La Boheme Short Sale Blocked

Published: Monday, April 21, 2008 11:28 AM PDT

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The condo at North Park's La Boheme complex that was priced lower than the units restricted "affordable" has fallen out of escrow.

Real estate agent Norma Santa Cruz had listed the one-bedroom, one-bathroom unit as a short sale with an asking price of $166,000 to $168,000, and it went into escrow a couple of weeks later. (A short sale happens when a house is listed for less than is owed on the mortgage.) The "affordable" one-bedroom, one-bathroom units were listed for $183,701.

That disparity formed the basis for two stories (found here and here) and commentary by my colleague Scott Lewis about the competition for lowest price between market-rate and government-restricted prices.

In an e-mail this weekend, Santa Cruz told me the short sale had been rejected by the lender. She said the lender had changed its short sale guidance a day earlier to bar short sales on units that were not owner-occupied. Santa Cruz said the unit in La Boheme was not her client's primary residence.

We'll follow this unit and keep you posted as it progresses through foreclosure. The price disparity could be even greater if the unit becomes a bank-owned listing.

-- KELLY BENNETT