Short sale and foreclosure buyers talk about their recent Santa Cruz purchases
When Gary and Sara Strands took possession of their home, everything from the kitchen stove to the air conditioner was missing. Kitchen cabinets, doors, and lighting and plumbing fixtures were all gone. There were holes in the walls and the toilets were backed up because the previous owners had also taken the water pump.
The Strands purchased their Santa Cruz home from the bank a year and a half ago, after the previous owners lost it in a foreclosure. They recently had the home appraised (so that they could refinance and drop their interest rate down from a 5.25 to a 4.25 percent fixed rate), and found that the house appraised for $300,000 more than their purchase price of $525,000. The owners who lost the property in foreclosure owed the bank $879,000, and Wells Fargo Bank took a $354,000 loss on the transaction.