was actually able to get close to a $1,000,000 loan for this place. That’s about a $4500 a month payment before property taxes and PMI. Who wants to bet that this mortgage got bundled into a security now owned by Fannie and Freddie. The banks, brokers and Realtors© were able to push all the risk off to the taxpayer while reaping big commissions. This was done at the direction of Congress to loosen lending restrictions in the name of “affordable housing”.

Hey the upside is you can get this place with graffiti included for cheap now.