You may have noticed over the years that we’ve spent a significant amount of time tracking condo foreclosures. During 2009-2012 there were hundreds of foreclosures in Downtown Seattle. Leading up to 2007, there were a lot of investors buying condos in the Seattle market. These included second home buyers, owners looking to rent their space and speculative buyers looking for a quick purchase and flip. Once the recession hit, those condo owners, many of who bought simply for investment, gave their condos back to the bank. Thus creating a foreclosure.
There are still a few of these opportunities to buy foreclosures in this market. We’ll give you an example of one. Many of you are familiar with Mosler Lofts. It was built in 2007 and has a loyal following in the city. It’s located at the north-end of Belltown at 3rd and Clay. While there have been 25 traditional sales in the building YTD, there was a foreclosure sale just a few weeks ago that most on-lookers wouldn’t notice.
The unit is #410. It was purchased in 2006 for $265,000 – once listed in 2008 for as much as $339,000. For reasons we don’t always know, the owner fell behind in their mortgage payments and ultimately the property was purchased for $268,000 last month at the foreclosure auction. The unit came back on for $329,000 and is now currently selling for $318,000 by the investor who bought the unit at auction.