A Short Sale in Manhattan Beach: Too Much Leverage, Too Long on the Market

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The eagle-eyed Manhattan Beach Confidential has spotted something rare down there: a short sale.

This is not your garden-variety ‘Prices-are-falling-and-I-financed 100%’ short sale (otherwise known as the ‘Sacramento Slipper’). It appears the owner here borrowed against the home at the peak and ran into trouble selling in a softening market.

More, from Manhattan Beach Confidential: ‘2507 N. Valley is pending after, sheesh, at least 15 months on the market (with some periods off) ... The seller paid $1.54m in Feb. 2004, but the ‘short sale’ stuff popped up when the price was at $1.999m. Uh-oh. At something less than $1.799m (we’re guessing), a bank somewhere is looking at about a $300k loss on this one.’

Comments? Insights? Anybody got a better nickname for short sales? We just made up ‘Sacramento Slipper.’
Photo Credit: GSBRMLS via Manhattan Beach Confidential.