West Hollywood short sale or REO - $1 million

[Ben Johnstone]

Hi Everyone,

This info kind of came about from my other posting so I thought id start a new thread in the appropriate section.

Theres a multifamily unit I've been looking into as it's a block over from where I live, a bit distressed and is vacant. From some research I've found out its been owned by the same person since 1999. They've refinanced a bunch of times and since 2009 has had 6 foreclosures! However it is still owned by the original owner. Im not sure what this means, whether it didn't sell, or ssa deal was made - 2 of the foreclosure ended up being bought by a LLC owned by the original owner who then later transferred it back(??)

The first foreclosure was for 1.1m then 1.05m then 1.25m then back to 1.1m.

I walk past the house YESTERDAY and a default notice is up. They are being foreclosed on again, date set for 3 weeks with the owed amount now being 1.35m

Don't worry I'm getting to my questions...

1)Im new to foreclosures, being that in LA there rant to many deals to be had and competition is crazy, but I was interested in this place before the foreclosure. Can anyone with expertise deduce anything about their situation from what i've described. How can the same person foreclose and the bank sell it to an LLC owned by that person?

2)The place is worth about 1.1 as is, but obviously I need it at a lot less. Clearly no one bought the foreclosures at 1.1 so my guess is it will be an REO. Is this a decent assumption to make?

3) I really need this house at less than $800,000, so my main question is when it comes to REO'S on million dollar properties, will the bank take such a big loss? If they are owed 1.35m they are going to be making at least a $350,000 loss already as no one will buy it above 1m. What should i expect?

4)What should be my strategy, should I call now and try and see what their thoughts are on a short sale or just wait. The whole history of this property is just so confusing, why so many separate foreclosures and why is it still owned by the same person?!

Any advice would be greatly appreciated.

(Even at 1m this could be a great deal - I just don't have the funds)

Thanks!!