A house going through foreclosure isn’t news anymore.  But more and more homes are showing up with their 2nd round of foreclosures.  9979 Moondust is just the latest.  A modest 1648 SF 3/2 in Sky Vista.

Owner #1 bought the house new in August 2003 from Barker-Coleman for $165,644.  100% first mortgage with pretty onerous subprime terms – 9.875%  3/27 adjusting to LIBOR + 8%.  Not surprisingly, they refied a year later, but into a $220,000 Option ARM.  But in October 2005, they broke free of the anchor home, selling it for $315,000.

Owner #2 also managed to buy the house with 0% down – a $252,000 30 year fixed and a $63,000 HELOC.  But they missed their January 2007 payment and the home went back to the bank at a Trustee’s Sale in September 2007 with $274,934 owing on the first loan.

Owner #3 bought the house for $215,000 in July 2008 after the property sat in limbo for a while.  Thank-you FHA for the $211,982 mortgage.  A NOD was filed in March 2011 10 months after their first missed payment.  The TD was complete on 14 November 2011 with $239,003 owing.  And today the house listed for $115,000.  Care to be lucky owner #4?

I love happy endings 😉 , and hoped owner #1 lived happily ever after with their windfall  safely tucked away in college accounts for the kids.  Alas, not to be.  They upgraded to 17760 Thunder Creek in October 2005 for $341,734 with a $271,500 1st and a $33,900 2nd – at least they had 10% skin in the game this time.  But the NOD was filed in December 2010 for a missed September 2010 payment, and the property went back to the bank in June 2011 with $287,204 owing.  It resold for $142,900 last week.

The alternate title for this post was “chain of fools”.  All of the parties were first time buyers.  Owner #1 was “given” $150K just for their good (great, actually) timing on their initial purchase, but they blew it.  I almost feel sorry for #2 – it was the peak of the market frenzy and it was a relatively modest purchase for the time.  #3 was the ultimate knife catcher buying in mid-2008 when the market had “bottomed”.  I’d like to say that #4 will get a great, safe deal at $115,000, but my house-dar seems to be broken of late.