Sex party house sells — sort of
On Tuesday, Countrywide’s sex party house sold at auction for $475K, a substantial haircut from the $1.1 million Countrywide was in for. Keep in mind that as Floyd Norris pointed out last month, that doesn’t include any losses from second mortgages.
Real Estate Disposition Corp handled the auction on Tuesday and will collect a 5% buyers fee for their efforts, bringing the total price to just under $500K. That’s assuming Countrywide/Bank of America accepts the offer. According to Joe Joffrion of REDC, whom I spoke to a short time ago, the $475K did not meet the reserve price, though it was substantially higher than the minimum bid of $279K. Because of that, the seller now has 15 business days to decide whether to accept the offer.
Our advice to Countrywide? Take the offer and call it a day. While Zillow still values the 7-bedroom house at $1.1 million, few other people would. After all, the house has been sitting on Countrywide’s REO listings since last November and according to the Countrwide Foreclosures blog, there’s still nearly 13,000 more properties to dispose of.