Massive House, Massive Foreclosure: Mansion for Sale in Laguna Beach

"$20 million foreclosure hits the market"
The Orange County Register (September 3, 2010)

"A years-long construction project flirting with loan defaults finally reverted to the bank and is now listed as a foreclosure in Laguna Beach.

The massive property turned up in public notices late February 2009 owing $15,137,411.73.

"The property - located at 31401 Mar Vista Avenue in South Laguna - was then listed for $28 million. The coastal project was still under construction at the time the loan defaulted.

"The home escaped public auction and disappeared from the radar momentarily as the owners filed for bankruptcy; a move that stops the foreclosure process.

"Then, the property turned up again in public notices May 20, 2010 with an unpaid amount of $19,140,939.26 - considerably more than the previous unpaid amount...."

This isn't a particularly small house: the article says it's got 11,300 square feet of "living space" (what other kind is there in a house?). That includes four bedrooms and six bathrooms. Which seems an odd ratio. Another oddity is that the article says there are six bathrooms, and the listing they quote says there are seven. Somewhere along the line, somebody dropped a bathroom.

The lot this pile is sitting on covers 6.9 acres - and the listing quoted in the article says it has an ocean view. Also, that construction is now complete.

Sounds like a nice place, for someone with around $20,000,000 to spare - and the sort of income it would take to maintain a place like that.

The article explains why this house-for-sale item is newsworthy:

"...Now, the newly constructed home is listed as a foreclosure asking $19,950,000. That makes this foreclosure the fifth priciest home for sale in Laguna Beach and arguably the most expensive foreclosed home for sale in Orange County...."
(The Orange County Register) [emphasis theirs]

At $19,950,000 as an asking price - and it's the fifth priciest house for sale in Laguna Beach? Now, that's impressive.

What the article doesn't say is who was building this, and why: and what happened to the owner's financial situation.

Foreclosures are a sort of good news/bad news proposition: on the one hand, you've got someone who's facing tough times; on the other, situations like this can be an opportunity for someone to pick up a 'dream home' that they couldn't afford otherwise.