Here's a guy that bought a foreclosure a year too soon.
2822 Vandermolen in Norco hills. This house is 3738 sq/ft with 5 bedrooms and 4 baths was foreclosed on back in March of 08 for $674k. The previous sale was in Feb 07 for $1.2M, and that sale just reaks of fraud. It was purchased as and REO last August for $600k. The guy surely thought he got a steal. After all it was 50% off! But then homes around him start listing for closer to $400k than $600k and he probably starts thinking, "oh crap, I pulled the trigger too soon". What ever the reason he's already bailing out and hoping to get $550k for it. After fees this guys gonna lose close to $100k in 8 months if he gets his price (doubtful). We have to assume this guy put at least 20% down. A non-conforming loan was just about impossible to get without a hefty DP late last year. Does he have any hope of getting $550k? I doubt it. With a dirt yard and minimal landscaping in the front this house is a hard sell. The inside looks nice but there is a model match around the corner for $490k that hasn't sold in ages and there was another one down the street that must have gone pending, it was listed and $449k (for quite a while too).
A perfect example illustrating the dangers of jumping off the fence too early!