The Encinitas Short Sale from Hell: Closed

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by Roberta Murphy

Encinitas short saleEncinitas Short Sale that should never have been….

Kudos to the patient buyers of this Encinitas short sale, because they truly got a terrific deal ($890,000). It was group hug time Friday afternoon when we received confirmation that our 10-month short sale ordeal in Encinitas Ranch had successfully recorded and closed.

Welcome relief is also due the out of area young seller, who had been unwittingly pulled into a raunchy real estate transaction by a couple of sleazy mortgage brokers (one of whom was the seller) , a credit “packager” –and escrow, title and appraisal personnel who surely knew better than to facilitate such a sham.

Our first time home buyer-turned-seller from Los Angeles, with excellent FICO score (and no savings), was lured by the promise of buying an “undervalued” $1.2 million home (100 percent financing) in San Diego that he could profitably sell 6 months later–while someone else made the payments. It was to be his stepping stone to riches. Or so he thought.

Instead, it turned into 16-month nightmare:

. The “credit “packager” forged our client’s name and leased the property at under-market rent. He collected rents and deposits for about four months, until we listed the Encinitas home for sale. At that time, the tenants began paying rent to their attorney and barred us from showing the home. Now, we were dealing not only with a short sale, but a listing that could not be shown.

. Because we had priced the property aggressively, because Encinitas Ranch is a very desirable community, and because we marketed the home everywhere possible, we were able to secure 8 offers–ranging from ridiculous to credible. This in spite of the fact that the
tenants and their attorney would not allow anyone in to see the home.

. Foreclosure sale for this Encinitas home had to be stopped three times because the loss mitigation department of this major lender has a major interdepartmental communication problem.

Real estate commissions were slashed by the short sale lender, but that is nothing new. They also refused to pay HOA fees that were in serious arrears, the home warranty for the buyer, utilities in our name, and a list of other necessities required for closing. But sometimes achieving the impossible is almost worth more than monetary compensation.

Monday morning, I will order the sign removed from this Encinitas property, where it has probably set a record for the longest-standing Realtor’s sign in Encinitas Ranch.

The neighbors will breathe a sigh of relief–and so will we.

Listed below are other Encinitas Ranch homes listed for sale, with most recent offering showing first. If you have any questions, call Roberta or Scott Murphy at either 760-942-9100 or 760-613-6190.

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511 Paloma Ct Encinitas, CA 92024

$1,450,000
5 Beds
4.5 Baths
3,911 SqFt
Status Active
MLS # 180049523
Property Type Single Family Residence
Prepare to be in awe as you enter this spectacular bright and open home! Gaze upon the circular staircase with decorative wrought iron detailing, a large separate living and family rooms, dramatic floor to ceiling windows bathe the living spaces in natural light. The Chef’s dream kitchen features a plethora of cabinet and counter space, a large eat-at center island, double oven and a massive built-in refrigerator, plus a butler's pantry with wine cooler adds convenience to all your gatherings.

1002 Alexandra Lane Encinitas, CA 92024

$1,100,000 - 3Br/2Ba -  for Sale in Encinitas
Open House
$1,100,000
3 Beds
2 Baths
1,625 SqFt
Status Active
MLS # LG18294949
Property Type Single Family Residence
To live in the city of Encinitas is to live in the “Hills of live oaks”. Encinitas sits on the coastline of the Pacific Ocean, to the north is the Batiquitos Lagoon and to the South San Elijo Lagoon. And the gem of the city is Encinitas Ranch, which boasts an abundance of walking trails, open space, and a rural feel. and yet a close proximity to cultural events in downtown San Diego and many of the world famous beaches of Southern California. This pristine Single Story home sits on a spacious 7800+sf

1172 Hampton Court Encinitas, CA 92024

$1,099,000
4 Beds
3.5 Baths
2,578 SqFt
Status Active
MLS # 190000652
Property Type Single Family Residence
Brand new updates to great Encinitas Ranch home. 4 bed, 3.5 bath, 2578 sq.ft. on cul-de-sac. Solid oak floors. Designer counter tops & back splash. New Kitchen Aid SS cook top, hood, oven, microwave, refrigerator & dishwasher. Kohler sink & Hansgrohe faucet. Solid oak cabinets-freshly painted-new LED lights-new hardware. Updated fireplace. New door handles. Powder room updated. Freshly painted interior, front door, garage door & porch. Fresh sod & flowers in the backyard. Great soaking spa w/new cover.

1126 Alexandra Lane Encinitas, CA 92024

$1,049,000
4 Beds
3.5 Baths
2,578 SqFt
Status Active
MLS # 190003698
Property Type Single Family Residence
Encinitas Coastal minutes away from stunning beaches & golf course! This distinguished 2001 home w/4 bed & 3 full bath 1/2 welcomes you w/an inviting formal living & dining room featuring oak hardwood floors & plantation shutters. The Kitchen is a delight w/expansive coriander counter tops, backsplash & a 4 gas burner. The spacious master bed features vaulted ceiling and an elegant master bath w/a garden tub, 2 walk in closets & new coretec floors. Relax in the cozy backyard that has no neighbors behind.

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6 responses to “The Encinitas Short Sale from Hell: Closed

  1. Congratulations are in order to you, Roberta Murphy, for a job well done in closing the short sale from hell. Ten months in escrow…that was one, big overdue baby! A great feel-good ending to what appears to have been an excruciating, nightmarish experience.

  2. Robin:

    Thank you! It will feel so good not waking so early to call WAMU back east at 6 a.m. Encinitas Ranch will also be immensely relieved to have wonderful new neighbors.

  3. San Diego short sales and foreclosures are becoming far too commonplace. Fortunately, some of the lenders are now aggressively trying to save many of the defaulted San Diego homeowners.

    Somehow, I think Santa Barbara will not be quite as hard-hit with foreclosures and short sales as the inland areas of San Diego.

  4. Great job hanging in there. I, too, just hung on to two short sales and incurred some of the same lender problems. I continue to work these deals in Santa Barbara and find that they are going more smoothly and slightly faster. The interdepartmental communication can be the worst! Utimately, getting it done is what matters. Your communication skills were put to great task. Congrats!

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