This one has it all, folks. New construction flip, zero down/100% financing, subprime lending, first payment mortgage default, a firm commitment to the 'False Drop Theory,' and a flashy Cadillac Escalade parked out front.
10219 Camino San Thomas is a 3,729 sqft home in the new Travata development of 4S Ranch purchased 6/23/06 for $1.106 million. Financing courtesy of WMC Mortgage using their "SuperSize My 80/20 Combo" jumbo loan package with a $885,000 first and a $221,000 second.Fast forward 5 months to 11/28/06, the notice of default is sealed and delivered. What have we learned about NOD's filed less than 8-9 months after the loan origination? First payment mortgage default until proven otherwise.
Our flipper has not given up hope, however. Since 8/23/06, our flipper has been entertaining offers at $1.256 million. How are homes in the rest of 4S Ranch doing? Well, John Laing Homes is offering a 3,274 sqft home for $735,824. That's $225/sqft vs. the $337/sqft that our flipper friend is hoping for. What do you think about our flipper friend's chances? Think Mr. Smiar's 'False Drop Brigade' will come to the rescue?