Ladera Heights REO – Just above Culver City’s Holy Cross Cemetery
This neighborhood just to the south of the Holy Cross Cemetery has rather large homes priced on the high side. They are starting to see some cracks in prices up there, with homes priced below what they paid or bank-owned homes for which the bank is unlikely to make back its loan.
Sale history below indicates the bank bought the house back (my guess is that they bought it in auction when they couldn’t get bids high enough to cover the outstanding loan). The sad part is that 3 years after buying, the owners should have had some equity. They either withdrew equity or had an interest-only (pay-what-you-will) ARM that readjusted – something that made their outstanding loan owed more than what they originally paid in 2004.